10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2018

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

0-55320

(Commission file number)

NEXIEN BIOPHARMA, INC.

(Exact name of registrant as specified in its charter)

Delaware	26-2049376
(State of Incorporation)	(I.R.S. Employer Identification No.)

4340 E Kentucky Ave., Suite 206, Glendale, CO 80246

(Address of principal executive offices) (Zip Code)

(303) 495-7583

(Registrant’s telephone number, including area code)

Intiva BioPharma Inc.

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes [X] No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [  ]	Accelerated filer [  ]
Non-accelerated filer [  ]	Smaller reporting company [X] Emerging growth company [X]

If an emerging growth company, indicate by the check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes [  ]  No [X]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 53,715,996 shares as of February 11, 2019.

TABLE OF CONTENTS

Item	Description	Page
	PART I - FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS.	3
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.	16
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.	20
ITEM 4.	CONTROLS AND PROCEDURES.	20
	PART II - OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS.	21
ITEM 1A.	RISK FACTORS.	21
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.	21
ITEM 3.	DEFAULT UPON SENIOR SECURITIES.	21
ITEM 4.	MINE SAFETY DISCLOSURES.	21
ITEM 5.	OTHER INFORMATION.	21
ITEM 6.	EXHIBITS.	22

2

PART 1 - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

Nexien BioPharma, Inc.

Consolidated Balance Sheets

	December 31, 2018			June 30, 2018
	(Unaudited)
Assets
Current Assets
Cash	$	398,687		$	819,739
Due from related party		19,500			15,000
Total current assets		418,187			834,739
Due from related party - non-current		90,667			99,667
License		347,915			337,915
Total Assets	$	856,769		$	1,272,321
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable and accrued expenses	$	11,641		$	88,785
Total current liabilities		11,641			88,785
Stockholders’ Equity
Preferred stock, $.0001 par value; 10,000,000 authorized; none issued		-			-
Common stock-$.0001 par value; 200,000,000 shares authorized;
Issued and outstanding - 53,715,996 (December 31, 2018)
and 44,448,496 (June 30, 2018)		5,372			4,445
Additional paid in capital		11,334,662			2,882,888
Common stock subject to forfeiture		(6,263,549	)		(229,168	)
Accumulated deficit		(4,231,357	)		(1,474,629	)
Total Stockholders’ Equity		845,128			1,183,536
Total Liabilities and Stockholders’ Equity	$	856,769		$	1,272,321

See accompanying notes to consolidated financial statements.

3

Nexien BioPharma, Inc.

Consolidated Statements of Operations and Comprehensive Loss

For the Three and Six Months Ended December 31, 2018 and 2017

(Unaudited)

	Three months ended						Six months ended
	December 31,						December 31,
	2018			2017			2018			2017
Revenue	$	-		$	-		$	-		$	-
Operating expenses
Professional fees		58,054			114,903			142,827			185,378
Research and development		12,570			9,532			45,978			89,845
General and administrative		1,888,541			178,829			2,567,923			479,115
Total operating expenses		1,959,165			303,264			2,756,728			754,338
Net loss	$	(1,959,165	)	$	(303,264	)	$	(2,756,728	)	$	(754,338	)
Loss per share - basic and diluted	$	(0.04	)	$	(0.01	)	$	(0.06	)	$	(0.02	)
Weighted average shares outstanding -
basic and diluted		52,426,518			43,585,402			48,415,709			41,180,126

See accompanying notes to consolidated financial statements.

4

Nexien BioPharma, Inc.

Consolidated Statement of Stockholders’ Equity

For the Six Months Ended December 31, 2018

(Unaudited)

	Shares			Common Stock			Additional Paid in Capital			Comon Stock Subject to Forfeiture			Accumulated Deficit			Total Stockholders’ Equity
Balance, June 30, 2018		44,448,496		$	4,445		$	2,882,888		$	(229,168	)	$	(1,474,629	)	$	1,183,536
Issuance of shares for acquisition of CRx at $0.76 per share		11,000,000			1,100			8,358,900			(7,524,000	)		-			836,000
Vesting of management shares subject to forfeiture		-			-			-			172,919			-			172,919
Fair value of options and warrants issued for services		-			-			1,253,467			-			-			1,253,467
Fair value of warrants issued		-			-			155,934			-			-			155,934
Cancellation of CRx shares		(1,732,500	)		(173	)		(1,316,527	)		1,316,700			-			-
Net loss		-			-			-			-			(2,756,728	)		(2,756,728	)
Balance, December 31, 2018		53,715,996		$	5,372		$	11,334,662		$	(6,263,549	)	$	(4,231,357	)	$	845,128

See accompanying notes to consolidated financial statements.

5

Nexien BioPharma, Inc.

Consolidated Statements of Cash Flows

For the Six Months Ended December 31, 2018 and 2017

(Unaudited)

	2018			2017
Cash flows from operating activities
Net loss	$	(2,756,728	)	$	(754,338	)
Adjustments to reconcile net loss to net cash used in operating activities
Stock based compensation		1,582,320			388,683
Fair value of shares issued for CRx Acquistion		836,000			-
Changes is assets and liabilities
Decrease (increase) in due from related party		4,500			26,662
(Decrease) increase in accounts payable and accrued expenses		(77,144	)		(131,264	)
Cash used in operating activities		(411,052	)		(470,257	)
Cash flows from investing activities
Cash paid for license		(10,000	)		-
Cash paid for acquisition deposit		-			(12,900	)
Cash used in investing activities		(10,000	)		(12,900	)
Cash flows from financing activities
Cash proceeds from issuance of common stock		-			1,021,820
Payment of offering costs		-			(27,380	)
Cash provided by financing activities		-			994,440
Net increase in cash and cash equivalents		(421,052	)		511,283
Cash and cash equivalents, beginning of period		819,739			242,778
Cash and cash equivalents, end of period	$	398,687		$	754,061
Supplemental disclosure of non-cash investing and financing activities
Shares issued for Kinder exchange	$	-		$	99,570
Cancellation of CRx shares	$	173		$	-

See accompanying notes to consolidated financial statements.

6

NEXIEN BIOPHARMA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Note 1 – Nature of Business and Basis of Presentation

The Company was incorporated on November 10, 1952 in Michigan as Gantos, Inc. On July 21, 2008, the Company completed its change in domicile to Delaware and subsequently changed its name to Kinder Holding Corp. (the “Company”). As of October 13, 2017, the Company completed a reverse acquisition of Intiva BioPharma Inc., a Colorado corporation (“BioPharma”) through an exchange of shares (the “Share Exchange Transaction”). In connection with the Share Exchange Transaction, the Company changed its name to Intiva BioPharma Inc. on November 8, 2017 and, in September 2018, the Company changed its name to Nexien BioPharma, Inc.

As further described in Note 3, BioPharma became a wholly-owned subsidiary of the Company. Since this transaction resulted in the existing shareholders of BioPharma acquiring control of the Company, for financial reporting purposes, the business combination has been accounted for as an additional capitalization of the Company (a reverse acquisition with BioPharma as the accounting acquirer). The operations of BioPharma were the only continuing operations of the Company. The accompanying financial statements as of December 31, 2018 and June 30, 2018 and for the six and three- month periods ended December 31, 2018 and 2017 present the historical financial information of BioPharma.

BioPharma was incorporated under the laws of the State of Colorado on March 27, 2017 to pursue pre-clinical and drug development activities, in accordance with U.S. Food and Drug Administration (“FDA”) protocols, for certain pharmaceutical formulations that include cannabinoids. It is pursuing the formulation and development of cannabinoid-based drugs for medical conditions and disorders, and owns a license covering certain intellectual property, including certain patent applications, and has filed five of its own provisional patent applications for other drugs that include cannabinoids and other substances, including terpenes, that are intended to be developed with the objective of treating certain medical conditions and disorders. It was formed as a corporate subsidiary of the Colorado corporation Kanativa USA Inc. (formerly Intiva USA Inc.) (“Kanativa USA”), which is a subsidiary of the Ontario, Canada corporation, Kanativa Inc.

All share and per share amounts have been adjusted in the footnotes and accompanying financial statements to give effect to the Share Exchange Transaction.

Principles of Consolidation

The accompanying consolidated financial statements include BioPharma and its wholly owned subsidiaries: Intiva BioPharma Inc. (a Colorado corporation), NexN Inc. (formerly Intiva Kotzker Pharmaceuticals Inc.) (“NexN”), NexDM Inc. (formerly Intiva Sharir Inc.), and CRX Bio Holdings LLC, a Delaware limited liability company (“CRX”), and were prepared from the accounts of the Company in accordance with accounting principles generally accepted in the United States of America (US GAAP). All significant intercompany transactions and balances have been eliminated on consolidation.

Basis of Presentation/Going Concern Uncertainty

The Financial Statements presented herein have been prepared in accordance with the accounting policies described in the June 30, 2018 audited financial statements and should be read in conjunction with the notes to financial statements which appear as part of those financial statements.

The preparation of these financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to intangible assets, income taxes, insurance obligations and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other resources. Actual results may differ from these estimates under different assumptions or conditions.

7

NEXIEN BIOPHARMA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Note 1 – Nature of Business and Basis of Presentation (continued)

The accompanying financial statements have been prepared in conformity with US GAAP, which contemplates continuation of the Company as a going concern. The Company has not established any source of revenue to cover its operating costs, and as such, has incurred an operating loss since inception of $4,231,357. The development of pharmaceuticals with the objective of obtaining approval by the FDA and other international regulatory authorities is not a short-term endeavor for any specific drug candidate. It also requires extremely significant amounts of capital funding for clinical trials and other matters. At December 31, 2018, the Company had working capital of $406,546. The Company will require significant additional capital to fund the implementation and execution of its business plan. This capital, which likely will be millions of dollars for a single drug candidate, will be required for research, regulatory applications, and clinical trials. At the present time, the Company does not have any commitments or known sources for this level of funding. These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

In the opinion of Management, the information furnished in these interim financial statements reflects all adjustments necessary for a fair statement of the financial position and results of operations and cash flows as of December 31, 2018 and for the six and three-month periods ended December 31, 2018 and 2017. All such adjustments are of a normal recurring nature.

Note 2 – Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates.

Valuation of Long-Lived Assets

The Company reviews the recoverability of its long-lived assets including equipment, goodwill and other intangible assets, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on the Company’s ability to recover the carrying value of the asset from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. The Company’s primary measure of fair value is based on discounted cash flows. The measurement of impairment requires management to make estimates of these cash flows related to long-lived assets, as well as other fair value determinations.

Fair Value of Financial Instruments

FASB ASC 825, “Financial Instruments,” requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. FASB ASC 825 defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. At December 31, 2018 and June 30, 2018, the carrying value of certain financial instruments (cash and cash equivalents, accounts payable and accrued expenses.) approximates fair value due to the short-term nature of the instruments or interest rates, which are comparable with current rates.

8

NEXIEN BIOPHARMA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Note 2 – Summary of Significant Accounting Policies (continued)

Fair Value Measurements

The Company measures fair value under a framework that utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of inputs which prioritize the inputs used in measuring fair value are:

Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.

Level 2: Inputs to the valuation methodology include:

● Quoted prices for similar assets or liabilities in active markets;

● Quoted prices for identical or similar assets or liabilities in inactive markets;

● Inputs other than quoted prices that are observable for the asset or liability;

● Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The assets or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

When the Company changes its valuation inputs for measuring financial assets and liabilities at fair value, either due to changes in current market conditions or other factors, it may need to transfer those assets or liabilities to another level in the hierarchy based on the new inputs used. The Company recognizes these transfers at the end of the reporting period that the transfers occur. For the periods ended December 31, 2018 and June 30, 2018, there were no significant transfers of financial assets or financial liabilities between the hierarchy levels.

Earnings per Common Share

The Company computes net income (loss) per share in accordance with ASC 260, Earning per Share. ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.

Research and Development Expenses

Research and development expenses are charged to operations as incurred.

9

NEXIEN BIOPHARMA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Note 2 – Summary of Significant Accounting Policies (continued)

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. Cash and cash equivalents are deposited with major banks in the United States of America. Management believes that such financial institutions are financially sound and, accordingly, minimal credit risk exists with respect to these financial instruments. The Company does not have any significant off-balance-sheet concentration of credit risk.

Stock-based compensation

Pursuant to FASB ASC 718, all share-based payments to employees, including grants of employee stock options, are recognized in the statement of operations based on their fair values.

Issuance of shares for non-cash consideration

The Company accounts for the issuance of equity instruments to acquire goods and/or services based on the fair value of the goods and services or the fair value of the equity instrument at the time of issuance, whichever is more reliably determinable. The Company’s accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of the standards issued by the FASB. The measurement date for the fair value of the equity instruments issued is determined as the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.

Recent Accounting Pronouncements

In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-13, “Fair Value Measurement (Topic 820).” The amendments in this Update modify certain disclosure requirements of fair value measurements and are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement.

Although there are several other new accounting pronouncements issued or proposed by the FASB, which the Company has adopted or will adopt, as applicable, the Company does not believe any of these accounting pronouncements has had or will have a material impact on its consolidated financial position or results of operations.

Note 3 – Share Exchange Agreement

On August 8, 2017, the Company entered into a Share Exchange Agreement, as amended and restated on October 13, 2017, (the “Agreement”), with BioPharma. Pursuant to the terms of the Agreement, the Company agreed to issue to the shareholders of BioPharma 42,642,712 post-reverse stock-split shares of the Company’s common stock, par value $0.0001 (“Common Stock”), in exchange for all of the issued and outstanding shares of BioPharma capital stock, thereby making BioPharma a wholly-owned subsidiary of the Company. As part of the Closing of the Agreement, the 20,000,000 pre-reverse split shares of the Company’s Common Stock previously purchased by Kanativa USA, effective on June 26, 2017 in a change in control transaction from the Company’s control shareholders, were canceled. Since this transaction resulted in the existing shareholders of BioPharma acquiring control of the Company, for financial reporting purposes, the business combination has been accounted for as an additional capitalization of the Company (a reverse acquisition with BioPharma as the accounting acquirer).

10

NEXIEN BIOPHARMA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Note 4 – License Agreements

In March 2017, NexN licensed certain intellectual property from Kotzker Consulting LLC (“Kotzker Consulting”), an unrelated entity. The licensed intellectual property includes patent applications relating to the use of cannabinoid receptor modulators and terpenes in the acute treatment during exposure to organophosphorus nerve agents and/or organophosphorus insecticides. Under terms of the agreement, NexN shall use its commercially reasonable efforts to develop and commercialize the licensed products, and, in particular, will be responsible for the design, manufacturing, preclinical, clinical, and regulatory development activities of the licensed products and shall bear the costs of such activities. As consideration for entering into the agreement, NexN agreed to: (i) pay Kotzker Consulting $180,000, (ii) pay patent prosecution costs incurred as of the date of the agreement of $15,000 and (iii) issue to Kotzker Consulting 31,550 shares of Intiva Inc.’s common stock valued at $78,875 ($2.50 per share based on recent private placement to third parties of Intiva Inc.’s common stock). The Company has capitalized legal fees of $29,040 incurred in conjunction with acquiring the license agreement, As of June 30, 2017, $65,000 was due under the license agreement, which amount was paid in August 2017. The total value ascribed to the License Agreement with Kotzker Consulting is $302,915 at December 31, 2018. The license agreement terminates, on a country by country basis, upon the expiration of the licensed patent for the licensed intellectual property, or when a competitor generic product utilizing the licensed technology is marketed in the particular country.

NexN shall be responsible for development milestone payments for (i) licensed products for use as a preventative and therapeutic neuroprotective against nerve agents and pesticides and (ii) licensed products for treatment of diseases. Milestone payments for each of the foregoing will each be due in two payments, the first payment no later than thirty (30) days from acceptance of submission of the regulatory filing of the first licensed product and the second payment no later than thirty (30) days from approval of the first licensed product. Royalties will be due beginning with first commercial sale of developed products. The Company has completed and submitted a Pre-Investigational New Drug meeting request and amendment thereto with the FDA.

In September 2017, BioPharma entered into a contract with a contract manufacturing organization to develop an injectable formulation of a drug product to be submitted to the FDA. It is anticipated that the product will be developed utilizing the new drug application 505(b) (2) regulatory pathway for use in the treatment during and immediately following exposure to organophosphorous nerve agents. The drug product is to consist of a synthetic cannabinoid and a blend of terpenes in an injectable vehicle.

On February 28, 2018, the Company obtained a worldwide exclusive license with respect to a proprietary delivery system for cannabinoid-based medications. Upon execution of the agreement, as amended September 18, 2018, $35,000 was paid to the licensor, $10,000 was paid on November 1, 2018, $20,000 is due on February 28, 2019 and a final payment, in cash or stock at the option of the Company, of $35,000 is due August 31, 2019. The Company is required to pay milestone payments upon obtaining regulatory approval of pharmaceutical licensed products and royalties based upon sales of licensed products. The Company may grant sublicenses under the terms of the agreement. As of December 31, 2018, the Company capitalized $45,000 under the license agreement.

11

NEXIEN BIOPHARMA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Note 5 – Stockholders’ Equity

CRX Limited Liability Company Interest Purchase Agreement

On October 26, 2018, Company entered into a Limited Liability Company Interest Purchase Agreement (the “Purchase Agreement”) with the members of CRX Bio Holdings LLC, a Delaware limited liability company (“CRX”), to acquire all of the membership interest in CRX in exchange for 11,000,000 restricted shares of the Company’s common stock (the “Acquisition”), valued at $0.76 per share. The transaction has been accounted for as an asset acquisition, and not a business combination, and has been valued at the fair value of the common stock issued by the Company, as CRX’s cost basis was $0 in the assets. CRX is engaged in the research and development of advanced cannabinoid formulations and drug delivery systems with a focus on bioavailability and related pharmacokinetics and pharmacodynamics (PK/PD) enhancement. The Acquisition transaction was consummated on October 26, 2018. By acquiring CRX as a wholly-owned subsidiary, the Company acquired all of its assets, which consist primarily of three U.S. provisional patent applications relating to cannabinoid formulations to treat convulsive disorders, chronic traumatic encephalopathy, and neuropathic pain. At the closing, the Company issued to the six members of CRX (the “Sellers”) 1,100,000 shares not subject to any forfeiture restrictions and 9,900,000 shares which shall be released from forfeiture restrictions according to the following vesting schedule:

● 30% shall be fully vested 12 months following the Closing (October 26, 2019);

● 30% shall be fully vested 24 months following the Closing (October 26, 2020);

● 30% shall be fully vested 36 months following the Closing (October 26, 2021).

Any Seller who is not then providing services to the Company or any of its subsidiaries on any vesting date, whether through voluntary termination or termination “for cause,” will forfeit his unvested shares, which will be cancelled.

The transaction has been valued at $8,360,000, based on the fair value of the 11,000,000 shares issued of $0.76 per share, as per the closing market price of the Company’s common stock on the date of the agreement. The $836,000 fair value of the 1,100,000 shares issued not subject to any forfeiture restrictions was charged to operations during the six months ended December 31, 2018. The $7,524,000 fair value of the 9,900,000 shares subject to forfeiture has been charged to stockholders’ equity as a contra equity account, and will be amortized over the vesting periods. The net amount charged to stockholder’s equity was $0 on the date of the acquisition.

Effective December 31, 2018, one seller resigned from the Company and forfeited 1,732,500 unvested shares, valued at $1,316,699 ($0.76 per share).

Warrants

The Company has issued warrants to investors in a series of subscription agreements in equity financings.

On July 27, 2018, Company extended the expiration date of its Class C Warrants, from July 27, 2018, to August 8, 2018, and also offered holders of the Class C Warrants who did not wish to exercise their warrants the opportunity to exchange their Class C Warrants for new warrants. Each new warrant, denominated as Class D, was exercisable through November 30, 2018 to purchase one unit for $1.00, each unit consisting of one share of Common Stock and a warrant to purchase one share of Common Stock at a price of $2.00 per share through January 31, 2019. Holders of 944,400 Class C warrants were issued Class D warrants.

On September 12, 2018, the Company authorized the issuance of 94,000 Class E warrants to those shareholders who exercised their Class C warrants and did not exchange them for Class D warrants. Each Class E warrant is exercisable to purchase one share of common stock at a price of $2.00 per share through January 31, 2019.

12

NEXIEN BIOPHARMA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Note 5 – Stockholders’ Equity (continued)

The relative fair value of each warrant issuance is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants under the fixed option plan:

Average risk-free interest rates	2.0% - 2.16	%
Average expected life (in years)	.35 to .39
Volatility	175% to 296	%

The relative fair value attached to the Class D warrants is $151,467 and the relative fair value attached to the Class E warrants is $4,467 as of the grant date.

A summary of warrant activity during the six months ended December 31, 2018 is presented below:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding and exercisable – June 30, 2018		1,034,400		$	.53		.1
Granted		1,038,400		$	1.09
Exercised		-
Expired		(1,978,800	)	$	.75
Outstanding and exercisable – December 31, 2018		94,000		$	2.00		.1

The following table summarizes information about warrants outstanding at December 31, 2018:

	Number		Exercise Price		Expires
Class E		94,000	$	2.00	January 31, 2019

The Class E warrants expired unexercised on January 31, 2019.

2017 Stock Incentive Plan

On August 10, 2017, BioPharma adopted the “2017 Stock Incentive Plan” and granted an aggregate of 6,400,000 shares of Common Stock to five officers and directors of the Company, valued at $800,000 ($0.125 per share). On July 25, 2018, the Company accelerated the vesting of 1,083,342 unvested shares of Common Stock previously granted to its former Chief Executive Officer and Chief Financial Officer. As of December 31, 2018, 450,000 of the shares issued (valued at $56,250) are subject to forfeiture until vesting occurs.

2018 Equity Incentive Plan

(i) On March 30, 2018, the Company’s board of directors approved and recommended for adoption by the stockholders of the Company a 2018 Equity Incentive Plan and has reserved 8,000,000 shares of Common Stock for issuance under the terms of that Plan.

13

NEXIEN BIOPHARMA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Note 5 – Stockholders’ Equity (continued)

In July 2018, the Board of Directors granted options to purchase a total of 1,810,000 shares of Common Stock, exercisable for a period of seven years, to officers/directors/consultants of the Company at an exercise price of $0.54 per share.

In August 2018, the Board of Directors granted options to purchase a total of 150,000 shares of Common Stock, exercisable for a period of seven years, to two individuals, (i) a director and (ii) a consultant of the Company, at an exercise price of $0.38 per share.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants under the fixed option plan:

Average risk-free interest rates	2.6% - 2.8	%
Average expected life (in years)	4.0 to 7.0
Volatility	171% to 296	%

The fair value of the options granted as of December 31, 2018 is $891,318. Amortization of the vested portion of the options charged to operations was $449,470 for the period, and $441,848 is unamortized at December 31, 2018.

(ii) On October 17, 2018, the Board of Directors granted options to purchase an aggregate 800,000 shares of Common Stock, exercisable for a period of seven years, to officers/directors of the Company at an exercise price of $0.655 per share and confirmed a grant of options made as of October 1, 2018, to purchase 500,000 shares of Common Stock, exercisable for a period of seven years, to an officer and director of the Company at an exercise price $0.48. All of the options were fully vested as of the date of grant.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants under the fixed option plan:

Average risk-free interest rates	2.88% - 2.93	%
Average expected life (in years)	4.0
Volatility	171% to 172	%

The fair value of the fully vested options granted of $803,997 was charged to operations in the period ended December 31, 2018.

A summary of option activity during the six months ended December 31, 2018 is presented below:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding and exercisable – June 30, 2018		-
Granted		3,260,000	$	0.55
Exercised		-
Expired		-
Outstanding– December 31, 2018		3,260,000	$	0.55		6.7
Exercisable – December 31, 2018		2,280,000

14

NEXIEN BIOPHARMA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Note 6 – Related Party Transactions

BioPharma was formed as a subsidiary of Kanativa USA, which is a subsidiary of Kanativa Inc.

At December 31, 2018, BioPharma was owed $110,167 from Kanativa USA for advances made by BioPharma on behalf of Kanativa USA in conjunction with the Share Exchange Agreement (See Note 3). The balance due from Kanativa USA is being repaid at $1,500 per month for 18 months commencing September 1, 2018 with the remaining balance due on March 1, 2020. During the six months ended December 31, 2018, $4,500 was repaid to the Company pursuant to the agreement with Kanativa USA.

On August 10, 2017, the Board of Directors granted an aggregate of 6,400,000 shares of Common Stock to five officers and directors of the Company, valued at $800,000 ($0.125 per share), under the Company’s 2017 Stock Incentive Plan. One-third of each grant vested as of the initial date of grant (August 10, 2017), and 8-1/3% upon the end of each calendar quarter beginning December 31, 2017. In March 2018, the Company cancelled 1,166,667 unvested shares previously issued to its former CEO. As of December 31, 2018, 450,000 of the shares issued (valued at $56,250) are subject to forfeiture until vesting occurs.

Certain Directors and the Chief Financial Officer of the Company are also directors and officers of Kanativa Inc., and other subsidiaries and affiliated entities of Kanativa Inc.

Note 7 – Subsequent Events

The Company has analyzed its operations subsequent to December 31, 2018 through the date these financial statements were issued, and has determined that it does not have any material sub subsequent events to disclose.

15

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION

Forward-Looking Statements

The following plan of operation provides information which management believes is relevant to an assessment and understanding of our results of operations and financial condition. The discussion should be read along with our financial statements and notes thereto. This section includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Certain statements that the Company may make from time to time, including all statements contained in this registration statement that are not statements of historical fact, constitute “forward-looking statements”. Forward-looking statements may be identified by words such as “plans,” “expects,” “believes,” “anticipates,” “estimates,” “projects,” “will,” “should,” and other words of similar meaning used in conjunction with, among other things, discussions of future operations, financial performance, product development and new product launches, market position and expenditures. You should not place undue certainty on these forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our predictions.

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help you understand our historical results of operations during the periods presented and our financial condition for the six and three months ended December 31, 2018 and 2017. This MD&A should be read in conjunction with our financial statements as of June 30, 2018 (audited). See section entitled “Forward-Looking Statements” above.

Overview

We are engaged in pursuing pre-clinical and drug development activities for certain pharmaceutical formulations that include cannabinoids. Since March 2017, we have filed five of our own provisional patent applications, and acquired a license covering certain intellectual property related to a drug delivery system. In October 2018, we acquired all of the membership interest in CRx Bio Holdings LLC, which also engaged in the research and development of advanced cannabinoid formulations and drug delivery systems, by issuing 11,000,000 shares of our common stock. As part of the CRx acquisition, we also acquired three additional patent applications. CRx had an agreement with a major university to perform pre-clinical research related to the parenteral administration of cannabinoid formulations. As this research is common to both the CRx programs and the Nexien programs, we will be able to consolidate this research and maintain the original Nexien capital expenditure budget.

As a relatively new business engaged in start-up operations and activities, we will require substantial additional funding to successfully complete any of our drug development programs. At present, we cannot estimate the substantial capital requirements needed to secure regulatory approvals for our drug candidates. Nevertheless, we estimate that we will need to raise at a minimum $1.5 million during the next 12 months to continue our drug development programs and fund the operating costs related to being a public company. Determining a budget is subject to a number of factors. In general, this estimate may be higher if our research efforts prove to be successful, or lower if the research efforts produce results that warrant a decision to cease ongoing research and development efforts. Failure to obtain this necessary capital at acceptable terms, if at all, when needed, may force us to delay, limit, or terminate our drug development efforts to secure regulatory approvals and would adversely impact our planned research and development efforts in connection with the Company’s future drugs, which may make it more difficult for us to attain profitability.

We are a start-up company with no revenues from operations. Notwithstanding our successful raise of $2,076,158, net of offering costs, in equity capital since inception to December 31, 2018, there is substantial doubt that we can continue as an on-going business for the next twelve months without the success of our business operations. We do not anticipate that Nexien BioPharma will generate revenues from its research and development activities related to its drug development projects in the near future, due to the protracted revenue model of pursuing pharmaceutical drug development in accordance with the pathway set forth by the Food and Drug Administration (“FDA”).

16

Results of Operations for the six months ended December 31, 2018 as compared to December 31, 2017

Net loss for the six months ended December 31, 2018 was $2,756,728, an increase of $2,002,390 from the net loss of $754,338 for the six months ended December 31, 2017. As explained below, most of the loss is attributable to significant stock-based compensation costs and the fair value of common stock issued for the CRx acquisition.

General and administrative costs of $2,567,923 incurred during the six months ended December 31, 2018 includes $1,582,320 of non-cash stock-based compensation costs for: vesting of common shares previously issued to management valued at $172,919; the fair value of vested stock options granted of $1,253,467; and the fair value of warrants issued of $155,934. Also included in general and administrative costs for the 2018 period is a non-cash charge of $836,000 for the fair value of the 1,100,000 vested shares issued for the acquisition of CRX Bio Holdings LLC. General and administrative costs of $479,115 for the six months ended December 31, 2017 includes non-cash stock-based compensation costs for the period of $388,683, consisting of $333,333 as the value of shares issued to management, and $55,350 for common stock issued to two individuals under consulting agreements. Exclusive of stock-based compensation costs, general and administrative costs for the six months ended December 31, 2018 was $149,604, an increase of $59,172 from comparable costs for the 2017 period of $90,432.

During the six months ended December 31, 2018, the Board of Directors granted options to purchase a total of 1,810,000 shares of Common Stock, exercisable for a period of seven years, to officers/directors/consultants of the Company at an exercise price of $0.54 per share; options to purchase a total of 150,000 shares of Common Stock, exercisable for a period of seven years, to two individuals, (i) a director and (ii) a consultant of the Company, at an exercise price of $0.38 per share; options to purchase 500,000 shares of Common Stock to an officer/director at an exercise price of $0.48 per share for a period of seven years; and options to purchase 800,000 shares of Common Stock to three officers/directors at an exercise price of $0.655 per share for a period of seven years.

Research and development costs decreased to $45,978 for the period ended December 31, 2018 as compared to $89,845 for the period ended December 31, 2017, which included $75,000 paid under an agreement with a contract manufacturer with significant expertise in pre-clinical and clinical trial development and regulatory approvals to develop an injectable formulation for our drug candidate (see “Contractual Obligations and Commitments” below). Research and development costs for the 2018 period were predominately for continuation of activities under our agreement with the contract manufacturer.

Professional fees of $142,827 for the six months ended December 31, 2018 decreased by $42,551 from $185,378 for the period ended December 31, 2017. Fees for the 2018 period consisted of legal fees to external counsels and our chief operating officer for patent and FDA related regulatory matters, legal fees for securities related matters, and fees for annual audit and other required regulatory filings. During the period ended December 31, 2017, the Company’s efforts were focused on equity private placement financing activities, consummation of the Share Exchange Transaction, and filings with the U.S. Patent Office and the FDA.

Results of Operations for the three months ended December 31, 2018 as compared to December 31, 2017

Net loss for the three months ended December 31, 2018 was $1,959,165, an increase of $1,655,901 from the net loss of $303,264 for the three months ended December 31, 2017. As with the six-month period loss, most of the loss for the three months ended December 31, 2018 is attributable to significant stock-based compensation costs and the fair value of common stock issued for the CRx acquisition.

General and administrative costs of $1,888,541 for the three months ended December 31, 2018 includes non-cash stock-based compensation costs of $994,600 for the vesting of common shares previously issued to management, valued at $18,750, and the fair value of vested stock options granted of $975,850. Also included in general and administrative costs for the 2018 period is a non-cash charge of $836,000 as the fair value of the 1,100,000 vested shares issued for the acquisition of CRX Bio Holdings LLC. General and administrative costs of $178,829 for the three months ended December 31, 2017 includes stock-based compensation costs of $103,567 consisting of $66,667 for the value of shares issued to management, and $36,900 for common stock issued to two individuals under consulting agreements. Exclusive of stock-based compensation costs, general and administrative costs for the three months ended December 31, 2018 were $57,941, a decrease of $17,321 from comparable costs for the 2017 period of $75,262.

17

During the three months ended December 31, 2018, the Board of Directors granted options to purchase 500,000 shares of Common Stock to an officer/director at an exercise price of $0.48 per share for a period of seven years; and options to purchase 800,000 shares of Common Stock to three officers/directors at an exercise price of $0.655 per share for a period of seven years.

Professional fees of $58,055 for the three months ended December 31, 2018 decreased by $56,848 from $114,903 for the period ended December 31, 2017. The decrease is primarily due to patent related legal fees incurred in 2017 of a non-recurring nature for filings with the U.S. Patent Office and with the FDA.

Research and development were $12,570 for the period ended December 31, 2018 as compared to $9,532 for the period ended December 31, 2017. Research and development costs for the periods were predominately for continuation of activities under our agreement with the contract manufacturer.

Liquidity and Capital Resources

At December 31, 2018, we had working capital of $406,546, and cash of $398,687, as compared to working capital of $745,954 and cash of $819,739 at June 30, 2018. The decrease in both working capital and cash was due primarily to the Company’s utilization of existing funds for operating activities. We used $421,052 of cash for operating and investing activities, with no increase in liquidity from financing activities during the six months ended December 31, 2018. While operating and investing activities used cash of $483,157 during the comparable six-month period ended December 31, 2017, $994,440 was provided through sales of Common Stock during the 2017 period.

While management of the Company believes that the Company will be successful in its current and planned activities, there can be no assurance that the Company will be successful in its drug development activities, and raise sufficient equity, debt capital or strategic relationships to sustain the operations of the Company.

Our ability to create sufficient working capital to sustain us over the next twelve-month period, and beyond, is dependent on our raising additional equity or debt capital, or entering into strategic arrangements with one or more third parties.

There can be no assurance that sufficient capital will be available to us. We currently have no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources.

Availability of Additional Capital

Notwithstanding our success in raising gross proceeds of $2.1 million from the private sale of equity securities through December 31, 2018, there can be no assurance that we will continue to be successful in raising equity capital and have adequate capital resources to fund our operations or that any additional funds will be available to us on favorable terms or in amounts required by us. We estimate we will need to raise at a minimum $1.5 million during the next 12 months to continue our drug development projects and fund the operating costs related to being a public company. Determining a budget is subject to a number of factors. In general, this estimate may higher if our research efforts prove to be successful or lower if the research efforts produce results that warrant a decision to cease ongoing research and development efforts. If we determine that it is necessary to raise additional funds, we may choose to do so through public or private equity or debt financing, a bank line of credit, or other arrangements. If we are unable to obtain adequate capital resources to fund operations, we may be required to delay, scale back or eliminate some or all of our planned operations, which may have a material adverse effect on our business, results of operations and ability to operate as a going concern.

Any additional equity financing may be dilutive to our stockholders, and new equity securities may have rights, preferences or privileges senior to those of existing holders of our shares of common stock. Debt or equity financing may subject us to restrictive covenants and significant interest costs.

18

Capital Expenditure Plan During the Next Twelve Months

As the result of the acquisition of CRx Bio (“CRx”), we will be able to eliminate the salary of one officer of the Company. All other officers, including the new management team from CRx, are not being paid any cash compensation. In addition, by bringing on an in-house legal counsel with extensive patent experience, we will be able to bring all Intellectual Property (“IP”) legal expenses in house. This will substantially reduce most legal expenses, which is a significant percentage of cash expenses. Finally, as CRx had been exploring similar research for alternative delivery systems as Nexien, we will be able to consolidate this research and maintain the original Nexien capital expenditure budget.

To date, we raised approximately $2.1 million, in equity capital (including exercised warrants) and we may be expected to require up to an additional $1.5 million in capital during the next 12 months to fully implement our business plan and fund our operations. Determining a budget is subject to a number of factors. In general, this estimate may be higher if our research efforts prove to be successful or lower if the research efforts produce results that warrant a decision to cease ongoing research and development efforts. Our plan is to utilize the capital that we raise to fund our ongoing research efforts, as well as the costs incurred by being a public reporting company. However, there can be no assurance that we will continue to be successful in raising capital in sufficient amounts and/or at terms and conditions satisfactory to the Company. Our revenues are expected to come from our drug development programs. As a result, we will continue to incur operating losses unless and until we have obtained regulatory approval with respect to one of our drug development projects and commence to generate sufficient cash flow to meet our operating expenses. There can be no assurance that we will obtain regulatory approval and the market will adopt our future drugs. In the event that we are not able to successfully: (i) raise equity capital and/or debt financing; or (ii) market our drugs after obtaining regulatory approval, our financial condition and results of operations will be materially and adversely affected.

Going Concern Consideration

Our registered independent auditors have issued an opinion on our financial statements as of June 30, 2018 which includes a statement describing our going concern status. This means that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills and meet our other financial obligations. This is because we have not generated any revenues and no revenues are anticipated until we begin marketing any drugs that we successfully develop. Accordingly, we must raise capital from sources other than the actual sale from any drugs that we develop. We must raise capital to continue our drug development activities and stay in business.

Off-Balance Sheet Arrangements

As of June 30, 2018 and December 31, 2018, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K promulgated under the Securities Act of 1934.

Contractual Obligations and Commitments

On September 19, 2017, we entered into an agreement with a contract manufacturer with significant expertise in pre-clinical and clinical trial development and regulatory approvals to develop an injectable formulation for our drug candidate in the Kotzker Development Project with the objective of applying for FDA approval. It is anticipated that the drug candidate will be developed utilizing the new drug application 505(b)(2) regulatory pathway for use in the treatment during and immediately following exposure to organophosphorus nerve agents. The formulation of the drug candidate will be based on one or more synthetic cannabinoids. We paid $75,000 to the contract manufacturer upon signing the contract, which further provides that we pay an additional $20,000 upon completion of the drug formulation and $20,000 upon completion of Phase 1 development. No payment schedule has yet been agreed to upon completion of Phase 2 and Phase 3 development stage and the contract may be terminated by either party.

On February 28, 2018, we obtained a worldwide exclusive license with respect to a proprietary delivery system for cannabinoid-based medications. Upon execution of the agreement, as amended September 18, 2018, $35,000 was paid to the licensor, $10,000 was paid on November 1, 2018, $20,000 is due on February 28, 2019 and a final payment, in cash or stock at our option, of $35,000 is due August 31, 2019. We are required to pay milestone payments upon obtaining regulatory approval of pharmaceutical licensed products and royalties based upon sales of licensed products. We may grant sublicenses under the terms of the agreement.

19

On October 26, 2018, we entered into a Limited Liability Company Interest Purchase Agreement (the “Purchase Agreement”) with the members of CRx Bio Holdings LLC, a Delaware limited liability company (“CRx”), to acquire all of the membership interest in CRx in exchange for 11,000,000 restricted shares of our common stock (the “Acquisition”). CRx is engaged in the research and development of advanced cannabinoid formulations and drug delivery systems with a focus on bioavailability and related pharmacokinetics and pharmacodynamics (PK/PD) enhancement. The Acquisition transaction was consummated on October 26, 2018. By acquiring CRx as a wholly-owned subsidiary, we acquired all of its assets, which consist primarily of three U.S. provisional patent applications relating to cannabinoid formulations to treat convulsive disorders, chronic traumatic encephalopathy, and neuropathic pain. At the closing, we issued to the six members of CRx (the “Sellers”) 1,100,000 shares not subject to any forfeiture restrictions and 9,900,000 shares which shall be released from forfeiture restrictions according to the following vesting schedule:

● 30% shall be fully vested 12 months following the Closing (October 26, 2019);

● 30% shall be fully vested 24 months following the Closing (October 26, 2020); and

● 30% shall be fully vested 36 months following the Closing (October 26, 2021).

Any Seller who is not then providing services to us or any of our subsidiaries on any vesting date, whether through voluntary termination or termination “for cause,” will forfeit his unvested shares, which will be cancelled.

Effective December 31, 2018, one of the sellers resigned from the Company and forfeited 1,732,500 unvested shares previously issued.

Immediately after closing, Alex Wasyl, the CEO of CRx, was elected to serve as a director and our CEO. Alain Bankier, who had been serving as our interim CEO, was elected to serve as our Executive Chairman of the Board of Directors and Chief Strategy Officer. Richard Greenberg resigned his position as Chairman of the Board, but continues to serve on the Board.

Critical Accounting Policies

Our significant accounting policies are described in the notes to our financial statements as of December 31, 2018 and are included elsewhere in this report.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures.

As of December 31, 2018, the Company’s chief executive officer and chief financial officer conducted an evaluation regarding the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act. Based upon the evaluation of these controls and procedures as provided under the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework (2013), our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were ineffective as of the end of the period covered by this report.

Changes in internal controls.

During the quarterly period covered by this report, no changes occurred in our internal control over financial reporting that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

20

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Risk Factors in our Form 10-K as filed with the SEC on September 28, 2018, which could materially affect our business, financial condition or future results. The risks described in our Form 10-K are not the only risks facing our company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

During the quarter ended December 31, 2018 we issued the unregistered securities set forth in the table below.

Date	Persons or Class of Persons	Securities	Consideration
10/1/2018	1 Officer/director	Options to purchase 500,000 shares of common stock at $0.48 per share	Services
10/26/2018	3 Officers and directors	Options to purchase 800,000 shares of common stock at $0.655 per share	Services
10/26/2018	6 individuals	11,000,000 shares of common stock valued at $0.76 per share	Acquisition of CRx Bio Holdings LLC

We relied upon the exemption from registration contained in Rule 506 of Regulation D and Section 4(a)(2) under the Securities Act, as the securities were issued only to accredited investors or persons closely associated with the registrant, without the use of general solicitation or advertising. No underwriters or placement agents were used and no commissions were paid in the above transactions. Restrictive legends were placed on the certificates evidencing the securities issued in all of the above transactions.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

21

ITEM 6. EXHIBITS

Regulation S-K Number	Document
2.1	Amended and Restated Share Exchange Agreement between the Registrant and Intiva BioPharma Inc., dated October 13, 2017 (1)
2.2	Limited Liability Company Interest Purchase Agreement by and among the Members of CRX Bio Holdings LLC and Nexien BioPharma, Inc. dated October 26, 2018 (2)
3.1	Certificate of Incorporation (3)
3.2	Certificate of Merger (3)
3.3	Certificate of Amendment to Certificate of Incorporation (3)
3.4	Certificate of Amendment to Certificate of Incorporation (4)
3.5	Certificate of Amendment to Certificate of Incorporation (5)
3.6	Bylaws (3)
4.1	Form of Class D Warrant (5)
4.2	Form of Class E Warrant (5)
10.1	2017 Stock Incentive Plan (4)
10.2	Licensing Agreement between the Company and Kotzker Consulting LLC (4)
10.3	Exclusive License Agreement between the Company and Accu-Break Pharmaceuticals, Inc. (4)
10.4	2018 Equity Incentive Plan (4)
10.5	First Amendment to Exclusive License Agreement between the Company and Accu-Break Pharmaceuticals, Inc. dated September 18, 2018 (5)
31.1	Rule 13a-14(a) Certification of Alex Wasyl
31.2	Rule 13a-14(a) Certification of Evan L. Wasoff
32.1	Certification of Alex Wasyl Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Evan L. Wasoff Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	Financial statements from the Quarterly Report on Form 10-Q of Nexien BioPharma, Inc. for the quarterly period ended December 31, 2018, formatted in XBRL: (i) the Balance Sheets; (ii) the Statements of Operations; (iii) the Statements of Cash Flows; and (iv) the Notes to Financial Statements (6)

(1)	Filed as an exhibit to the Current Report on Form 8-K filed October 16, 2017.
(2)	Filed as an exhibit to the Current Report on Form 8-K filed October 30, 2017.
(3)	Filed as an exhibit to the registration statement on Form 10 filed November 14, 2014.
(4)	Filed as an exhibit to the Quarterly Report on Form 10-Q filed May 15, 2018.
(5)	Filed as an exhibit to the Annual Report on Form 10-K filed September 28, 2018.
(6)	In accordance with Rule 406T of Regulation S-T, the information in these exhibits shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

22

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	NEXIEN BIOPHARMA, INC.
Dated: February 14, 2019	By:	/s/ Alex Wasyl
		Alex Wasyl, Chief Executive Officer
	By:	/s/ Evan L. Wasoff
		Evan L. Wasoff, Chief Financial Officer

23

EX-31.1

Exhibit 31.1

RULE 13a-14(a) CERTIFICATION

I, Alex Wasyl, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Nexien BioPharma, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: February 14, 2019	/s/ Alex Wasyl
	Alex Wasyl
	Chief Executive Officer
	(principal executive officer)

EX-31.2

Exhibit 31.2

RULE 13a-14(a) CERTIFICATION

I, Evan L. Wasoff, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Nexien BioPharma, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: February 14, 2019	/s/ Evan L. Wasoff
	Evan L. Wasoff
	Chief Financial Officer
	(principal financial officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Nexien BioPharma, Inc. (the “Company”) on Form 10-Q for the period ended December 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Alex Wasyl, Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: February 14, 2019	/s/ Alex Wasyl
	Alex Wasyl
	Chief Executive Officer
	(principal executive officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Nexien BioPharma, Inc. (the “Company”) on Form 10-Q for the period ended December 31, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Evan L. Wasoff, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: February 14, 2019	/s/ Evan L. Wasoff
	Evan L. Wasoff
	Chief Financial Officer
	(principal financial officer)

XML

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2018	Feb. 11, 2019
Document And Entity Information
Entity Registrant Name	NEXIEN BIOPHARMA, INC.
Entity Central Index Key	0001625288
Document Type	10-Q
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		53,715,996
Trading Symbol	NXEN
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019

XML

Consolidated Balance Sheets - USD ($)	Dec. 31, 2018	Jun. 30, 2018
Current Assets
Cash	$ 398,687	$ 819,739
Due from related party	19,500	15,000
Total current assets	418,187	834,739
Due from related party - non-current	90,667	99,667
License	347,915	337,915
Total Assets	856,769	1,272,321
Current Liabilities
Accounts payable and accrued expenses	11,641	88,785
Total current liabilities	11,641	88,785
Stockholders' Equity
Preferred stock, $.0001 par value; 10,000,000 authorized; none issued
Common stock-$.0001 par value; 200,000,000 shares authorized; Issued and outstanding - 53,715,996 (December 31, 2018) and 44,448,496 (June 30, 2018)	5,372	4,445
Additional paid in capital	11,334,662	2,882,888
Common stock subject to forfeiture	(6,263,549)	(229,168)
Accumulated deficit	(4,231,357)	(1,474,629)
Total Stockholders' Equity	845,128	1,183,536
Total Liabilities and Stockholders' Equity	$ 856,769	$ 1,272,321

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2018	Jun. 30, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value	$ .0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued
Common stock, par value	$ .0001	$ .0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	53,715,996	44,448,496
Common stock, shares outstanding	53,715,996	44,448,496

XML

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Revenue
Operating expenses
Professional fees	58,054	114,903	142,827	185,378
Research and development	12,570	9,532	45,978	89,845
General and administrative	1,888,541	178,829	2,567,923	479,115
Total operating expenses	1,959,165	303,264	2,756,728	754,338
Net loss	$ (1,959,165)	$ (303,264)	$ (2,756,728)	$ (754,338)
Loss per share - basic and diluted	$ (0.04)	$ (0.01)	$ (0.06)	$ (0.02)
Weighted average shares outstanding - basic and diluted	52,426,518	43,585,402	48,415,709	41,180,126

XML

Consolidated Statement of Stockholders' Equity (Unaudited) - 6 months ended Dec. 31, 2018 - USD ($)	Common Stock [Member]	Additional Paid in Capital [Member]	Common Stock Subject to Forfeiture [Member]	Accumulated Deficit [Member]	Total
Balance at Jun. 30, 2018	$ 4,445	$ 2,882,888	$ (229,168)	$ (1,474,629)	$ 1,183,536
Balance shares at Jun. 30, 2018	44,448,496
Issuance of shares for acquisition of CRx at $0.76 per share	$ 1,100	8,358,900	(7,524,000)		836,000
Issuance of shares for acquisition of CRx at $0.76 per share, shares	11,000,000
Vesting of management shares subject to forfeiture			172,919		172,919
Fair value of options and warrants issued for services		1,253,467			1,253,467
Fair value of warrants issued		155,934			155,934
Cancellation of CRx shares	$ (173)	(1,316,527)	1,316,700
Cancellation of CRx shares, shares	(1,732,500)
Net loss				(2,756,728)	(2,756,728)
Balance at Dec. 31, 2018	$ 5,372	$ 11,334,662	$ (6,263,549)	$ (4,231,357)	$ 845,128
Balance shares at Dec. 31, 2018	53,715,996

XML

Consolidated Statement of Stockholders' Equity (Parenthetical)	Dec. 31, 2018 $ / shares
Statement of Stockholders' Equity [Abstract]
Shares issued price per share	$ 0.76

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Net loss	$ (2,756,728)	$ (754,338)
Adjustments to reconcile net loss to net cash used in operating activities
Stock based compensation	1,582,320	388,683
Fair value of shares issued for CRx Acquisition	836,000
Changes is assets and liabilities
Decrease (increase) in due from related party	4,500	26,662
(Decrease) increase in accounts payable and accrued expenses	(77,144)	(131,264)
Cash used in operating activities	(411,052)	(470,257)
Cash flows from investing activities
Cash paid for license	(10,000)
Cash paid for acquisition deposit		(12,900)
Cash used in investing activities	(10,000)	(12,900)
Cash flows from financing activities
Cash proceeds from issuance of common stock		1,021,820
Payment of offering costs		(27,380)
Cash provided by financing activities		994,440
Net increase in cash and cash equivalents	(421,052)	511,283
Cash and cash equivalents, beginning of period	819,739	242,778
Cash and cash equivalents, end of period	398,687	754,061
Supplemental disclosure of non-cash investing and financing activities
Shares issued for Kinder exchange		99,570
Cancellation of CRx shares	$ 173

XML

Nature of Business and Basis of Presentation

6 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Business and Basis of Presentation

Note 1 – Nature of Business and Basis of Presentation

The Company was incorporated on November 10, 1952 in Michigan as Gantos, Inc. On July 21, 2008, the Company completed its change in domicile to Delaware and subsequently changed its name to Kinder Holding Corp. (the “Company”). As of October 13, 2017, the Company completed a reverse acquisition of Intiva BioPharma Inc., a Colorado corporation (“BioPharma”) through an exchange of shares (the “Share Exchange Transaction”). In connection with the Share Exchange Transaction, the Company changed its name to Intiva BioPharma Inc. on November 8, 2017 and, in September 2018, the Company changed its name to Nexien BioPharma, Inc.

As further described in Note 3, BioPharma became a wholly-owned subsidiary of the Company. Since this transaction resulted in the existing shareholders of BioPharma acquiring control of the Company, for financial reporting purposes, the business combination has been accounted for as an additional capitalization of the Company (a reverse acquisition with BioPharma as the accounting acquirer). The operations of BioPharma were the only continuing operations of the Company. The accompanying financial statements as of December 31, 2018 and June 30, 2018 and for the six and three- month periods ended December 31, 2018 and 2017 present the historical financial information of BioPharma.

BioPharma was incorporated under the laws of the State of Colorado on March 27, 2017 to pursue pre-clinical and drug development activities, in accordance with U.S. Food and Drug Administration (“FDA”) protocols, for certain pharmaceutical formulations that include cannabinoids. It is pursuing the formulation and development of cannabinoid-based drugs for medical conditions and disorders, and owns a license covering certain intellectual property, including certain patent applications, and has filed five of its own provisional patent applications for other drugs that include cannabinoids and other substances, including terpenes, that are intended to be developed with the objective of treating certain medical conditions and disorders. It was formed as a corporate subsidiary of the Colorado corporation Kanativa USA Inc. (formerly Intiva USA Inc.) (“Kanativa USA”), which is a subsidiary of the Ontario, Canada corporation, Kanativa Inc.

All share and per share amounts have been adjusted in the footnotes and accompanying financial statements to give effect to the Share Exchange Transaction.

Principles of Consolidation

The accompanying consolidated financial statements include BioPharma and its wholly owned subsidiaries: Intiva BioPharma Inc. (a Colorado corporation), NexN Inc. (formerly Intiva Kotzker Pharmaceuticals Inc.) (“NexN”), NexDM Inc. (formerly Intiva Sharir Inc.), and CRX Bio Holdings LLC, a Delaware limited liability company (“CRX”), and were prepared from the accounts of the Company in accordance with accounting principles generally accepted in the United States of America (US GAAP). All significant intercompany transactions and balances have been eliminated on consolidation.

Basis of Presentation/Going Concern Uncertainty

The Financial Statements presented herein have been prepared in accordance with the accounting policies described in the June 30, 2018 audited financial statements and should be read in conjunction with the notes to financial statements which appear as part of those financial statements.

The preparation of these financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to intangible assets, income taxes, insurance obligations and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other resources. Actual results may differ from these estimates under different assumptions or conditions.

The accompanying financial statements have been prepared in conformity with US GAAP, which contemplates continuation of the Company as a going concern. The Company has not established any source of revenue to cover its operating costs, and as such, has incurred an operating loss since inception of $4,231,357. The development of pharmaceuticals with the objective of obtaining approval by the FDA and other international regulatory authorities is not a short-term endeavor for any specific drug candidate. It also requires extremely significant amounts of capital funding for clinical trials and other matters. At December 31, 2018, the Company had working capital of $406,546. The Company will require significant additional capital to fund the implementation and execution of its business plan. This capital, which likely will be millions of dollars for a single drug candidate, will be required for research, regulatory applications, and clinical trials. At the present time, the Company does not have any commitments or known sources for this level of funding. These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

In the opinion of Management, the information furnished in these interim financial statements reflects all adjustments necessary for a fair statement of the financial position and results of operations and cash flows as of December 31, 2018 and for the six and three-month periods ended December 31, 2018 and 2017. All such adjustments are of a normal recurring nature.

XML

Summary of Significant Accounting Policies

6 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2 – Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates.

Valuation of Long-Lived Assets

The Company reviews the recoverability of its long-lived assets including equipment, goodwill and other intangible assets, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on the Company’s ability to recover the carrying value of the asset from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. The Company’s primary measure of fair value is based on discounted cash flows. The measurement of impairment requires management to make estimates of these cash flows related to long-lived assets, as well as other fair value determinations.

Fair Value of Financial Instruments

FASB ASC 825, “Financial Instruments,” requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. FASB ASC 825 defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. At December 31, 2018 and June 30, 2018, the carrying value of certain financial instruments (cash and cash equivalents, accounts payable and accrued expenses.) approximates fair value due to the short-term nature of the instruments or interest rates, which are comparable with current rates.

Fair Value Measurements

The Company measures fair value under a framework that utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of inputs which prioritize the inputs used in measuring fair value are:

Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.

Level 2: Inputs to the valuation methodology include:

● Quoted prices for similar assets or liabilities in active markets;

● Quoted prices for identical or similar assets or liabilities in inactive markets;

● Inputs other than quoted prices that are observable for the asset or liability;

● Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The assets or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

When the Company changes its valuation inputs for measuring financial assets and liabilities at fair value, either due to changes in current market conditions or other factors, it may need to transfer those assets or liabilities to another level in the hierarchy based on the new inputs used. The Company recognizes these transfers at the end of the reporting period that the transfers occur. For the periods ended December 31, 2018 and June 30, 2018, there were no significant transfers of financial assets or financial liabilities between the hierarchy levels.

Earnings per Common Share

The Company computes net income (loss) per share in accordance with ASC 260, Earning per Share. ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.

Research and Development Expenses

Research and development expenses are charged to operations as incurred.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. Cash and cash equivalents are deposited with major banks in the United States of America. Management believes that such financial institutions are financially sound and, accordingly, minimal credit risk exists with respect to these financial instruments. The Company does not have any significant off-balance-sheet concentration of credit risk.

Stock-based compensation

Pursuant to FASB ASC 718, all share-based payments to employees, including grants of employee stock options, are recognized in the statement of operations based on their fair values.

Issuance of shares for non-cash consideration

The Company accounts for the issuance of equity instruments to acquire goods and/or services based on the fair value of the goods and services or the fair value of the equity instrument at the time of issuance, whichever is more reliably determinable. The Company’s accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of the standards issued by the FASB. The measurement date for the fair value of the equity instruments issued is determined as the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.

Recent Accounting Pronouncements

In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-13, “Fair Value Measurement (Topic 820).” The amendments in this Update modify certain disclosure requirements of fair value measurements and are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement.

Although there are several other new accounting pronouncements issued or proposed by the FASB, which the Company has adopted or will adopt, as applicable, the Company does not believe any of these accounting pronouncements has had or will have a material impact on its consolidated financial position or results of operations.

XML

Share Exchange Agreement

6 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Share Exchange Agreement

Note 3 – Share Exchange Agreement

On August 8, 2017, the Company entered into a Share Exchange Agreement, as amended and restated on October 13, 2017, (the “Agreement”), with BioPharma. Pursuant to the terms of the Agreement, the Company agreed to issue to the shareholders of BioPharma 42,642,712 post-reverse stock-split shares of the Company’s common stock, par value $0.0001 (“Common Stock”), in exchange for all of the issued and outstanding shares of BioPharma capital stock, thereby making BioPharma a wholly-owned subsidiary of the Company. As part of the Closing of the Agreement, the 20,000,000 pre-reverse split shares of the Company’s Common Stock previously purchased by Kanativa USA, effective on June 26, 2017 in a change in control transaction from the Company’s control shareholders, were canceled. Since this transaction resulted in the existing shareholders of BioPharma acquiring control of the Company, for financial reporting purposes, the business combination has been accounted for as an additional capitalization of the Company (a reverse acquisition with BioPharma as the accounting acquirer).

XML

License Agreements

6 Months Ended

Dec. 31, 2018

License Agreements

License Agreements

Note 4 – License Agreements

In March 2017, NexN licensed certain intellectual property from Kotzker Consulting LLC (“Kotzker Consulting”), an unrelated entity. The licensed intellectual property includes patent applications relating to the use of cannabinoid receptor modulators and terpenes in the acute treatment during exposure to organophosphorus nerve agents and/or organophosphorus insecticides. Under terms of the agreement, NexN shall use its commercially reasonable efforts to develop and commercialize the licensed products, and, in particular, will be responsible for the design, manufacturing, preclinical, clinical, and regulatory development activities of the licensed products and shall bear the costs of such activities. As consideration for entering into the agreement, NexN agreed to: (i) pay Kotzker Consulting $180,000, (ii) pay patent prosecution costs incurred as of the date of the agreement of $15,000 and (iii) issue to Kotzker Consulting 31,550 shares of Intiva Inc.’s common stock valued at $78,875 ($2.50 per share based on recent private placement to third parties of Intiva Inc.’s common stock). The Company has capitalized legal fees of $29,040 incurred in conjunction with acquiring the license agreement, As of June 30, 2017, $65,000 was due under the license agreement, which amount was paid in August 2017. The total value ascribed to the License Agreement with Kotzker Consulting is $302,915 at December 31, 2018. The license agreement terminates, on a country by country basis, upon the expiration of the licensed patent for the licensed intellectual property, or when a competitor generic product utilizing the licensed technology is marketed in the particular country.

NexN shall be responsible for development milestone payments for (i) licensed products for use as a preventative and therapeutic neuroprotective against nerve agents and pesticides and (ii) licensed products for treatment of diseases. Milestone payments for each of the foregoing will each be due in two payments, the first payment no later than thirty (30) days from acceptance of submission of the regulatory filing of the first licensed product and the second payment no later than thirty (30) days from approval of the first licensed product. Royalties will be due beginning with first commercial sale of developed products. The Company has completed and submitted a Pre-Investigational New Drug meeting request and amendment thereto with the FDA.

In September 2017, BioPharma entered into a contract with a contract manufacturing organization to develop an injectable formulation of a drug product to be submitted to the FDA. It is anticipated that the product will be developed utilizing the new drug application 505(b) (2) regulatory pathway for use in the treatment during and immediately following exposure to organophosphorous nerve agents. The drug product is to consist of a synthetic cannabinoid and a blend of terpenes in an injectable vehicle.

On February 28, 2018, the Company obtained a worldwide exclusive license with respect to a proprietary delivery system for cannabinoid-based medications. Upon execution of the agreement, as amended September 18, 2018, $35,000 was paid to the licensor, $10,000 was paid on November 1, 2018, $20,000 is due on February 28, 2019 and a final payment, in cash or stock at the option of the Company, of $35,000 is due August 31, 2019. The Company is required to pay milestone payments upon obtaining regulatory approval of pharmaceutical licensed products and royalties based upon sales of licensed products. The Company may grant sublicenses under the terms of the agreement. As of December 31, 2018, the Company capitalized $45,000 under the license agreement.

XML

Stockholders' Equity

6 Months Ended

Dec. 31, 2018

Equity [Abstract]

Stockholders' Equity

Note 5 – Stockholders’ Equity

CRX Limited Liability Company Interest Purchase Agreement

On October 26, 2018, Company entered into a Limited Liability Company Interest Purchase Agreement (the “Purchase Agreement”) with the members of CRX Bio Holdings LLC, a Delaware limited liability company (“CRX”), to acquire all of the membership interest in CRX in exchange for 11,000,000 restricted shares of the Company’s common stock (the “Acquisition”), valued at $0.76 per share. The transaction has been accounted for as an asset acquisition, and not a business combination, and has been valued at the fair value of the common stock issued by the Company, as CRX’s cost basis was $0 in the assets. CRX is engaged in the research and development of advanced cannabinoid formulations and drug delivery systems with a focus on bioavailability and related pharmacokinetics and pharmacodynamics (PK/PD) enhancement. The Acquisition transaction was consummated on October 26, 2018. By acquiring CRX as a wholly-owned subsidiary, the Company acquired all of its assets, which consist primarily of three U.S. provisional patent applications relating to cannabinoid formulations to treat convulsive disorders, chronic traumatic encephalopathy, and neuropathic pain. At the closing, the Company issued to the six members of CRX (the “Sellers”) 1,100,000 shares not subject to any forfeiture restrictions and 9,900,000 shares which shall be released from forfeiture restrictions according to the following vesting schedule:

● 30% shall be fully vested 12 months following the Closing (October 26, 2019);

● 30% shall be fully vested 24 months following the Closing (October 26, 2020);

● 30% shall be fully vested 36 months following the Closing (October 26, 2021).

Any Seller who is not then providing services to the Company or any of its subsidiaries on any vesting date, whether through voluntary termination or termination “for cause,” will forfeit his unvested shares, which will be cancelled.

The transaction has been valued at $8,360,000, based on the fair value of the 11,000,000 shares issued of $0.76 per share, as per the closing market price of the Company’s common stock on the date of the agreement. The $836,000 fair value of the 1,100,000 shares issued not subject to any forfeiture restrictions was charged to operations during the six months ended December 31, 2018. The $7,524,000 fair value of the 9,900,000 shares subject to forfeiture has been charged to stockholders’ equity as a contra equity account, and will be amortized over the vesting periods. The net amount charged to stockholder’s equity was $0 on the date of the acquisition.

Effective December 31, 2018, one seller resigned from the Company and forfeited 1,732,500 unvested shares, valued at $1,316,699 ($0.76 per share).

Warrants

The Company has issued warrants to investors in a series of subscription agreements in equity financings.

On July 27, 2018, Company extended the expiration date of its Class C Warrants, from July 27, 2018, to August 8, 2018, and also offered holders of the Class C Warrants who did not wish to exercise their warrants the opportunity to exchange their Class C Warrants for new warrants. Each new warrant, denominated as Class D, was exercisable through November 30, 2018 to purchase one unit for $1.00, each unit consisting of one share of Common Stock and a warrant to purchase one share of Common Stock at a price of $2.00 per share through January 31, 2019. Holders of 944,400 Class C warrants were issued Class D warrants.

On September 12, 2018, the Company authorized the issuance of 94,000 Class E warrants to those shareholders who exercised their Class C warrants and did not exchange them for Class D warrants. Each Class E warrant is exercisable to purchase one share of common stock at a price of $2.00 per share through January 31, 2019.

The relative fair value of each warrant issuance is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants under the fixed option plan:

Average risk-free interest rates	2.0% - 2.16	%
Average expected life (in years)	.35 to .39
Volatility	175% to 296	%

The relative fair value attached to the Class D warrants is $151,467 and the relative fair value attached to the Class E warrants is $4,467 as of the grant date.

A summary of warrant activity during the six months ended December 31, 2018 is presented below:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding and exercisable – June 30, 2018		1,034,400		$	.53		.1
Granted		1,038,400		$	1.09
Exercised		-
Expired		(1,978,800	)	$	.75
Outstanding and exercisable – December 31, 2018		94,000		$	2.00		.1

The following table summarizes information about warrants outstanding at December 31, 2018:

	Number		Exercise Price		Expires
Class E		94,000	$	2.00	January 31, 2019

The Class E warrants expired unexercised on January 31, 2019.

2017 Stock Incentive Plan

On August 10, 2017, BioPharma adopted the “2017 Stock Incentive Plan” and granted an aggregate of 6,400,000 shares of Common Stock to five officers and directors of the Company, valued at $800,000 ($0.125 per share). On July 25, 2018, the Company accelerated the vesting of 1,083,342 unvested shares of Common Stock previously granted to its former Chief Executive Officer and Chief Financial Officer. As of December 31, 2018, 450,000 of the shares issued (valued at $56,250) are subject to forfeiture until vesting occurs.

2018 Equity Incentive Plan

(i) On March 30, 2018, the Company’s board of directors approved and recommended for adoption by the stockholders of the Company a 2018 Equity Incentive Plan and has reserved 8,000,000 shares of Common Stock for issuance under the terms of that Plan.

In July 2018, the Board of Directors granted options to purchase a total of 1,810,000 shares of Common Stock, exercisable for a period of seven years, to officers/directors/consultants of the Company at an exercise price of $0.54 per share.

In August 2018, the Board of Directors granted options to purchase a total of 150,000 shares of Common Stock, exercisable for a period of seven years, to two individuals, (i) a director and (ii) a consultant of the Company, at an exercise price of $0.38 per share.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants under the fixed option plan:

Average risk-free interest rates	2.6% - 2.8	%
Average expected life (in years)	4.0 to 7.0
Volatility	171% to 296	%

The fair value of the options granted as of December 31, 2018 is $891,318. Amortization of the vested portion of the options charged to operations was $449,470 for the period, and $441,848 is unamortized at December 31, 2018.

(ii) On October 17, 2018, the Board of Directors granted options to purchase an aggregate 800,000 shares of Common Stock, exercisable for a period of seven years, to officers/directors of the Company at an exercise price of $0.655 per share and confirmed a grant of options made as of October 1, 2018, to purchase 500,000 shares of Common Stock, exercisable for a period of seven years, to an officer and director of the Company at an exercise price $0.48. All of the options were fully vested as of the date of grant.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants under the fixed option plan:

Average risk-free interest rates	2.88% - 2.93	%
Average expected life (in years)	4.0
Volatility	171% to 172	%

The fair value of the fully vested options granted of $803,997 was charged to operations in the period ended December 31, 2018.

A summary of option activity during the six months ended December 31, 2018 is presented below:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding and exercisable – June 30, 2018		-
Granted		3,260,000	$	0.55
Exercised		-
Expired		-
Outstanding– December 31, 2018		3,260,000	$	0.55		6.7
Exercisable – December 31, 2018		2,280,000

XML

Related Party Transactions

6 Months Ended

Dec. 31, 2018

Related Party Transactions [Abstract]

Related Party Transactions

Note 6 – Related Party Transactions

BioPharma was formed as a subsidiary of Kanativa USA, which is a subsidiary of Kanativa Inc.

At December 31, 2018, BioPharma was owed $110,167 from Kanativa USA for advances made by BioPharma on behalf of Kanativa USA in conjunction with the Share Exchange Agreement (See Note 3). The balance due from Kanativa USA is being repaid at $1,500 per month for 18 months commencing September 1, 2018 with the remaining balance due on March 1, 2020. During the six months ended December 31, 2018, $4,500 was repaid to the Company pursuant to the agreement with Kanativa USA.

On August 10, 2017, the Board of Directors granted an aggregate of 6,400,000 shares of Common Stock to five officers and directors of the Company, valued at $800,000 ($0.125 per share), under the Company’s 2017 Stock Incentive Plan. One-third of each grant vested as of the initial date of grant (August 10, 2017), and 8-1/3% upon the end of each calendar quarter beginning December 31, 2017. In March 2018, the Company cancelled 1,166,667 unvested shares previously issued to its former CEO. As of December 31, 2018, 450,000 of the shares issued (valued at $56,250) are subject to forfeiture until vesting occurs.

Certain Directors and the Chief Financial Officer of the Company are also directors and officers of Kanativa Inc., and other subsidiaries and affiliated entities of Kanativa Inc.

XML

Subsequent Events

6 Months Ended

Dec. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

Note 7 – Subsequent Events

The Company has analyzed its operations subsequent to December 31, 2018 through the date these financial statements were issued, and has determined that it does not have any material sub subsequent events to disclose.

XML

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates.

Valuation of Long-lived Assets

Valuation of Long-Lived Assets

The Company reviews the recoverability of its long-lived assets including equipment, goodwill and other intangible assets, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on the Company’s ability to recover the carrying value of the asset from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. The Company’s primary measure of fair value is based on discounted cash flows. The measurement of impairment requires management to make estimates of these cash flows related to long-lived assets, as well as other fair value determinations.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

FASB ASC 825, “Financial Instruments,” requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. FASB ASC 825 defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. At December 31, 2018 and June 30, 2018, the carrying value of certain financial instruments (cash and cash equivalents, accounts payable and accrued expenses.) approximates fair value due to the short-term nature of the instruments or interest rates, which are comparable with current rates.

Fair Value Measurements

Fair Value Measurements

The Company measures fair value under a framework that utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of inputs which prioritize the inputs used in measuring fair value are:

Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.

Level 2: Inputs to the valuation methodology include:

● Quoted prices for similar assets or liabilities in active markets;

● Quoted prices for identical or similar assets or liabilities in inactive markets;

● Inputs other than quoted prices that are observable for the asset or liability;

● Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The assets or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

When the Company changes its valuation inputs for measuring financial assets and liabilities at fair value, either due to changes in current market conditions or other factors, it may need to transfer those assets or liabilities to another level in the hierarchy based on the new inputs used. The Company recognizes these transfers at the end of the reporting period that the transfers occur. For the periods ended December 31, 2018 and June 30, 2018, there were no significant transfers of financial assets or financial liabilities between the hierarchy levels.

Earnings Per Common Share

Earnings per Common Share

The Company computes net income (loss) per share in accordance with ASC 260, Earning per Share. ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.

Research and Development Expenses

Research and Development Expenses

Research and development expenses are charged to operations as incurred.

Concentrations of Credit Risk

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. Cash and cash equivalents are deposited with major banks in the United States of America. Management believes that such financial institutions are financially sound and, accordingly, minimal credit risk exists with respect to these financial instruments. The Company does not have any significant off-balance-sheet concentration of credit risk.

Stock-based Compensation

Stock-based compensation

Pursuant to FASB ASC 718, all share-based payments to employees, including grants of employee stock options, are recognized in the statement of operations based on their fair values.

Issuance of Shares for Non-cash Consideration

Issuance of shares for non-cash consideration

The Company accounts for the issuance of equity instruments to acquire goods and/or services based on the fair value of the goods and services or the fair value of the equity instrument at the time of issuance, whichever is more reliably determinable. The Company’s accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of the standards issued by the FASB. The measurement date for the fair value of the equity instruments issued is determined as the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-13, “Fair Value Measurement (Topic 820).” The amendments in this Update modify certain disclosure requirements of fair value measurements and are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement.

Although there are several other new accounting pronouncements issued or proposed by the FASB, which the Company has adopted or will adopt, as applicable, the Company does not believe any of these accounting pronouncements has had or will have a material impact on its consolidated financial position or results of operations.

XML

Stockholders' Equity (Tables)

6 Months Ended

Dec. 31, 2018

Schedule of Fair Value of Stock Options Assumptions

The relative fair value of each warrant issuance is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants under the fixed option plan:

Average risk-free interest rates	2.0% - 2.16	%
Average expected life (in years)	.35 to .39
Volatility	175% to 296	%

Summary of Warrant Activity

A summary of warrant activity during the six months ended December 31, 2018 is presented below:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding and exercisable – June 30, 2018		1,034,400		$	.53		.1
Granted		1,038,400		$	1.09
Exercised		-
Expired		(1,978,800	)	$	.75
Outstanding and exercisable – December 31, 2018		94,000		$	2.00		.1

Schedule of Warrants Outstanding

The following table summarizes information about warrants outstanding at December 31, 2018:

	Number		Exercise Price		Expires
Class E		94,000	$	2.00	January 31, 2019

Schedule of Stock Option Activity

A summary of option activity during the six months ended December 31, 2018 is presented below:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding and exercisable – June 30, 2018		-
Granted		3,260,000	$	0.55
Exercised		-
Expired		-
Outstanding– December 31, 2018		3,260,000	$	0.55		6.7
Exercisable – December 31, 2018		2,280,000

2018 Equity Incentive Plan [Member]

Schedule of Fair Value of Stock Options Assumptions

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants under the fixed option plan:

Average risk-free interest rates	2.6% - 2.8	%
Average expected life (in years)	4.0 to 7.0
Volatility	171% to 296	%

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants under the fixed option plan:

Average risk-free interest rates	2.88% - 2.93	%
Average expected life (in years)	4.0
Volatility	171% to 172	%

XML

Nature of Business and Basis of Presentation (Details Narrative)	21 Months Ended
	Dec. 31, 2018 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Operating loss	$ 4,231,357
Working capital	$ 406,546

XML

Share Exchange Agreement (Details Narrative) - $ / shares	Aug. 08, 2017	Dec. 31, 2018	Jun. 30, 2018
Common stock par value		$ .0001	$ .0001
Share Exchange Agreement [Member] | Post-Reverse Stock-Split [Member]
Reverse stock-split shares	42,642,712
Common stock par value	$ 0.0001
Share Exchange Agreement [Member] | Pre-Reverse Split [Member]
Reverse stock-split shares	20,000,000

XML

License Agreements (Details Narrative) - USD ($)			1 Months Ended	6 Months Ended
	Nov. 01, 2018	Sep. 18, 2018	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018	Jun. 30, 2017
Number of common stock shares issued				450,000
Value of common stock shares				$ 56,250
Share issued price per share				$ 0.76
License cost				$ 347,915		$ 337,915
Payment to license	$ 10,000	$ 35,000		10,000
February 28, 2019 [Member]
Payment to license				20,000
August 31, 2019 [Member]
Payment to license				35,000
License Agreement [Member]
Due to related party							$ 65,000
Capitalized cost of intangible assets				45,000
Kotzker Consulting LLC [Member]
Due to related party			$ 180,000
Payment of patent prosecution costs			$ 15,000
Number of common stock shares issued			31,550
Value of common stock shares			$ 78,875
Share issued price per share			$ 2.50
License cost				$ 302,915
Kotzker Consulting LLC [Member] | License Agreement [Member]
Capitalized legal fees			$ 29,040

XML

Stockholders' Equity (Details Narrative) - USD ($)						1 Months Ended		6 Months Ended
	Oct. 26, 2018	Oct. 17, 2018	Oct. 02, 2018	Jul. 27, 2018	Aug. 10, 2017	Aug. 31, 2018	Jul. 31, 2018	Dec. 31, 2018	Sep. 12, 2018	Jul. 25, 2018	Jun. 30, 2018	Mar. 30, 2018
Stock price per share								$ 0.76
Fair value of shares issued								$ 836,000
Number of common stock shares issued								450,000
Stockholder's equity								$ 845,128			$ 1,183,536
Warrant to purchase common stock description				Each new warrant, denominated as Class D, was exercisable through November 30, 2018 to purchase one unit for $1.00, each unit consisting of one share of Common Stock and a warrant to purchase one share of Common Stock at a price of $2.00 per share through January 31, 2019.
Fair value of warrants								155,934
Value of common stock shares								$ 56,250
Number of shares forfeited unvested								450,000
Number of shares forfeited unvested, value								$ 56,250
Options exercisable term								6 years 8 months 12 days
Fair value of stock option granted								$ 803,997
Chief Executive Officer and Chief Financial Officer [Member]
Number of unvested shares of common stock										1,083,342
2017 Stock Incentive Plan [Member] | Five Officers and Directors [Member]
Stock price per share					$ 0.125
Number of common stock shares issued					6,400,000
Value of common stock shares					$ 800,000
2018 Equity Incentive Plan [Member]
Common stock reserved for issuance												8,000,000
Fair value of stock option granted								891,318
Amortization of vested option								449,470
Unamortization of vested option								441,848
2018 Equity Incentive Plan [Member] | Officers / Directors / Consultants [Member]
Number of options to purchase shares of common stock							1,810,000
Options exercisable term							7 years
Options exercise price per share							$ 0.54
2018 Equity Incentive Plan [Member] | Two Individuals [Member]
Number of options to purchase shares of common stock						150,000
Options exercisable term						7 years
Options exercise price per share						$ 0.38
2018 Equity Incentive Plan [Member] | Officers / Directors [Member]
Number of options to purchase shares of common stock		800,000	500,000
Options exercisable term		7 years	7 years
Options exercise price per share		$ 0.655	$ 0.48
Class C Warrants [Member]
Warrant expiration date				Company extended the expiration date of its Class C Warrants, from July 27, 2018, to August 8, 2018.
Class D [Member]
Number of warrants issued				944,400
Fair value of warrants								$ 151,467
Class E [Member]
Number of warrant authorized									94,000
Warrants, Exercise Price								$ 2.00	$ 2.00
Fair value of warrants								$ 4,467
CRX Limited Liability Company [Member] | October 26, 2019 [Member]
Share based compensation vesting percentage	30.00%
Share based compensation vesting period	12 months
CRX Limited Liability Company [Member] | October 26, 2020 [Member]
Share based compensation vesting percentage	30.00%
Share based compensation vesting period	24 months
CRX Limited Liability Company [Member] | October 26, 2021 [Member]
Share based compensation vesting percentage	30.00%
Share based compensation vesting period	36 months
CRX Limited Liability Company [Member] | Interest Purchase Agreement [Member]
Number of common stock restricted shares	11,000,000
Stock price per share	$ 0.76
Fair value of common stock issued for asses acquisition	$ 0
Number of common stock restricted shares forfeited								1,100,000
Fair value of shares issued	$ 8,360,000							$ 836,000
Number of common stock shares issued	11,000,000
Stockholder's equity	$ 0
CRX Limited Liability Company [Member] | Interest Purchase Agreement [Member] | One Seller [Member]
Stock price per share								$ 0.76
Unvested forfeited, shares								1,732,500
Unvested forfeited, amount								$ 1,316,699
CRX Limited Liability Company [Member] | Interest Purchase Agreement [Member] | Restricted Stock [Member]
Stock price per share	$ 0.76
Share based Compensation stock options, vested	9,900,000
Fair value of stock option, vested	$ 7,524,000

XML

Stockholders' Equity - Schedule of Fair Value of Stock Options Assumptions (Details)		6 Months Ended
	Oct. 17, 2018	Dec. 31, 2018
Average risk-free interest rates, Minimum		2.00%
Average risk-free interest rates, Maximum		2.16%
Volatility, Minimum		175.00%
Volatility, Maximum		296.00%
2018 Equity Incentive Plan [Member]
Average risk-free interest rates, Minimum	2.88%	2.60%
Average risk-free interest rates, Maximum	2.93%	2.80%
Average expected life (in years)	4 years
Volatility, Minimum	171.00%	171.00%
Volatility, Maximum	172.00%	296.00%
Minimum [Member]
Average expected life (in years)		4 months 6 days
Minimum [Member] | 2018 Equity Incentive Plan [Member]
Average expected life (in years)		4 years
Maximum [Member]
Average expected life (in years)		4 months 20 days
Maximum [Member] | 2018 Equity Incentive Plan [Member]
Average expected life (in years)		7 years

XML

Stockholders' Equity - Summary of Warrant Activity (Details)	6 Months Ended
	Dec. 31, 2018 $ / shares shares
Equity [Abstract]
Number of shares, Outstanding and exercisable beginning balance	1,034,400
Number of shares, Granted	1,038,400
Number of shares, Exercised
Number of shares, Expired	(1,978,800)
Number of shares, Outstanding and exercisable ending balance	94,000
Weighted Average Exercise Price, Outstanding and exercisable beginning balance | $ / shares	$ 0.53
Weighted Average Exercise Price, Granted | $ / shares	1.09
Weighted Average Exercise Price, Expired | $ / shares	0.75
Weighted Average Exercise Price, Outstanding and exercisable ending balance | $ / shares	$ 2.00
Weighted Average Remaining Contractual Term (Years), Outstanding and exercisable, beginning balance	1 month 6 days
Weighted Average Remaining Contractual Term (Years), Outstanding and exercisable, ending balance	1 month 6 days

XML

Stockholders' Equity - Schedule of Warrants Outstanding (Details) - Class E [Member] - $ / shares	6 Months Ended
	Dec. 31, 2018	Sep. 12, 2018
Warrants Outstanding, Shares	94,000
Warrants Outstanding, Exercise Price	$ 2.00	$ 2.00
Warrants Outstanding, Expires	Jan. 31, 2019

XML

Stockholders' Equity - Schedule of Stock Option Activity (Details)	6 Months Ended
	Dec. 31, 2018 $ / shares shares
Equity [Abstract]
Number of shares, Outstanding beginning balance
Number of shares, Granted	3,260,000
Number of shares, Exercised
Number of shares, Expired
Number of shares, Outstanding ending balance	3,260,000
Number of shares, Exercisable ending balance	2,280,000
Weighted Average Exercise Price, Granted | $ / shares	$ 0.55
Weighted Average Exercise Price, Outstanding ending balance | $ / shares	$ 0.55
Weighted Average Remaining Contractual Life (Years), Outstanding	6 years 8 months 12 days

XML

Related Party Transactions (Details Narrative) - USD ($)		1 Months Ended	6 Months Ended
	Aug. 10, 2017	Mar. 31, 2018	Dec. 31, 2018	Jun. 30, 2018
Due from related parties			$ 19,500	$ 15,000
Number of common stock shares issued			450,000
Value of common stock shares issued			$ 56,250
Stock price per share			$ 0.76
Number of shares cancelled unvested			450,000
Kanativa USA [Member]
Due from related parties			$ 110,167
Repaid to related party			$ 1,500
Debt maturity date			Mar. 01, 2020
Repayments of debt			$ 4,500
Five Officers and Directors [Member]
Number of common stock shares issued	6,400,000
Value of common stock shares issued	$ 800,000
Stock price per share	$ 0.125
Stock option plan description	One-third of each grant vested as of the initial date of grant (August 10, 2017), and 8-1/3% upon the end of each calendar quarter beginning December 31, 2017
Chief Executive Officer [Member]
Number of shares cancelled unvested		1,166,667