DanDrit Biotech USA, Inc. (Filer) CIK: 0001527728
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Document and Entity Information - USD ($)
6 Months Ended
Jun. 30, 2015
Sep. 15, 2015
Document and Entity Information [Abstract]    
Entity Registrant Name DanDrit Biotech USA, Inc.  
Entity Central Index Key 0001527728  
Amendment Flag false  
Current Fiscal Year End Date --06-30  
Document Type 10-KT  
Document Period End Date Jun. 30, 2015  
Document Fiscal Year Focus 2015  
Document Fiscal Period Focus FY  
Entity Well-known Seasoned Issuer No  
Entity Voluntary Filers No  
Entity Current Reporting Status Yes  
Entity Filer Category Smaller Reporting Company  
Entity Public Float $ 52,098,119  
Entity Common Stock Shares Outstanding   9,533,290
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Consolidated Balance Sheet - USD ($)
Jun. 30, 2015
Dec. 31, 2014
Dec. 31, 2013
Current Assets:      
Cash (1) $ 421,145 $ 3,008,831 $ 18,794
Cash held in escrow (2) 1,052,989 2,029,502 77,468
Other receivables $ 432,125 $ 8,016 25,456
Prepaid expenses 19,774
Total Current Assets $ 1,906,259 $ 5,046,349 $ 141,492
Property and Equipment, net accumulated depreciation
OTHER ASSETS:      
Definite life intangible assets $ 164,046 $ 186,414 $ 231,615
Deferred stock offering costs 67,000
Deposits $ 2,572 $ 7,146 10,360
Total Other Assets 166,618 193,560 308,975
Total Assets 2,072,877 5,239,909 450,467
Current Liabilities:      
Notes payable - related party, current portion 100,614 99,951 728,001
Accounts payable - trade 512,783 711,449 $ 548,501
Accounts payable - related party 366,035 212,438
Accrued expenses 16,305 733,826 $ 858,135
Total Current Liabilities $ 995,737 $ 1,757,664 $ 2,134,637
Long Term Liabilities      
Notes payable - related Party
Notes payable - Dandrit (3)
Total Long-Term Liabilities
Total Liabilities $ 995,737 $ 1,757,664 $ 2,134,637
STOCKHOLDERS' EQUITY (DEFICIT):      
Common stock; par value 0.0001, 100,000,000 shares authorized, 9,533,290 issued and outstanding at June 30, 2015, 9,533,290 issued and outstanding at December 31, 2014, and 6,000,000 shares issued and outstanding at December 31, 2013 953 953 600
Additional paid-in capital 25,098,050 25,098,050 17,867,546
Other comprehensive income, net 543,592 275,249 (31,190)
Accumulated Deficit (24,565,455) (21,892,007) (19,521,126)
Total Stockholders' Equity (Deficit) 1,077,140 3,482,245 (1,684,170)
Total Liabilities and Stockholders' (Deficit) $ 2,072,877 $ 5,239,909 $ 450,467
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Consolidated Balance Sheet (Parenthetical) - $ / shares
Jun. 30, 2015
Dec. 31, 2014
Dec. 31, 2013
Balance Sheet [Abstract]      
Common stock, par value $ 0.0001 $ 0.0001 $ 0.0001
Common stock, shares authorized 100,000,000 100,000,000 100,000,000
Common stock, shares issued 9,533,290 9,533,290 6,000,000
Common stock, shares outstanding 9,533,290 9,533,290 6,000,000
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Consolidated Statement of Operations - USD ($)
6 Months Ended 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Dec. 31, 2013
Statement of Operations [Abstract]        
Net Sales $ 32,768
Cost of Goods Sold $ 65,932 $ 82,005 $ 295,661 109,299
Gross Loss (65,932) (82,005) (295,661) (76,531)
Operating Expenses:        
General and administrative expenses 739,189 $ 747,505 $ 1,644,918 $ 1,233,683
Research and Development expenses 1,625,488
Depreciation and Amortization 7,973 $ 9,756 $ 18,981 $ 38,297
Consulting expenses 295,983 140,942 469,666 390,437
Total Operating Expense 2,668,633 898,203 2,133,565 1,662,417
Loss from Operations (2,734,565) (980,208) (2,429,226) (1,738,948)
Other Income (Expense)        
Interest (expense) $ 3,101 $ (35,764) $ (84,550) (652,703)
Gain on forgiveness of debt 49,016
Gain (loss) on currency transactions $ (315,846) $ 218 $ (40,583) 19,541
Gain on derivative liability 175,732
Interest and other income $ 248 $ 5,937 1
Total Other Income (Expense) $ (312,745) (35,298) (119,196) (408,413)
Loss Before Income Taxes (3,047,310) (1,015,506) (2,548,422) $ (2,147,361)
Income Tax Expense (Benefit) (373,862) (132,997) (177,539)
Net Loss $ (2,673,448) $ (882,509) $ (2,370,883) $ (2,147,361)
BASIC AND DILUTED LOSS PER SHARE $ (0.28) $ (0.12) $ (0.32) $ (0.40)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING- BASIC AND DILUTED 9,533,290 7,555,359 7,500,142 5,332,721
WEIGHTED AVERAGE BASIC AND DILUTED LOSS PER SHARE $ (0.28) $ (0.12) $ (0.32) $ (0.40)
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Consolidated Statements of Other Comprehensive Loss - USD ($)
6 Months Ended 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Dec. 31, 2013
STATEMENTS OF OTHER COMPREHENSIVE LOSS [Abstract]        
(Net Loss) $ (2,673,448) $ (882,509) $ (2,370,883) $ (2,147,361)
(Currency Translation, Net of Taxes) 268,343 15,081 306,439 (219,470)
(Other Comprehensive Loss) $ (2,405,105) $ (867,428) $ (2,064,444) $ (2,366,831)
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Consolidated Statement of Stockholders' (Deficit) - USD ($)
Total
Common Stock
Additional paid-in capital
Accumulated Earnings (Deficit)
Other Comprehensive Income (loss)
Beginning Balance at Dec. 31, 2012   $ 532 $ 12,817,122 $ (17,373,765) $ 188,280
Beginning Balance, Shares at Dec. 31, 2012   5,318,151      
Common shares issued upon conversion of bond payable-related party and derivative liability at 9.00 per shares, December 2013, value   $ 26 2,353,322
Common shares issued upon conversion of bond payable-related party and derivative liability at 9.00 per shares, December 2013, shares   261,665      
Common shares issued in payment of notes payable - related party at 6.42 per shares, December 2013, value   $ 14 926,372
Common shares issued in payment of notes payable - related party at 6.42 per shares, December 2013, shares   144,321      
Common shares issued in payment of note payable - related party at 6.42 per shares, December 2013, value   $ 28 $ 1,770,730
Common shares issued in payment of note payable - related party at 6.42 per shares, December 2013, shares   275,863      
Equity Adjustment for Foreign Currency Translation Year Ended $ 219,470 $ (219,470)
Net (Loss) (2,147,361) $ (2,147,361)
Ending Balance at Dec. 31, 2013 (1,684,170) $ 600 $ 17,867,546 $ (19,521,126) $ (31,190)
Ending Balance, Shares at Dec. 31, 2013   6,000,000      
To record the recapitalization of Subsidiary in connection with the February 12, 2014 Share Exchange Agreement wherein DanDrit Biotech USA Inc. ("Parent") issued 6,000,000 common shares to acquire a 100% interest in DanDrit Biotech A/S ("Subsidiary") DanDrit Biotech USA Inc., (Formerly Putnam Hills Corp),   $ 204 (79,436)
To record the recapitalization of Subsidiary in connection with the February 12, 2014 Share Exchange Agreement wherein DanDrit Biotech USA Inc. ("Parent") issued 6,000,000 common shares to acquire a 100% interest in DanDrit Biotech A/S ("Subsidiary") DanDrit Biotech USA Inc., (Formerly Putnam Hills Corp), Shares   2,040,000      
To record the issuance of 4,000 and 141,000 common shares on September 4, 2014 in connection Initial Public Offering valued at $5 per share or $4,000 and $141,000, respectfully. Net of stock offering cost of $67,000, Value   $ 14 657,985
To record the issuance of 4,000 and 141,000 common shares on September 4, 2014 in connection Initial Public Offering valued at $5 per share or $4,000 and $141,000, respectfully. Net of stock offering cost of $67,000, shares   145,000      
To record the issuance of 100 common shares on September 24, 2014 in connection Initial Public Offering valued at $5 per share or $500, value   $ 0.01 500
To record the issuance of 100 common shares on September 24, 2014 in connection Initial Public Offering valued at $5 per share or $500, shares   100      
To record the issuance of 889,690 common shares in October, 2014 in connection Initial Public Offering valued at $5 per share or $4,358,879 net of stock offering cost of $89,360, value   $ 89 4,359,001
To record the issuance of 889,690 common shares in October, 2014 in connection Initial Public Offering valued at $5 per share or $4,358,879 net of stock offering cost of $89,360, shares   889,690      
To record the issuance of 58,500 common shares on November 13, 2014 in connection Initial Public Offering valued at $5 per share or $292,500, value   $ 6 292,494
To record the issuance of 58,500 common shares on November 13, 2014 in connection Initial Public Offering valued at $5 per share or $292,500, shares   58,500      
To record the issuance of 400,000 common shares on December 31, 2014 in connection private placement valued at $5 per share or $2,000,000, value   $ 40 $ 1,999,960
To record the issuance of 400,000 common shares on December 31, 2014 in connection private placement valued at $5 per share or $2,000,000, shares   400,000      
Equity Adjustment for Foreign Currency Translation Year Ended (306,439) $ 306,439
Rounding   $ 2
Net (Loss) (2,370,883) (2,370,883)
Ending Balance at Dec. 31, 2014 3,482,245 $ 953 $ 25,098,050 $ (21,892,007) $ 275,249
Ending Balance, Shares at Dec. 31, 2014   9,533,290      
Equity Adjustment for Foreign Currency Translation Year Ended (268,343) $ 268,343
Net (Loss) (2,673,448) $ (2,673,448)
Ending Balance at Jun. 30, 2015 $ 1,077,140 $ 953 $ 25,098,050 $ (24,565,455) $ 543,592
Ending Balance, Shares at Jun. 30, 2015   9,533,290      
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Consolidated Statement of Stockholders' (Deficit) (Parenthetical) - USD ($)
1 Months Ended 12 Months Ended
Sep. 04, 2014
Oct. 31, 2014
Sep. 24, 2014
Dec. 31, 2014
Nov. 13, 2014
Dec. 31, 2013
Statement of Stockholders' Equity [Abstract]            
Conversion of bond payable related party and derivative liability per share           $ 9.00
Notes payable related party per share           6.42
Notes payable related party per share one           $ 6.42
Share exchange agreement, shares issued to parent company       6,000,000    
Issuance of common shares 4,000 889,690 100   58,500  
Issuance of common shares value $ 4,000   $ 500      
Issuance of common shares one 141,000          
Issuance of common shares value one $ 141,000          
Issuance of Public Offering cost   $ 4,358,879     $ 292,500  
Public offering value per share $ 5.00 $ 5 $ 5.00   $ 5  
Net of offering cost $ 67,000 $ 89,360        
Issuance of common shares two       400,000    
Private placement value per share       $ 5    
Private placement value       $ 2,000,000    
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Consolidated Statement of Cash Flows - USD ($)
6 Months Ended 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Dec. 31, 2013
Cash Flows from Operating Activities:        
Net (Loss) $ (2,673,448) $ (882,509) $ (2,370,883) $ (2,147,361)
Adjustments to reconcile net (loss) to net cash provided (used) by operations:        
Depreciation and amortization 22,368 $ 11,117 $ 45,201 $ 38,297
Accrued Interest on Notes Payable - Related Party $ 2,126
(Gain)/Loss on sale of subsidiary $ (1)
Accretion of discount on bond payable 502,465
(Gain)/Loss on derivative liability (175,732)
Changes in assets and liabilities:        
(Increase) decrease in other receivable, $ (424,109) $ (59,870) $ 17,440 56,346
(Increase) decrease in prepaid expenses & deposits 4,574 12,807 22,988 4,183
Increase (decrease) in accounts payable (198,666) $ 120,365 162,950 $ (2,674)
Increase (decrease) in accounts payable - related party 153,597 212,438
Increase (decrease) in accrued expenses (717,521) $ 156,114 (124,309) $ (406,151)
Total Adjustments (1,157,631) 240,533 336,708 16,733
Net Cash (Used) by Operating Activities $ (3,831,079) $ (641,976) $ (2,034,175) (2,130,628)
Cash Flows from Investing Activities:        
Proceed from sale of subsidiary 1
Net decrease (increase) in cash held in escrow $ 976,513 $ (69,640) $ (1,952,034) (77,468)
Purchase of intangible assets (27,548)
Net Cash Used by Investing Activities $ 976,513 $ (69,640) $ (1,952,034) (105,015)
Cash Flows from Financing Activities:        
Proceeds from notes payable - related party $ 858,765 814,291 $ 2,754,662
Proceeds from stock sales 7,377,089
Payment of stock offering costs (89,360) $ (67,000)
Payments on notes payable - related party (1,432,213) (218,136)
Net Cash Provided by Financing Activities $ 858,765 6,669,807 2,469,526
(Gain) loss on Currency Translation $ 266,880 15,081 306,439 (219,470)
Net Increase (Decrease) in Cash and Cash Equivalents (2,587,686) 162,230 2,990,037 14,413
Cash and Cash Equivalents at Beginning of Period 3,008,831 18,794 18,794 4,381
Cash and Cash Equivalents at End of Period 421,145 $ 181,024 3,008,831 18,794
Cash paid during the year for        
Interest $ 1,467 $ 82,816 $ 12,632
Income Taxes
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES        
Accretion of discount on bond payable $ 502,465
Change in fair market value of derivative liability $ (175,732)
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Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2015
Summary of Significant Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Business and Basis of Presentation — DanDrit Biotech USA, Inc. (“DanDrit USA”, the “Company”, “we”, “us”, “our”) (formerly Putnam Hills Corp) was originally incorporated in the state of Delaware on January 18, 2011 as a vehicle to pursue a business combination through the acquisition of, or merger with, an operating business.

DanDrit BioTech A/S, a Danish Corporation was incorporated on April 1, 2001 (“DanDrit Denmark”) a 96,92% owned subsidiary of the Company. The Company engages in the research and development, manufacturing and clinical trials of pharmaceutical and biological products for the human treatment of cancer using the dendritic cell technology.

Year End — In June 2015, DanDrit’s board of directors approved a change to DanDrit’s fiscal year end from December 31 to June 30. 

Reverse Acquisition — On February 12, 2014, pursuant to the Share Exchange Agreement (the "Share Exchange Agreement"), DanDrit USA completed the acquisition of 100% of the issued and outstanding capital stock of DanDrit Denmark (the “Share Exchange”) and as a result became DanDrit Denmark’s parent company (the “Parent”). Prior to the Share Exchange there were 5,000,000 shares of the common stock, par value $.0001 per share (the “Common Stock”) of Parent outstanding. Parent and an existing shareholder agreed to cancel 4,400,000 shares of its Common Stock and issued 1,440,000 shares of Common Stock for legal and consulting services related to the Share Exchange and a future public offering. At the time of the Share Exchange each outstanding share of common stock of DanDrit Denmark was exchanged for 1.498842 shares of Parent’s Common Stock, for a total of 6,000,000 shares, resulting in 8,040,000 shares of the Parent’s Common Stock outstanding immediately following the Share Exchange, including 185,053 shares of Common Stock reserved for issuance in accordance with Section 70 of the Danish Companies Act and the Articles of Association of DanDrit Denmark to the DanDrit Denmark shareholders who have not consented to the Share Exchange (the “Non-Consenting Shareholders”), and deemed issued and outstanding for accounting purposes.

 

Consolidation — For the six months ended June 30, 2015 and 2014, the consolidated financial statements include the accounts and operations of the DanDrit Denmark, and the accounts and operations of DanDrit USA. All material inter-company transactions and accounts have been eliminated in the consolidation.

 

Functional Currency / Foreign currency translation — The functional currency of DanDrit Biotech A/S is the Danish Kroner (“DKK”). The Company’s reporting currency is the U.S. Dollar for the purpose of these financial statements. The Company’s balance sheet accounts are translated into U.S. dollars at the period-end exchange rates and all revenue and expenses are translated into U.S. dollars at the average exchange rates prevailing during the six months ended June 30, 2015 and years 2014 and 2013. Translation gains and losses are deferred and accumulated as a component of other comprehensive income in stockholders’ equity. Transaction gains and losses that arise from exchange rate fluctuations from transactions denominated in a currency other than the functional currency are included in the statement of operations as incurred.

 

Cash and Cash Equivalents — The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. The Company had balances held in a financial institution in the United States in excess of federally insured States amounts at June 30, 2015 of $0, December 31, 2014 of $2,508,759 and $0 at December 31, 2013. In May 2015 the cash balances were transferred to a financial institution in Denmark and a trust account at the Lett Law firm. At June 30, 2015 we had cash and cash held in escrow balances of $1,474,134.

 

Property and Equipment — Property and equipment are stated at cost. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized upon being placed in service. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is computed for financial statement purposes on a straight-line basis over the estimated useful lives of the assets which range from four to six years (See Note 3).

 

Intangible Assets — Definite life intangible assets include patents. The Company accounts for definite life intangible assets in accordance with Financial Accounting Standards Board, (“FASB”) Accounting Standards Codification, (“ASC”) Topic 350, “Goodwill and Other Intangible Assets” and amortized the patents on a straight line basis over the estimated useful life of twenty years. Costs incurred in relation to patent applications are capitalized cost and amortized over the estimated useful life of the patent. If it is determined that a patent will not be issued, the related remaining patent application costs are charged to expense.

 

Impairment of Long-Lived Assets — Long-lived assets, such as property, plant, and equipment and patents are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of significantly before the end of its estimated useful life.

 

Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. The depreciable basis of assets that are impaired and continue in use is their respective fair values.

 

Revenue Recognition and Sales  — The Company’s sales of its MelCancerVac colorectal cancer treatment have been limited to a compassionate use basis in Singapore after stage IIA trials and is not approved for current sale for any other use or location. The Company accounts for revenue recognition in accordance with the Securities and Exchange Commission Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” (SAB 101), FASB ASC 605 Revenue Recognition. The Company recognizes revenue when rights and risk of ownership have passed to the customer, when there is persuasive evidence of an arrangement, product has been shipped or delivered to the customer, the price and terms are finalized, and collections of the resulting receivable is reasonably assured. Products are primarily shipped FOB shipping point at which time title passes to the customer.

 

Value Added Tax - In Denmark, Value Added Tax (“VAT”) of 25% of the invoice amount is collected in respect of the sales of goods on behalf of tax authorities. The VAT collected is not revenue of the Company; instead, the amount is recorded as a liability on the balance sheet until such VAT is paid to the authorities. VAT of 25% is also paid to Danish and EU vendors on invoices. These amounts are refundable from the respective governmental authority and recorded as other receivables in the accompanying financial statements.

 

Research and Development Expenses — The Company expenses research and development expenses incurred in formulating, improving, validating and creating alternative or modified processes related to and expanding the use of our MAGE –A dendrite cell cancer therapy. Research and development expenses were included in operating expenses for the six months ended June 30, 2015 with the amount of $1,625,488. There were no research and development costs for the six months ended June 30, 2014 (unaudited) and years ended December 31, 2014 and 2013.

Our research and development expenses may fluctuate substantially from quarter to quarter depending on the clinical studies and the timing of samples supporting the clinical studies..

 

Income Taxes — The Company accounts for income taxes in accordance with FASB ASC Topic 740 Accounting for Income Taxes. This statement requires an asset and liability approach for accounting for income taxes.

 

Loss Per Share — The Company calculates earnings/(loss) per share in accordance with FASB ASC 260 Earnings Per Share. Basic earnings per common share (EPS) are based on the weighted average number of common shares outstanding during each period. Diluted earnings per common share are based on shares outstanding (computed as under basic EPS) and potentially dilutive common shares. Potential common shares included in the diluted earnings per share calculation include in-the-money stock options that have been granted but have not been exercised.

 

Derivatives - We generally do not use derivative financial instruments to hedge exposures to cash-flow, market or foreign-currency risks. However, we have entered into certain other financial instruments and contracts, such as debt financing arrangements with features that are either (i) not afforded equity classification, (ii) embody risks not clearly and closely related to host contracts, or (iii) may be net-cash settled by the counterparty. These instruments are required to be carried as derivative liabilities, at fair value.

 

We estimate fair values of all derivative instruments, such as embedded conversion features utilizing Level 3 inputs (defined below in Note 1: Fair Value of Financial Instruments). We use the Black-Scholes option valuation technique because it embodies all of the requisite assumptions (including trading volatility, estimated terms and risk free rates) necessary to fair value these instruments. Estimating fair values of derivative financial instruments requires the development of significant and subjective inputs that may, and are likely to, change over the duration of the instrument with related changes in internal and external market factors. In addition, option-based techniques are highly volatile and sensitive to changes in the market price of our common stock, which have historically had high volatility. Since derivative financial instruments are initially and subsequently carried at fair value, our income will reflect the volatility in these estimate and assumption changes.

 

We report our derivative liabilities at fair value on the accompanying balance sheets as of June 30, 2015 and December 31, 2014 and 2013.

 

Fair Value of Financial Instruments — The Company accounts for fair value measurements for financial assets and financial liabilities in accordance with FASB ASC Topic 820. The authoritative guidance, which, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the exit price, representing the amount that would either be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

 

  Level 1. Observable inputs such as quoted prices in active markets for identical assets or liabilities;

 

  Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

 

  Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, accounts receivable, prepaid expenses, investments, accounts payable, accrued expenses, capital lease obligations and notes payable approximates their recorded values due to their short-term maturities.

  

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

 

Recent Accounting Pronouncements — In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02) "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. It is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. We do not anticipate that the adoption of ASU 2015-02 will have any impact on our consolidated financial statements.

 

Other recent accounting pronouncements issued by the FASB did not or are not believed by management to have a material impact on the Company's present or future financial statements.

 

Reclassification — The financial statements for the period ended June 30, 2014 (unaudited) and December 31, 2014 and 2013 have been reclassified to conform to the headings and classifications used in the June 30, 2015 financial statements.


Alleviated going concern — While the Company has incurred significant losses from inception and has insufficient working capital given its projected losses and planned phase III testing of its product, we have committed additional sources of capital. On July 10, 2015 the Company received a capital increase commitment on $1,000,000 from a shareholder of the Company. The commitment expires on July 10, 2016. Also on July 10, 2015 the Company received a capital increase commitment on $1,000,000 from an individual. The commitment expires on July 10, 2016 . We believe that our cash together with available funds from other potential sources of funds, such as loans and commitments from shareholders, will be sufficient to fund our anticipated working capital needs and capital spending requirements for the next twelve months alleviating the going concern. However, if we were to incur any unanticipated expenditures, such circumstances could put a substantial burden on our cash resources. The Company plans to raise additional capital as needed through the sale of additional common shares and the future compassionate use sales of our product.

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Property and Equipment
6 Months Ended
Jun. 30, 2015
Property and Equipment [Abstract]  
PROPERTY AND EQUIPMENT

NOTE 2 — PROPERTY AND EQUIPMENT

 

Property and equipment consisted of the following at June 30, 2015, December 31, 2014 and December 31, 2013:

 

  Useful  June 30,    December 31,  December 31, 
  Life  2015    2014  2013 
Lab equipment and instruments 4-6 $164,778  $178,547  $194,143 
Computer equipment 4-6  56,436   61,151   66,493 
     221,214   239,698   260,636 
Less Accumulated Depreciation    (221,214)  (239,698)  (260,636)
Net Property and Equipment   $-  $-  $- 

 

Depreciation expense amounted to $0 and $858 (unaudited) for the six months ended June 30, 2015 and 2014, respectively, and $0 and $2,706 for the year ended December 31, 2014 and 2013, respectively. The Company’s property and equipment is held as collateral on the notes payable related party.

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Definite-Life Intangible Assets
6 Months Ended
Jun. 30, 2015
Definite Life Intangible Assets [Abstract]  
DEFINITE-LIFE INTANGIBLE ASSETS

NOTE 3 — DEFINITE-LIFE INTANGIBLE ASSETS 

 

At June 30, 2015, December 31, 2014 and December 31, 2013, definite-life intangible assets, net of accumulated amortization, consist of patents on the Company’s products and processes of $164,046, $186,414 and $231,615, respectively. The patents are recorded at cost and amortized over twenty years from the date of application. Amortization expense for the six months ended June 30, 2015 and 2014 was $7,973 and $13,742 (unaudited), respectively, and for the years ended December 31, 2014 and 2013 was $18,981 and $38,297, respectively. Expected future amortization expense for the years ended are as follows:

 

 

Year ending June 30,   
2016 $15,964 
2017  15,985 
2018  15,985 
2019  15,985 
2020  16,029 
Thereafter  84,098 
  $164,046 
 
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Notes Payable - Related Party
6 Months Ended
Jun. 30, 2015
Notes Payable - Related Party and Convertible Bond Payable - Related Party [Abstract]  
NOTES PAYABLE - RELATED PARTY

NOTE 4 — NOTES PAYABLE – RELATED PARTY

 

Notes payable to related parties consists of the following as of June 30, 2015, December 31, 2014 and December 31, 2013:

 

  June 30,  December 31, 
  2015  2014  2013 
          
Non-Interest Bearing Loan Payable Sunrise Financial Group Inc. $38,235  $38,235  $- 
Note Payable ML Group  17,500   18,963   21,557 
6% Promissory Note payable to NLBDIT 2010 Enterprises, LLC  44,879   42,753   - 
5% Note Payable - Sune Olsen Holding ApS  -   -   521,390 
5% Note Payable - Sune Olsen  -   -   185,054 
Total Notes Payable – Related Party  100,614   99,951   728,001 
Less Current Maturities  (100,614)  (99,951)  (728,001)
Note Payables – Related Party Long Term $-  $-  $- 

 

The following represents the future maturities of long-term debt as of June 30, 2015:

 

Year ending June 30,    
2016 $100,614 
2017  - 
2018  - 
2019  - 
2020  - 
Thereafter  - 
  $100,614 

 

On February 15, 2014 and March 18, 2014, DanDrit Denmark received DKK 2,500,000 ($461,084) and DKK 2,300,000 ($424,198) loans (the “2014 Loans”), respectively, from Paseco ApS, an entity owned by a shareholder of the Company (“Paseco”).  The 2014 Loans were payable 14 days after the completion of the contemplated public offering in DanDrit USA or February 1, 2015, and accrued interest at 5% per annum. On April 29, 2014, DanDrit Denmark and Paseco entered into an amendment whereby the terms of the 2014 Loans were payable on February 1, 2015 and could be extended at the Company’s option for an additional year with an increase in the interest rate to 7.00%.  As of October 17, 2014, the outstanding balance on the 2014 Loans including accrued interest was $836,830 based on the currency exchange rate of October 17, 2014. On October 17, 2014, the Company repaid the loan and interest in its entirety.

 

DanDrit Denmark has received an unsecured loan facility from Sune Olsen Holding ApS (“Sune Olsen Holding”), a shareholder of the Company, with a goal of ensuring financing until new equity has been raised. Under the loan facility DanDrit Denmark has received the following amounts: on November 11, 2013 DKK 1,500,000 ($276,651), on November 20, 2013 DKK 405,000 ($74,696), and on December 2, 2013 DKK 900,000 ($165,990). The loans were due May 1, 2014 and accrued interest at 5% per year.  During March 2014, the Company extended maturity date of the loans with Sune Olsen Holdings from May 1, 2014 to 14 days after the completion of the contemplated stock offering of DanDrit USA or February 1, 2015. On November 26, 2014, the Company repaid the loan facility and interest thereon.

 

DanDrit Denmark has received an unsecured loan from Sune Olsen, managing member of Sune Olsen Holding, with a goal of ensuring financing until new equity has been raised. The loan in the amount of DKK 1,000,000 ($184,434) was issued on December 20, 2013. The loan was due May 1, 2014 and accrued interest of 5% per year. During March 2014, the Company extended the maturity date of the DKK 1,000,000 loans with Sune Olsen from May 1, 2014 to 14 days after the completion of the contemplated stock offering of DanDrit USA or February 1, 2015. On November 26, 2014 the Company repaid the unsecured loan and interest thereon.

 

During March 2014, the Company received a 2,000,000 DKK ($368,868) letter of support from Paseco to finance operations until February 1, 2015 to be issued with terms substantially similar to those contained in the 2014 Loans. The Company has an option to extend the loan for one year by giving notice to Paseco by December 31, 2014 whereby the interest rate would increase to 7.00% per annum. The Company did not exercise the option.

 

During 2012, DKTI A/S, a shareholder of the Company, which was controlled by officers and directors of the Company, agreed to loan the Company up to DKK 5,000,000 (approximately $880,000) accruing interest at 6%.  The loan is secured by all the Company’s intellectual property rights, including its patents and its patent applications credit facility.  During the year ended December 31, 2012 the Company borrowed DKK 4,431,862 ($783,139) plus DKK 71,563 ($12,646) in interest.  During the year ended December 31, 2013, the Company borrowed an additional DKK 310,000 (approximately $55,000) on the loan and accrued interest of DKK 230,377 (approximately $42,000). The notes with related accrued interest were converted into 96,288 common shares of DanDrit Denmark on December 16, 2013 which were exchanged for 144,321 shares of common stock of the Parent upon the closing of the Share Exchange.

 

During the years ended December 31, 2013, 2012 and 2011 Sune Olsen Holding loaned DanDrit Denmark DKK 1,267,724 ($232,841), DKK 338,719 ($59,854) and DKK 143,750 ($25,019), respectively.  The Company added the accrued interest at 6% and the Company recorded interest expense of DKK 86,047 ($15,804), DKK 20,469 ($3,617) and DKK 2,689 ($468) during the years end December 31, 2013, 2012 and 2011, respectively.  The loans are payable upon three months written notice of Sune Olsen Holding.  On December 16, 2013, the notes with related accrued interest were converted into 35,106 shares of DanDrit Denmark which were exchanged for 52,618 shares of common stock of the Company upon the closing of the Share Exchange.

 

On April 14, 2013, Sune Olsen Holding, a shareholder of the Company, assumed DKK 4,375,932 (approximately $773,000) in liabilities owed by DanDrit Denmark for past due rent from a vendor in exchange for a note payable. ) were converted into 86,204 shares of DanDrit Denmark, which were exchanged for 129,207 shares of common stock of the Parent upon the closing of the Share Exchange.

 

On June 20, 2013, Sune Olsen Holding paid DKK 1,500,000, ($265,000) in accrued legal fees owed by the Company in exchange for a DKK1, 500,000 ($265,000) 5% note payable to Sune Olsen Holding. On December 16, 2013, the note with related accrued interest of DKK 20,959 ($3,804) was converted into 29,036 shares of DanDrit Denmark common stock. Such shares of common stock were exchanged for 43,520shares of common stock of the Parent upon the closing of the Share Exchange.

 

On July 26, 2013 and August 15, 2013, Sune Olsen Holding loaned the Company an additional DKK 1,000,000 ($177,239) and DKK 750,000 ($133,343), respectively.  The notes accrue interest at 5% and are payable upon three months written notice of Sune Olsen Holding. The notes with related accrued interest of DKK 15,575 ($2,827) were converted into 33,705 shares of DanDrit Denmark common stock on December 16, 2013. Such shares of common stock were exchanged for 50,518 shares of common stock of the Company upon the closing of the Share Exchange.

 

As of June 30, 2015, the outstanding balance of $38,235 for professional fees paid by a shareholder and amounts advanced to the Parent are reported as notes payable - related party. The $38,235 notes payable were acquired in the reverse acquisition. The amounts are unsecured, non-interest bearing and have no stipulated repayment terms.

 

A 6% promissory note payable to NLBDIT 2010 Enterprises, LLC, an entity controlled by a shareholder of the Company, was acquired by the Company in the reverse acquisition, payable on February 12, 2014 upon the completion date of the Share Exchange.  As of June 30, 2015, the outstanding balance on the note, including accrued interest, was $44,879. During the six months ended June 30, 2015 and 2014 and twelve months ended December 31, 2014 the Company recorded related party interest on the Note of $2,126, $1,521 (unaudited), and $619, respectively.

v3.3.0.814
Convertible Bond Payable - Related Party
6 Months Ended
Jun. 30, 2015
Notes Payable - Related Party and Convertible Bond Payable - Related Party [Abstract]  
CONVERTIBLE BOND PAYABLE - RELATED PARTY

NOTE 5 — CONVERTIBLE BOND PAYABLE – RELATED PARTY

 

On December 1, 2011, DanDrit Denmark borrowed $1,500,000 from DKTI A/S and issued 6% convertible bonds. The bonds may not be converted during the four weeks following the publication of the annual report. The bonds may not be repaid until the bonds’ expiration on December 31, 2014.  The bonds shall not accrue interest after expiration.  The bonds and related accrued interest are convertible into common shares of the Company at an initial rate of $9.58 per common share.

 

The conversion/adjustment features had an estimated fair value of $1,003,557 using the Black-Scholes pricing model using the assumptions set forth below and were bifurcated and properly classified as derivative instruments required to be recorded at fair value (Note 6). The proceeds from the bond have been allocated to the note and conversion/adjustment feature of the convertible bond and recorded at a discount which was amortized to interest expense through conversion. During the years ended December 31, 2013 and 2012, the Company recorded interest expense of $502,465 and $461,279, respectively, for the accretion of the discount on the note.

 

On December 16, 2013, the $1,500,000 convertible bond, accrued interest of $179,612 and the $673,736 derivative liability were converted into 174,578 shares of DanDrit Denmark common stock. Such shares of common stock were exchanged for 261,665 shares of common stock of the Company upon the closing of the Share Exchange.

  

The assumptions used to determine the initial fair value of the conversion feature of the convertible bond were expected volatility of 65%, expected life of two years to twelve months, risk – free interest rates of 0.41%, and no dividend yield.

v3.3.0.814
Derivative Liabilities
6 Months Ended
Jun. 30, 2015
Derivative Liabilities [Abstract]  
DERIVATIVE LIABILITIES

NOTE 6 — DERIVATIVE LIABILITIES

 

The Company does not use derivative financial instruments to hedge exposures to cash-flow, market or foreign-currency risks. However, the Company has entered into certain other financial instruments and contracts, such as debt financing arrangements with features that are either (i) not afforded equity classification, (ii) embody risks not clearly and closely related to host contracts, or (iii) may be net-cash settled by the counterparty. These instruments are required to be carried as derivative liabilities, at fair value.

 

The fair value of the shares to be issued upon conversion of the bond was recorded as a derivative liability, with the change in the fair value recorded as a gain or loss in the accompanying statement of operations.  During the nine months ended September 30, 2013, the Company recorded gains of $45,823. On December 16, 2013, the $1,500,000 convertible bond, accrued interest of $179,612 and the $673,736 derivative liability were converted into 174,578 shares of DanDrit Denmark common stock or 261,665 shares of common stock of the Company upon the closing of the Share Exchange.

v3.3.0.814
Leases
6 Months Ended
Jun. 30, 2015
Leases [Abstract]  
LEASES

NOTE 7 — LEASES

 

Operating Leases — The Company leases laboratory and production space under operating lease agreements which can be cancelled with 3 months’ notice.  The lease calls for monthly payments of DKK 6,300 (approximately $943 at June 30, 2015).

 

On March 27, 2014, the Company entered into an operating lease agreement for office space from a related party. The Lease calls for monthly payments of DKK 10,000 (approximately $1,496), increasing to DKK 20,000 (approximately $2,992) on July 1, 2014. The lease was terminated on May 31, 2015.

 

On March 25, 2015, the Company entered into an agreement for use of virtual office space at a rate of $375/month on a month-to-month basis, which can be terminated by either party on one month’s notice.

 

Lease expense charged to operations was $20,800 and $17,505 (unaudited) for the six months ended June 30, 2015 and 2014, respectively, and $32,297 and $65,702 for the years ended December 31, 2014 and 2013, respectively.

v3.3.0.814
Income Taxes
6 Months Ended
Jun. 30, 2015
Income Taxes [Abstract]  
INCOME TAXES

NOTE 8 — INCOME TAXES

 

The Company accounts for income taxes in accordance with FASB ASC Topic 740, Accounting for Income Taxes; which requires the Company to provide a net deferred tax asset or liability equal to the expected future tax benefit or expense of temporary reporting differences between book and tax accounting and any available operating loss or tax credit carry forwards. The amount of and ultimate realization of the benefits from the deferred tax assets for income tax purposes is dependent, in part, upon the tax laws in effect, the Company’s future earnings, and other future events, the effects of which cannot be determined.

 

As of June 30, 2015, the Company had net operating loss carryforwards of approximately $2,268,613 for Danish tax purposes which do not expire.

 

 As of June 30, 2015, the Company had net operating loss carryforwards of approximately $266,564 for United States tax purposes which expire in 2035.

 

The Company files Danish income tax returns, and they are generally no longer subject to tax examinations for years prior to 2007 for their Danish tax returns.

 

The temporary differences, tax credits and carry forwards gave rise to the following deferred tax asset (liabilities) at June 30, 2015, December 31, 2014 and 2013:

 

  June 30,  December 31, 
  2015  2014  2013 
Excess of Tax over book depreciation Fixed assets $10,240  $12,711  $87,578 
Excess of Tax over book depreciation Patents  5,560   52,041   114,028 
Net Operating Loss Carryforward  2,535,177   2,380,106   1,642,598 
Valuation Allowance  (2,550,977)  (2,444,858)  (1,844,204)
Total Deferred Tax Asset (Liabilities) $-  $-  $- 

 

In accordance with prevailing accounting guidance, the Company is required to recognize and disclose any income tax uncertainties. The guidance provides a two-step approach to recognize and disclose any income tax uncertainties. The guidance provides a two-step approach to recognizing and measuring tax benefits and liabilities when realization of the tax position is uncertain. The first step is to determine whether the tax position meets the more-likely-than-not condition for recognition and the second step is to determine the amount to be recognized based on the cumulative probability that exceeds 50%. The amount of and ultimate realization of the benefits from the deferred tax assets for income tax purposes is dependent, in part, upon the tax laws in effect, the Company’s future earnings, and other future events, the effects of which can be difficult to determine and can only be estimated. Management estimates that it is more likely than not that the Company will not generate adequate net profits to use the deferred tax assets; and consequently, a valuation allowance was recorded for all deferred tax assets.

 

A reconciliation of income tax expense at the federal statutory rate to income tax expense at the Company’s effective rate is as follows for the six months ended June 30, 2015 and 2014 (unaudited), and for the years ended December 31, 2014 and December 31, 2013:

 

  June 30,  December 31, 
  2015  2014 (Unaudited)  2014  2013 
Computed Tax at Expected Statutory Rate $(1,036,085) $(144,858) $(866,463) $(752,882)
Non-US Income Taxed at Different Rates  319,541   44,858   255,356   199,292 
Non-Deductible expenses      -   8,390   283,381 
Valuation allowance  342,683   100,000   436,631   270,209 
Income Tax Expense $(373,862) $(132,997) $-  $- 

 

The components of income tax expense (benefit) from continuing operations for the six months ended June 30, 2015 and 2014 (unaudited), and for the years ended December 31, 2014 and 2013 consisted of the following:

 

  June 30,  December 31, 
Current Tax Expense 2015  2014 (Unaudited)  2014  2013 
Danish Income Tax $(373,862) $(132,997) $(177,539) $- 
Deferred Income Tax Expense (Benefit)                
Excess of Tax over Book Depreciation Fixed Assets  2,471   -   19,259   26,364 
Excess of Tax over Book Depreciation Patents  5,470   -   67,488   (105,585)
Net Operating Loss Carryforwards  (342,683)  (100,000)  (523,378)  (190,988)
Change in the Valuation allowance  334,742   100,000   436,631   270,209 
Total Deferred Tax Expense $-  $-  $-  $- 

 

Deferred income tax expense/(benefit) results primarily from the reversal of temporary timing differences between tax and financial statement income.

v3.3.0.814
Loss Per Share
6 Months Ended
Jun. 30, 2015
Loss Per Share [Abstract]  
LOSS PER SHARE

NOTE 9 — LOSS PER SHARE

 

The following data shows the amounts used in computing loss per share and the effect on income and the weighted average number of shares of potential dilutive common stock for the six months ended June 30, 2015 and 2014 (unaudited), and for the years ended December 31, 2014 and 2013:

 

  June 30,  December 31, 
  2015  2014 (Unaudited)  2014  2013 
Net (Loss) $(2,673,448) $(882,509) $(2,370,883) $(2,214,361)
Weighted average number of common shares used in basic earnings per share  9,533,290   7,555,359   7,500,142   3,557,893 
Effect of dilutive securities, stock options and warrants  -   -   -   - 
Weighted average number of common shares and potential dilutive common shares outstanding used in dilutive earnings per share  9,533,290   7,555,359   7,500,142   3,557,893 

 

For the six months ended June 30, 2015 and 2014 (unaudited), and years ended December 31, 2014 and 2013, the Company had no options outstanding to purchase common stock of the Parent.

v3.3.0.814
Stockholder's Equity
6 Months Ended
Jun. 30, 2015
Stockholders' Equity [Abstract]  
STOCKHOLDERS' EQUITY

NOTE 10 — STOCKHOLDERS’ EQUITY

 

Common Stock — The Company has 100,000,000 authorized shares of Common stock $0.0001.  As of June 30, 2015 there were 9,533,290 shares issued and outstanding.

 

Share Exchange Agreement/Reverse Acquisition - On February 12, 2014, in accordance with the terms and conditions of a Share Exchange Agreement (the "Share Exchange Agreement"), we completed the acquisition of approximately 100% of the issued and outstanding capital stock  of  DanDrit Denmark (the “Share Exchange”) and as a result became DanDrit Denmark’s parent company (the “Parent”). In connection with the Share Exchange, each outstanding share of common stock of DanDrit Denmark was exchanged for 1.498842 shares of DanDrit USA’s common stock, par value $.0001 per share (the “Common Stock”) for an aggregate of 6,000,000 shares, including 185,053 shares of Common Stock reserved for issuance, in accordance with Section 70 of the Danish Companies Act and the Articles of Association of DanDrit Denmark, to the DanDrit Denmark shareholders who did not consent to the Share Exchange and deemed issued and outstanding for accounting purposes. In addition, in connection with the Share Exchange (1) the sole shareholder prior to the Share Exchange agreed to cancel 4,400,000 shares of outstanding Common Stock owned by it and (2) the board of directors and executive management of DanDrit Denmark was appointed to serve as the Board of Directors and executive management of DanDrit USA effective upon the resignation of the sole officer and director of DanDrit USA prior to the closing of the Share Exchange.

 

Common Stock Issuances –On December 31, 2014, the Company received $2,000,000 in connection with a private offering of 400,000 shares of common stock at an offering price of $5.00 per share.

 

During the year ended December 31, 2014, pursuant to the Company’s offering up to $12,000,000 (2,400,000 shares) of common stock at an offering price of $5.00 per share in an initial public offering pursuant to a registration statement effective on August 12, 2014, the Company sold 1,093,290 shares of common stock for gross proceeds of $5,466,450 less offering costs of $156,360.

   

On December 16, 2013, DanDrit Denmark issued 174,578 shares of its common stock which were exchanged for 261,665 shares of Common Stock of the Parent upon the closing of the Share Exchange in payment of a $1,500,000 convertible bond, $179,612 of accrued interest and the remaining $673,736 of derivative liability associated with the conversion feature of the bond.

 

On December 16, 2013, DanDrit Denmark issued 96,288 shares of its common stock which were exchanged for 144,321 shares of Common Stock of the Parent upon the closing of the Share Exchange in payment of $926,386 of notes payable and related accrued interest payable to DKTI A/S.

 

On December 16, 2013, DanDrit Denmark issued 184,051 shares of its common stock which were exchanged for 275,863 shares of Common Stock of the Parent upon the closing of the Share Exchange in payment of $1,770,757 of notes payable and related accrued interest payable to Sune Olsen Holdings ApS and Advance Biotech Invest AS.

 

Voting- Holders of the Company’s common stock are entitled to one vote for each share held of record on each matter submitted to a vote of stockholders, including the election of directors, and do not have any right to cumulate votes in the election of directors.

 

Dividends- Holders of the Company’s common stock are entitled to receive ratably such dividends as our Board of Directors from time to time may declare out of funds legally available.

 

Liquidation Rights- In the event of any liquidation, dissolution or winding-up of affairs of the Company, after payment of all of our debts and liabilities, the holders of the Company’s common stock will be entitled to share ratably in the distribution of any of our remaining assets.

v3.3.0.814
Commitments and Contingencies
6 Months Ended
Jun. 30, 2015
Commitments and Contingencies [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 11 — COMMITMENTS AND CONTINGENCIES

 

Shares held for non-consenting shareholders – In connection with the Share Exchange agreement certain shareholders of Dandrit Denmark had not been identified or did not consent to the exchange of shares. In accordance with Section 70 of the Danish Companies Act and the Articles of Association of DanDrit Denmark, the Non-Consenting Shareholders that did not exchange the DanDrit Denmark equity interests owned by such Non-Consenting Shareholders for shares of the Company, will be entitled to receive up to 185,053 shares of common stock of the Company that each such Non-Consenting Shareholder would have been entitled to receive if such shareholder had consented to the Share Exchange. The 185,053 shares have been reflected as issued and outstanding in the accompanying financial statements.

 

Clinical Trial Agreements– The Company’s subsidiary, DanDrit Biotech A/S signed a contract of collaboration with the University Hospital IRCCS “San Martino” - IST – National Institute for Cancer Research, known as the San Martino Hospital of Genoa. Dr. Alberto Sobrero, the Head of the Medical Oncology Unit at the San Martino Hospital, is principal investigator of the randomized multicenter study. The collaboration relates to a Phase III adjuvant study of DanDrit’s vaccine in patients with no evident disease (“NED”) stage IV colorectal cancer (“CRC”). The primary goal of the study is to evaluate the efficacy of DanDrit’sMelCancerVac® (“MCV”) in stage IV CRC patients rendered disease free after the completion of standard treatments in accordance with local practices.

 

On April 28, 2015 the Company entered into a service agreement with Fondazione Giscad per la Ricerca sui Tumori to support Dandrit in a clinical trial to be conducted in Italy

 

Patient Name Use Program Agreements - On December 16, 2013, DanDrit Denmark entered into an agreement with a Dutch company (the “MCV Partner”) regarding a Patient Name Use Program (PNU) for the Company’s MCV.  This program will allow DanDrit Denmark to sell MCV for a year of treatment (10 vaccines) to cancer patients through the MCV Partner.  The MCV Partner offers a worldwide online platform providing access to non-registered medicines for patients with life threatening diseases. The MCV Partner is a turnkey solution and will be in charge of regulatory, recruitment, logistics, and pharmaco vigilance.   The Company will pay the MCV Partner a royalty on a country to country basis for 20 years on MCV sales sold under the agreement. Either party may terminate the agreement with 180 day written notice.

 

On April 23, 2015, the Company entered into a collaboration agreement with Riyadh Pharma in Saudi Arabia to promote cooperation in the manufacturing and marketing of DanDrit's dendritic cell cancer vaccine.

 

Manufacturing agreements - On January 28, 2014, the Company entered into an agreement with Cellin Technologies for the manufacture of the MCV Cancer vaccine.

 

On August 8, 2014, the Company entered into an agreement with Cellin Technologies for the manufacture of the Melanoma Cell Lysate.

 

Food and Drug Administration (FDA) - The FDA has extensive regulatory authority over biopharmaceutical products (drugs and biological products), manufacturing protocols and procedures and the facilities in which they will be manufactured. Any new bio product intended for use in humans is subject to rigorous testing requirements imposed by the FDA with respect to product efficacy and safety, possible toxicity and side effects. FDA approval for the use of new bio products (which can never be assured) requires several rounds of extensive preclinical testing and clinical investigations conducted by the sponsoring pharmaceutical company prior to sale and use of the product. At each stage, the approvals granted by the FDA include the manufacturing process utilized to produce the product. Accordingly, the Company’s cell systems used for the production of therapeutic or bio therapeutic products are subject to significant regulation by the FDA under the Federal Food, Drug and Cosmetic Act, as amended.

 

Product liability -The contract production services for therapeutic products offered exposes an inherent risk of liability as bio therapeutic substances manufactured, at the request and to the specifications of customers, could foreseeably cause adverse effects. The Company seeks to obtain agreements from contract production customers indemnifying and defending the Company from any potential liability arising from such risk. There can be no assurance, however, that the Company will be successful in obtaining such agreements in the future or that such indemnification agreements will adequately protect the Company against potential claims relating to such contract production services. The Company may also be exposed to potential product liability claims by users of its products. A successful partial or completely uninsured claim against the Company could have a material adverse effect on the Company’s operations.

 

Employment Agreements -The Company and its Subsidiary have employment agreements with officers of the Company.

 

Contingencies - The Company is from time to time involved in routine legal and administrative proceedings and claims of various types.  While any proceedings or claim contains an element of uncertainty, management does not expect a material impact on our results of operations or financial position.

 

Consulting Agreement — As of December 11, 2014, the Company entered into an agreement with Northern Biotech Fund SARL, an entity controlled by a shareholder of the Company. Northern Biotech Fund SARL provides consulting services to the Company in connection with planning and structuring a fund raising for the Company. In 2014 consultancy expenses were $148,395 and for the six month ended June 30, 2015 the consultancy expenses were $240,000.

v3.3.0.814
Disposition
6 Months Ended
Jun. 30, 2015
Disposition [Abstract]  
DISPOSITION

NOTE 12 — DISPOSITION

 

On December 16, 2013,DanDrit Biotech A/S sold its’ Dormant Singapore subsidiary DanDrit Singapore Pte. Ltd., for $1 resulting in no gain or loss from the sale and discontinuing the operations. The Company had no sales or operations for the periods presented in the accompanying financial statements.

v3.3.0.814
Related Party Transactions
6 Months Ended
Jun. 30, 2015
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 13 — RELATED PARTY TRANSACTIONS

 

During the six month ended June 30, 2015 and the year ended December 31, 2014 and 2013, the Company entered into various notes payable with shareholders of the Company (See Note 4).

 

On March 27, 2014 the Company entered into an operating lease agreement for office space from a shareholder of the Company (See Note 7). During the six months ended June 30, 2015 and 2014 the Company paid the related party $14,500 and $4,500 (unaudited). During the year ended December 31, 2014, the Company paid the related party $23,152.

 

During the six months ended June 30, 2015 and 2014(unaudited) and during the year ended December 31, 2014 and 2013, JARO Holding ApS owned by a director of the Company, provided medical consultancy services to the Company. During the six months ended June 30, 2015 and 2014 the Company recorded medical consultancy expense of $44,886 and $0, respectively. During the years ended December 31, 2014 and 2013 the Company recorded medical consultancy expense of $29,925 and $0, respectively.

 

In June, 2015 the Company paid DKK50.000 ($7,499) to Paseco ApS for consultancy services provided in June 2015.

 

During the six months ended June 30, 2015 and 2014 and during the years ended December 31, 2014 and 2013, a law firm partially owned by the Company’s Chairman of the Board of Directors provided legal services to the Company. During the six months ended June 30, 2015 and 2014 the Company recorded legal expense of $132,414 and $189,106 (unaudited), respectively. During the years ended December 31, 2014 and 2013 the Company recorded legal expense of $288,546 and $328,202, respectively. During the year ended December 31, 2013 the firm forgave $49,016 in legal services. At June 30, 2015, the Company had a payable to the firm in the amount of $349,162. At June 30, 2015, the Company had an escrow account of $1,052,989 with the Lett Law Firm

v3.3.0.814
Subsequent Event
6 Months Ended
Jun. 30, 2015
Subsequent Event [Abstract]  
SUBSEQUENT EVENT

NOTE 14 — SUBSEQUENT EVENT

 

The Company’s management reviewed material events through September 28, 2015.

 

On July 10, 2015 the Company received a capital increase commitment on $1.000.000 from a shareholder of the Company. The commitment expires on July 10, 2016.

 

On July 10, 2015 the Company received a capital increase commitment on $1.000.000 from an individual. The commitment expires on July 10, 2016.

v3.3.0.814
Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2015
Summary of Significant Accounting Policies [Abstract]  
Business and Basis of Presentation

Business and Basis of Presentation — DanDrit Biotech USA, Inc. (“DanDrit USA”, the “Company”, “we”, “us”, “our”) (formerly Putnam Hills Corp) was originally incorporated in the state of Delaware on January 18, 2011 as a vehicle to pursue a business combination through the acquisition of, or merger with, an operating business.

 

DanDrit BioTech A/S, a Danish Corporation was incorporated on April 1, 2001 (“DanDrit Denmark”) a 96,92% owned subsidiary of the Company. The Company engages in the research and development, manufacturing and clinical trials of pharmaceutical and biological products for the human treatment of cancer using the dendritic cell technology.

Year End
Year End — In June 2015, DanDrit’s board of directors approved a change to DanDrit’s fiscal year end from December 31 to June 30.
Reverse Acquisition

Reverse Acquisition — On February 12, 2014, pursuant to the Share Exchange Agreement (the "Share Exchange Agreement"), DanDrit USA completed the acquisition of 100% of the issued and outstanding capital stock of DanDrit Denmark (the “Share Exchange”) and as a result became DanDrit Denmark’s parent company (the “Parent”). Prior to the Share Exchange there were 5,000,000 shares of the common stock, par value $.0001 per share (the “Common Stock”) of Parent outstanding. Parent and an existing shareholder agreed to cancel 4,400,000 shares of its Common Stock and issued 1,440,000 shares of Common Stock for legal and consulting services related to the Share Exchange and a future public offering. At the time of the Share Exchange each outstanding share of common stock of DanDrit Denmark was exchanged for 1.498842 shares of Parent’s Common Stock, for a total of 6,000,000 shares, resulting in 8,040,000 shares of the Parent’s Common Stock outstanding immediately following the Share Exchange, including 185,053 shares of Common Stock reserved for issuance in accordance with Section 70 of the Danish Companies Act and the Articles of Association of DanDrit Denmark to the DanDrit Denmark shareholders who have not consented to the Share Exchange (the “Non-Consenting Shareholders”), and deemed issued and outstanding for accounting purposes.

Consolidation
Consolidation — For the six months ended June 30, 2015 and 2014, the consolidated financial statements include the accounts and operations of the DanDrit Denmark, and the accounts and operations of DanDrit USA. All material inter-company transactions and accounts have been eliminated in the consolidation.
Functional Currency / Foreign currency translation

Functional Currency / Foreign currency translation — The functional currency of DanDrit Biotech A/S is the Danish Kroner (“DKK”). The Company’s reporting currency is the U.S. Dollar for the purpose of these financial statements. The Company’s balance sheet accounts are translated into U.S. dollars at the period-end exchange rates and all revenue and expenses are translated into U.S. dollars at the average exchange rates prevailing during the six months ended June 30, 2015 and years 2014 and 2013. Translation gains and losses are deferred and accumulated as a component of other comprehensive income in stockholders’ equity. Transaction gains and losses that arise from exchange rate fluctuations from transactions denominated in a currency other than the functional currency are included in the statement of operations as incurred.

Cash and Cash Equivalents
Cash and Cash Equivalents — The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. The Company had balances held in a financial institution in the United States in excess of federally insured States amounts at June 30, 2015 of $0, December 31, 2014 of $2,508,759 and $0 at December 31, 2013. In May 2015 the cash balances were transferred to a financial institution in Denmark and a trust account at the Lett Law firm. At June 30, 2015 we had cash and cash held in escrow balances of $1,474,134.
Property and Equipment

Property and Equipment — Property and equipment are stated at cost. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized upon being placed in service. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is computed for financial statement purposes on a straight-line basis over the estimated useful lives of the assets which range from four to six years (See Note 3).

Intangible Assets

Intangible Assets — Definite life intangible assets include patents. The Company accounts for definite life intangible assets in accordance with Financial Accounting Standards Board, (“FASB”) Accounting Standards Codification, (“ASC”) Topic 350, “Goodwill and Other Intangible Assets” and amortized the patents on a straight line basis over the estimated useful life of twenty years. Costs incurred in relation to patent applications are capitalized cost and amortized over the estimated useful life of the patent. If it is determined that a patent will not be issued, the related remaining patent application costs are charged to expense.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets — Long-lived assets, such as property, plant, and equipment and patents are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of significantly before the end of its estimated useful life.

 

Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. The depreciable basis of assets that are impaired and continue in use is their respective fair values.

Revenue Recognition and Sales

Revenue Recognition and Sales  — The Company’s sales of its MelCancerVac colorectal cancer treatment have been limited to a compassionate use basis in Singapore after stage IIA trials and is not approved for current sale for any other use or location. The Company accounts for revenue recognition in accordance with the Securities and Exchange Commission Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” (SAB 101), FASB ASC 605 Revenue Recognition. The Company recognizes revenue when rights and risk of ownership have passed to the customer, when there is persuasive evidence of an arrangement, product has been shipped or delivered to the customer, the price and terms are finalized, and collections of the resulting receivable is reasonably assured. Products are primarily shipped FOB shipping point at which time title passes to the customer.

Value Added Tax

Value Added Tax - In Denmark, Value Added Tax (“VAT”) of 25% of the invoice amount is collected in respect of the sales of goods on behalf of tax authorities. The VAT collected is not revenue of the Company; instead, the amount is recorded as a liability on the balance sheet until such VAT is paid to the authorities. VAT of 25% is also paid to Danish and EU vendors on invoices. These amounts are refundable from the respective governmental authority and recorded as other receivables in the accompanying financial statements.

Research and Development Expenses

Research and Development Expenses — The Company expenses research and development expenses incurred in formulating, improving, validating and creating alternative or modified processes related to and expanding the use of our MAGE –A dendrite cell cancer therapy. Research and development expenses were included in operating expenses for the six months ended June 30, 2015 with the amount of $1,625,488. There were no research and development costs for the six months ended June 30, 2014 (unaudited) and years ended December 31, 2014 and 2013.

Our research and development expenses may fluctuate substantially from quarter to quarter depending on the clinical studies and the timing of samples supporting the clinical studies..

Income Taxes

Income Taxes — The Company accounts for income taxes in accordance with FASB ASC Topic 740 Accounting for Income Taxes. This statement requires an asset and liability approach for accounting for income taxes.

Loss Per Share

Loss Per Share — The Company calculates earnings/(loss) per share in accordance with FASB ASC 260 Earnings Per Share. Basic earnings per common share (EPS) are based on the weighted average number of common shares outstanding during each period. Diluted earnings per common share are based on shares outstanding (computed as under basic EPS) and potentially dilutive common shares. Potential common shares included in the diluted earnings per share calculation include in-the-money stock options that have been granted but have not been exercised.

Derivatives

Derivatives - We generally do not use derivative financial instruments to hedge exposures to cash-flow, market or foreign-currency risks. However, we have entered into certain other financial instruments and contracts, such as debt financing arrangements with features that are either (i) not afforded equity classification, (ii) embody risks not clearly and closely related to host contracts, or (iii) may be net-cash settled by the counterparty. These instruments are required to be carried as derivative liabilities, at fair value.

 

We estimate fair values of all derivative instruments, such as embedded conversion features utilizing Level 3 inputs (defined below in Note 1: Fair Value of Financial Instruments). We use the Black-Scholes option valuation technique because it embodies all of the requisite assumptions (including trading volatility, estimated terms and risk free rates) necessary to fair value these instruments. Estimating fair values of derivative financial instruments requires the development of significant and subjective inputs that may, and are likely to, change over the duration of the instrument with related changes in internal and external market factors. In addition, option-based techniques are highly volatile and sensitive to changes in the market price of our common stock, which have historically had high volatility. Since derivative financial instruments are initially and subsequently carried at fair value, our income will reflect the volatility in these estimate and assumption changes.

 

We report our derivative liabilities at fair value on the accompanying balance sheets as of June 30, 2015 and December 31, 2014 and 2013.

Fair Value of Financial Instruments

Fair Value of Financial Instruments — The Company accounts for fair value measurements for financial assets and financial liabilities in accordance with FASB ASC Topic 820. The authoritative guidance, which, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the exit price, representing the amount that would either be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

 

 Level 1. Observable inputs such as quoted prices in active markets for identical assets or liabilities;

 

 Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

 

 Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, accounts receivable, prepaid expenses, investments, accounts payable, accrued expenses, capital lease obligations and notes payable approximates their recorded values due to their short-term maturities.

Accounting Estimates

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

Recent Accounting Pronouncements

Recent Accounting Pronouncements — In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02) "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. It is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. We do not anticipate that the adoption of ASU 2015-02 will have any impact on our consolidated financial statements.

 

Other recent accounting pronouncements issued by the FASB did not or are not believed by management to have a material impact on the Company's present or future financial statements.

Reclassification

Reclassification — The financial statements for the period ended June 30, 2014 (unaudited) and December 31, 2014 and 2013 have been reclassified to conform to the headings and classifications used in the June 30, 2015 financial statements.

Alleviated going concern

Alleviated going concern — While the Company has incurred significant losses from inception and has insufficient working capital given its projected losses and planned phase III testing of its product, we have committed additional sources of capital. On July 10, 2015 the Company received a capital increase commitment on $1,000,000 from a shareholder of the Company. The commitment expires on July 10, 2016. Also on July 10, 2015 the Company received a capital increase commitment on $1,000,000 from an individual. The commitment expires on July 10, 2016 . We believe that our cash together with available funds from other potential sources of funds, such as loans and commitments from shareholders, will be sufficient to fund our anticipated working capital needs and capital spending requirements for the next twelve months alleviating the going concern. However, if we were to incur any unanticipated expenditures, such circumstances could put a substantial burden on our cash resources. The Company plans to raise additional capital as needed through the sale of additional common shares and the future compassionate use sales of our product.

v3.3.0.814
Property and Equipment (Tables)
6 Months Ended
Jun. 30, 2015
Property and Equipment [Abstract]  
Summary of property and equipment

 

  Useful  June 30,    December 31,  December 31, 
  Life  2015    2014  2013 
Lab equipment and instruments 4-6 $164,778  $178,547  $194,143 
Computer equipment 4-6  56,436   61,151   66,493 
     221,214   239,698   260,636 
Less Accumulated Depreciation    (221,214)  (239,698)  (260,636)
Net Property and Equipment   $-  $-  $- 
 
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Definite-Life Intangible Assets (Tables)
6 Months Ended
Jun. 30, 2015
Definite Life Intangible Assets [Abstract]  
Schedule of finite-lived intangible assets, future amortization expense
Year ending June 30,   
2016 $15,964 
2017  15,985 
2018  15,985 
2019  15,985 
2020  16,029 
Thereafter  84,098 
  $164,046 
v3.3.0.814
Notes Payable - Related Party (Tables)
6 Months Ended
Jun. 30, 2015
Notes Payable - Related Party and Convertible Bond Payable - Related Party [Abstract]  
Summary of notes payable to related parties

 

  June 30,  December 31, 
  2015  2014  2013 
          
Non-Interest Bearing Loan Payable Sunrise Financial Group Inc. $38,235  $38,235  $- 
Note Payable ML Group  17,500   18,963   21,557 
6% Promissory Note payable to NLBDIT 2010 Enterprises, LLC  44,879   42,753   - 
5% Note Payable - Sune Olsen Holding ApS  -   -   521,390 
5% Note Payable - Sune Olsen  -   -   185,054 
Total Notes Payable – Related Party  100,614   99,951   728,001 
Less Current Maturities  (100,614)  (99,951)  (728,001)
Note Payables – Related Party Long Term $-  $-  $- 
Schedule of future maturities of long-term debt

 

Year ending June 30,    
2016 $100,614 
2017  - 
2018  - 
2019  - 
2020  - 
Thereafter  - 
  $100,614 
 
v3.3.0.814
Income Taxes (Tables)
6 Months Ended
Jun. 30, 2015
Income Taxes [Abstract]  
Summary of deferred tax asset (liabilities)

  June 30,  December 31, 
  2015  2014  2013 
Excess of Tax over book depreciation Fixed assets $10,240  $12,711  $87,578 
Excess of Tax over book depreciation Patents  5,560   52,041   114,028 
Net Operating Loss Carryforward  2,535,177   2,380,106   1,642,598 
Valuation Allowance  (2,550,977)  (2,444,858)  (1,844,204)
Total Deferred Tax Asset (Liabilities) $-  $-  $- 
Reconciliation of income tax expense at the federal statutory rate

  June 30,  December 31, 
  2015  2014 (Unaudited)  2014  2013 
Computed Tax at Expected Statutory Rate $(1,036,085) $(144,858) $(866,463) $(752,882)
Non-US Income Taxed at Different Rates  319,541   44,858   255,356   199,292 
Non-Deductible expenses      -   8,390   283,381 
Valuation allowance  342,683   100,000   436,631   270,209 
Income Tax Expense $(373,862) $(132,997) $-  $- 
Components of income tax expense (benefit) from continuing operations
  June 30,  December 31, 
Current Tax Expense 2015  2014 (Unaudited)  2014  2013 
Danish Income Tax $(373,862) $(132,997) $(177,539) $- 
Deferred Income Tax Expense (Benefit)                
Excess of Tax over Book Depreciation Fixed Assets  2,471   -   19,259   26,364 
Excess of Tax over Book Depreciation Patents  5,470   -   67,488   (105,585)
Net Operating Loss Carryforwards  (342,683)  (100,000)  (523,378)  (190,988)
Change in the Valuation allowance  334,742   100,000   436,631   270,209 
Total Deferred Tax Expense $-  $-  $-  $- 
v3.3.0.814
Loss Per Share (Tables)
6 Months Ended
Jun. 30, 2015
Loss Per Share [Abstract]  
Schedule of weighted average number of shares of potential dilutive common stock

 

  June 30,  December 31, 
  2015  2014 (Unaudited)  2014  2013 
Net (Loss) $(2,673,448) $(882,509) $(2,370,883) $(2,214,361)
Weighted average number of common shares used in basic earnings per share  9,533,290   7,555,359   7,500,142   3,557,893 
Effect of dilutive securities, stock options and warrants  -   -   -   - 
Weighted average number of common shares and potential dilutive common shares outstanding used in dilutive earnings per share  9,533,290   7,555,359   7,500,142   3,557,893 
 
v3.3.0.814
Summary of Significant Accounting Policies (Details) - USD ($)
6 Months Ended 12 Months Ended
Jul. 10, 2015
Feb. 12, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Summary of Significant Accounting Policies (Textual)              
Ownership percentage of subsidiary     96.92%        
Common stock, par value     $ 0.0001   $ 0.0001 $ 0.0001  
Common Stock reserved for issuance     185,053        
Cash insured amount     $ 0   $ 2,508,759 $ 0  
Cash held in escrow     $ 1,052,989   $ 2,029,502 $ 77,468  
Value added tax, percentage     25.00%        
Value added tax paid to Danish and EU vendors     25.00%        
Research and development expense     $ 1,625,488  
Share exchange agreement, shares issued to parent company         6,000,000    
Subsequent Event [Member]              
Summary of Significant Accounting Policies (Textual)              
Capital increase commitment received expiration date Jul. 10, 2016            
Stockholders [Member] | Subsequent Event [Member]              
Summary of Significant Accounting Policies (Textual)              
Capital increase commitment received $ 1,000,000            
Individual [Member] | Subsequent Event [Member]              
Summary of Significant Accounting Policies (Textual)              
Capital increase commitment received $ 1,000,000            
Common Stock [Member]              
Summary of Significant Accounting Policies (Textual)              
Common stock, par value   $ 0.0001          
Common Stock reserved for issuance   185,053          
Shares of parent common stock outstanding     9,533,290   9,533,290 6,000,000 5,318,151
Shares prior to share exchange agreement   5,000,000          
Share exchange agreement, acquisition percentage   100.00%          
Share exchange agreement, shares held by consenting shareholders of company   1.498842          
Share exchange agreement, shares issued to parent company   6,000,000          
Share exchange agreement, number of shares cancellled   4,400,000          
Common shares issued for legal and consulting services   1,440,000          
Common Stock [Member] | Parent Company [Member]              
Summary of Significant Accounting Policies (Textual)              
Shares of parent common stock outstanding   8,040,000          
v3.3.0.814
Property and Equipment (Details) - USD ($)
6 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Dec. 31, 2013
Property, Plant and Equipment [Line Items]      
Gross Property and Equipment $ 221,214 $ 239,698 $ 260,636
Less Accumulated Depreciation $ (221,214) $ (239,698) $ (260,636)
Net Property and Equipment
Lab equipment and instruments [Member]      
Property, Plant and Equipment [Line Items]      
Gross Property and Equipment $ 164,778 $ 178,547 $ 194,143
Lab equipment and instruments [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Useful Life 4 years    
Lab equipment and instruments [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Useful Life 6 years    
Computer equipment [Member]      
Property, Plant and Equipment [Line Items]      
Gross Property and Equipment $ 56,436 $ 61,151 $ 66,493
Computer equipment [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Useful Life 4 years    
Computer equipment [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Useful Life 6 years    
v3.3.0.814
Property and Equipment (Details Textual) - USD ($)
6 Months Ended 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Dec. 31, 2013
Property and Equipment (Textual)        
Depreciation expense $ 0 $ 858 $ 0 $ 2,706
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Definite-Life Intangible Assets (Details) - USD ($)
Jun. 30, 2015
Dec. 31, 2014
Dec. 31, 2013
Definite Life Intangible Assets [Abstract]      
2016 $ 15,964    
2017 15,985    
2018 15,985    
2019 15,985    
2020 16,029    
Thereafter 84,098    
Finite-Lived Intangible Assets, Net $ 164,046 $ 186,414 $ 231,615
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Definite-Life Intangible Assets (Details Textual) - USD ($)
6 Months Ended 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Dec. 31, 2013
Definite Life Intangible Assets (Textual)        
Definite life intangible assets $ 164,046   $ 186,414 $ 231,615
Amortization expense $ 7,973 $ 13,742 $ 18,981 $ 38,297
v3.3.0.814
Notes Payable - Related Party (Details) - USD ($)
Jun. 30, 2015
Dec. 31, 2014
Dec. 31, 2013
Related Party Transaction [Line Items]      
Total Notes Payable - Related Party $ 100,614 $ 99,951 $ 728,001
Less Current Maturities $ (100,614) $ (99,951) $ (728,001)
Note Payables - Related Party Long Term
Non Interest Bearing Loan Payable Sunrise Financial Group Inc [Member]      
Related Party Transaction [Line Items]      
Total Notes Payable - Related Party $ 38,235 $ 38,235
Note Payable ML Group [Member]      
Related Party Transaction [Line Items]      
Total Notes Payable - Related Party 17,500 18,963 $ 21,557
6% Promissory Note payable to NLBDIT 2010 Enterprises, LLC [Member]      
Related Party Transaction [Line Items]      
Total Notes Payable - Related Party $ 44,879 $ 42,753
5% Note Payable - Sune Olsen Holding ApS [Member]      
Related Party Transaction [Line Items]      
Total Notes Payable - Related Party $ 521,390
5% Note Payable - Sune Olsen [Member]      
Related Party Transaction [Line Items]      
Total Notes Payable - Related Party $ 185,054
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Notes Payable - Related Party (Details 1) - USD ($)
Jun. 30, 2015
Dec. 31, 2014
Dec. 31, 2013
Notes Payable - Related Party and Convertible Bond Payable - Related Party [Abstract]      
2016 $ 100,614    
2017    
2018    
2019    
2020    
Thereafter    
Total $ 100,614 $ 99,951 $ 728,001
v3.3.0.814
Notes Payable - Related Party (Details Textual)
6 Months Ended 12 Months Ended
Nov. 26, 2014
USD ($)
Oct. 17, 2014
USD ($)
Dec. 16, 2013
USD ($)
shares
Dec. 16, 2013
DKK
shares
Jul. 26, 2013
USD ($)
Jul. 26, 2013
DKK
Jun. 20, 2013
USD ($)
Jun. 20, 2013
DKK
Apr. 14, 2013
USD ($)
shares
Dec. 01, 2011
Jun. 30, 2015
USD ($)
Jun. 30, 2014
USD ($)
Dec. 31, 2014
USD ($)
Dec. 31, 2013
USD ($)
Dec. 31, 2013
DKK
Dec. 31, 2012
USD ($)
Dec. 31, 2012
DKK
Dec. 31, 2011
USD ($)
Dec. 31, 2011
DKK
Mar. 31, 2014
USD ($)
Mar. 31, 2014
DKK
Mar. 18, 2014
USD ($)
Mar. 18, 2014
DKK
Feb. 15, 2014
USD ($)
Feb. 15, 2014
DKK
Dec. 31, 2013
DKK
Dec. 20, 2013
USD ($)
Dec. 20, 2013
DKK
Dec. 02, 2013
USD ($)
Dec. 02, 2013
DKK
Nov. 20, 2013
USD ($)
Nov. 20, 2013
DKK
Nov. 11, 2013
USD ($)
Nov. 11, 2013
DKK
Aug. 15, 2013
USD ($)
Aug. 15, 2013
DKK
Jul. 26, 2013
DKK
Jun. 20, 2013
DKK
Apr. 14, 2013
DKK
Dec. 31, 2012
DKK
Dec. 31, 2011
DKK
Related Party Transaction [Line Items]                                                                                  
Unsecured loan | $                     $ 38,235                                                            
Debt Instrument, Maturity Date                   Dec. 31, 2014                                                              
Loans payable | $                     38,235                                                            
Common stock exchanged during period of conversion     261,665 261,665                                                                          
Sune Olsen Holding Aps [Member]                                                                                  
Related Party Transaction [Line Items]                                                                                  
Accrued interest in percentage                         5.00%                                                        
Common stock exchanged during period of conversion     275,863 275,863                                                                          
Sune Olsen Holding Aps [Member] | Loan One [Member]                                                                                  
Related Party Transaction [Line Items]                                                                                  
Unsecured loan                                                         $ 165,990 DKK 900,000 $ 74,696 DKK 405,000 $ 276,651 DKK 1,500,000              
Debt Instrument, Maturity Date                         May 01, 2014                                                        
Extended maturity date, Description                         The Company extended maturity date of the loans with Sune Olsen Holdings from May 1, 2014 to 14 days after the completion of the contemplated stock offering of DanDrit USA or February 1, 2015.                                                        
Accrued interest in percentage                         5.00%                                                        
Repayments of loans | $   $ 517,337                                                                              
Sune Olsen Holding Aps [Member] | Loan Two [Member]                                                                                  
Related Party Transaction [Line Items]