Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Mar. 31, 2014 | Feb. 10, 2014 | |
Notes payable to shareholder, interest rate of 6%, unsecured and payable on December 31, 2012 | ' | ' |
Entity Registrant Name | 'CONCIERGE TECHNOLOGIES INC | ' |
Entity Central Index Key | '0001005101 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 240,337,841 |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2014 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
CURRENT ASSETS: | ' | ' |
Cash & cash equivalents | $41,205 | $39,444 |
Accounts receivable, net allowance for doubtful accounts of $25,186 | 290,399 | 113,386 |
Due from related party | 11,835 | 11,084 |
Inventory, net | 277,872 | 190,281 |
Other current assets | 1,935 | 4,900 |
Total current assets | 623,246 | 359,095 |
Security deposits | 11,222 | 11,222 |
Property and equipment, net | 13,884 | 14,978 |
Total assets | 648,352 | 385,295 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable and accrued expenses | 786,985 | 522,773 |
Advance from customers | 6,718 | 202 |
Notes payable - related parties | 78,000 | 28,000 |
Notes payable | 50,000 | ' |
Convertible Debenture, net | 85,500 | ' |
Related party convertible debenture, net | 204,700 | ' |
Total current liabilities | 1,211,903 | 550,975 |
NON-CURRENT LIABILITIES: | ' | ' |
Related party convertible debenture, net | ' | 204,700 |
Total long term liabilities | ' | 204,700 |
Total liabilities | 1,211,903 | 755,675 |
STOCKHOLDERS' DEFICIT | ' | ' |
Preferred stock, 50,000,000 authorized par $0.001 Series A: 206,186 shares issued and outstanding at March 31, 2014 and June 30, 2013 | 206 | 206 |
Preferred stock, 50,000,000 authorized par $0.001 Series B: 9,498,409 shares issued and outstanding at at March 31, 2014 and June 30, 2013 | 9,498 | 9,498 |
Common stock, $0.001 par value; 900,000,000 shares authorized; 240,337,841 shares issued and outstanding at at March 31, 2014 and 240,284,270 as of June 30, 2013 | 240,339 | 240,285 |
Additional paid-in capital | 3,954,217 | 3,953,521 |
Accumulated deficit | -4,767,810 | -4,573,889 |
Total Stockholders' deficit | -563,551 | -370,380 |
Total liabilities and Stockholders' deficit | $648,352 | $385,295 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
ASSETS | ' | ' |
Allowance for doubtful accounts | $25,186 | $25,186 |
Stockholders equity: | ' | ' |
Preferred stock Series A, par value | $0.00 | $0.00 |
Preferred stock Series A, authorized shares | 50,000,000 | 50,000,000 |
Preferred stock Series A, issued shares | 206,186 | 206,186 |
Preferred stock Series A, outstanding shares | 206,186 | 206,186 |
Preferred stock Series B, par value | $0.00 | $0.00 |
Preferred stock Series B, authorized shares | 50,000,000 | 50,000,000 |
Preferred stock Series B, issued shares | 9,498,409 | 9,498,409 |
Preferred stock Series B, outstanding shares | 9,498,409 | 9,498,409 |
Common stock, par value | $0.00 | $0.00 |
Common stock, authorized shares | 900,000,000 | 900,000,000 |
Common stock, issued shares | 240,337,841 | 240,284,270 |
Common stock, outstanding shares | 240,337,841 | 240,284,270 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Income Statement [Abstract] | ' | ' | ' | ' |
Net revenue | $668,560 | $436,797 | $1,744,209 | $1,471,364 |
Cost of revenue | 362,187 | 250,197 | 1,010,538 | 832,941 |
Gross profit | 306,373 | 186,600 | 733,671 | 638,423 |
Operating expense | ' | ' | ' | ' |
General & administrative expense | 372,658 | 190,971 | 973,035 | 789,110 |
Operating Loss | -66,284 | -4,371 | -239,364 | -150,687 |
Other income (expense) | ' | ' | ' | ' |
Other income | 4,763 | 247 | 57,910 | 751 |
Interest expense | -4,995 | -2,875 | -11,667 | -12,041 |
Beneficial conversion feature expense | ' | ' | ' | -9,439 |
Total other income (expense) | -233 | -2,628 | 46,243 | -20,729 |
Loss from continuing operations before income taxes | -66,517 | -6,998 | -193,121 | -171,416 |
Provision of income taxes | ' | ' | 800 | 800 |
Loss from Continuing Operations | -66,517 | -6,998 | -193,921 | -172,216 |
Gain on disposal of subsidiary | ' | 194,917 | ' | 194,917 |
Net Income (Loss) | -66,517 | 187,919 | -193,921 | 22,701 |
Loss attributable to Non-controlling interest | ' | ' | ' | -31,375 |
Net Income (Loss) attributable to Concierge Technologies | ($66,517) | $187,919 | ($193,921) | $54,076 |
Weighted average shares of common stock | ' | ' | ' | ' |
Basic & Diluted | 240,308,347 | 235,720,174 | 240,292,119 | 235,928,721 |
Net loss per common share - continuing operations | ' | ' | ' | ' |
Basic & Diluted | $0 | $0 | $0 | $0 |
Net loss per common share - discontinued operations | ' | ' | ' | ' |
Basic & Diluted | ' | $0 | ' | $0 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net Income (Loss) | ($193,921) | $54,076 |
Adjustments to reconcile net income (loss) to net cash used in operating activities | ' | ' |
Gain on disposal of subsidiary | ' | -194,917 |
Non-controlling interest | ' | -31,375 |
Depreciation | 5,500 | 2,926 |
Allowance for bad debt | ' | 13,440 |
Beneficial conversion feature expense | ' | 9,439 |
Amortization of debt issuance cost | ' | 1,888 |
Share based compensation | 750 | ' |
(Increase) decrease in current assets: | ' | ' |
Accounts receivable | -177,013 | 150,676 |
Advance to supplier | ' | -2,000 |
Inventory | -87,591 | -81,089 |
Other current assets | 2,965 | -34,165 |
Increase (decrease) in current liabilities: | ' | ' |
Accounts payable & accrued expenses | 264,212 | -32,379 |
Accounts payable - related parties | ' | -1,612 |
Advances from customers | 6,516 | 302 |
Net cash used in operating activities - continuing operations | -178,582 | -144,791 |
Net cash used in operating activities | -178,582 | -144,791 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of equipment | -4,406 | -11,093 |
Due from related party | -751 | -1,811 |
Net cash used in investing activities - continuing operations | -5,157 | -12,904 |
Net cash used in investing activities | -5,157 | -12,904 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from related party notes payable | 50,000 | ' |
Proceeds from notes payable & debentures | 135,500 | ' |
Cash eliminated upon disposal of subsidiary | ' | -5,992 |
Net cash provided by financing activities - continuing operations | 185,500 | -5,992 |
Net cash provided by financing activities - discontinued operations | ' | 57,500 |
Net cash provided by financing activities | 185,500 | 51,508 |
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS | 1,761 | -106,187 |
CASH & CASH EQUIVALENTS, BEGINNING BALANCE | 39,444 | 114,433 |
CASH & CASH EQUIVALENTS, ENDING BALANCE | 41,205 | 8,246 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ' | ' |
Interest paid | 1,615 | ' |
Income taxes paid | 800 | ' |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Series B preferred shares converted to common shares | ' | 4,667 |
Series B preferred shares issued for debt and accrued interest | ' | 112,000 |
Convertible debenture converted from notes payable and accrued interest | ' | 204,700 |
Forgiveness of accounts payable-related parties | ' | 75,450 |
Series B preferred shares issued to acquire non-controlling interest in subsidiary | ' | 2,400,000 |
Series B preferred shares cancelled in lieu of sale of subsidiary | ' | $264,382 |
1_ORGANIZATION_AND_DESCRIPTION
1. ORGANIZATION AND DESCRIPTION OF BUSINESS | 9 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
ORGANIZATION AND DESCRIPTION OF BUSINESS | ' |
NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Concierge Technologies, Inc., (the “Company”), a Nevada corporation, was originally incorporated in California on August 18, 1993 as Fanfest, Inc. On March 20, 2002, the Company changed its name to Concierge Technologies, Inc. The Company’s principal operations include the purchase and sale of digital equipment through its wholly owned subsidiary Wireless Village doing business as Janus Cam |
2_ACCOUNTING_POLICIES
2. ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
ACCOUNTING POLICIES | ' |
NOTE 2. ACCOUNTING POLICIES | |
Accounting Principles | |
In the opinion of management, the accompanying balance sheets and related interim statements of income and comprehensive income, and cash flows include all adjustments, consisting only of normal recurring items, necessary for their fair presentation in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Company’s 2013 Form 10-K filed on October 15, 2013 with the U.S. Securities and Exchange Commission. | |
Principles of Consolidation | |
The accompanying consolidated financial statements include the accounts of Concierge Technologies, Inc. (parent), and its wholly owned subsidiary, Wireless Village. All significant inter-company transactions and accounts have been eliminated in consolidation. A wholly owned subsidiary of the Company, Planet Halo, was disposed during the year ended June 30, 2013 and has been eliminated from the nine-month period ending March 31, 2013 of the accompanying Condensed Consolidated Financial Statements for comparison purposes. | |
Use of Estimates | |
The preparation of consolidated financial statements is in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Recent Accounting Pronouncements | |
Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists: An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. For example, an entity should not evaluate whether the deferred tax asset expires before the statute of limitations on the tax position or whether the deferred tax asset may be used prior to the unrecognized tax benefit being settled. The amendments in this Update do not require new recurring disclosures. ASU Topic No. 2013 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. | |
Accounting Standards Update No. 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity: This ASU addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. ASU Topic No. 2013-05 is effective for our fiscal year 2014, although early adoption is permitted. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. | |
FASB Accounting Standards Update No. 2013-02 | |
In February 2013, the FASB issued ASU No. 2013-02, which amends the authoritative accounting guidance under ASC Topic 220 “Comprehensive Income.” The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under generally accepted accounting principles in the United States of America (“GAAP”) to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The amendments in this update are effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted. Adoption of this update is not expected to have a material effect on the Company’s consolidated results of operations or financial condition. | |
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360)." ASU 2014-08 amends the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations or that have a major effect on the Company's operations and financial results should be presented as discontinued operations. This new accounting guidance is effective for annual periods beginning after December 15, 2014. The Company is currently evaluating the impact of adopting ASU 2014-08 on the Company's results of operations or financial condition. |
3_GOING_CONCERN
3. GOING CONCERN | 9 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
GOING CONCERN | ' |
NOTE 3. GOING CONCERN | |
The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. The Company has an accumulated deficit of $4,767,810 as of March 31, 2014, including a net loss of $193,921 during the nine-month period ended March 31, 2014. The historical losses have adversely affected the liquidity of the Company. Although losses are expected to be curtailed during the current fiscal year due to increased product sales, the Company faces continuing significant business risks, which include, but are not limited to, its ability to maintain vendor and supplier relationships by making timely payments when due, continue product research and development efforts, and successfully compete for customers. | |
In view of the matters described in the preceding paragraph, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to increase profitability from operations, obtain financing, and succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts or classification of liabilities that might be necessary should the Company be unable to continue as a going concern. | |
Management has taken the following steps to revise its operating and financial requirements, which it believes are sufficient to provide the Company with the ability to continue as a going concern. Management devoted considerable effort from inception through the period ended March 31, 2014, towards (i) establishment of sales distribution channels for its products, (ii) management of accrued expenses and accounts payable, (iii) initiation of the business strategy of its subsidiary, and (vi) acquisition of suitable synergistic partners for business opportunities in mobile incident reporting that generate immediate revenues. | |
Management believes that the above actions will allow the Company to continue operations for the next 12 months. |
4_PROPERTY_AND_EQUIPMENT
4. PROPERTY AND EQUIPMENT | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
PROPERTY AND EQUIPMENT | ' | ||||||||
NOTE 4. PROPERTY AND EQUIPMENT | |||||||||
Property and equipment consisted of the following as of March 31, 2014 and June 30, 2013: | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Furniture & Office Equipment | $ | 15,392 | $ | 15,392 | |||||
Network Hardware & Software | 32,834 | 28,428 | |||||||
Total Fixed Assets | 48,226 | 43,820 | |||||||
Accumulated Depreciation | (34,342 | ) | (28,842 | ) | |||||
Total Fixed Assets, Net | $ | 13,884 | $ | 14,978 | |||||
Depreciation expense amounted to $5,500 and $2,926 for the nine-month periods ended March 31, 2014 and 2013, respectively. |
5_RELATED_PARTY_TRANSACTIONS
5. RELATED PARTY TRANSACTIONS | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
RELATED PARTY TRANSACTIONS | ' | ||||||||
NOTE 5. RELATED PARTY TRANSACTIONS | |||||||||
Due from Related Party | |||||||||
Notes receivable from related party is comprised of two notes of $5,000 each. The principal of these notes were due and payable on or before May 1, 2012. The notes are unsecured and non-interest bearing until maturity, after which time interest is calculated at 10% per annum. Total interest due as of March 31, 2014 was $1,835. | |||||||||
Notes Payable - Related Parties | |||||||||
Current related party notes payable consist of the following: | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Notes payable to director/shareholder, noninterest-bearing, unsecured and payable on demand | 8,500 | 8,500 | |||||||
Notes payable to shareholder, interest rate of 10%, unsecured and payable on July 31, 2004 | 5,000 | 5,000 | |||||||
Notes payable to director/shareholder, interest rate of 8%, unsecured and payable on December 31, 2012 | 3,500 | 3,500 | |||||||
Notes payable to director/shareholder, interest rate of 8%, unsecured and payable on December 31, 2012 | 5,000 | 5,000 | |||||||
Notes payable to director/shareholder, interest rate of 8%, unsecured and payable on December 31, 2012 | 5,000 | 5,000 | |||||||
Notes payable to director/shareholder, interest rate of 8%, unsecured and payable on December 31, 2012 | 1,000 | 1,000 | |||||||
Notes payable to director/shareholder, interest rate of 6%, unsecured and payable on July 31, 2014 | 10,000 | ||||||||
Notes payable to directors/shareholder, interest rate of 10%, unsecured and payable on demand | 40,000 | ||||||||
$ | 78,000 | $ | 28,000 | ||||||
On September 8, 2010 we entered into a loan agreement containing certain conversion features whereby the note holder could convert the principal amount of the loan, $100,000, together with accrued interest at the rate of 6% per annum, into shares of our Series B Convertible, Voting, Preferred stock at the conversion rate of $0.20 per share. The Series B Convertible, Voting, Preferred stock could then be further converted to common stock at a ratio of 1:20 after being held for a minimum period of 270 days from the date of issuance. The result of the conversion to common stock would be the issuance of 10,000,000 shares with a fair market value set at the date of the debenture at $0.025 creating a beneficial conversion feature to the debenture equal to $100,000. The cost of the beneficial conversion feature was amortized over the 2-year life of the debenture and is listed on the Statement of Operations as “Beneficial conversion feature expense”. A total of $9,439 was amortized for the nine-month period ended March 31, 2013 with no balance remaining thereafter. | |||||||||
On January 1, 2013 we consolidated all outstanding notes payable due a related party into one loan agreement containing certain conversion features whereby the note holder could convert the principal amount of the loan, $204,700 comprised of the sum total of the principal amounts of the individual notes, $122,000, plus $82,700 in accrued interest applicable to those notes, together with accrued interest at the rate of 4.944% per annum, into shares of our common stock at the conversion rate of $0.02 per share. The note is unsecured and becomes due and payable on January 1, 2015. The accrued interest on this $204,700 convertible debenture as of March 31, 2014 was $12,616. There was no beneficial conversion feature involved in the new note. | |||||||||
Interest expense for all related party notes payable, including the convertible debenture, for the nine-month periods ended March 31, 2014 and 2013 amounted to $9,274 and $12,041. |
6_ACCOUNTS_PAYABLE_AND_ACCRUED
6. ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ' | ||||||||
NOTE 6. ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |||||||||
Accounts payable and accrued expenses consisted of the following: | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Accounts payable | $ | 572,125 | $ | 279,992 | |||||
Sales Tax reserve | 1,460 | 44,881 | |||||||
Accrued judgment | 135,000 | 135,000 | |||||||
Accrued interest | 30,233 | 19,351 | |||||||
Accrued Expenses | 3,500 | 24,500 | |||||||
Payroll Tax Liability | 44,667 | 19,049 | |||||||
Total | $ | 786,985 | $ | 522,773 |
7_NOTES_PAYABLE
7. NOTES PAYABLE | 9 Months Ended |
Mar. 31, 2014 | |
Debt Disclosure [Abstract] | ' |
NOTES PAYABLE | ' |
NOTE 7. NOTES PAYABLE | |
On November 8, 2013 Janus Cam entered into a short term Note Agreement with an unaffiliated individual in the amount of $50,000, the proceeds of which were used to pay down inventory purchase costs. Interest on the Note accrues at an annual rate of 10% and is payable in monthly installments with a maturity date of February 19, 2014. On February 19, 2014 the lender agreed to extend the maturity date to June 1, 2014 and the Company agreed to pay a loan commitment fee of 1.5%, or $750. By agreement, that fee was paid by the issuance of 53,571 shares of common stock with a market value on the date of issuance of $0.014 per share. |
8_CONVERTIBLE_DEBENTURES
8. CONVERTIBLE DEBENTURES | 9 Months Ended |
Mar. 31, 2014 | |
Convertible Debentures | ' |
CONVERTIBLE DEBENTURES | ' |
NOTE 8. CONVERTIBLE DEBENTURES | |
On February 18, 2014 the company entered into a series of agreements, including a convertible debenture, that resulted in a funding of $53,000. The note is convertible, at the option of the debenture holder, to unregistered common shares after September 18, 2014 at a conversion price calculated on a prescribed discount to the trailing 10-day volume weighted average market price of our shares on the date of conversion. During the initial 6 months from the date of the note the Company may repay the principal plus accrued interest at the rate of 8% per annum by applying a pre-payment penalty determined on a sliding scale tied to the aging of the note. After the initial 6-month period has elapsed the Company may not repay the note until its maturity date on November 8, 2014 at which time the note principal and interest will become due and payable without pre-payment penalty. The Company identified embedded derivatives related to the convertible debenture. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record fair value of the derivatives as of the inception date of the convertible debenture and fair value as of each subsequent balance sheet date. However, as the debenture holder has no right to convert their debt to equity prior to September 19, 2014, hence, if, as of September 19, 2014, the debenture is not repaid, Company will account for the embedded derivative as of that date. | |
On March 28, 2014 the company entered into a series of agreements, including a convertible debenture, that resulted in a funding of $32,500. The note is convertible, at the option of the debenture holder, to unregistered common shares after October 29, 2014 at a conversion price calculated on a prescribed discount to the trailing 10-day volume weighted average market price of our shares on the date of conversion. During the initial 6 months from the date of the note the Company may repay the principal plus accrued interest at the rate of 8% per annum by applying a pre-payment penalty determined on a sliding scale tied to the aging of the note. After the initial 6-month period has elapsed the Company may not repay the note until its maturity date on December 28, 2014 at which time the note principal and interest will become due and payable without pre-payment penalty. The Company identified embedded derivatives related to the convertible debenture. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record fair value of the derivatives as of the inception date of the convertible debenture and fair value as of each subsequent balance sheet date. However, as the debenture holder has no right to convert their debt to equity prior to October 29, 2014 hence, if, after October 29, 2014, the debenture is not repaid, the Company will account for the embedded derivative as of that date. |
9_COMMITMENTS_AND_CONTINGENCIE
9. COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
NOTE 9. COMMITMENTS AND CONTINGENCIES | |
Lease Commitment | |
During the prior fiscal year the Company, through its subsidiary Wireless Village dba/Janus Cam, restructured its office leases such that it is no longer a tenant but rather a sub-tenant on a month-to-month basis for facilities located at 31 Airport Blvd. Suites G2, G3 and H. Although on a month-to-month basis, Janus Cam has agreed with the sub-landlord to assume the obligations under the lease and to pay rent directly to the landlord for the duration of the lease term, which expires in November 2014. | |
Upon expiration of its leases, the Company does not anticipate any difficulty in obtaining renewals or alternative space. Rent expense amounted to $28,435 and $20,499 for the nine-month periods ended March 31, 2014 and 2013, respectively. | |
Litigation | |
On May 6, 2002, a default judgment was awarded to Brookside Investments Ltd. against, jointly and severally, Concierge, Inc., Allen E. Kahn, and The Whitehall Companies in the amount of $135,000 plus legal fees. As of May 7, 2012, the judgment had lapsed due to the passage of time and the creditor’s failure to renew. Although a new court action would be required by the plaintiff in order to seek legal remedies, the Company has accrued the amount of $135,000 in the accompanying financial statements as accrued expenses as of March 31, 2014. |
10_SUBSEQUENT_EVENTS
10. SUBSEQUENT EVENTS | 9 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
NOTE 10. SUBSEQUENT EVENTS | |
On April 28, 2014 the company entered into a series of agreements, including a convertible debenture, that resulted in a funding of $32,500. The note is convertible, at the option of the debenture holder, to unregistered common shares after November 29, 2014 at a conversion price calculated on a prescribed discount to the trailing 10-day volume weighted average market price of our shares on the date of conversion. During the initial 6 months from the date of the note the Company may repay the principal plus accrued interest at the rate of 8% per annum by applying a pre-payment penalty determined on a sliding scale tied to the aging of the note. After the initial 6-month period has elapsed the Company may not repay the note until its maturity date on January 28, 2015 at which time the note principal and interest will become due and payable without pre-payment penalty. |
2_SUMMARY_OF_SIGNIFICANT_ACCOU
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Accounting Principles | ' |
In the opinion of management, the accompanying balance sheets and related interim statements of income and comprehensive income, and cash flows include all adjustments, consisting only of normal recurring items, necessary for their fair presentation in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Company’s 2013 Form 10-K filed on October 15, 2013 with the U.S. Securities and Exchange Commission. | |
Principles of Consolidation | ' |
The accompanying consolidated financial statements include the accounts of Concierge Technologies, Inc. (parent), and its wholly owned subsidiary, Wireless Village. All significant inter-company transactions and accounts have been eliminated in consolidation. A wholly owned subsidiary of the Company, Planet Halo, was disposed during the year ended June 30, 2013 and has been eliminated from the nine-month period ending March 31, 2013 of the accompanying Condensed Consolidated Financial Statements for comparison purposes. | |
Use of Estimates | ' |
The preparation of consolidated financial statements is in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Recent Accounting Pronouncements | ' |
Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists: An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. For example, an entity should not evaluate whether the deferred tax asset expires before the statute of limitations on the tax position or whether the deferred tax asset may be used prior to the unrecognized tax benefit being settled. The amendments in this Update do not require new recurring disclosures. ASU Topic No. 2013 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. | |
Accounting Standards Update No. 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity: This ASU addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. ASU Topic No. 2013-05 is effective for our fiscal year 2014, although early adoption is permitted. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. | |
FASB Accounting Standards Update No. 2013-02 | |
In February 2013, the FASB issued ASU No. 2013-02, which amends the authoritative accounting guidance under ASC Topic 220 “Comprehensive Income.” The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under generally accepted accounting principles in the United States of America (“GAAP”) to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The amendments in this update are effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted. Adoption of this update is not expected to have a material effect on the Company’s consolidated results of operations or financial condition. | |
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360)." ASU 2014-08 amends the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations or that have a major effect on the Company's operations and financial results should be presented as discontinued operations. This new accounting guidance is effective for annual periods beginning after December 15, 2014. The Company is currently evaluating the impact of adopting ASU 2014-08 on the Company's results of operations or financial condition. |
4_PROPERTY_AND_EQUIPMENT_Table
4. PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property and equipment | ' | ||||||||
Property and equipment consisted of the following as of March 31, 2014 and June 30, 2013: | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Furniture & Office Equipment | $ | 15,392 | $ | 15,392 | |||||
Network Hardware & Software | 32,834 | 28,428 | |||||||
Total Fixed Assets | 48,226 | 43,820 | |||||||
Accumulated Depreciation | (34,342 | ) | (28,842 | ) | |||||
Total Fixed Assets, Net | $ | 13,884 | $ | 14,978 |
5_RELATED_PARTY_TRANSACTIONS_T
5. RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Current related party notes payable | ' | ||||||||
Current related party notes payable consist of the following: | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Notes payable to director/shareholder, noninterest-bearing, unsecured and payable on demand | 8,500 | 8,500 | |||||||
Notes payable to shareholder, interest rate of 10%, unsecured and payable on July 31, 2004 | 5,000 | 5,000 | |||||||
Notes payable to director/shareholder, interest rate of 8%, unsecured and payable on December 31, 2012 | 3,500 | 3,500 | |||||||
Notes payable to director/shareholder, interest rate of 8%, unsecured and payable on December 31, 2012 | 5,000 | 5,000 | |||||||
Notes payable to director/shareholder, interest rate of 8%, unsecured and payable on December 31, 2012 | 5,000 | 5,000 | |||||||
Notes payable to director/shareholder, interest rate of 8%, unsecured and payable on December 31, 2012 | 1,000 | 1,000 | |||||||
Notes payable to director/shareholder, interest rate of 6%, unsecured and payable on July 31, 2014 | 10,000 | ||||||||
Notes payable to directors/shareholder, interest rate of 10%, unsecured and payable on demand | 40,000 | ||||||||
$ | 78,000 | $ | 28,000 |
6_ACCOUNTS_PAYABLE_AND_ACCRUED1
6. ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts payable and accrued expenses | ' | ||||||||
Accounts payable and accrued expenses consisted of the following: | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Accounts payable | $ | 572,125 | $ | 279,992 | |||||
Sales Tax reserve | 1,460 | 44,881 | |||||||
Accrued judgment | 135,000 | 135,000 | |||||||
Accrued interest | 30,233 | 19,351 | |||||||
Accrued Expenses | 3,500 | 24,500 | |||||||
Payroll Tax Liability | 44,667 | 19,049 | |||||||
Total | $ | 786,985 | $ | 522,773 |
3_GOING_CONCERN_Details_Narrat
3. GOING CONCERN (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | |
Going Concern Details Narrative | ' | ' | ' | ' | ' |
Accumulated deficit | $4,767,810 | ' | $4,767,810 | ' | $4,573,889 |
Net Loss attributable to Concierge Technologies | ($66,517) | $187,919 | ($193,921) | $54,076 | ' |
4_PROPERTY_AND_EQUIPMENT_Detai
4. PROPERTY AND EQUIPMENT (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Property And Equipment Details | ' | ' |
Furniture & Office Equipment | $15,392 | $15,392 |
Network Hardware & Software | 32,834 | 28,428 |
Total Fixed Assets | 48,226 | 43,820 |
Accumulated Depreciation | -34,342 | -28,842 |
Total Fixed Assets, Net | $13,884 | $14,978 |
4_PROPERTY_AND_EQUIPMENT_Detai1
4. PROPERTY AND EQUIPMENT (Details Narrative) (USD $) | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Property And Equipment Details Narrative | ' | ' |
Depreciation expense | $5,500 | $2,926 |
5_RELATED_PARTY_TRANSACTIONS_D
5. RELATED PARTY TRANSACTIONS (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Related Party Transactions Details | ' | ' |
Notes payable to director/shareholder, noninterest-bearing, unsecured and payable on demand | $8,500 | $8,500 |
Notes payable to shareholder, interest rate of 10%, unsecured and payable on July 31, 2004 | 5,000 | 5,000 |
Notes payable to director/shareholder, interest rate of 8%, unsecured and payable on December 31, 2012 | 3,500 | 3,500 |
Notes payable to director/shareholder, interest rate of 8%, unsecured and payable on December 31, 2012 | 5,000 | 5,000 |
Notes payable to director/shareholder, interest rate of 8%, unsecured and payable on December 31, 2012 | 5,000 | 5,000 |
Notes payable to director/shareholder, interest rate of 8%, unsecured and payable on December 31, 2012 | 1,000 | 1,000 |
Notes payable to director/shareholder, interest rate of 6%, unsecured and payable on July 31, 2014 | 10,000 | ' |
Notes payable to directors/shareholder, interest rate of 10%, unsecured and payable on demand | 40,000 | ' |
Notes payable - related parties | $78,000 | $28,000 |
5_RELATED_PARTY_TRANSACTIONS_D1
5. RELATED PARTY TRANSACTIONS (Details Narrative) (USD $) | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Related Party Transactions [Abstract] | ' | ' |
Interest due | ($1,835) | ' |
Amortized debt | ' | 9,439 |
Accrued interest | 12,616 | ' |
Interest expense | $9,274 | $12,041 |
6_ACCOUNTS_PAYABLE_AND_ACCRUED2
6. ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Accounts Payable And Accrued Expenses Details | ' | ' |
Accounts payable | $572,125 | $279,992 |
Sales Tax reserve | 1,460 | 44,881 |
Accrued judgment | 135,000 | 135,000 |
Accrued interest | 30,233 | 19,351 |
Accrued Expenses | 3,500 | 24,500 |
Payroll tax liability | 44,667 | 19,049 |
Total | $786,985 | $522,773 |