UnifiedOnline (IWEB) Inactive 10-Q24 Nov 152016 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Sep. 30, 2015	Nov. 11, 2015
Document And Entity Information Abstract
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Entity Registrant Name	UnifiedOnline, Inc.
Entity Central Index Key	1,097,718
Current Fiscal Year End Date	--06-30
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016
Entity Filer Category	Smaller Reporting Company
Entity Units Outstanding		957,597,537

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2015	Jun. 30, 2015
CURRENT ASSETS:
Cash	$ 10,044	$ 21,745
Accounts receivable, net	21,452	19,945
Prepaid expenses	62,801	66,543
Marketable securities	3	2
Other current assets	8,167	10,208
Total Current Assets	102,467	118,443
Property and equipment, net of accumulated depreciation of $1,164,224 and $1,140,249 respectively	27,487	51,462
Deposits	5,923	5,923
Other assets	1,545	1,545
Total Assets	137,422	177,373
CURRENT LIABILITIES:
Accounts payable and accrued liabilities	1,391,820	1,043,088
Notes payable, current portion	942,977	962,810
Capital lease payable, current portion	881,982	886,356
Note payable, related party	1,090,255	1,029,005
Deferred revenue	79,879	85,407
Convertible notes payable, net of discount	156,355	115,632
Derivative liability - warrants	144,125	83,766
Derivative liability - embedded conversion option	278,556	346,734
Total Current Liabilities	4,965,949	4,552,798
Capital lease payable, long term portion	517,686	517,686
Total Liabilities	5,483,635	5,070,484
Stockholders' Deficit:
Series B convertible preferred stock ($.001 par value; 10,000,000 shares authorized; 626,667 shares issued and outstanding)	626	626
Common stock ($.001 par value; 6,000,000,000 shares authorized; 912,897,537 and 912,466,204 shares issued and outstanding, respectively)	912,897	912,466
Additional paid in capital	49,001,382	48,984,686
Accumulated deficit	(55,167,120)	(54,696,891)
Accumulated other comprehensive loss	(80,998)	(80,998)
Treasury stock, at cost, (406 shares)	(13,000)	(13,000)
Total stockholders' deficit	(5,346,213)	(4,893,111)
Total Liabilities and Stockholders' Deficit	$ 137,422	$ 177,373

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2015	Jun. 30, 2015
Property and equipment, accumulated depreciation	$ 1,164,224	$ 1,140,249
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	6,000,000,000	6,000,000,000
Common stock, shares issued	912,897,537	912,466,204
Common stock, shares outstanding	912,897,537	912,466,204
Treasury stock, shares	406	406
Series B convertible preferred stock
Convertible preferred stock, par value	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized	10,000,000	10,000,000
Convertible preferred stock, shares issued	626,667	626,667
Convertible preferred stock, shares outstanding	626,667	626,667

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
Consolidated Statements of Operations (Unaudited) - USD ($)	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Sales	$ 242,473	$ 237,889
Cost of sales	98,298	243,772
Gross profit	144,175	(5,883)
Operating expenses:
Sales and marketing	28,074	35,785
Depreciation	9,946	43,799
Technical	62,989	108,597
General and administrative	379,039	261,631
Total Operating Expenses	480,048	449,812
Loss from operations	(335,873)	(455,695)
Other income (expenses):
Gain on sale of assets	0	3,625
Gain from change of fair value of derivative liability	2,255	409,590
Interest expense	(136,611)	(195,434)
Total other income (expenses)	(134,356)	217,781
Net loss	$ (470,229)	$ (237,914)
Loss per common share basic and diluted	$ (0.0005)	$ (0.0613)
Weighted average common shares outstanding - basic and diluted	912,831,899	3,879,598

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net loss	$ (470,229)	$ (237,914)
Other comprehensive income/(loss), net of tax:
Unrealized gain (loss) on securities	0	(2)
Other comprehensive income/(loss)	0	(2)
Comprehensive loss	$ (470,229)	$ (237,916)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
Consolidated Statements of Cash Flows (Unaudited) - USD ($)	Sep. 30, 2015	Sep. 30, 2014
Statement of Cash Flows [Abstract]
NET CASH USED IN OPERATING ACTIVITIES	$ (52,657)	$ (392,408)
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchase of property and equipment	0	(1,643)
NET CASH USED IN INVESTING ACTIVITIES	0	(1,643)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on notes payable	(20,294)	(136,586)
Proceeds from convertible note payable	0	0
Proceeds from notes payable	0	0
Proceeds from notes payable, related party	61,250	487,740
NET CASH PROVIDED BY FINANCING ACTIVITIES	40,956	351,154
NET DECREASE IN CASH	(11,701)	(42,897)
CASH - beginning of period	21,745	56,827
CASH - end of period	10,044	13,930
Supplemental disclosure of cash flow information:
Cash paid for interest	10,950	17,495
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Conversion of convertible note into common stock	$ 3,235	$ 281,679

1. NATURE OF BUSINESS

1. NATURE OF BUSINESS	3 Months Ended
1. NATURE OF BUSINESS	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS	On January 5, 2015, IceWEB, Inc. changed its name to UnifiedOnline, Inc. UnifiedOnline, Inc. (the Company) began trading publicly in April 2002. During the three months ended September 30, 2015 we had three wholly owned operating subsidiaries, Computers & Telecom, Inc. and KCNAP, LLC, (collectively CTC) and IceWEB Storage Corporation (formerly known as Inline Corporation). CTC provides wireless and fiber broadband service, co-location space and related services and operates a Network Access Point (NAP) where customers directly interconnect with a network ecosystem of partners and customers. This access to Internet routes provides CTC customers improved reliability and streamlined connectivity while significantly reducing costs by reaching a critical mass of networks within a centralized physical location. In addition, through our IceWEB Storage Corporation subsidiary we deliver on-line cloud computing application services, other managed services such as Disaster Recovery, Archive Storage, Redundant File Storage, Redundant Broadband Services and Business Continuity Services. CTC operates a wireless internet service business, providing WIMAX broadband to small and medium size businesses in the metro Kansas-City, Missouri area. In addition CTC offers the following solutions: (i) premium data center co-location, (ii) interconnection and (iii) exchange and outsourced IT infrastructure services. We leverage our NAP which allows our customers to increase information and application delivery performance while reducing costs. Our platform enables scalable, reliable and cost-effective co-location, interconnection and traffic exchange thus lowering overall cost and increasing flexibility.

2. BASIS OF PRESENTATION AND SU

2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Principles of Consolidation and Interim Financial Information The accompanying unaudited consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (US GAAP) for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Accordingly, the consolidated financial statements do not include all of the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and such adjustments are of a normal recurring nature. These consolidated financial statements should be read in conjunction with the Companys audited financial statements for the year ended June 30, 2015, contained in the Companys Annual Report on Form 10-K filed with the SEC on October 13, 2015. The results of operations for the three months ended September 30, 2015, are not necessarily indicative of results to be expected for any other interim period or the fiscal year ending June 30, 2016. Reclassifications Certain reclassifications have been made to previously reported amounts to conform to 2016 amounts. The reclassifications had no impact on previously reported results of operations or stockholders deficit. The changes were as a result of the reverse stock split which occurred on January 5, 2015, which was retrospectively applied, the reclass of certain depreciation related to assets used for providing service to cost of sales from operating expense, the reclass of a capital lease payable from notes payable to capital lease payable and the reclass of derivative expense from interest expense. Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company had net losses and net cash used in operating activities of $470,229 and $52,657, respectively, for the three months ended September 30, 2015. The Company also had an accumulated deficit and stockholders deficit of $55,167,120 and $5,346,213 respectively at September 30, 2015. These matters raise substantial doubt about the Companys ability to continue as a going concern. The consolidated financial statements do not include any adjustments related to the recovery and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event we cannot continue in existence. Additionally, the Company is currently in default on the loans to IWEB Growth Fund, and there is no guarantee that IWEB Growth Fund will not enter a judgment against the Company. Management has established plans intended to increase the sales of our products and services. Management intends to seek new capital from new equity securities offerings to provide funds needed to increase liquidity, fund growth, and implement its business plan. However, no assurances can be given that we will be able to raise any additional funds. Marketable Securities UnifiedOnline accounts for the purchase of marketable equity securities in accordance with FASB Accounting Standards Codification (ASC) 320, Investment Debt and Equity Securities with any unrealized gains and losses included as a net amount as a separate component of stockholders equity. However, those securities may not have the trading volume to support the stock price if the Company were to sell all their shares in the open market at once, so the Company may have a loss on the sale of marketable securities even though they record marketable equity securities at the current market value. Cash and Cash Equivalents We consider all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America 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 balance sheets and the reported amounts of sales and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates include the valuation of stock-based compensation, the allowance for doubtful accounts, the useful life of property and equipment, derivative liabilities, deferred tax and valuation allowance and litigation reserves. Accounts Receivable Accounts receivable consists of normal trade receivables. We recorded a bad debt allowance of $21,545 as of September 30, 2015. Management performs ongoing evaluations of its accounts receivable, and believes that all remaining receivables are fully collectable. Bad debt expense amounted to $16,777 and $0 for the three months ended September 30, 2015 and 2014, respectively. Derivative Liability The Company issued warrants to purchase the Companys common stock in connection with the issuance of convertible debt, which contain certain ratchet provisions that reduce the exercise price of the warrants or the conversion price in certain circumstances. In accordance with ASC 815 the Company determined that the warrants and/or the conversion features with provisions that reduce the exercise price of the warrants did not qualify for a scope exception under ASC 815 as they were determined not to be indexed to the Companys stock. Derivatives are required to be recorded on the balance sheet at fair value (see Note 12). These derivatives, including embedded derivatives in the Companys structured borrowings, are separately valued and accounted for on the Companys balance sheet. Fair values for exchange traded securities and derivatives are based on quoted market prices. Where market prices are not readily available, fair values are determined using market based pricing models incorporating readily observable market data and requiring judgment and estimates. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Valuations may be obtained from, or corroborated by, third-party pricing services. Level 3: Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort. Fair Value of Financial Instruments The Companys financial instruments, including cash and cash equivalents, receivables, accounts payable and accrued liabilities and notes payable are carried at cost, which approximates their fair value, due to the relatively short maturity of these instruments. Our derivative financial instruments, consisting of embedded conversion features in our convertible debt and ratchet provisions in our warrants, are required to be measured at fair value on a recurring basis under FASB ASC 815. As of September 30, 2015 and 2014 our derivatives are measured at fair value, using a Black-Scholes valuation model which approximates a binomial lattice valuation methodology utilizing Level 3 inputs. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities (see Note 12). Property and Equipment Property and equipment is stated at cost, net of accumulated depreciation. Depreciation expense is recorded by using the straight-line method over the estimated useful lives of the related assets. Product Warranties The Companys products typically carry a warranty for periods of up to three years. We have not had any significant warranty claims on our products. Long-lived Assets In accordance with ASC Topic 360, Property, Plant, and Equipment, we review the carrying value of intangibles and other long-lived assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets is measured by comparison of its carrying amount to the undiscounted cash flows that the asset or asset group is expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the property, if any, exceeds its fair market value. Revenue Recognition We follow the guidance of ASC Topic 605, Revenue Recognition for revenue recognition. In general, we record revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. It is our practice to obtain a signed master sales agreement for recurring revenue sales, and/or a sales order for events and one-time services. Taxes collected from customers and remitted to government authorities are reported on a net basis and are excluded from revenue. We derive the majority of our revenues from recurring revenue streams, consisting of: 1. Wireless and fiber broadband service; 2. Co-location, which includes the licensing of cabinet and power; 3. Interconnection services, such as cross connects; 4. Managed infrastructure services. · Revenues from recurring revenue streams are generally billed monthly and recognized ratably over the term of the contract, generally one to three years for data center space customers. We generally recognize revenue beginning on the date the customer commences use of our services. · Implementation and set-up fees are recognized at the time those services are completed and service is working. · For services that are billed according to customer usage, revenue is recognized in the month in which the usage is provided. · Professional services are recognized in the period services are provided. · Amounts that have been invoiced are recorded in accounts receivable and revenue Our customers generally have the right to cancel their contracts by providing prior written notice to us of their intent to cancel the remainder of the contract term. The customer would be required to pay any charge for early cancellation that their contract specifies. In the event that a customer cancels their contract, they are not entitled to a refund for services already rendered. A customer can continue service on a month-to-month basis after their contract expires. Barter Transactions Barter activity is accounted for in accordance with ASC 845, Nonmonetary Transactions Prepaid expenses Prepaid expenses are comprised primarily of prepaid costs related to the installation of new customers, prepaid advertising costs which are expensed when used, and deferred financing costs which are amortized over the life of the related financing. Deferred Revenue Amounts billed in advance of services being provided are recorded as deferred revenue and are recognized in the consolidated statement of operations as services are provided. Deferred Financing Costs Debt issuance costs incurred in connection with the issuance of debt are capitalized and amortized to interest expense based on the related debt agreements on a straight-line basis, which approximates the effective interest method. Unamortized amounts are included in prepaid expenses in the accompanying unaudited consolidated balance sheets. Earnings per Share We compute earnings per share in accordance with ASC Topic 260, Earnings Per Share Under the provisions of ASC Topic 260, basic earnings per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing the net income (loss) for the period by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of the common shares issuable upon the exercise of stock options and warrants (using the treasury stock method) and upon the conversion of convertible notes and preferred stock (using the if-converted method). Potentially dilutive common shares are excluded from the calculation if their effect is antidilutive. At September 30, 2015, there were options and warrants to purchase 205,926,330 shares of common stock, there was $156,355 of convertible debt outstanding, which, if converted on September 30, 2015 would amount to 53,400,000 shares, and 626,667 shares issuable upon conversion of Series B preferred stock outstanding which could potentially dilute future earnings per share. Stock-Based Compensation As more fully described in Note 15, we have three stock option plans that provide for non-qualified options to be issued to directors, officers, employees and consultants (the 2012 Equity Compensation Plan, 2013 Equity Plan and the 2015 Employee Option Plan (the Plans)). Cost of Sales Cost of sales consists primarily of the costs of providing wireless and fiber bandwidth and colocation services. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Recently Adopted and Recently Issued Accounting Standards Various accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption.

3. PROPERTY AND EQUIPMENT

3. PROPERTY AND EQUIPMENT	3 Months Ended
3. PROPERTY AND EQUIPMENT	Sep. 30, 2015
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract]
PROPERTY AND EQUIPMENT	Property and equipment, net, consists of the following: Estimated Life September 30, 2015 June 30, 2015 Equipment 3 years $ 1,125,304 $ 1,125,304 Computer Software 3 years 59,694 59,694 Vehicle 3 years 1,979 1,979 Leasehold Improvements 3 years 4,734 4,734 1,191,711 1,191,711 Less: Accumulated Depreciation (1,164,224 ) (1,140,249 ) Net, Property and Equipment $ 27,487 $ 51,462 Depreciation expense for the three months ended September 30, 2015 and 2014 was $23,975 and $157,138, respectively, of which $14,029 and $114,339 was included in cost of sales for the three months ended September 30, 2015 and 2014, respectively.

4. NOTES PAYABLE

4. NOTES PAYABLE	3 Months Ended
4. NOTES PAYABLE	Sep. 30, 2015
Debt Disclosure [Abstract]
NOTES PAYABLE	IWEB Growth Fund, LLC On November 2, 2012 the Company entered into a Loan Agreement with IWEB Growth Fund, LLC, a Virginia limited liability company (IWEB Growth Fund) established by Messrs. Compton, Bush, Carosi, Pirtle and Stavish and General Soyster, our former independent directors. Under the terms of the Loan Agreement, IWEB Growth Fund agreed to make one or more loans to us up to the total principal amount of $1.5 million. The lending of any amounts under the Loan Agreement is conditioned upon the negotiation of notes and related loan documents which contain terms and conditions that are acceptable to the lender to be determined at the time of the loans. We agreed to grant IWEB Growth Fund a security interest in our assets as collateral for these loans. In the event we should default under the terms of the Loan Agreement, IWEB Growth Fund is entitled to declare all amounts advanced under the various notes immediately due and payable. An event of default includes a breach by us of any covenant, representation or warranty in the Loan Agreement or a default under any note entered into with the lender. Between November 9, 2012 and July 11, 2013, IWEB Growth Fund lent us an aggregate of $186,000 under the terms of 9 separate Confession of Judgment Promissory Notes. In Fiscal 2015, $1,000 was paid on one of the notes. These notes, which are identical in their terms other than the dates and principal amounts, are for a one year term and bear interest at 12% per annum payable at maturity. Embodied in each of the notes is a confession of judgment which means that should we default upon the payment of the note, we have agreed to permit IWEB Growth Fund to enter a judgment against us in the appropriate court in Virginia before filing suit against us for collection of the amounts. Pursuant to the terms of the Loan Agreement, we paid IWEB Growth Funds expenses of $1,500 for the preparation of the Loan Agreement and related documents. We used the net proceeds from these initial loans for general working capital. The Company is currently in default on these loans. There is no guarantee that IWEB Growth Fund will not enter a judgment against the Company. On February 27, 2014, Agility Ventures LLC sold and assigned the Master Lease and Equipment Schedule to a third party, UO! IP of NC, LLC (see Note 5). UO! IP of NC, LLC has advanced the payments made on this lease to the Company at a rate of 10% per annum. The balance due to UO!IP of NC, LLC was $635,000 at September 30, 2015 and June 30, 2015, respectively. On June 16, 2015, we entered into a loan agreement with Power Up Lending Group, LTD. (Power Up) for $50,000 to fund working capital. The note is for a nine month term, payable at $365 per day, for a total repayment amount of $69,000. The balance due to Power Up was $34,379 and $48,315 at September 30, 2015 and June 30, 2015, respectively. As part of the acquisition of CTC, the Company acquired two debt obligations one with Blue Ridge Bank and one for rent payable on an old building which was converted into a loan. The balance due to Blue Ridge Bank was $50,638 and $56,996 at September 30, 2015 and June 30, 2015, respectively. The balance due for the rent payable converted into a loan was $37,960 and $37,499 at September 30, 2015 and June 30, 2015, respectively. A summary of our Notes Payable is as follows: September 30, 2015 June 30, 2015 IWEB Growth Fund $ 185,000 $ 185,000 UO! IP of NC, LLC 635,000 635,000 Power Up Lending Group, LTD. 34,379 48,315 Other Notes Payable 88,598 94,495 $ 942,977 $ 962,810

5. CAPITAL LEASE PAYABLE

5. CAPITAL LEASE PAYABLE	3 Months Ended
5. CAPITAL LEASE PAYABLE	Sep. 30, 2015
Debt Disclosure [Abstract]
5. CAPITAL LEASE PAYABLE	Agility Ventures, LLC and UO! IP of NC, LLC On October 1, 2013, in conjunction with the acquisition of CTC, we entered into an equipment lease agreement with Agility Ventures, LLC in the principal amount of $1,678,531 which is secured by all of the assets of the Company. The lease agreement has a term of 36 months and bears interest at 15% per annum. We also issued Agility Ventures 2,500 shares of the Companys restricted common stock, and a Series T common stock warrant covering a total of 9,187 shares with a term of two years and a conversion price of $22.00 per share which expired September 30, 2015. The Company has the option to purchase the equipment at the end of the term. On February 27, 2014, Agility Ventures LLC sold and assigned the Master Lease and Equipment Schedule to a third party, UO! IP of NC, LLC. UO! IP of NC, LLC is a related party to the Companys majority shareholder, Unified Online! LLC. The agreement changed the interest rate to 3.75% on the outstanding principal balance of the lease at February 27, 2014. UO! IP of NC, LLC assigned the lease back to UOIP as part of the subscription agreement at the same terms. The Company applied the 10% cash flow test pursuant to Topic ASC 470-50-40-10 "Debt Modification and Extinguishment" to calculate the difference between the present value of the new loan's cash flows and the present value of the old loan's remaining cash flow and concluded that the results exceeded the 10% factor, the debt modification is considered substantially different and applied extinguishment accounting. Accordingly, the gain or loss on extinguishment should be measured by the difference between the carrying amount of the old debt and the fair value of the new debt. Additionally, Topic ASC 470-50-40-17 states if the exchange or modification is to be accounted for in the same manner as a debt extinguishment and the new debt instrument is initially recorded at fair value, then the fees paid or received shall be associated with the extinguishment of the old debt instrument and included in determining the debt extinguishment gain or loss to be recognized. The fair value of the new debt was determined to be $1,983,164 and the carrying amount of the old debt of principal and accrued interest totaling $1,717,853 resulted in a total loss on the extinguishment of debt of $265,311 at June 30, 2014. The underlying assets and related depreciation were included in the appropriate fixed asset category, and related depreciation account. Capitalized equipment under lease agreements totaled approximately $1.9 million prior to the CTC acquisition of which $666,782 was recorded at fair value at the time of acquisition. $4,044 remains net of accumulated depreciation as of September 30, 2015 and $16,176 remains net of accumulated depreciation as of June 30, 2015. The lease term of each capital equipment lease is 36 months. The Company is currently in default on this lease. See Note 19. Future minimum payments required under capital leases at June 30, 2015 are as follows: 2016 $ 1,170,000 2017 273,356 Total future payments 1,443,356 Less amount representing interest 43,688 Present value of future minimum payments 1,399,668 Less current portion 881,982 Long-term portion $ 517,686

6. OTHER CURRENT ASSETS

6. OTHER CURRENT ASSETS	3 Months Ended
6. OTHER CURRENT ASSETS	Sep. 30, 2015
Other Assets [Abstract]
OTHER CURRENT ASSETS	Other current assets totaled $8,167 and $10,208 at September 30, 2015 and June 30, 2015, respectively. The balance at September 30, 2015 and June 30, 2015 consists primarily of deferred loan fees related to the capitalized lease obligation to Agility Ventures, LLC.

7. CONCENTRATIONS

7. CONCENTRATIONS	3 Months Ended
7. CONCENTRATIONS	Sep. 30, 2015
Risks and Uncertainties [Abstract]
CONCENTRATIONS	Bank Balances The Company maintains cash in bank deposit accounts which do not exceed the federally insured limits as provided through the Federal Deposit Insurance Corporation (FDIC). At September 30, 2015, the Companys cash balances were fully insured. In 2010 the FDIC insurance coverage limit was increased to $250,000 per depositor, per institution as a result of the Dodd-Frank Wall Street and Consumer Protection Act. The Company has not experienced any losses in such accounts. Major Customers Sales to three customers for the three months ended September 30, 2015 represented 27% of total sales and sales to three customers represented 21% total sales for the three months ended September 30, 2014. Three Months Ended September 30, 2015 2014 Customer A 12 % 13 % Customer B 9 % 4 % Customer C 6 % 4 % All others 73 % 79 % 100 % 100 % As of September 30, 2015 and June 30, 2015, respectively, approximately 64% and 74% of our accounts receivable was due from three customers. September 30, June 30, 2015 2015 Customer A 23 % 44 % Customer B 23 % 17 % Customer C 18 % 13 % All others 36 % 26 % 100 % 100 %

8. INVESTMENTS

8. INVESTMENTS	3 Months Ended
8. INVESTMENTS	Sep. 30, 2015
Investments [Abstract]
INVESTMENTS	(a) Summary of Investments Marketable Equity Securities As of September 30, 2015 and June 30, 2015, the Companys investments in marketable equity securities are based on the September 30, 2015 and June 30, 2015 stock price as reflected on the OTCBB stock, respectively. These marketable equity securities are summarized as follows: Gross Gross Unrealized Unrealized Fair September 30, 2015 Cost Gains Losses Value Publicly traded equity securities $ 81,000 $ - $ (80,998 ) $ 3 Total $ 81,000 $ - $ (80,998 ) $ 3 Gross Gross Unrealized Unrealized Fair June 30, 2015 Cost Gains Losses Value Publicly traded equity securities $ 81,000 $ - $ (80,998 ) $ 2 Total $ 81,000 $ - $ (80,998 ) $ 2 The unrealized gains are presented in comprehensive income in the unaudited consolidated statements of comprehensive loss. (b) Unrealized Gains and Losses on Investments The following table summarizes the unrealized net gains (losses) associated with the Companys investments: Three Months Ended September 30, 2015 2014 Net gains/(loss) on investments in publicly traded equity securities $ - $ (2 ) Net gains/(loss) on investments $ - $ (2 )

9. FAIR VALUE MEASUREMENTS

9. FAIR VALUE MEASUREMENTS	3 Months Ended
9. FAIR VALUE MEASUREMENTS	Sep. 30, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	The Company follows ASC 820, 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. The Company did not adopt the ASC 820 fair value framework for nonfinancial assets and liabilities, except for items that are recognized or disclosed at fair value in the financial statements at least annually. ASC 820 clarifies that fair value is an 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, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1. Level 2. Level 3. Investments Measured at Fair Value on a Recurring Basis: Quoted Significant Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs September 30, 2015 (Level 1) (Level 2) (Level 3) Marketable Equity Securities $ 3 $ - $ - Derivative liabilities, warrants $ - $ - $ 144,125 Derivative liabilities, convertible debt $ - $ - $ 278,556 June 30, 2015 Marketable Equity Securities $ 2 $ - $ - Derivative liabilities, warrants $ - $ - $ 83,766 Derivative liabilities, convertible debt $ - $ - $ 346,734 Under the guidance of ASC 320, Investments, we periodically evaluate other-than-temporary impairment (OTTI) of securities to determine whether a decline in their value is other than temporary. Management utilizes criteria such as the magnitude and duration of the decline, in addition to the reasons underlying the decline, to determine whether the loss in value is other than temporary. The term other-than-temporary is not intended to indicate that the decline is permanent. It indicates that the prospects for a near term recovery of value are not necessarily favorable, or that there is a lack of evidence to support fair values equal to, or greater than, the carrying value of the investment. Once a decline in value is determined to be other than temporary, the value of the security is reduced and a corresponding impairment charge to earnings is recognized. In the assessment of OTTI for various securities at September 30, 2015 the guidance in ASC 320, the Investment-Debt and Equity Securities, is carefully followed. There were no impairment charges on investments in publicly traded equity securities for the three months ended September 30, 2015 or the three months ended September 30, 2014. The Company has evaluated its publicly traded equity securities as of September 30, 2015, and has determined that there were no unrealized losses that indicate an other-than-temporary impairment. This determination was based on several factors, which include the length of time and extent to which fair value has been less than the cost basis and the financial condition and near-term prospects of the issuer, and the Companys intent and ability to hold the publicly traded equity securities for a period of time sufficient to allow for any anticipated recovery in market value.

10. COMPREHENSIVE LOSS

10. COMPREHENSIVE LOSS	3 Months Ended
10. COMPREHENSIVE LOSS	Sep. 30, 2015
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
COMPREHENSIVE LOSS	Comprehensive loss is comprised of net loss and other comprehensive loss. Other comprehensive loss refers to revenue, expenses, gains and losses that under accounting principles generally accepted in the United States are included in comprehensive loss but excluded from net loss as these amounts are recorded directly as an adjustment to stockholders equity. The Companys accumulated other comprehensive loss consists of unrealized loss on marketable securities available for sale of $80,998 at September 30, 2015 and $80,998 at June 30, 2015.

11. CONVERTIBLE NOTES

11. CONVERTIBLE NOTES	3 Months Ended
11. CONVERTIBLE NOTES	Sep. 30, 2015
Convertible Notes Payable [Abstract]
CONVERTIBLE NOTES	As of September 30, 2015 and June 30, 2015 the Company had the following convertible notes outstanding: September 30, 2015 June 30, 2015 December 2013 $60,000 Convertible Note, 10% interest, due December 2014 $ 60,000 $ 60,000 (1 ) January 2015 $53,500 Convertible Note, 8% interest, due October 2015 50,265 53,500 (2 ) February 2015 $33,000 Convertible Note, 8% interest, due November 2015 33,000 33,000 (3 ) April 2015 $30,500 Convertible Note, 12% interest, due April 2017, with a 10% original issue discount 30,500 30,500 (4 ) May 2015 $33,000 Convertible Note, 8% interest, due February 2016 33,000 33,000 (5 ) 206,765 210,000 Less: Debt Discount (50,410 ) (94,368 ) $ 156,355 $ 115,632 (1) The Company borrowed $60,000 in December 2013, due December 2014, with interest at 10%. This note is currently in default. The holder of the note intends to convert at some point in the future. The holder of the note has the right, after the first one hundred eighty days of the note to convert the note and accrued interest into common stock at a price per share equal to 60% (representing a discount rate of 40%) of the lowest trading price for the Common Stock during the fifteen trading day period ending one trading day prior to the date of Conversion Notice, with a floor of $0.001 per share. The Company recorded a derivative liability at inception of the note of $60,000. Interest expense of $1,050 was recorded during the three month period ended September 30, 2015. Also, see Note 12. (2) The Company borrowed $53,500 in January 2015, due October 2015, with interest at 8%. The holder of the note has the right, after the first one hundred eighty days of the note to convert the note and accrued interest into common stock at a price per share equal to 58% of the average of the lowest three trading prices during the 10 trading days previous to the conversion. The agreement includes a ratchet provision resulting in the recording of a derivative liability. The Company recorded a derivative liability of $81,133 at inception of the note of which $53,500 was recorded as a debt discount. During the three months ended September 30, 2015, the Company recorded amortization of debt discount of $17,833 resulting in a debt discount of $2,972 at September 30, 2015. Interest expense of $1,005 was recorded during the three month period ended September 30, 2015. Also, see Note 12. During July 2015, the holder of the Convertible Note exercised their conversion rights and converted $3,235 of the outstanding principal, at the contractual terms per the note agreement. (3) The Company borrowed $33,000 in February 2015, due November 2015, with interest at 8%. The holder of the note has the right, after the first one hundred eighty days of the note to convert the note and accrued interest into common stock at a price per share equal to 58% of the average of the lowest three trading prices during the 10 trading days previous to the conversion. The agreement includes a ratchet provision resulting in the recording of a derivative liability. The Company recorded a derivative liability of $127,624 at inception of the note of which $33,000 was recorded as a debt discount. During the three months ended September 30, 2015, the Company recorded amortization of debt discount of $11,000 resulting in a debt discount of $7,333 at September 30, 2015. Interest expense of $120 was recorded during the three month ended September 30, 2015.Also, see Note 12. (4) The Company borrowed $30,500 in April 2015, due April 2017, with a one-time interest charge of 12%. The holder of the note has the right, after the first one hundred eighty days of the note to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.03 per share or 60% (representing a discount rate of 40%) of the lowest trade price of the Company's common stock in the twenty-five days prior to the date of Conversion Notice. The note has an original issue discount of $3,000 which has been added to the principal balance of the note and is being recognized in interest expense over the life of the note. The Company recorded a debt discount of $2,500 related to the conversion feature of the note, along with a derivative liability of $50,833 of which $30,500 was recorded as a debt discount in April, 2015. During the three month period ended September 30, 2015, the Company recorded amortization of $4,125 resulting in a debt discount of $25,437 at September 30, 2015. Interest expense of $375 was recorded during the three month period ended September 30, 2015. Also, see Note 12. (5) The Company borrowed $33,000 in May 2015, due February 2016, with interest at 8%. The holder of the note has the right, after the first one hundred eighty days of the note to convert the note and accrued interest into common stock at a price per share equal to 58% of the average of the lowest three trading prices during the 10 trading days previous to the conversion. The agreement includes a ratchet provision resulting in the recording of a derivative liability. The Company recorded a derivative liability of $75,223 at inception of the note of which $33,000 was recorded as a debt discount. During the three month period ended September 30, 2015, the Company recorded amortization of debt discount of $11,000 resulting in a debt discount of $14,667 at September 30, 2015. Interest expense of $660 was recorded during the three month period ended September 30, 2015. Also, see Note 12.

12. DERIVATIVE LIABILITIES

12. DERIVATIVE LIABILITIES	3 Months Ended
12. DERIVATIVE LIABILITIES	Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE LIABILITIES	Derivative liability - warrants The Company has warrants issued in connection with our convertible notes payable outstanding with price protection provisions that allow for the reduction in the exercise price of the warrants in the event the Company subsequently issues stock or securities convertible into stock at a price lower than the exercise price of the warrants. Simultaneously with any reduction to the exercise price, the number of shares of common stock that may be purchased upon exercise of each of these warrants shall be increased or decreased proportionately, so that after such adjustment the aggregate exercise price payable for the adjusted number of warrants shall be the same as the aggregate exercise price in effect immediately prior to such adjustment. The Company accounted for its warrants with price protection in accordance with FASB ASC Topic 815. Accounting for Derivative Warrant Liability The Companys derivative warrant instruments have been measured at fair value at September 30, 2015 using the Black-Scholes model. The Company recognizes all of its warrants with price protection in its consolidated balance sheet as liabilities. The liability is revalued at each reporting period and changes in fair value are recognized currently in the consolidated statements of operations. The initial recognition and subsequent changes in fair value of the derivative warrant liability have no effect on the Companys cash flows. The derivative warrants outstanding at September 30, 2015 are all currently exercisable with a weighted-average remaining life of 1 year. Derivative liability convertible notes From December, 2013 through May, 2015 the Company issued convertible notes in the total principal amount of $210,000. Upon the issuance of these convertible notes and as a consequence of their conversion features, the convertible notes give rise to derivative liabilities. The revaluation of the warrants and convertible debt at each reporting period, as well as the charges associated with issuing additional warrants due to the price protection features, resulted in the recognition of income of $2,255 for the three months ended September 30, 2015 and the recognition of income of $409,590 for the three months ended September 30, 2014 within the Companys consolidated statements of operations, under the caption Gain from change of fair value of derivative liability. The fair value of the warrants at September 30, 2015 and June 30, 2015 is $144,125 and $83,766, respectively, which is reported on the consolidated balance sheet under the caption Derivative liability - warrants. The fair value of the derivative liability related to the convertible debt at September 30, 2015 and June 30, 2015 is $278,556 and $346,734, respectively, which is reported on the consolidated balance sheet under the caption Derivative liability embedded conversion option. The following summarizes the changes in the value of the derivative warrant liability and the derivative embedded conversion option from June 30, 2015 until September 30, 2015: Value No. of Warrants Balance at June 30, 2015 - Derivative liability - warrants $ 83,766 64,436,748 Increase in fair value of derivative warrant liability 60,359 Balance at September 30, 2015 - Derivative liability - warrants $ 144,125 205,919,098 Value Balance at June 30, 2015 - Derivative liability - embedded conversion option $ 346,734 Decrease in derivative liability related to conversion of convertible debt (5,303 ) Increase in derivative liability related to issuance of convertible debt - Decrease in fair value of derivative liability (62,875 ) Balance at September 30, 2015 - Derivative liability - embedded conversion option $ 278,556 Fair Value Assumptions Used in Accounting for Derivative Liability The Company has determined its derivative liability to be a Level 3 fair value measurement and has used the Black-Scholes pricing model to calculate the fair value as of September 30, 2015. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. The key inputs used in the September 30, 2015 fair value calculations were as follows: September 30, 2015 Current exercise price $ 0.0075 - $60 Time to expiration 1.0 to 1.75 years Risk-free interest rate 0.64 % Estimated volatility 767.47 % Dividend $ 0 Stock price on September 30, 2015 $ 0.00700 Expected forfeiture rate 0% to 90%

13. COMMITMENTS AND CONTINGENCI

13. COMMITMENTS AND CONTINGENCIES	3 Months Ended
13. COMMITMENTS AND CONTINGENCIES	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	The Company leases office space in Kansas City, Missouri. We currently have real estate leases at two locations, totaling 6,875 square feet. These operating leases are standard commercial leases. As of September 30, 2015, future minimum lease payments under these operating leases are as follows: For the Year Ending, June 30, Amount 2016 $ 63,275 2017 15,385 2018 - $ 78,660 Rent expense was $23,489 and $22,102 for the three months ended September 30, 2015 and 2014. At September 30, 2015 the Company is the subject of, or party to, four known, pending or threatened, legal actions. Following is a discussion of each: 1. The Company was named as the defendant in a legal proceeding brought by FedEx Customer Information Services, Inc. (the plaintiff) on May 28, 2010 in the Circuit Court of Fairfax County, Virginia. The plaintiff asserts that the Company failed to pay the full amount owed for services. The plaintiff obtained a judgment for $16,322 plus interest and costs. The Company is seeking an out-of-court settlement. There have been no updates on the status of this case since June 30, 2015. The Company has accrued $19,000 as of September 30, 2015. 2. The Company was named as the defendant in a legal proceeding brought by FedEx Customer Information Services, Inc. (the plaintiff) on September 15, 2010 in the General District Court of Fairfax County, Virginia. The plaintiff asserts that the Company failed to pay the full amount owed for services. The plaintiff obtained a Consent Judgment for $12,900 in compensatory damages plus $58 in costs. The Company is seeking an out-of-court settlement. There have been no updates on the status of this case since June 30, 2015. The Company has accrued $18,500 as of September 30, 2015. 3. The Company was named as the defendant in a legal proceeding brought by i-Cubed Information LLC (the plaintiff) on August 10, 2012 in the General District Court of Fairfax County, Virginia. The plaintiff asserts that the Company failed to pay for delivery of services provided by plaintiff. The plaintiff was granted a judgment by consent in the amount of $12,920. The Company is seeking an out-of-court settlement. There have been no updates on the status of this case since June 30, 2015. The Company has accrued $13,600 as of September 30, 2015. 4. The Company was named as the defendant in a legal proceeding brought by Pelligrino and Associates (the plaintiff) on August 14, 2014 in the Marion County Superior Court, Marion County, Indiana. The plaintiff asserts that the Company failed to pay the full amount owed for services. The plaintiff is seeking $20,159 plus attorneys fees, interest and costs. The Company is seeking an out-of-court settlement. There have been no updates on the status of this case since June 30, 2015. The Company has accrued $20,500 as of September 30, 2015. From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.

14. STOCKHOLDERS' DEFICIT

14. STOCKHOLDERS' DEFICIT	3 Months Ended
14. STOCKHOLDERS' DEFICIT	Sep. 30, 2015
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' DEFICIT	Common Stock On January 5, 2015, the board of directors and majority stockholder of our company approved a Certificate of Amendment to our Certificate of Incorporation to: · change our companys name from "IceWEB, Inc." to UnifiedOnline, Inc.; · increase the number of authorized shares of our common stock from 5,000,000,000 to 6,000,000,000 shares; and · effect a reverse stock split of our outstanding common stock on the basis of one for four hundred (1:400). Accordingly, we have adjusted all issued and outstanding warrants and employee stock options to reflect the reverse stock split. Additionally, we have retroactively adjusted all share and per share data for all periods presented. Three months ended September 30, 2015 Transactions In July, 2015, the Company issued 431,333 shares of common stock, at the original conversion terms, at a per share price of $0.0075 valued at $3,235 as a partial conversion of principal due under a convertible note. Preferred Stock Our authorized capital includes 10,000,000 shares of blank check preferred stock, par value $0.001 per share. Our Board of Directors, without further stockholder approval, may issue our preferred stock in one or more series from time to time and fix or alter the designations, relative rights, priorities, preferences, qualifications, limitations and restrictions of the shares of each series. In March 2005, our Board of Directors authorized a series of 1,666,667 shares of blank check preferred stock be designated as Series A Convertible Preferred Stock and on April 1, 2005 we filed a Certificate of Designations of Preferences, Rights and Limitations of Series A Convertible Preferred Stock with the Secretary of State of Delaware. In September 2005, our Board of Directors authorized a series of 833,334 shares of blank check preferred stock be designated as Series B Convertible Preferred Stock and on September 28, 2005, we filed a Certificate of Designations of Preferences, Rights and Limitations of Series B Preferred with the Secretary of State of Delaware. On December 29, 2005, we filed an Amended and Restated Certificate of Designations of Preferences, Rights and Limitations of Series B Convertible Preferred Stock increasing the number of shares authorized under this series to 1,833,334 shares. A) Series B Convertible Preferred Stock The designations, rights and preferences of the Series B Convertible Preferred Stock provide: · No dividends are payable on the Series B Convertible Preferred Stock. So long as these shares are outstanding, we cannot pay dividends on our common stock nor can it redeem any shares of its common stock, the shares of Series B Convertible Preferred Stock do not have any voting rights, except as may be provided under Delaware law, · So long as the shares are outstanding, we cannot change the designations of the Series B Convertible Preferred Stock, create a class of securities that in the instance of payment of dividends or distribution of assets upon our liquidation ranks senior to or pari passu with the Series B Convertible Preferred Stock or increase the number of authorized shares of Series B Convertible Preferred Stock, · Each share of Series B Convertible Preferred Stock is convertible at the option of the holder into one share of our common stock based upon an initial conversion value of $0.2727 per share. The conversion ratio is subject to adjustment in the event of stock dividends, stock splits or reclassification of our common stock. No conversion of the Series B Convertible Preferred Stock may occur if a conversion would result in the holder, and any of its affiliates beneficially owning more than 4.9% of our outstanding common shares following such conversion. This provision may be waived or amended only with the consent of the holders of all of the Series B Convertible Preferred Stock and the consent of the holders of a majority of our outstanding shares of common stock who are not affiliates, and · the shares of Series B Convertible Preferred Stock automatically convert into shares of our common stock in the event of change of control of the Company. · At September 30, 2015, there were 626,667 shares of Series B Convertible Preferred Stock outstanding. Common Stock Warrants The Company has issued and outstanding Series N warrants for 205,805,872 common shares, as adjusted, with a current exercise price of $0.0075, as adjusted, which have price protection provisions that allow for the reduction in the current exercise price upon the occurrence of certain events, including the Companys issuance of common stock or securities convertible into or exercisable for common stock, such as options and warrants, at a price per share less than the exercise price then in effect. Simultaneously with any reduction to the exercise price of the Series N warrants, the number of shares of common stock that may be purchased upon exercise of each of these warrants shall be increased proportionately, so that after such adjustment the aggregate exercise price payable for the adjusted number of warrants shall be the same as the aggregate exercise price in effect immediately prior to such adjustment. The Series N warrants expire September 30, 2016. The Companys issuance of the following securities will not trigger the price protection provisions of the warrants described above: (a) shares of common stock or standard options to the Companys directors, officers, employees or consultants pursuant to a board-approved equity compensation program or other contract or arrangement; (b) shares of common stock issued upon the conversion or exercise of any security, right or other instrument convertible or exchangeable into common stock (or securities exchangeable into common stock) issued prior to November 23, 2011; and (c) shares of common stock and warrants in connection with strategic alliances, acquisitions, mergers, and strategic partnerships, the primary purpose of which is not to raise capital, and which are approved in good faith by the Companys board of directors. The Company has issued and outstanding Series O and Series Q warrants for 76,222 common shares, as adjusted, with a current exercise price of $11.20, as adjusted, expiring November 23, 2016. The Company has issued and outstanding Series R warrants for 37,004 common shares, as adjusted, with a current exercise price of $60.00, as adjusted, expiring June 30, 2017. In conjunction with our acquisition of Computers & Telecom, Inc. and subsidiary in October, 2013, we issued a warrant to Agility Ventures, LLC covering a total of 9,187 common shares, as adjusted, with a term of two years and a conversion price of $22.00 per share, as adjusted which expired September 30, 2015. A summary of the status of the Companys outstanding common stock warrants as of September 30, 2015 and changes during the three month period ending on that date is as follows: Number of Weighted Average Warrants Exercise Price Balance at June 30, 2015 64,436,748 $ 0.0748 Granted (due to ratchet provisions) 141,491,537 0.0075 Exercised - - Forfeited (9,187 ) - Balance at September 30, 2015 205,919,098 $ 0.0224 The ratchet provision was triggered by the issuance of shares at a lesser price, as a result of conversion of convertible debt. The following table summarizes information about common stock warrants outstanding at September 30, 2015: Warrants Outstanding Warrants Exercisable Number Outstanding at Weighted Average Weighted Average Number Exercisable at Weighted Average September 30, 2015 Remaining Life Exercise Price September 30, 2015 Exercise Price 205,805,872 1.0 Years $ 0.0075 205,805,872 $ 0.0075 76,222 1.15 Years $ 11.2000 76,222 $ 11.2000 37,004 1.75 Years $ 60.0000 37,004 $ 60.0000 205,919,098 1.75 Years $ 0.0224 205,919,098 $ 0.0224

15. STOCK OPTION PLAN

15. STOCK OPTION PLAN	3 Months Ended
15. STOCK OPTION PLAN	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK OPTION PLAN	On April 8, 2015 the Board of Directors of UnifiedOnline, Inc. adopted the UnifiedOnline, Inc. 2015 Employee Option Plan (the "Plan"). The purpose of the Plan is to enable our company to attract and retain employees and consultants and provide them with the long-term financial incentives to enhance our performance. The Plan authorizes the grant of (i) options which qualify as incentive stock options under Section 422(b) of the Internal Revenue Code of 1986, as amended, (ii) non-qualified options which do not qualify as incentive stock options, (iii) awards of our common stock (iv) and rights to make direct purchases of our common stock which may be subject to certain restrictions. The maximum number of shares which can be issued over the term of the Plan is 1,800,000 shares. In August 2012, the Board of Directors adopted the 2012 Equity Compensation Plan (the Plan) for directors, officers and employees that provides for non-qualified and incentive stock options to be issued enabling holders thereof to purchase common shares of the Company at exercise prices determined by the Companys Board of Directors. The purpose of the Plan is to advance the Companys interests and those of its stockholders by providing a means of attracting and retaining key employees, directors and consultants. In order to serve this purpose, the Company believes the Plan encourages and enables key employees, directors and consultants to participate in its future prosperity and growth by providing them with incentives and compensation based on its performance, development and financial success. Participants in the Plan may include the Companys officers, directors, other key employees and consultants who have responsibilities affecting our management, development or financial success. Awards may be made under the Plan in the form of Plan options, shares of the Companys common stock subject to a vesting schedule based upon certain performance objectives (Performance Shares) and shares subject to a vesting schedule based on the recipients continued employment (restricted shares). Plan options may either be options qualifying as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended or options that do not so qualify. Any incentive stock option granted under the Plan must provide for an exercise price of not less than 100% of the fair market value of the underlying shares on the date of such grant, but the exercise price of any incentive option granted to an eligible employee owning more than 10% of our common stock must be at least 110% of such fair market value as determined on the date of the grant. Only persons who are officers or other key employees are eligible to receive incentive stock options and performance share grants. Any non-qualified stock option granted under the Plan must provide for an exercise price of not less than 50% of the fair market value of the underlying shares on the date of such grant. The Plan, as amended permits the grant of options and shares for up to 105,000,000 shares of our common stock. The Plan terminates 10 years from the date of the Plans adoption by our stockholders. The term of each Plan option and the manner in which it may be exercised is determined by the Board of Directors, provided that no Plan option may be exercisable more than three years after the date of its grant and, in the case of an incentive option granted to an eligible employee owning more than 10% of the Companys common stock, no more than five years after the date of the grant. The exercise price of the stock options may be paid in either cash, or delivery of unrestricted shares of common stock having a fair market value on the date of delivery equal to the exercise price, or surrender of shares of common stock subject to the stock option which has a fair market value equal to the total exercise price at the time of exercise, or a combination of the foregoing methods. The fair value of stock options granted was estimated at the date of grant using the Black-Scholes options pricing model. The Company used the following assumptions for determining the fair value of options granted under the Black-Scholes option pricing model: Nine Months Ended June 30, 2014 Expected volatility 13% - 278 % Expected term 1 -3 Years Risk-free interest rate 0.01% - 0.34 % Forfeiture rate 0.00 % Expected dividend yield 0.00 % The expected volatility was determined with reference to the historical volatility of the Companys stock. The Company uses historical data to estimate option exercise and employee termination within the valuation model. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury rate in effect at the time of grant. For the three months ended September 30, 2015 and 2014, total stock-based compensation charged to operations for option-based arrangements amounted to $8,328 and $12,415, respectively. At September 30, 2015, there was no unrecognized compensation expense related to non-vested option-based compensation arrangements under the Plan. A summary of the status of the Companys outstanding stock options as of September 30, 2015 and changes during the period ending on that date is as follows: Number of Weighted Average Options Exercise Price Balance at June 30, 2015 7,232 $ 33.47 Granted - - Exercised - - Forfeited - - Balance at September 30, 2015 7,232 $ 33.47 The following table summarizes information about employee stock options outstanding at September 30, 2015: Options Outstanding Options Exercisable Range of Exercise Price Number Outstanding at 9/30/2015 Weighted Average Remaining Life Weighted Average Exercise Price Number Outstanding at 9/30/2015 Weighted Average Exercise Price $ 0.07700 625 1.96 Years $ 30.80 625 $ 30.80 $ 0.0847 - $0.081 6,607 1.96 Years $ 33.79 6,607 $ 33.79 7,232 1.96 Years $ 33.53 7,232 $ 33.53

17. RELATED PARTY TRANSACTIONS

17. RELATED PARTY TRANSACTIONS	3 Months Ended
17. RELATED PARTY TRANSACTIONS	Sep. 30, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	On April 23, 2014, we entered into a Subscription Agreement with UnifiedOnline! LLC (the Subscriber), a Delaware limited liability company, pursuant to which the Subscriber purchased 400,000 shares of Series AA Preferred Stock which were converted on January 5, 2015 to 903,825,954 shares of common stock becoming a majority shareholder in the Company. UO! IP of NC, LLC is a related party to Unified Online! LLC. In consideration for the Shares, Subscriber paid $116,087 to various vendors and obtained the agreement of a certain related party lessor to temporarily forbear exercising non-payment default remedies. Since entering into the Subscription Agreement, the Subscriber has advanced approximately $1.0 million bearing interest at 10% per annum to fund general working capital. The balance due was $1,090,255 and $1,029,005 at September 30, 2015 and June 30, 2015, respectively, and is reflected as note payable, related party in the balance sheet.

18. SEGMENT REPORTING

18. SEGMENT REPORTING	3 Months Ended
18. SEGMENT REPORTING	Sep. 30, 2015
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
SEGMENT REPORTING	Although the Company has a number of operating divisions, separate segment data has not been presented as they meet the criteria for aggregation as permitted by ASC Topic 280, Segment Reporting (formerly Statement of Financial Accounting Standards (SFAS) No. 131, Disclosures About Segments of an Enterprise and Related Information). Our chief operating decision-maker is considered to be our Chief Executive Officer (CEO). The CEO reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. The financial information reviewed by the CEO is identical to the information presented in the accompanying consolidated statements of operations. Therefore, the Company has determined that it operates in a single operating segment, specifically, web communications services. For the three months ended September 30, 2015 and 2014 all material assets and revenues of the Company were in the United States.

19. SUBSEQUENT EVENTS

19. SUBSEQUENT EVENTS	3 Months Ended
19. SUBSEQUENT EVENTS	Sep. 30, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	In October, 2015, the Company entered into a $60,000 loan agreement (the Loan) with Power UP Lending Group, LTD. The Loan has a maturity date of nine (9) months from the Funding Date of October 5, 2015. The Loan is repayable daily at a rate of $428.57 for a total repayment amount of $81,000. A portion of the proceeds from the Loan were used to pay off a Convertible Promissory Note and accrued interest to Vis Vires Group, Inc. in the amount of $34,000. The Company realized a gain on extinguishment of debt of approximately $28,000 as a result of writing off the associated derivative liability. The foregoing is not a complete summary of the terms of the Note described herein and reference is made to the complete text of the Loan as Exhibit 10.1 to this Quarterly Report on Form 10-Q, and hereby incorporated by reference. On October 27, 2015, the Company entered into a purchase agreement (the Agreement) by and among Deirdre Leane, (the Seller) and ChanBond, LLC (Chanbond) , . On the Closing Date, pursuant to the Agreement, the Seller executed an interest assignment deed which assigned, transferred and conveyed all of its membership interests in ChanBond to the Company and ChanBond appointed William R. Carter, Jr. (a related party to the Company) as sole manager (Manager) who shall have sole and exclusive authority over the business of ChanBond. Effective October 27, 2015, the Company entered into $5,000,000 no interest Promissory Note with the Seller. The Promissory Note is due and payable on or prior to October 27, 2020. If the Promissory Note is not paid in full by the Maturity Date, the aggregate principal amount shall be increased by Twenty Five Thousand Dollars ($25,000) for each month such payment is delayed (or pro rata Until the Note is paid in full, the Company shall be obligated to make payments on this Promissory Note to the Seller from 100% of any Net Revenues, derived from the monetization of the ChanBond patent portfolio, within thirty (30) calendar days after each calendar month commencing with the calendar month ending October 31, 2015. In October, 2015 a forbearance agreement was reached between the Company and UO! IP of NC, LLC which forbeared its enforcement of rights due to the existing defaults and amended the payment terms of the lease. The final payment date has been extended to October 31, 2017 at which time the then outstanding principal balance, together with all accrued but unpaid interest on the unpaid balance, shall be due and payable in full. Additionally, a new section was added to the lease pursuant to which the company agrees to pay an initial Forbearance Fee of $60,000 payable in full on the final payment date and a monthly Forbearance Fee equal to 1% of the principal balance of the lease, calculated on the first day each month. The Monthly Forbearance Fee will accrue monthly and become due and payable in full on the final payment date or the earlier prepayment of the entire principal and accrued interest due under the lease.

2. BASIS OF PRESENTATION AND 25

2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy)	3 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Principles of Consolidation	The accompanying unaudited consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (US GAAP) for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Accordingly, the consolidated financial statements do not include all of the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and such adjustments are of a normal recurring nature.
Reclassifications	Certain reclassifications have been made to previously reported amounts to conform to 2016 amounts. The reclassifications had no impact on previously reported results of operations or stockholders deficit. The changes were as a result of the reverse stock split which occurred on January 5, 2015, which was retrospectively applied, the reclass of certain depreciation related to assets used for providing service to cost of sales from operating expense, the reclass of a capital lease payable from notes payable to capital lease payable and the reclass of derivative expense from interest expense.
Going Concern	The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company had net losses and net cash used in operating activities of $470,229 and $52,657, respectively, for the three months ended September 30, 2015. The Company also had an accumulated deficit and stockholders deficit of $55,167,120 and $5,346,213 respectively at September 30, 2015. These matters raise substantial doubt about the Companys ability to continue as a going concern. The consolidated financial statements do not include any adjustments related to the recovery and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event we cannot continue in existence. Additionally, the Company is currently in default on the loans to IWEB Growth Fund, and there is no guarantee that IWEB Growth Fund will not enter a judgment against the Company. Management has established plans intended to increase the sales of our products and services. Management intends to seek new capital from new equity securities offerings to provide funds needed to increase liquidity, fund growth, and implement its business plan. However, no assurances can be given that we will be able to raise any additional funds.
Marketable Securities	UnifiedOnline accounts for the purchase of marketable equity securities in accordance with FASB Accounting Standards Codification (ASC) 320, Investment Debt and Equity Securities with any unrealized gains and losses included as a net amount as a separate component of stockholders equity. However, those securities may not have the trading volume to support the stock price if the Company were to sell all their shares in the open market at once, so the Company may have a loss on the sale of marketable securities even though they record marketable equity securities at the current market value.
Cash and Cash Equivalents	We consider all highly liquid debt instruments with original maturities of three months or less to be cash equivalents.
Use of Estimates	The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America 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 balance sheets and the reported amounts of sales and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates include the valuation of stock-based compensation, the allowance for doubtful accounts, the useful life of property and equipment, derivative liabilities, deferred tax and valuation allowance and litigation reserves.
Accounts Receivable	Accounts receivable consists of normal trade receivables. We recorded a bad debt allowance of $21,545 as of September 30, 2015. Management performs ongoing evaluations of its accounts receivable, and believes that all remaining receivables are fully collectable. Bad debt expense amounted to $16,777 and $0 for the three months ended September 30, 2015 and 2014, respectively.
Derivative Liability	The Company issued warrants to purchase the Companys common stock in connection with the issuance of convertible debt, which contain certain ratchet provisions that reduce the exercise price of the warrants or the conversion price in certain circumstances. In accordance with ASC 815 the Company determined that the warrants and/or the conversion features with provisions that reduce the exercise price of the warrants did not qualify for a scope exception under ASC 815 as they were determined not to be indexed to the Companys stock. Derivatives are required to be recorded on the balance sheet at fair value (see Note 12). These derivatives, including embedded derivatives in the Companys structured borrowings, are separately valued and accounted for on the Companys balance sheet. Fair values for exchange traded securities and derivatives are based on quoted market prices. Where market prices are not readily available, fair values are determined using market based pricing models incorporating readily observable market data and requiring judgment and estimates.
Fair Value Measurements	Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Valuations may be obtained from, or corroborated by, third-party pricing services. Level 3: Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort.
Fair Value of Financial Instruments	The Companys financial instruments, including cash and cash equivalents, receivables, accounts payable and accrued liabilities and notes payable are carried at cost, which approximates their fair value, due to the relatively short maturity of these instruments. Our derivative financial instruments, consisting of embedded conversion features in our convertible debt and ratchet provisions in our warrants, are required to be measured at fair value on a recurring basis under FASB ASC 815. As of September 30, 2015 and 2014 our derivatives are measured at fair value, using a Black-Scholes valuation model which approximates a binomial lattice valuation methodology utilizing Level 3 inputs. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities (see Note 12).
Property and Equipment	Property and equipment is stated at cost, net of accumulated depreciation. Depreciation expense is recorded by using the straight-line method over the estimated useful lives of the related assets.
Product Warranties	The Companys products typically carry a warranty for periods of up to three years. We have not had any significant warranty claims on our products.
Long-lived Assets	In accordance with ASC Topic 360, Property, Plant, and Equipment, we review the carrying value of intangibles and other long-lived assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets is measured by comparison of its carrying amount to the undiscounted cash flows that the asset or asset group is expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the property, if any, exceeds its fair market value.
Revenue Recognition	We follow the guidance of ASC Topic 605, Revenue Recognition for revenue recognition. In general, we record revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. It is our practice to obtain a signed master sales agreement for recurring revenue sales, and/or a sales order for events and one-time services. Taxes collected from customers and remitted to government authorities are reported on a net basis and are excluded from revenue. We derive the majority of our revenues from recurring revenue streams, consisting of: 1. Wireless and fiber broadband service; 2. Co-location, which includes the licensing of cabinet and power; 3. Interconnection services, such as cross connects; 4. Managed infrastructure services. · Revenues from recurring revenue streams are generally billed monthly and recognized ratably over the term of the contract, generally one to three years for data center space customers. We generally recognize revenue beginning on the date the customer commences use of our services. · Implementation and set-up fees are recognized at the time those services are completed and service is working. · For services that are billed according to customer usage, revenue is recognized in the month in which the usage is provided. · Professional services are recognized in the period services are provided. · Amounts that have been invoiced are recorded in accounts receivable and revenue Our customers generally have the right to cancel their contracts by providing prior written notice to us of their intent to cancel the remainder of the contract term. The customer would be required to pay any charge for early cancellation that their contract specifies. In the event that a customer cancels their contract, they are not entitled to a refund for services already rendered. A customer can continue service on a month-to-month basis after their contract expires.
Barter Transactions	Barter activity is accounted for in accordance with ASC 845, Nonmonetary Transactions
Prepaid expenses	Prepaid expenses are comprised primarily of prepaid costs related to the installation of new customers, prepaid advertising costs which are expensed when used, and deferred financing costs which are amortized over the life of the related financing.
Deferred Revenue	Amounts billed in advance of services being provided are recorded as deferred revenue and are recognized in the consolidated statement of operations as services are provided.
Deferred Financing Costs	Debt issuance costs incurred in connection with the issuance of debt are capitalized and amortized to interest expense based on the related debt agreements on a straight-line basis, which approximates the effective interest method. Unamortized amounts are included in prepaid expenses in the accompanying unaudited consolidated balance sheets.
Earnings per Share	We compute earnings per share in accordance with ASC Topic 260, Earnings Per Share Under the provisions of ASC Topic 260, basic earnings per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing the net income (loss) for the period by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of the common shares issuable upon the exercise of stock options and warrants (using the treasury stock method) and upon the conversion of convertible notes and preferred stock (using the if-converted method). Potentially dilutive common shares are excluded from the calculation if their effect is antidilutive. At September 30, 2015, there were options and warrants to purchase 205,926,330 shares of common stock, there was $156,355 of convertible debt outstanding, which, if converted on September 30, 2015 would amount to 53,400,000 shares, and 626,667 shares issuable upon conversion of Series B preferred stock outstanding which could potentially dilute future earnings per share.
Stock-Based Compensation	As more fully described in Note 15, we have three stock option plans that provide for non-qualified options to be issued to directors, officers, employees and consultants (the 2012 Equity Compensation Plan, 2013 Equity Plan and the 2015 Employee Option Plan (the Plans)).
Cost of Sales	Cost of sales consists primarily of the costs of providing wireless and fiber bandwidth and colocation services.
Recently Adopted Accounting Pronouncements	Recently Adopted and Recently Issued Accounting Standards Various accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption.

3. PROPERTY AND EQUIPMENT (Tabl

3. PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
3. PROPERTY AND EQUIPMENT (Tables)	Sep. 30, 2015
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract]
Schedule of Property and Equipment	Estimated Life September 30, 2015 June 30, 2015 Equipment 3 years $ 1,125,304 $ 1,125,304 Computer Software 3 years 59,694 59,694 Vehicle 3 years 1,979 1,979 Leasehold Improvements 3 years 4,734 4,734 1,191,711 1,191,711 Less: Accumulated Depreciation (1,164,224 ) (1,140,249 ) Net, Property and Equipment $ 27,487 $ 51,462

4. NOTES PAYABLE (Tables)

4. NOTES PAYABLE (Tables)	3 Months Ended
4. NOTES PAYABLE (Tables)	Sep. 30, 2015
Notes Payable Tables
Summary of notes payable	September 30, 2015 June 30, 2015 IWEB Growth Fund $ 185,000 $ 185,000 UO! IP of NC, LLC 635,000 635,000 Power Up Lending Group, LTD. 34,379 48,315 Other Notes Payable 88,598 94,495 $ 942,977 $ 962,810

5. CAPITAL LEASE PAYABLE (Table

5. CAPITAL LEASE PAYABLE (Tables)	3 Months Ended
5. CAPITAL LEASE PAYABLE (Tables)	Sep. 30, 2015
Debt Disclosure [Abstract]
Future minimum payments required under capital leases	2016 $ 1,170,000 2017 273,356 Total future payments 1,443,356 Less amount representing interest 43,688 Present value of future minimum payments 1,399,668 Less current portion 881,982 Long-term portion $ 517,686

7. CONCENTRATIONS (Tables)

7. CONCENTRATIONS (Tables)	3 Months Ended
7. CONCENTRATIONS (Tables)	Sep. 30, 2015
Risks and Uncertainties [Abstract]
Schedule of Major Customers	Sales to three customers for the three months ended September 30, 2015 represented 27% of total sales and sales to three customers represented 21% total sales for the three months ended September 30, 2014. Three Months Ended September 30, 2015 2014 Customer A 12 % 13 % Customer B 9 % 4 % Customer C 6 % 4 % All others 73 % 79 % 100 % 100 % As of September 30, 2015 and June 30, 2015, respectively, approximately 64% and 74% of our accounts receivable was due from three customers. September 30, June 30, 2015 2015 Customer A 23 % 44 % Customer B 23 % 17 % Customer C 18 % 13 % All others 36 % 26 % 100 % 100 %

8. INVESTMENTS (Tables)

8. INVESTMENTS (Tables)	3 Months Ended
8. INVESTMENTS (Tables)	Sep. 30, 2015
Investments [Abstract]
Schedule of Marketable Equity Securities	Gross Gross Unrealized Unrealized Fair September 30, 2015 Cost Gains Losses Value Publicly traded equity securities $ 81,000 $ - $ (80,998 ) $ 3 Total $ 81,000 $ - $ (80,998 ) $ 3 Gross Gross Unrealized Unrealized Fair June 30, 2015 Cost Gains Losses Value Publicly traded equity securities $ 81,000 $ - $ (80,998 ) $ 2 Total $ 81,000 $ - $ (80,998 ) $ 2
Schedule of Unrealized Net Gains (Losses)	Three Months Ended September 30, 2015 2014 Net gains/(loss) on investments in publicly traded equity securities $ - $ (2 ) Net gains/(loss) on investments $ - $ (2 )

9. FAIR VALUE MEASUREMENTS (Tab

9. FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
9. FAIR VALUE MEASUREMENTS (Tables)	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Schedule of Investments Measured at Fair Value on a Recurring Basis	Quoted Significant Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs September 30, 2015 (Level 1) (Level 2) (Level 3) Marketable Equity Securities $ 3 $ - $ - Derivative liabilities, warrants $ - $ - $ 144,125 Derivative liabilities, convertible debt $ - $ - $ 278,556 June 30, 2015 Marketable Equity Securities $ 2 $ - $ - Derivative liabilities, warrants $ - $ - $ 83,766 Derivative liabilities, convertible debt $ - $ - $ 346,734

11. CONVERTIBLE NOTES (Tables)

11. CONVERTIBLE NOTES (Tables)	3 Months Ended
11. CONVERTIBLE NOTES (Tables)	Sep. 30, 2015
Convertible Notes Payable [Abstract]
Schedule of Convertible Notes	September 30, 2015 June 30, 2015 December 2013 $60,000 Convertible Note, 10% interest, due December 2014 $ 60,000 $ 60,000 (1 ) January 2015 $53,500 Convertible Note, 8% interest, due October 2015 50,265 53,500 (2 ) February 2015 $33,000 Convertible Note, 8% interest, due November 2015 33,000 33,000 (3 ) April 2015 $30,500 Convertible Note, 12% interest, due April 2017, with a 10% original issue discount 30,500 30,500 (4 ) May 2015 $33,000 Convertible Note, 8% interest, due February 2016 33,000 33,000 (5 ) 206,765 210,000 Less: Debt Discount (50,410 ) (94,368 ) $ 156,355 $ 115,632

12. DERIVATIVE LIABILITIES (Tab

12. DERIVATIVE LIABILITIES (Tables)	3 Months Ended
12. DERIVATIVE LIABILITIES (Tables)	Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Changes in Value of Derivative Warrant Liability	Value No. of Warrants Balance at June 30, 2015 - Derivative liability - warrants $ 83,766 64,436,748 Increase in fair value of derivative warrant liability 60,359 Balance at September 30, 2015 - Derivative liability - warrants $ 144,125 205,919,098 Value Balance at June 30, 2015 - Derivative liability - embedded conversion option $ 346,734 Decrease in derivative liability related to conversion of convertible debt (5,303 ) Increase in derivative liability related to issuance of convertible debt - Decrease in fair value of derivative liability (62,875 ) Balance at September 30, 2015 - Derivative liability - embedded conversion option $ 278,556
Schedule of Fair Value of Warrant Liability Using Black-Scholes Model	September 30, 2015 Current exercise price $ 0.0075 - $60 Time to expiration 1.0 to 1.75 years Risk-free interest rate 0.64 % Estimated volatility 767.47 % Dividend $ 0 Stock price on September 30, 2015 $ 0.00700 Expected forfeiture rate 0% to 90%

13. COMMITMENTS AND CONTINGEN34

13. COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
13. COMMITMENTS AND CONTINGENCIES (Tables)	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Payments	For the Year Ending, June 30, Amount 2016 $ 63,275 2017 15,385 2018 - $ 78,660

14. STOCKHOLDERS' DEFICIT (Tabl

14. STOCKHOLDERS' DEFICIT (Tables)	3 Months Ended
14. STOCKHOLDERS' DEFICIT (Tables)	Sep. 30, 2015
Stockholders' Equity Note [Abstract]
Schedule of Changes in Outstanding Common Stock Warrants	Number of Weighted Average Warrants Exercise Price Balance at June 30, 2015 64,436,748 $ 0.0748 Granted (due to ratchet provisions) 141,491,537 0.0075 Exercised - - Forfeited (9,187 ) - Balance at September 30, 2015 205,919,098 $ 0.0224
Summary of information about common stock warrants	Warrants Outstanding Warrants Exercisable Number Outstanding at Weighted Average Weighted Average Number Exercisable at Weighted Average September 30, 2015 Remaining Life Exercise Price September 30, 2015 Exercise Price 205,805,872 1.0 Years $ 0.0075 205,805,872 $ 0.0075 76,222 1.15 Years $ 11.2000 76,222 $ 11.2000 37,004 1.75 Years $ 60.0000 37,004 $ 60.0000 205,919,098 1.75 Years $ 0.0224 205,919,098 $ 0.0224

15. STOCK OPTION PLAN (Tables)

15. STOCK OPTION PLAN (Tables)	3 Months Ended
15. STOCK OPTION PLAN (Tables)	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Fair Value of Stock Options Using Black-Scholes Model	Nine Months Ended June 30, 2014 Expected volatility 13% - 278 % Expected term 1 -3 Years Risk-free interest rate 0.01% - 0.34 % Forfeiture rate 0.00 % Expected dividend yield 0.00 %
Schedule of Changes in Outstanding Stock Options	Number of Weighted Average Options Exercise Price Balance at June 30, 2015 7,232 $ 33.47 Granted - - Exercised - - Forfeited - - Balance at September 30, 2015 7,232 $ 33.47
Summary of information about employee stock options outstanding	Options Outstanding Options Exercisable Range of Exercise Price Number Outstanding at 9/30/2015 Weighted Average Remaining Life Weighted Average Exercise Price Number Outstanding at 9/30/2015 Weighted Average Exercise Price $ 0.07700 625 1.96 Years $ 30.80 625 $ 30.80 $ 0.0847 - $0.081 6,607 1.96 Years $ 33.79 6,607 $ 33.79 7,232 1.96 Years $ 33.53 7,232 $ 33.53

2. BASIS OF PRESENTATION AND 37

2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net loss for the year	$ (470,229)	$ (237,914)
Net cash used in operating activities	52,657	392,408
Accumulated deficit	(55,167,120)		$ (54,696,891)
Stockholders deficit	5,346,213		$ 4,893,111
Bad debt allowance	21,545
Bad debt expense	16,777	0
Barter revenue	4,500	7,714
Barter expense	$ 0	$ 0

3. PROPERTY AND EQUIPMENT (Deta

3. PROPERTY AND EQUIPMENT (Details) - USD ($)	3 Months Ended
3. PROPERTY AND EQUIPMENT (Details) - USD ($)	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,191,711		$ 1,191,711
Less: accumulated depreciation	(1,164,224)		(1,140,249)
Property and equipment, net	27,487		51,462
Depreciation expense	$ 23,975	$ 157,138
Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated Life	3 years
Property and equipment, gross	$ 1,125,304		1,125,304
Computer Software [Member]
Property, Plant and Equipment [Line Items]
Estimated Life	3 years
Property and equipment, gross	$ 59,694		59,694
Vehicle [Member]
Property, Plant and Equipment [Line Items]
Estimated Life	3 years
Property and equipment, gross	$ 1,979		1,979
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated Life	3 years
Property and equipment, gross	$ 4,734		$ 4,734

4. NOTES PAYABLE (Details)

4. NOTES PAYABLE (Details) - USD ($)	Sep. 30, 2015	Jun. 30, 2015
Notes Payable Current	$ 942,977	$ 962,810
IWEB Growth Fund [Member]
Notes Payable Current	185,000	185,000
UO! IP of NC, LLC [Member]
Notes Payable Current	635,000	635,000
Power Up Lending Group, LTD. [Member]
Notes Payable Current	34,379	48,315
Other Notes Payable [Member]
Notes Payable Current	$ 88,598	$ 94,495

5. CAPITAL LEASE PAYABLE (Detai

5. CAPITAL LEASE PAYABLE (Details) (USD $)	Sep. 30, 2015USD ($)
Capital Lease Payable Details Usd
2,016	$ 1,170,000
2,017	273,356
Total future payments	1,443,356
Less: amount representing interest	43,688
Present value of future minimum payments	1,399,668
Less: current portion	881,982
Long-term portion	$ 517,686

6. OTHER CURRENT ASSETS (Detail

6. OTHER CURRENT ASSETS (Details) - USD ($)	Sep. 30, 2015	Jun. 30, 2015
Other Assets [Abstract]
Other current assets	$ 8,167	$ 10,208

7. CONCENTRATIONS (Schedule of

7. CONCENTRATIONS (Schedule of Major Customers) (Details)	3 Months Ended		12 Months Ended
7. CONCENTRATIONS (Schedule of Major Customers) (Details)	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Sales [Member]
Concentration Risk [Line Items]
Percentage	100.00%	100.00%
Sales [Member] \| Customer A [Member]
Concentration Risk [Line Items]
Percentage	12.00%	13.00%
Sales [Member] \| Customer B [Member]
Concentration Risk [Line Items]
Percentage	9.00%	4.00%
Sales [Member] \| Customer C [Member]
Concentration Risk [Line Items]
Percentage	6.00%	4.00%
Sales [Member] \| All others [Member]
Concentration Risk [Line Items]
Percentage	73.00%	79.00%
Accounts Receivable [Member]
Concentration Risk [Line Items]
Percentage	100.00%		100.00%
Accounts Receivable [Member] \| Customer A [Member]
Concentration Risk [Line Items]
Percentage	23.00%		44.00%
Accounts Receivable [Member] \| Customer B [Member]
Concentration Risk [Line Items]
Percentage	23.00%		17.00%
Accounts Receivable [Member] \| Customer C [Member]
Concentration Risk [Line Items]
Percentage	18.00%		13.00%
Accounts Receivable [Member] \| All others [Member]
Concentration Risk [Line Items]
Percentage	36.00%		26.00%

8. INVESTMENTS (Schedule of Mar

8. INVESTMENTS (Schedule of Marketable Equity Securities) (Details) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2015	Jun. 30, 2015
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 81,000	$ 81,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(80,998)	(80,998)
Fair Value	3	2
Publicly traded equity securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	81,000	81,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(80,998)	(80,998)
Fair Value	$ 3	$ 2

8. INVESTMENTS (Schedule of Unr

8. INVESTMENTS (Schedule of Unrealized Net Gains (Losses)) (Details) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Unrealized Gains and Losses on Investments
Net gains/(loss) on investments	$ 0	$ (2)
Publicly traded equity securities [Member]
Unrealized Gains and Losses on Investments
Net gains/(loss) on investments	$ 0	$ (2)

9. FAIR VALUE MEASUREMENTS (Det

9. FAIR VALUE MEASUREMENTS (Details) - USD ($)	Sep. 30, 2015	Jun. 30, 2015
Assets:
Marketable Equity Securities	$ 3	$ 2
Fair Value, Measurements, Recurring [Member] \| Quoted Prices in Active Markets (Level 1) [Member]
Assets:
Marketable Equity Securities	3	2
Liabilities:
Derivative liabilities, warrants	0	0
Derivative liabilities, convertible debt	0	0
Fair Value, Measurements, Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Assets:
Marketable Equity Securities	0	0
Liabilities:
Derivative liabilities, warrants	0	0
Derivative liabilities, convertible debt	0	0
Fair Value, Measurements, Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Assets:
Marketable Equity Securities	0	0
Liabilities:
Derivative liabilities, warrants	144,125	83,766
Derivative liabilities, convertible debt	$ 278,556	$ 346,734

10. COMPREHENSIVE LOSS (Details

10. COMPREHENSIVE LOSS (Details) - USD ($)	Sep. 30, 2015	Jun. 30, 2015
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Accumulated other comprehensive loss	$ (80,998)	$ (80,998)

11. CONVERTIBLE NOTES (Schedule

11. CONVERTIBLE NOTES (Schedule of Convertible Notes) (Details) - USD ($)	Sep. 30, 2015	Jun. 30, 2015
Debt Instrument [Line Items]
Convertible notes payable	$ 206,765	$ 210,000
Less: Debt Discount	(50,410)	(94,368)
Convertible notes payable, net of discount	156,355	115,632
Note One [Member] \| Convertible Notes Payable [Member]
Debt Instrument [Line Items]
Convertible notes payable	60,000	60,000
Note Two [Member] \| Convertible Notes Payable [Member]
Debt Instrument [Line Items]
Convertible notes payable	50,265	53,500
Note Three [Member] \| Convertible Notes Payable [Member]
Debt Instrument [Line Items]
Convertible notes payable	33,000	33,000
Note Four [Member] \| Convertible Notes Payable [Member]
Debt Instrument [Line Items]
Convertible notes payable	30,500	30,500
Note Five [Member] \| Convertible Notes Payable [Member]
Debt Instrument [Line Items]
Convertible notes payable	$ 33,000	$ 33,000

12. DERIVATIVE LIABILITIES (Sch

12. DERIVATIVE LIABILITIES (Schedule of Changes in Value of Derivative Warrant Liability) (Details)	3 Months Ended
	Sep. 30, 2015USD ($)shares
Derivative [Line Items]
Balance at beginning of period - Derivative liability	$ 83,766
Balance at ending of period - Derivative liability	144,125
Warrant [Member]
Derivative [Line Items]
Balance at beginning of period - Derivative liability	83,766
Increase (decrease) in fair value of derivative liability	60,359
Balance at ending of period - Derivative liability	$ 144,125
No. of Warrants \| shares	205,919,098
Convertible Debt Securities [Member]
Derivative [Line Items]
Balance at beginning of period - Derivative liability	$ 346,734
Decrease in derivative liability related to conversion of convertible debt	(5,303)
Increase in derivative liability related to issuance of convertible debt	0
Increase (decrease) in fair value of derivative liability	(62,875)
Balance at ending of period - Derivative liability	$ 278,556

12. DERIVATIVE LIABILITIES (S49

12. DERIVATIVE LIABILITIES (Schedule of Fair Value of Warrant Liability Using Black-Scholes Model) (Details) - $ / shares	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend		0.00%
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	0.64%
Estimated volatility	767.47%
Dividend	0.00%
Stock price on September 30, 2015	$ 0.00700
Warrant [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Current exercise price	$ 0.0075
Time to expiration	1 year
Expected forfeiture rate	0.00%
Warrant [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Current exercise price	$ 60
Time to expiration	1 year 9 months
Expected forfeiture rate	90.00%

13. COMMITMENTS AND CONTINGEN50

13. COMMITMENTS AND CONTINGENCIES (Schedule of Future Minimum Payments) (Details)	Sep. 30, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,016	$ 63,275
2,017	15,385
2,018	0
Total	$ 78,660

14. STOCKHOLDERS' DEFICIT (Sche

14. STOCKHOLDERS' DEFICIT (Schedule of Changes in Outstanding Common Stock Warrants) (Details) - Warrant [Member]	3 Months Ended
	Sep. 30, 2015$ / sharesshares
Number of Warrants
Balance outstanding at June 30, 2015 \| shares	64,436,748
Granted (due to ratchet provisions) \| shares	141,491,537
Exercised \| shares	0
Forfeited \| shares	(9,187)
Balance outstanding at September 30, 2015 \| shares	205,919,098
Weighted Average Exercise Price
Balance outstanding at June 30, 2015	$ 0.0748
Granted (due to ratchet provisions)	0.0075
Exercised	0
Forfeited	0
Balance outstanding at September 30, 2015	$ 0.0224

14. STOCKHOLDERS' DEFICIT (Sc52

14. STOCKHOLDERS' DEFICIT (Schedule of information about common stock warrants outstanding) (Details) - Warrant [Member]	3 Months Ended
	Sep. 30, 2015$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Outstanding at September 30, 2015 \| shares	205,919,098
Outstanding, Weighted Average Remaining Contractual Life	1 year 9 months
Outstanding, Weighted Average Exercise Price	$ 0.0224
Number Exercisable at September 30, 2015 \| shares	205,919,098
Exercisable, Weighted Average Exercise Price	$ 0.0224
Range of Exercise Price One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Outstanding at September 30, 2015 \| shares	205,805,872
Outstanding, Weighted Average Remaining Contractual Life	1 year
Outstanding, Weighted Average Exercise Price	$ 0.0075
Number Exercisable at September 30, 2015 \| shares	205,805,872
Exercisable, Weighted Average Exercise Price	$ 0.0075
Range of Exercise Price Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Outstanding at September 30, 2015 \| shares	76,222
Outstanding, Weighted Average Remaining Contractual Life	1 year 1 month 24 days
Outstanding, Weighted Average Exercise Price	$ 11.2
Number Exercisable at September 30, 2015 \| shares	76,222
Exercisable, Weighted Average Exercise Price	$ 11.2
Range of Exercise Price Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Outstanding at September 30, 2015 \| shares	37,004
Outstanding, Weighted Average Remaining Contractual Life	1 year 9 months
Outstanding, Weighted Average Exercise Price	$ 60
Number Exercisable at September 30, 2015 \| shares	37,004
Exercisable, Weighted Average Exercise Price	$ 60

15. STOCK OPTION PLAN (Schedule

15. STOCK OPTION PLAN (Schedule of Fair Value of Stock Options Using Black-Scholes Model (Details)	9 Months Ended
	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility, minimum	13.00%
Expected volatility, maximum	278.00%
Forfeiture rate	0.00%
Expected dividend yield	0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	1 year
Risk-free interest rate	0.01%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	3 years
Risk-free interest rate	0.34%

15. STOCK OPTION PLAN (Schedu54

15. STOCK OPTION PLAN (Schedule of Changes in Outstanding Stock Options) (Details) - Stock Option [Member]	3 Months Ended
	Sep. 30, 2015$ / sharesshares
Number of Options
Balance outstanding at June 30, 2015 \| shares	7,232
Granted \| shares	0
Exercised \| shares	0
Forfeited \| shares	0
Balance outstanding at September 30, 2015 \| shares	7,232
Weighted Average Exercise Price
Balance outstanding at June 30, 2015	$ 33.47
Granted	0
Exercised	0
Forfeited	0
Balance outstanding at September 30, 2015	$ 33.47

15. STOCK OPTION PLAN (Summary

15. STOCK OPTION PLAN (Summary of information about employee stock options outstanding) (Details) - Stock option	3 Months Ended
	Sep. 30, 2015$ / sharesshares
Options Outstanding
Number Outstanding at September 30, 2015 \| shares	7,232
Weighted average remaining life	1 year 11 months 16 days
Weighted average exercise price	$ 33.53
Options Exercisable
Number of options exercisable \| shares	7,232
Weighted average exercise price	$ 33.53
$ 0.07700
Options Outstanding
Number Outstanding at September 30, 2015 \| shares	625
Weighted average remaining life	1 year 11 months 16 days
Weighted average exercise price	$ 30.80
Options Exercisable
Number of options exercisable \| shares	625
Weighted average exercise price	$ 30.80
$ 0.0847 - $0.081
Options Outstanding
Number Outstanding at September 30, 2015 \| shares	6,607
Weighted average remaining life	1 year 11 months 16 days
Weighted average exercise price	$ 33.79
Options Exercisable
Number of options exercisable \| shares	6,607
Weighted average exercise price	$ 33.79

15. STOCK OPTION PLAN (Details

15. STOCK OPTION PLAN (Details Narrative) - USD ($)	3 Months Ended
15. STOCK OPTION PLAN (Details Narrative) - USD ($)	Sep. 30, 2015	Sep. 30, 2014
Stock Option Plan Details Narrative
Stock-based compensation charged to operations for option-based arrangements	$ 8,328	$ 12,415

17. RELATED PARTY TRANSACTIONS

17. RELATED PARTY TRANSACTIONS (Details) - USD ($)	Sep. 30, 2015	Jun. 30, 2015
Related Party Transactions [Abstract]
Note payable, related party	$ 1,090,255	$ 1,029,005