30DC (TDCH) 10-Q 16 May 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2016	May. 16, 2016
Document And Entity Information
Entity Registrant Name	30DC, INC.
Entity Central Index Key	1,118,974
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		63,509,783
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Assets
Cash and Cash Equivalents	$ 126,016	$ 53,681
Restricted Cash	70,000	70,000
Accrued Commissions Receivable	0	4,094
Accounts Receivable	0	11,583
Prepaid Expenses	8,988	15,419
Assets of Discontinued Operations	61,479	80,771
Total Current Assets	266,483	235,548
Property and Equipment, Net	8,520	16,113
Intangible Assets, Net	80,288	118,320
Goodwill	799,383	799,383
Assets of Discontinued Operations	0	291,175
Total Assets	1,154,674	1,460,539
Liabilities and Stockholders' Equity
Accounts Payable	292,490	256,836
Accrued Expenses and Refunds	594,105	602,044
Deferred Revenue	166,434	122,007
Due to Related Parties	1,339,847	1,185,456
Liabilities of Discontinued Operations	161,391	159,657
Total Current Liabilities	2,554,267	2,326,000
Total Liabilities	2,554,267	2,326,000
Stockholders' Equity
Preferred Stock, Par Value $0.001, 10,000,000 Authorized, -0- Issued	0	0
Common Stock, Par Value $0.001, 100,000,000 authorized, 63,159,783 and 76,853,464 issued and outstanding respectively	63,160	76,853
Paid in Capital	3,792,589	3,844,315
Accumulated Deficit	(5,152,484)	(4,683,771)
Accumulated Other Comprehensive Loss	(102,858)	(102,858)
Total Stockholders' Deficit	(1,399,593)	(865,461)
Total Liabilities and Stockholders' Deficit	$ 1,154,674	$ 1,460,539

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2016	Jun. 30, 2015
Stockholders Equity
Preferred Stock par value	$ 0.001	$ 0.001
Preferred Stock Authorized	10,000,000	10,000,000
Preferred Stock Issued	0	0
Common Stock par value	$ 0.001	$ 0.001
Common Stock Authorized	100,000,000	100,000,000
Common Stock Issued	63,159,783	76,853,464
Common Stock Outstanding	63,159,783	76,853,464

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Revenue
Subscription Revenue	$ 5,711	$ 14,851	$ 18,996	$ 52,593
Products and Services	112,907	28,838	395,382	643,923
Total Revenue	118,618	43,689	414,378	696,516
Operating Expenses	201,518	254,408	674,838	1,040,259
Operating Loss	(82,900)	(210,719)	(260,460)	(343,743)
Loss From Continuing Operations	(82,900)	(210,719)	(260,460)	(343,743)
Income (Loss) From Discontinued Operations
Income (Loss) from Operations	3,926	(65,115)	23,602	(108,854)
Unrealized Gain (Loss) on Marketable Securities	14,354	(19,313)	(19,292)	(29,563)
Loss on Divestiture	0	0	(212,563)	0
Income (Loss) From Discontinued Operations	18,280	(84,428)	(208,253)	(138,417)
Net Loss	$ (64,620)	$ (295,147)	$ (468,713)	$ (482,160)
Weighted Average Common Shares Outstanding
Basic	63,159,783	76,853,464	63,021,117	76,853,464
Diluted	63,159,783	76,853,464	63,021,117	76,853,464
Earnings (Loss) Per Common Share (Basic)
Continued Operations	$ 0	$ 0	$ 0	$ 0
Discontinued Operations	0	0	0	0
Net Income (Loss) Per Common Share	0	0	(.01)	(0.01)
Earnings (Loss) Per Common Share (Diluted)
Continued Operations	0	0	0	0
Discontinued Operation	0	0	0	0
Net Income (Loss) Per Common Share	$ 0	$ 0	$ (0.01)	$ (0.01)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash Flows from Operating Activities:
Net Loss	$ (468,713)	$ (482,160)
Loss From Discontinued Operations	208,253	138,417
Adjustments to Reconcile Loss from Continuing Operations to Net Cash Provided By Operations
Depreciation and Amortization	43,232	42,617
Equity Based Payments To Employees and Nonemployees	18,300	17,709
Changes in Operating Assets and Liabilities
Restricted Cash	0	(6,270)
Accrued Commissions Receivable	4,094	1,670
Accounts Receivable	11,583	11,197
Prepaid Expenses	6,431	5,671
Accounts Payable	35,654	57,470
Accrued Expenses and Refunds	(7,939)	(14,587)
Deferred Revenue	44,427	27,274
Due to Related Parties	154,391	251,202
Net Cash Provided by Operating Activities	49,713	50,210
Cash Flows from Investing Activities
Purchase of Property and Equipment	(4,007)	(5,458)
Net Cash Used in Investing Activities	(4,007)	(5,458)
Cash Flows from Discontinued Operations
Cash Flows From Operating Activities	26,629	(103,288)
Net Cash Provided By (Used in) Discontinued Operations	26,629	(103,288)
Increase (Decrease) in Cash and Cash Equivalents	72,335	(58,536)
Cash and Cash Equivalents - Beginning of Period	53,681	102,684
Cash and Cash Equivalents - End of Period	126,016	44,148
Supplemental Disclosures of Non Cash Financing Activity
Common Stock Redeemed For Divestiture	83,719	0
Cash paid during the year for:
Interest	6,900	4,827
Income taxes	$ 1,085	$ 1,514

1. SUMMARY OF SIGNIFICANT ACCOU

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Mar. 31, 2016
Summary Of Significant Accounting Policies
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and with instructions to Form-10Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information required by GAAP for a complete set of financial statements. In the opinion of management, all adjustments, (including normal recurring accruals) considered necessary for a fair presentation have been included in the financial statements. Operating results for the interim period are not necessarily indicative of the results that may be expected for the fiscal year ended June 30, 2016 or any other period. In addition, the balance sheet data at June 30, 2015 was derived from the audited financial statements but does not include all disclosures required by GAAP. This Form 10-Q should be read in conjunction with the Audited Financial Statements for the year ended June 30, 2015 included in the Company’s annual report on Form 10-K which was filed on November 17, 2015. The unaudited condensed consolidated financial statements include the accounts of 30DC, Inc., (f/k/a Infinity Capital Group, Inc.) and its subsidiary 30DC, Inc., Delaware, (“30DC DE”). REVENUE RECOGNITION Generally, the Company offers customers the option to purchase its digital products for a single payment or for a higher price consisting of a down payment and additional payments over a period of time which can be as long as one year. Pursuant to ASC 605 the Company has determined that revenue is realizable and the earnings process is complete and the four criteria for revenue recognition stated in SAB Topic 13 are met at the time of the initial purchase. Accordingly, the Company deems the sale to have occurred at the time of initial purchase and records the full amount paid and/or due from a customer as revenue. Typically customers are offered a period to review the product and request a refund and if a refund is requested the company reverses the revenue which was recorded at the time of the sale. The Company records a liability for future refunds and reduces revenue by that amount. If a customer defaults on an additional payment, the customer loses access to the digital product. Based upon its past experience with extended payment plans, the Company has estimated the number of future defaulted payments and has reduced revenue and accounts receivable by that amount. During the quarter ending March 31, 2016, the Company offered customers the opportunity to purchase a group package of 5 to 15 digital product licenses at a discounted price per license. Customers do not receive access information to a license in their group packaged until they are ready to use the license. The Company considers a license delivered when access information is sent to a customer, accordingly, unused licenses that are part of a group package are considered as nondelivered and receipts for these unused licenses are included in deferred revenue. For an additional charge, the Company offers customers ancillary services which are not required to be purchased with a product. These services include additional technical support and/or specific product services. The Company recognizes revenue when the service is completed; receipts for services which have not been completed are included in deferred revenue. NET INCOME OR LOSS PER SHARE The Company computes net income or loss per share in accordance with ASC 260 “Earnings per Share.” Under ASC 260, basic net income or loss per share is computed by dividing net loss per share available to common stockholders by the weighted average number of shares outstanding for the period and excludes the effects of any potentially dilutive securities. Diluted earnings per share, includes the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable. For all periods presented, potentially dilutive securities would be anti-dilutive and have not been included in computing diluted earnings per share.

2. GOING CONCERN

2. GOING CONCERN	9 Months Ended
	Mar. 31, 2016
Going Concern
2. GOING CONCERN	The condensed consolidated financial statements have been prepared using accounting principles generally accepted in the United States of America applicable for a going concern which assumes that the Company will realize its assets and discharge its liabilities in the ordinary course of business. As of March 31, 2016, the Company had a working capital deficit of approximately $2,288,000 and had accumulated losses of approximately $5,152,000 since its inception. The Company’s ability to continue as a going concern is dependent upon its ability to obtain the necessary financing or to earn profits from its business operations to meet its obligations and pay its liabilities arising from normal business operations when they come due. In the past few years, the Company switched its focus to developing its own products. In May 2012, the Company launched MagCast which the Company expects to be an integral part of its businesses on an ongoing basis. MagCast is being sold directly to customers and through an affiliate network which expands the Company’s selling capability and has a broad target market beyond the Company’s traditional customer base. In October 2015, the Company held a pre-beta launch for its newest digital publishing product, ScrivCast which will be priced lower than MagCast and will be targeted to a broader audience. Until the Company achieves sustained profitability it does not have sufficient capital to meet its needs and continues to seek loans or equity placements to cover such cash needs. No commitments to provide additional funds have been made and there can be no assurance that any additional funds will be available to cover expenses as they may be incurred. If the Company is unable to raise additional capital or encounters unforeseen circumstances, it may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, issuance of additional shares of the Company’s stock to settle operating liabilities which would dilute existing shareholders, curtailing its operations, suspending the pursuit of its business plan and controlling overhead expenses. The Company cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern. For the past few years, the Company offered MagCast through a once per year large-scale promotion for which the majority of sales were through marketing affiliates which are unrelated parties who earn commissions by referring customers to the Company and a majority of the Company’s annual sales were during the promotion. The Company held a smaller promotion through marketing affiliates in July 2014 than in prior years. In July 2015, the Company held a smaller promotion without marketing affiliates for one-year MagCast licenses which can be renewed at the end of the one-year term. Revenue from the one-year licenses is being recognized ratably over the one year term. The Company does not expect to have a large-scale MagCast promotion during this fiscal year. In October 2015, the Company held a pre-beta launch for its newest digital publishing product, ScrivCast. The pre-beta launch, which was targeted at the Company’s existing customer base, offered a lifetime license at a promotional price to encourage customers to try the new product. The Company has received feedback from customers on ScrivCast and is preparing for a beta launch which will be followed by release of ScrivCast to a broader market.

3. DIVESTITURE

3. DIVESTITURE	9 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
3. DIVESTITURE	On July 30, 2015, the Company divested a portfolio of Internet marketing assets (“IM Sale”), including Market Pro Max, in two separate transaction with Marillion Partnership and Netbloo Media, Ltd. in exchange for return of a total of 16,743,681 shares of the Company’s common stock to the Company. 10,000,000 shares were redeemed from Marillion Partnership which owns more than 10% of the Company’s outstanding shares and was a contractor to the Company including the services of Edward Dale as Chief Executive Officer of the Company. 6,743,681 shares were redeemed from Netbloo Media. Ltd. which owns more than 10% of the Company’s outstanding shares and is a contractor to the Company. After these transactions, both Marillion and Netbloo remain shareholders and each owns in excess of 10% of the Company’s outstanding common stock. Included with the IM sale were fixed assets with a net book value of approximately $6,000 and intangible assets including goodwill with net book value of approximately $290,000. The shares tendered as consideration for the transaction were valued at approximately $84,000, based upon the last trading price, resulting in a loss of approximately $213,000. Operating results for the assets divested have been reclassified as discontinued operations (see note 4). Simultaneous with the IM Sale, Marillion Partnership’s contractor agreement with the Company was terminated, this had included Edward Dale serving as Chief Executive Officer of the Company. Henry Pinskier, Chair of 30DC, Inc.’s Board of Directors was elected by the board as interim Chief Executive Officer of the Company. Mr. Dale remains a director of the Company. Simultaneous with the IM Sale, Netbloo Media, Ltd.’s existing contractor agreement with the Company was superseded by a new contractor agreement with an effective date of May 15, 2015. The new contractor agreement reduces annual compensation from $300,000 to $150,000 per year and reduces the services Netbloo will provide to the Company’s which is now focused on the Company’s digital publishing products, MagCast and ScrivCast.

4. DISCONTINUED OPERATIONS

4. DISCONTINUED OPERATIONS	9 Months Ended
	Mar. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]
4. DISCONTINUED OPERATIONS	The Company has included two businesses in discontinued operations; the portfolio of Internet Marketing Assets business which was divested July 30, 2015 (see note 3) and the business of Infinity which was discontinued after the share exchange with 30DC DE on September 10, 2010. Prior to the share exchange, Infinity withdrew its election to operate as a Business Development Company (“BDC”) under the Investment Company Act of 1940 (“1940 Act”). Infinity historically operated as a non-diversified, closed-end management investment company and prepared its financial statements as required by the 1940 Act. 30DC is no longer actively operating the BDC and the assets, liabilities and results of operations of Infinity’s former business are shown as discontinued operations in the Company’s financial statements subsequent to the share exchange with 30DC. Investment companies report assets at fair value and the Company has continued to report investment assets in discontinued operations on this basis. Results of Discontinued Operations for the Nine Months Ended March 31, 2016 Nine Months Ended March 31, 2015 IM Business Infinity Total IM Business Infinity Total Revenues $ 31,275 $ — $ 31,275 $ 280,575 $ — $ 280,575 Operating expenses 3,939 3,734 7,673 385,277 4,152 389,429 Income (Loss) from operations 27,336 (3,734 ) 23,602 (104,702 ) (4,152 ) (108,854 ) Unrealized gain (loss) on marketable securities — (19,292 ) (19,292 ) — (29,563 ) (29,563 ) Loss on Divestiture (212,563 ) — (212,563 ) — — — Net Income (Loss) $ (185,227 ) $ (23,026 ) $ (208,253 ) $ (104,702 ) $ (33,715 ) $ (138,417 ) Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 IM Business Infinity Total IM Business Infinity Total Revenues $ 5,871 $ — $ 5,871 $ 56,612 $ — $ 56,612 Operating expenses 720 1,225 1,945 120,426 1,301 121,727 Income (Loss) from operations 5,151 (1,225 ) 3,926 (63,814 ) (1,301 ) (65,115 ) Unrealized gain on marketable securities — 14,354 14,354 — (19,313 ) (19,313 ) Net Income (Loss) $ 5,151 $ 13,129 $ 18,280 $ (63,814 ) $ (20,614 ) $ (84,428 ) Assets and Liabilities of Discontinued Operations as of March 31, 2016 June 30, 2015 IM Business Infinity Total IM Business Infinity Total Assets Cash $ — $ — $ — $ — $ — $ — Prepaid expenses — — — — — — Marketable securities — 61,479 61,479 — 80,771 80,771 Total Current Assets — 61,479 61,479 — 80,771 80,771 Intangible Assets — — — 35,680 — 35,680 Goodwill — — — 255,495 — 255,495 Total Assets of Discontinued Operations $ — $ 61,479 $ 61,479 $ 291,175 $ 80,771 $ 371,946 Liabilities Accounts payable $ — $ 19,375 $ 19,375 $ — $ 19,375 $ 19,375 Accrued expenses — 71,466 71,466 — 67,732 67,732 Notes payable — 49,550 49,550 — 51,550 51,550 Due to related parties — 21,000 21,000 — 21,000 21,000 Total Liabilities of Discontinued Operations $ — $ 161,391 $ 161,391 $ — $ 159,657 $ 159,657 Notes Payable Included in liabilities of discontinued operations at March 31, 2016 and June 30, 2015 are $49,550 and $51,050 respectively in notes payable plus related accrued interest of which are all in default for lack of repayment by their due date. For the nine months ended March 31, 2016 and March 31, 2015 the Company incurred interest expense on notes payable of $3,734 and $4,152 respectively which is included in the Statement of Operations under income (loss) from discontinued operations. Marketable Securities At March 31, 2016 the fair value of marketable securities held for sale was $61,479 which included cumulative net unrealized losses of $4,931. At June 30, 2015 the fair value of marketable securities held for sale was $80,771 which included cumulative net unrealized gains of $14,361.

5. RELATED PARTY TRANSACTIONS

5. RELATED PARTY TRANSACTIONS	9 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
5. RELATED PARTY TRANSACTIONS	At March 31, 2016, due to related parties totaled $1,339,847. This primarily consisted of $34,500 due to 21 st On July 30, 2015, the Company divested a portfolio of Internet marketing assets (“IM Sale”), including Market Pro Max, in two separate transaction with Marillion Partnership and Netbloo Media, Ltd. in exchange for return of a total of 16,743,681 shares of the Company’s common stock to the Company, see note 3 for further details on the divestiture. On December 22, 2015, the Company entered into an agreement with Henry Pinskier, the Company’s Interim Chief Executive Officer for consideration of 2,000,000 shares of the Company’s common stock. The agreement has zero cash consideration and covers the time Mr. Pinskier began serving as Interim Chief Executive Officer through the end of the Company’s current fiscal year, June 30, 2016. For the 2,000,000 shares the Company recorded $12,000 as related party contractor expense based upon the closing price of the Company’s shares on the day the shares were issued. Mr. Pinskier is also chairman of the Company’s board of directors. On December 22, 2015, the Company entered into a one-year agreement with Theodore A. Greenberg, the Company’s Chief Financial Officer for which part of the consideration was 500,000 shares of the Company’s common stock. Cash consideration under the agreement is $5,000 per month and may be adjusted after six months based upon the Company’s performance and financial position. Cash consideration under Mr. Greenberg’s existing agreement was $11,000 per month. For the 500,000 shares, the Company recorded $3,000 as officer’s salary expense based upon the closing price of the Company’s shares on the day the shares were issued. Mr. Greenberg is also a member of the Company’s board of directors. On December 22, 2015, the Company entered into a one-year agreement with 21st Century Digital Media, Inc., whose President, Gregory H. Laborde, is a Director of 30DC, for business development services for which part of the consideration was 300,000 shares of the Company’s common stock. Cash consideration under the agreement is $3,000 per month and the agreement includes incentive compensation of up to 1,700,000 shares of the Company’s stock which can be earned by achieving certain milestones during the term of the agreement. For the 300,000 shares the Company recorded $1,800 as related party contractor expense based upon the closing price of the Company’s shares on the day the shares were issued.

6. STOCKHOLDERS EQUITY

6. STOCKHOLDERS EQUITY	9 Months Ended
	Mar. 31, 2016
Equity [Abstract]
6. STOCKHOLDERS' EQUITY	Common Stock During the nine months ended March 31, 2016, the Company issued common stock as follows: On November 24, 2015, the Company entered into an agreement with a business development consultant for which part of the consideration was 250,000 shares of the Company’s common stock. For the 250,000 shares, the Company recorded $1,500 as independent contractor expense based upon the closing price of the Company’s shares on the day the shares were issued. On December 22, 2015, the Company entered into an agreement with Henry Pinskier, the Company’s Interim Chief Executive Officer for consideration of 2,000,000 shares of the Company’s common stock. The agreement covers the time Mr. Pinskier began serving as Interim Chief Executive Officer through the end of the Company’s current fiscal year, June 30, 2016. For the 2,000,000 shares the Company recorded $12,000 as related party contractor expense based upon the closing price of the Company’s shares on the day the shares were issued. Mr. Pinskier is also chairman of the Company’s board of directors. On December 22, 2015, the Company entered into a one-year agreement with Theodore A. Greenberg, the Company’s Chief Financial Officer for which part of the consideration was 500,000 shares of the Company’s common stock. For the 500,000 shares, the Company recorded $3,000 as officer’s salary expense based upon the closing price of the Company’s shares on the day the shares were issued. Mr. Greenberg is also a member of the Company’s board of directors. On December 22, 2015, the Company entered into a one-year agreement with 21st Century Digital Media, Inc., whose President, Gregory H. Laborde, is a Director of 30DC, for business development services for which part of the consideration was 300,000 shares of the Company’s common stock. The agreement includes incentive compensation of up to 1,700,000 shares of the Company’s stock which can be earned by achieving certain milestones during the term of the agreement. For the 300,000 shares the Company recorded $1,800 as related party contractor expense based upon the closing price of the Company’s shares on the day the shares were issued. During the nine months ended March 31, 2016, the Company divested a portfolio of Internet marketing assets (“IM Sale”), including Market Pro Max, in two separate transactions with Marillion Partnership and Netbloo Media, Ltd. in exchange for return of a total of 16,743,681 shares of the Company’s common stock to the Company, see note 3 for further details on the divestiture. Warrants Information relating to outstanding warrants is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contract Life (years) Outstanding warrants at 06/30/15 3,401,522 $ 0.50 0.30 Granted — — — Exercised — — — Forfeited/expired 3,401,522 0.50 — Outstanding warrants at 3/31/16 — — — Exercisable on 3/31/16 — — — The aggregate intrinsic value of warrants outstanding and exercisable was $0 at March 31, 2016.

7. STOCK BASED COMPENSATION PLA

7. STOCK BASED COMPENSATION PLANS	9 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
7. STOCK BASED COMPENSATION PLANS	The Company follows FASB Accounting Standards Codification No. 718 – Compensation – Stock Compensation for share based payments to employees. The Company follows FASB Accounting Standards Codification No. 505 for share based payments to Non-Employees. The Company recognized expense in the amount of $-0- and $17,709 for the nine months ended March 31, 2016 and March 31, 2015 respectively and $-0- and $-0- for the three months ended March 31, 2016 and March 31, 2015 respectively for options granted in prior periods the cost of which is being recorded on a straight-line basis over the vesting period. There was no impact on the Company's cash flow. Further information relating to stock options is as follows: Weighted Weighted Average Number Average Remaining of Exercise Contract Shares Price Life (years) Outstanding options at 06/30/15 3,600,000 $ 0.18 6.61 Granted — — — Exercised — — — Forfeited/expired — — — Outstanding options at 3/31/16 3,600,000 0.18 5.86 Exercisable on 3/31/16 3,600,000 0.18 5.86 The options have a contractual term of ten years. The aggregate intrinsic value of options outstanding and exercisable was $0 at March 31, 2016. At March 31, 2016, shares available for future stock option grants to employees and directors under the 2012 Stock Option Plan were 4,500,000.

8. SUPPLEMENTAL SCHEDULE OF OPE

8. SUPPLEMENTAL SCHEDULE OF OPERATING EXPENSES	9 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
8. SUPPLEMENTAL SCHEDULE OF OPERATING EXPENSES	Nine Months Ended Nine Months Ended Related Party Contractor Fees (1) $ 153,300 $ 270,000 Officer’s Salary 77,000 107,855 Directors’ Fees 82,500 91,355 Independent Contractors 150,295 181,125 Commission Expense 10,043 153,119 Professional Fees 90,366 109,604 Credit Card Processing Fees 16,479 26,576 Telephone and Data Lines 6,729 13,652 Other Operating Costs 88,126 86,973 Total Operating Expenses $ 674,838 $ 1,040,259 (1) For the nine months ended March 31, 2015, related party contractors included Marillion an affiliate of the Company that managed marketing and development for the Company and provided the services of Edward Dale as Chief Executive Officer of the Company, GHL Group, Ltd., whose President, Gregory H. Laborde is a Director and Netbloo which was the joint developer of the MagCast Publishing Platform. For the nine months ended March 31, 2016, related party contractors include 21 st Three Months Ended Three Months Ended Related Party Contractor Fees (1) $ 46,500 $ 90,000 Officer’s Salary 15,000 33,000 Directors’ Fees 27,500 27,500 Independent Contractors 49,300 45,575 Commission Expense 2,348 4,140 Professional Fees 25,759 22,545 Credit Card Processing Fees 3,793 1,529 Telephone and Data Lines 1,724 3,920 Other Operating Costs 29,594 26,199 Total Operating Expenses $ 201,518 $ 254,408 (1) For the three months ended March 31, 2015, related party contractors included Marillion an affiliate of the Company that managed marketing and development for the Company and provided the services of Edward Dale as Chief Executive Officer of the Company, GHL Group, Ltd., whose President, Gregory H. Laborde is a Director and Netbloo which was the joint developer of the MagCast Publishing Platform. For the three months ended March 31, 2016, related party contractors include 21 st

9. SUBSEQUENT EVENTS

9. SUBSEQUENT EVENTS	9 Months Ended
	Mar. 31, 2016
Subsequent Events
9. SUBSEQUENT EVENTS	On April 13, 2016, the Company issued 100,000 shares of the Company’s common stock as partial consideration for services of a contractor providing the company with editorial and marketing services. For the 100,000 shares, the Company recorded $4,200 as independent contractor expense based upon the closing price of the Company’s shares on the day the shares were issued. On April 29, 2016, the Company issued 250,000 shares of the Company’s common stock as partial consideration for services of a contractor providing the company with support and technical services. For the 250,000 shares, the Company recorded $7,500 as independent contractor expense based upon the closing price of the Company’s shares on the day the shares were issued.

1. SUMMARY OF SIGNIFICANT ACC15

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Mar. 31, 2016
Summary Of Significant Accounting Policies Policies
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and with instructions to Form-10Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information required by GAAP for a complete set of financial statements. In the opinion of management, all adjustments, (including normal recurring accruals) considered necessary for a fair presentation have been included in the financial statements. Operating results for the interim period are not necessarily indicative of the results that may be expected for the fiscal year ended June 30, 2016 or any other period. In addition, the balance sheet data at June 30, 2015 was derived from the audited financial statements but does not include all disclosures required by GAAP. This Form 10-Q should be read in conjunction with the Audited Financial Statements for the year ended June 30, 2015 included in the Company’s annual report on Form 10-K which was filed on November 17, 2015. The unaudited condensed consolidated financial statements include the accounts of 30DC, Inc., (f/k/a Infinity Capital Group, Inc.) and its subsidiary 30DC, Inc., Delaware, (“30DC DE”).
Revenue Recognition	Generally, the Company offers customers the option to purchase its digital products for a single payment or for a higher price consisting of a down payment and additional payments over a period of time which can be as long as one year. Pursuant to ASC 605 the Company has determined that revenue is realizable and the earnings process is complete and the four criteria for revenue recognition stated in SAB Topic 13 are met at the time of the initial purchase. Accordingly, the Company deems the sale to have occurred at the time of initial purchase and records the full amount paid and/or due from a customer as revenue. Typically customers are offered a period to review the product and request a refund and if a refund is requested the company reverses the revenue which was recorded at the time of the sale. The Company records a liability for future refunds and reduces revenue by that amount. If a customer defaults on an additional payment, the customer loses access to the digital product. Based upon its past experience with extended payment plans, the Company has estimated the number of future defaulted payments and has reduced revenue and accounts receivable by that amount. During the quarter ending March 31, 2016, the Company offered customers the opportunity to purchase a group package of 5 to 15 digital product licenses at a discounted price per license. Customers do not receive access information to a license in their group packaged until they are ready to use the license. The Company considers a license delivered when access information is sent to a customer, accordingly, unused licenses that are part of a group package are considered as nondelivered and receipts for these unused licenses are included in deferred revenue. For an additional charge, the Company offers customers ancillary services which are not required to be purchased with a product. These services include additional technical support and/or specific product services. The Company recognizes revenue when the service is completed; receipts for services which have not been completed are included in deferred revenue.
Net Income or Loss Per Share	The Company computes net income or loss per share in accordance with ASC 260 “Earnings per Share.” Under ASC 260, basic net income or loss per share is computed by dividing net loss per share available to common stockholders by the weighted average number of shares outstanding for the period and excludes the effects of any potentially dilutive securities. Diluted earnings per share, includes the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable. For all periods presented, potentially dilutive securities would be anti-dilutive and have not been included in computing diluted earnings per share.

4. DISCONTINUED OPERATIONS (Tab

4. DISCONTINUED OPERATIONS (Tables)	9 Months Ended
	Mar. 31, 2016
Discontinued Operations Tables
Schedule of discontinued operations	Results of Discontinued Operations for the Nine Months Ended March 31, 2016 Nine Months Ended March 31, 2015 IM Business Infinity Total IM Business Infinity Total Revenues $ 31,275 $ — $ 31,275 $ 280,575 $ — $ 280,575 Operating expenses 3,939 3,734 7,673 385,277 4,152 389,429 Income (Loss) from operations 27,336 (3,734 ) 23,602 (104,702 ) (4,152 ) (108,854 ) Unrealized gain (loss) on marketable securities — (19,292 ) (19,292 ) — (29,563 ) (29,563 ) Loss on Divestiture (212,563 ) — (212,563 ) — — — Net Income (Loss) $ (185,227 ) $ (23,026 ) $ (208,253 ) $ (104,702 ) $ (33,715 ) $ (138,417 ) Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 IM Business Infinity Total IM Business Infinity Total Revenues $ 5,871 $ — $ 5,871 $ 56,612 $ — $ 56,612 Operating expenses 720 1,225 1,945 120,426 1,301 121,727 Income (Loss) from operations 5,151 (1,225 ) 3,926 (63,814 ) (1,301 ) (65,115 ) Unrealized gain on marketable securities — 14,354 14,354 — (19,313 ) (19,313 ) Net Income (Loss) $ 5,151 $ 13,129 $ 18,280 $ (63,814 ) $ (20,614 ) $ (84,428 ) Assets and Liabilities of Discontinued Operations as of March 31, 2016 June 30, 2015 IM Business Infinity Total IM Business Infinity Total Assets Cash $ — $ — $ — $ — $ — $ — Prepaid expenses — — — — — — Marketable securities — 61,479 61,479 — 80,771 80,771 Total Current Assets — 61,479 61,479 — 80,771 80,771 Intangible Assets — — — 35,680 — 35,680 Goodwill — — — 255,495 — 255,495 Total Assets of Discontinued Operations $ — $ 61,479 $ 61,479 $ 291,175 $ 80,771 $ 371,946 Liabilities Accounts payable $ — $ 19,375 $ 19,375 $ — $ 19,375 $ 19,375 Accrued expenses — 71,466 71,466 — 67,732 67,732 Notes payable — 49,550 49,550 — 51,550 51,550 Due to related parties — 21,000 21,000 — 21,000 21,000 Total Liabilities of Discontinued Operations $ — $ 161,391 $ 161,391 $ — $ 159,657 $ 159,657

6. STOCKHOLDERS EQUITY (Tables)

6. STOCKHOLDERS EQUITY (Tables)	9 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Schedule of warrants	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contract Life (years) Outstanding warrants at 06/30/15 3,401,522 $ 0.50 0.30 Granted — — — Exercised — — — Forfeited/expired 3,401,522 0.50 — Outstanding warrants at 3/31/16 — — — Exercisable on 3/31/16 — — —

7. STOCK BASED COMPENSATION P18

7. STOCK BASED COMPENSATION PLANS (Tables)	9 Months Ended
	Mar. 31, 2016
Stock Based Compensation Plans Tables
Option activity	Weighted Weighted Average Number Average Remaining of Exercise Contract Shares Price Life (years) Outstanding options at 06/30/15 3,600,000 $ 0.18 6.61 Granted — — — Exercised — — — Forfeited/expired — — — Outstanding options at 3/31/16 3,600,000 0.18 5.86 Exercisable on 3/31/16 3,600,000 0.18 5.86

8. SUPPLEMENTAL SCHEDULE OF O19

8. SUPPLEMENTAL SCHEDULE OF OPERATING EXPENSES (Tables)	9 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
SCHEDULE OF OPERATING EXPENSES	Nine Months Ended Nine Months Ended Related Party Contractor Fees (1) $ 153,300 $ 270,000 Officer’s Salary 77,000 107,855 Directors’ Fees 82,500 91,355 Independent Contractors 150,295 181,125 Commission Expense 10,043 153,119 Professional Fees 90,366 109,604 Credit Card Processing Fees 16,479 26,576 Telephone and Data Lines 6,729 13,652 Other Operating Costs 88,126 86,973 Total Operating Expenses $ 674,838 $ 1,040,259 (1) For the nine months ended March 31, 2015, related party contractors included Marillion an affiliate of the Company that managed marketing and development for the Company and provided the services of Edward Dale as Chief Executive Officer of the Company, GHL Group, Ltd., whose President, Gregory H. Laborde is a Director and Netbloo which was the joint developer of the MagCast Publishing Platform. For the nine months ended March 31, 2016, related party contractors include 21 st Three Months Ended Three Months Ended Related Party Contractor Fees (1) $ 46,500 $ 90,000 Officer’s Salary 15,000 33,000 Directors’ Fees 27,500 27,500 Independent Contractors 49,300 45,575 Commission Expense 2,348 4,140 Professional Fees 25,759 22,545 Credit Card Processing Fees 3,793 1,529 Telephone and Data Lines 1,724 3,920 Other Operating Costs 29,594 26,199 Total Operating Expenses $ 201,518 $ 254,408 (1) For the three months ended March 31, 2015, related party contractors included Marillion an affiliate of the Company that managed marketing and development for the Company and provided the services of Edward Dale as Chief Executive Officer of the Company, GHL Group, Ltd., whose President, Gregory H. Laborde is a Director and Netbloo which was the joint developer of the MagCast Publishing Platform. For the three months ended March 31, 2016, related party contractors include 21 st

2. GOING CONCERN (Details Narra

2. GOING CONCERN (Details Narrative)	Mar. 31, 2016USD ($)
Going Concern Details Narrative
Working capital deficit	$ (2,288,000)
Accumulated Deficit	$ (5,152,000)

4. DISCONTINUED OPERATIONS (Det

4. DISCONTINUED OPERATIONS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Operations
Revenues	$ 5,871	$ 56,612	$ 31,275	$ 280,575
Operating expenses	1,945	121,727	7,673	389,429
Income (Loss) from operations	3,926	(65,115)	23,602	(108,854)
Unrealized gain (loss) on marketable securities	14,354	(19,313)	(19,292)	(29,563)
Loss on divestiture	0	0	(212,563)	0
Net Income (Loss)	18,280	(84,428)	(208,253)	(138,417)
Assets
Cash	0		0		$ 0
Prepaid expenses	0		0		0
Marketable securities	61,479		61,479		80,771
Total Current Assets	61,479		61,479		80,771
Intangible Assets	0		0		35,680
Goodwill	0		0		255,495
Total assets of discontinued operations	61,479		61,479		371,946
Liabilities
Accounts payable	19,375		19,375		19,375
Accrued expenses	71,466		71,466		67,732
Notes payable	49,550		49,550		51,550
Due to related parties	21,000		21,000		21,000
Total liabilities of discontinued operations	161,391		161,391		159,657
IM Business
Operations
Revenues	5,871	56,612	31,275	280,575
Operating expenses	720	120,426	3,939	385,277
Income (Loss) from operations	5,151	(63,814)	27,336	(104,702)
Unrealized gain (loss) on marketable securities	0	0	0	0
Loss on divestiture	0	0	(212,563)	0
Net Income (Loss)	5,151	(63,814)	(185,227)	(104,702)
Assets
Cash	0		0		0
Prepaid expenses	0		0		0
Marketable securities	61,479		61,479		0
Total Current Assets	0		0		0
Intangible Assets	0		0		35,680
Goodwill	0		0		255,495
Total assets of discontinued operations	0		0		291,175
Liabilities
Accounts payable	19,375		19,375		0
Accrued expenses	0		0		0
Notes payable	49,550		49,550		0
Due to related parties	21,000		21,000		0
Total liabilities of discontinued operations	161,391		161,391		0
Infinity
Operations
Revenues	0	0	0	0
Operating expenses	1,225	1,301	3,734	4,152
Income (Loss) from operations	(1,225)	(1,301)	(3,734)	(4,152)
Unrealized gain (loss) on marketable securities	14,354	(19,313)	(19,292)	(29,563)
Loss on divestiture	0	0	0	0
Net Income (Loss)	13,129	$ (20,614)	(23,026)	$ (33,715)
Assets
Cash	0		0		0
Prepaid expenses	0		0		0
Marketable securities	0		0		80,771
Total Current Assets	61,479		61,479		80,771
Intangible Assets	0		0		0
Goodwill	0		0		0
Total assets of discontinued operations	61,479		61,479		80,771
Liabilities
Accounts payable	0		0		19,375
Accrued expenses	71,466		71,466		67,732
Notes payable	0		0		51,550
Due to related parties	0		0		21,000
Total liabilities of discontinued operations	$ 0		$ 0		$ 159,657

6. STOCKHOLDERS' EQUITY (Detail

6. STOCKHOLDERS' EQUITY (Details)	9 Months Ended
	Mar. 31, 2016$ / sharesshares
Number of Options/Warrants Outstanding, Beginning | shares	3,600,000
Number of Options/Warrants Granted | shares	0
Number of Options/Warrants Exercised | shares	0
Number of Options/Warrants Forfeited/expired | shares	0
Number of Options/Warrants Outstanding, Ending | shares	3,600,000
Number of Options/Warrants Exercisable | shares	3,600,000
Weighted Average Exercise Price Outstanding, Beginning | $ / shares	$ .18
Weighted Average Exercise Price Granted | $ / shares	0
Weighted Average Exercise Price Exercised | $ / shares	0
Weighted Average Exercise Price Forfeited/expired | $ / shares	0
Weighted Average Exercise Price Outstanding, Ending | $ / shares	.18
Weighted Average Exercise Price Exercisable | $ / shares	$ .18
Weighted Average Remaining Contractual Life Outstanding, Beginning	6 years 7 months 10 days
Weighted Average Remaining Contractual Life Outstanding, Ending	5 years 10 months 10 days
Weighted Average Remaining Contractual Life Exercisable	5 years 10 months 10 days
Warrants
Number of Options/Warrants Outstanding, Beginning | shares	3,401,522
Number of Options/Warrants Granted | shares	0
Number of Options/Warrants Exercised | shares	0
Number of Options/Warrants Forfeited/expired | shares	3,401,522
Number of Options/Warrants Outstanding, Ending | shares	0
Number of Options/Warrants Exercisable | shares	0
Weighted Average Exercise Price Outstanding, Beginning | $ / shares	$ 0.50
Weighted Average Exercise Price Granted | $ / shares	0
Weighted Average Exercise Price Exercised | $ / shares	0
Weighted Average Exercise Price Forfeited/expired | $ / shares	0.50
Weighted Average Exercise Price Outstanding, Ending | $ / shares	0
Weighted Average Exercise Price Exercisable | $ / shares	$ 0
Weighted Average Remaining Contractual Life Outstanding, Beginning	3 months 18 days
Weighted Average Remaining Contractual Life Outstanding, Ending	0 years
Weighted Average Remaining Contractual Life Exercisable	0 years

7. STOCK BASED COMPENSATION P23

7. STOCK BASED COMPENSATION PLANS (Details)	9 Months Ended
	Mar. 31, 2016$ / sharesshares
Stock Based Compensation Plans Details
Number of Options/Warrants Outstanding, Beginning | shares	3,600,000
Number of Options/Warrants Granted | shares	0
Number of Options/Warrants Exercised | shares	0
Number of Options/Warrants Forfeited/expired | shares	0
Number of Options/Warrants Outstanding, Ending | shares	3,600,000
Number of Options/Warrants Exercisable | shares	3,600,000
Weighted Average Exercise Price Outstanding, Beginning | $ / shares	$ .18
Weighted Average Exercise Price Granted | $ / shares	0
Weighted Average Exercise Price Exercised | $ / shares	0
Weighted Average Exercise Price Forfeited/expired | $ / shares	0
Weighted Average Exercise Price Outstanding, Ending | $ / shares	.18
Weighted Average Exercise Price Exercisable | $ / shares	$ .18
Weighted Average Remaining Contractual Life Outstanding, Beginning	6 years 7 months 10 days
Weighted Average Remaining Contractual Life Outstanding, Ending	5 years 10 months 10 days
Weighted Average Remaining Contractual Life Exercisable	5 years 10 months 10 days

8. SUPPLEMENTAL SCHEDULE OF O24

8. SUPPLEMENTAL SCHEDULE OF OPERATING EXPENSES (Details) - USD ($)	3 Months Ended				9 Months Ended
	Mar. 31, 2016		Mar. 31, 2015		Mar. 31, 2016		Mar. 31, 2015
Notes to Financial Statements
Related Party Contractor Fees	$ 46,500	[1]	$ 90,000	[1]	$ 153,300	[2]	$ 270,000	[2]
Officer's Salary	15,000		33,000		77,000		107,855
Directors' Fees	27,500		27,500		82,500		91,355
Independent Contractors	49,300		45,575		150,295		181,125
Commission Expense	2,348		4,140		10,043		153,119
Professional Fees	25,759		22,545		90,366		109,604
Credit Card Processing Fees	3,793		1,529		16,479		26,576
Telephone and Data Lines	1,724		3,920		6,729		13,652
Other Operating Costs	29,594		26,199		88,126		86,973
Total Operating Expenses	$ 201,518		$ 254,408		$ 674,838		$ 1,040,259
[1]	For the three months ended March 31, 2015, related party contractors included Marillion an affiliate of the Company that managed marketing and development for the Company and provided the services of Edward Dale as Chief Executive Officer of the Company, GHL Group, Ltd., whose President, Gregory H. Laborde is a Director and Netbloo which was the joint developer of the MagCast Publishing Platform. For the three months ended March 31, 2016, related party contractors include 21st Century Digital Media, Inc. (successor to GHL Group) and Netbloo.
[2]	For the nine months ended March 31, 2015, related party contractors included Marillion an affiliate of the Company that managed marketing and development for the Company and provided the services of Edward Dale as Chief Executive Officer of the Company, GHL Group, Ltd., whose President, Gregory H. Laborde is a Director and Netbloo which was the joint developer of the MagCast Publishing Platform. For the nine months ended March 31, 2016, related party contractors include 21st Century Digital Media, Inc. (successor to GHL Group) and Netbloo and Henry Pinskier who serves as the Company's Interim Chief Executive Officer.