Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Mar. 31, 2015 | 15-May-15 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | SmartMetric, Inc. | |
Entity Central Index Key | 1301991 | |
Current Fiscal Year End Date | -24 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | SMME | |
Entity Common Stock, Shares Outstanding | 177,752,752 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
Current assets: | ||
Cash | $87,970 | $97,924 |
Prepaid expenses and other current assets | 114,417 | 307,491 |
Total current assets | 202,387 | 405,415 |
Other assets: | ||
Advances to shareholder | 0 | 22,478 |
Patent costs, less accumulated amortization of $15,000 and $14,625, respectively | 0 | 375 |
Total assets | 202,387 | 428,268 |
Current liabilities: | ||
Accounts payable and accrued expenses | 367,006 | 325,877 |
Liability for stock to be issued | 473,107 | 355,750 |
Deferred Officer salary | 220,015 | 125,015 |
Shareholder loan | 25,522 | 0 |
Total current liabilities | 1,085,650 | 806,642 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock, $.001 par value; 5,000,000 shares authorized, 410,000 and 210,000 shares issued and outstanding | 410 | 210 |
Common stock, $.001 par value; 200,000,000 shares authorized, 177,892,752 and 167,707,937 shares issued and outstanding , respectively | 177,892 | 167,708 |
Additional paid-in capital | 19,509,216 | 18,767,649 |
Accumulated deficit | -20,570,781 | -19,313,941 |
Total stockholders' deficit | -883,263 | -378,374 |
Total liabilities and stockholders' deficit | $202,387 | $428,268 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
Accumulated amortization of patent costs (in dollars) | $15,000 | $14,625 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 410,000 | 210,000 |
Preferred stock, shares outstanding | 410,000 | 210,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 177,892,752 | 167,707,937 |
Common stock, shares outstanding | 177,892,752 | 167,707,937 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Revenues | $0 | $0 | $0 | $0 |
Expenses: | ||||
Officer's salary | 47,500 | 47,500 | 142,500 | 142,500 |
Other general and administrative | 203,045 | 708,790 | 1,000,229 | 1,945,214 |
Research and development | 23,232 | 58,490 | 114,111 | 437,067 |
Total operating expenses | 273,777 | 814,780 | 1,256,840 | 2,524,781 |
Loss from operations before income taxes | -273,777 | -814,780 | -1,256,840 | -2,524,781 |
Income taxes | 0 | 0 | 0 | 0 |
Net loss | ($273,777) | ($814,780) | ($1,256,840) | ($2,524,781) |
Net loss per share, basic and diluted | $0 | $0 | ($0.01) | ($0.02) |
Weighted average number of common shares outstanding, basic and diluted | 177,086,406 | 163,349,821 | 172,780,876 | 159,722,082 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | ($1,256,840) | ($2,524,781) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization | 375 | 1,125 |
Common stock and warrants issued and issuable for services | 158,982 | 1,029,007 |
Changes in assets and liabilities | ||
(Increase) decrease in prepaid expenses and other current assets | 193,074 | 461,958 |
(Increase) decrease in advances to shareholder | 22,478 | -24,428 |
Increase (decrease) in accounts payable and accrued expenses | 41,129 | -9,805 |
Increase (decrease) in deferred officer's salary | 95,000 | 47,501 |
Net cash used in operating activities | -745,802 | -1,019,423 |
CASH FLOWS FROM INVESTING ACTIVITIES | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Loans from related parties | 25,522 | -21,572 |
Proceeds from sale of common stock | 592,969 | 580,861 |
Liability for stock to be issued | 117,357 | -281,254 |
Net cash provided by financing activities | 735,848 | 278,035 |
NET (DECREASE) IN CASH | -9,954 | -741,388 |
BEGINNING OF PERIOD | 97,924 | 804,257 |
END OF PERIOD | 87,970 | 62,869 |
CASH PAID DURING THE PERIOD FOR: | ||
Income taxes | 0 | 0 |
Interest | 0 | 0 |
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Issuance of preferred stock and reduction of additional paid in capital for patent | $200 | $0 |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended | |
Mar. 31, 2015 | ||
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | ||
ORGANIZATION AND BASIS OF PRESENTATION | NOTE 1 - | ORGANIZATION AND BASIS OF PRESENTATION |
SmartMetric, Inc. (the “Company” or “SmartMetric”) was incorporated in the State of Nevada on December 18, 2002. SmartMetric’s main product is a fingerprint sensor activated card with a finger sensor onboard the card and a built-in rechargeable battery for portable biometric identification. This card may be referred to as a biometric card or the SmartMetric Biometric Datacard. SmartMetric has completed development of its card along with pre mass manufacturing cards but has not yet begun to mass manufacture the biometric fingerprint activated cards. | ||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management of the Company, the accompanying unaudited financial statements contain all the adjustments (which are of a normal recurring nature) necessary for a fair presentation. Operating results for the three and nine months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending June 30, 2015. For further information, refer to the financial statements and the footnotes thereto contained in the Company’s Annual Report on Form 10-K for the year ended June 30, 2014, as filed with the Securities and Exchange Commission. | ||
Going Concern | ||
As shown in the accompanying condensed consolidated financial statements the Company has sustained recurring losses of $1,256,840 and $2,524,781 for the nine months ended March 31, 2015 and 2014 respectively, and has an accumulated deficit of $20,570,781 at March 31, 2015. The Company has spent a substantial portion of its time and capital resources in the development of its technology. | ||
There is no guarantee that the Company will be able to raise enough capital or generate revenues to sustain its operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. | ||
Management believes that the Company’s capital requirements will depend on many factors. These factors include the final phase of development and mass production being successful as well as product implementation and distribution. | ||
The condensed consolidated financial statements do not include any adjustments relating to the carrying amounts of recorded assets or the carrying amounts and classification of recorded liabilities that may be required should the Company be unable to continue as a going concern. | ||
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | |
Mar. 31, 2015 | ||
Accounting Policies [Abstract] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Principles of Consolidation | ||
The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, SmartMetric Australia Pty. Ltd. All significant intercompany accounts and transactions have been eliminated in consolidation. | ||
Use of Estimates | ||
The preparation of financial statements in conformity 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 financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to income taxes and contingencies. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. | ||
Cash and Cash Equivalents | ||
The Company considers all highly liquid debt instruments and other short-term investments with an initial maturity of three months or less to be cash equivalents. Any amounts of cash in financial institutions over FDIC insured limits exposes the Company to cash concentration risk. The Company has no cash equivalents. | ||
Fair Value of Financial Instruments | ||
The carrying amounts reported in the condensed consolidated balance sheet for cash, accounts payable, and accrued expenses approximate fair value because of the immediate or short-term maturity of these financial instruments. | ||
ASC 820 defines fair value, provides a consistent framework for measuring fair value under generally accepted accounting principles and expands fair value financial statement disclosure requirements. ASC 820’s valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions. ASC 820 classifies these inputs into the following hierarchy: | ||
Level 1 inputs: Quoted prices for identical instruments in active markets. | ||
Level 2 inputs: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. | ||
Level 3 inputs: Instruments with primarily unobservable value drivers. | ||
Research and Development | ||
The Company annually incurs costs on activities that relate to research and development of new technology and products. Research and development costs are expensed as incurred. | ||
Revenue Recognition | ||
The Company has not recognized revenues to date. The Company anticipates recognizing revenue in accordance with the contracts it enters into for the sale and distribution of its products. | ||
Accounts Receivable | ||
The Company will extend credit based on its evaluation of the customers’ financial condition, generally without requiring collateral. Exposure to losses on receivables is expected to vary by customer due to the financial condition of each customer. The Company will monitor exposure to credit losses and maintains allowances for anticipated losses considered necessary under the circumstances. The Company has not recorded any receivables, and therefore no allowance for doubtful accounts. | ||
Uncertainty in Income Taxes | ||
GAAP requires the recognition and measurement of uncertain income tax positions using a “more-likely-than-not” approach. Management evaluates Company tax positions on an annual basis and has determined that as of March 31, 2015 no accrual for uncertain income tax positions is necessary. | ||
The Company files income tax returns in the United States ("U.S.") federal jurisdiction. Generally, the Company is no longer subject to U.S. federal examinations by tax authorities for fiscal years prior to 2010. The Company does not file in any other jurisdiction and remains open for audit for all tax years as the statute of limitations does not begin until the returns are filed. | ||
Advertising Costs | ||
The Company will expense the cost associated with advertising as incurred. | ||
Equipment | ||
Equipment is stated at cost. Depreciation is computed using the straight-line method over the estimated economic useful lives of the assets ranging from 3 - 5 years. | ||
Impairment of Long-Lived Assets | ||
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. The Company does not perform a periodic assessment of assets for impairment in the absence of such information or indicators. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or a significant adverse change that would indicate that the carrying amount of an asset or group of assets is not recoverable. For long-lived assets to be held and used, the Company recognizes an impairment loss only if its carrying amount is not recoverable through its undiscounted cash flows and measures the impairment loss based on the difference between the carrying amount and estimated fair value. | ||
Loss Per Share of Common Stock | ||
Basic net loss per common share is computed using the weighted average number of common shares outstanding. The calculation of diluted earnings per share ("EPS") includes consideration of dilution arising from common stock equivalents, such as stock issuable pursuant to the exercise of stock options and warrants. Common stock equivalents were not included in the computation of diluted earnings per share on the consolidated statement of operations due to the fact that the Company reported a net loss and to do so would be anti-dilutive for the periods presented. | ||
Stock-Based Compensation | ||
The Company measures expense for issuances of stock-based compensation to employees and others at fair value of the stock and warrants issued, as this is more reliable than the fair value of the services received complete. The fair value of the equity instrument is charged directly to compensation expense and additional paid-in capital. | ||
Reclassifications | ||
Certain amounts in the prior period condensed consolidated financial statements have been reclassified for comparative purposes to conform to the presentation in the current period condensed consolidated financial statements. These reclassifications had no effect on previously reported results. | ||
PREPAID_EXPENSES
PREPAID EXPENSES | 9 Months Ended | |
Mar. 31, 2015 | ||
Prepaid Expenses [Abstract] | ||
PREPAID EXPENSES | NOTE 3 - | PREPAID EXPENSES |
Prepaid expenses represent the unexpired terms of various consulting agreements and expire through June 2016, as well as advance rental payments. The Company issued common stock and warrants as consideration for the consulting services, and were valued based on the stock price or computed warrant value at the time of the respective agreements. | ||
PATENT_COSTS
PATENT COSTS | 9 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
PATENT COSTS | NOTE 4 - | PATENT COSTS | |||||||||||
Patent costs as of March 31, 2015 and June 30, 2014 are summarized as follows: | |||||||||||||
Estimated | March | June 30, | |||||||||||
Useful Lives | 31, | 2014 | |||||||||||
( Years) | 2015 | ||||||||||||
Legal fees paid in connection with patent Applications | 10 | $ | 15,000 | $ | 15,000 | ||||||||
Less: accumulated amortization | -15,000 | -14,625 | |||||||||||
Patent costs, net | $ | 0 | $ | 375 | |||||||||
Amortization expense was $375 and $1,125 for the nine months ended March 31, 2015 and 2014, respectively. | |||||||||||||
COMMITMENTS
COMMITMENTS | 9 Months Ended | |
Mar. 31, 2015 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
COMMITMENTS | NOTE 5 - | COMMITMENTS |
Patent License Agreement | ||
Effective August 1, 2004, the Company executed a license agreement with Applied Cryptography, Inc. (“ACI”), a corporation controlled by the Company’s president and the owner of certain technology. Pursuant to the license agreement, the Company has the right to make use of this technology for the purpose of developing software and systems to be used by the Company to provide any or all of the following: 1) secure transactions over the Internet from home and office computers; 2) an automatic method for connecting to remote computers; 3) a method of developing targeted advertising to home and/or office computers; and 4) identity verification and access control as provided for in the patent. Pursuant to this license agreement, ACI is to receive 2% of all revenues generated by the Company on products which utilize this patented technology. The license fee is to be paid within 45 days of the end of each quarter. In the event no revenues are generated through the use of any of the licensed patents during a given quarter, no money shall be owed ACI for such quarter. ACI has the right to rescind the license agreement and reclaim all rights and interest in the patents if certain events, such as the Company’s filing for bankruptcy protection or reorganization, occur. The license agreement remains in effect for the lives of the patents. The Company may utilize the technological applications anywhere in the world without limitation. Upon execution of the Assignment and Assumption Agreement on December 11, 2009 (see Note 6), the Patent License Agreement was terminated. | ||
During November 2012, the Company acquired license rights to ACI's Medical Keyring Device technology in consideration of the Company's issuance to ACI of 200,000 shares of its Series B Convertible Preferred Stock. | ||
During September 2013, the Company acquired license rights to ACI's BioCentric Cloud Device technology in consideration of the Company's issuance to ACI of 200,000 shares of its Series B Convertible Preferred Stock. Effective November 5, 2014, the Company increased the number of preferred shares designated as Series B, and accordingly, the shares were issued to ACI on November 10, 2014. | ||
Lease Agreement | ||
In February 2012, the company entered into a facilities lease in Buenos Aires, Argentina for its manufacturing activities. The lease term is from March 1, 2012 through January 31, 2015. The Company terminated this lease and vacated its Argentina facility in February, 2014. The Company also utilizes offices in Australia, Israel and Las Vegas, and Nevada on short-term leases. The Company’s main office is located in Las Vegas, Nevada. Rent expense under all leases for the nine months ended March 31, 2015 and 2014 was $13,883 and $55,769, respectively. | ||
Related Party Transactions | ||
The Company’s Chief Executive Officer has made cash advances to the Company with an aggregate amount due of $25,522 and $0 at March 31, 2015 and June 30, 2014, respectively. The Company has made cash advances to its Chief Executive Officer with an aggregate amount due of $0 and $22,478 at March 31, 2015 and June 30, 2014, respectively. These advances bear interest at the rate of five percent (5%) per annum. | ||
The Company has accrued the amounts of $220,015 and $125,015 at March 31, 2015 and June 30, 2014, respectively, as deferred Officer’s salary, for the difference between the Chief Executive Officer’s annual salary and the amounts paid. | ||
On February 11, 2015, the Company entered into a security agreement (the “Agreement”) with Chaya Hendrick, the Company’s chief executive officer (“Executive”), pursuant to which the Company granted Executive a continuing security interest in all of the Company’s assets, which are existing now or arise after the date of the Agreement, until such time that the Company repays all loans and accrued but unpaid salary owed to Executive. As of the date of the Agreement, the Company had loans and accrued but unpaid salary owed to Executive in the aggregate principal amount of $270,015. | ||
STOCKHOLDERS_EQUITY_DEFICIT
STOCKHOLDERS' EQUITY (DEFICIT) | 9 Months Ended | ||||
Mar. 31, 2015 | |||||
Stockholders' Equity Note [Abstract] | |||||
STOCKHOLDERS' EQUITY (DEFICIT) | NOTE 6 - | STOCKHOLDERS’ EQUITY (DEFICIT) | |||
Preferred Stock | |||||
As of March 31, 2015, the Company has 5,000,000 shares of preferred stock, par value $0.001, authorized and 410,000 shares issued and outstanding. | |||||
On December 11, 2009, the Company filed a Certificate of Designation with the State of Nevada, to designate 500,000 shares of the preferred stock to be designated as Series B Convertible Preferred Stock (“Series B Convertible Preferred Stock”). Effective November 5, 2014, the number of shares designated as Series B Convertible Preferred Stock was increased to 1,000,000 shares. | |||||
Each share of Series B Convertible Preferred Stock has a par value of $0.001, and a stated value equal to $5.00 (“Stated Value”). Holders of the Series B Convertible Preferred Stock are entitled to receive dividends or other distributions with the holders of the common stock of the Company on an as converted basis when, as, and if declared by the directors of the Company. Holders of the Series B Convertible Preferred Stock are entitled to convert all or any one (1) share of the Series B Convertible Preferred Stock into fifty (50) shares of common stock. | |||||
Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary (“liquidation”), holders of the Series B Convertible Preferred Stock are entitled to receive out of the assets, whether capital or surplus, of the Company an amount equal to the Stated Value, pro rata with the holders of the common stock. | |||||
On December 11, 2009, the Company entered into an Assignment and Assumption Agreement with ACI (the “assignment and Assumption Agreement”). In accordance with the Assignment and Assumption Agreement, ACI conveyed, assigned and transferred to the Company all of ACI’s rights, title and interest in and to the Patent (see Note 5) and delegated to the Company all of its duties and obligations to be performed under the Patent; and the Company hereby accepts the assignment of all of ACI’s rights, title and interest to the Patent and the rights and delegation of duties and obligations and agrees to be bound by and to assume such duties and obligations. | |||||
In consideration for the assignment of the Patent, the Company issued 200,000 shares of Series B Convertible Preferred Stock. ACI may only convert these shares into common shares (in accordance with the conversion terms noted herein) upon delivering to the Company, a third party valuation of the assigned Patent conducted by a nationally qualified accounting firm or IP law firm mutually agreed upon between the Company and ACI, indicating that such Patent is valued at a minimum of $1,000,000. | |||||
On November 12, 2012, the Company issued 200,000 shares of its Series B Convertible Preferred Stock to ACI in consideration for ACI’s patent relating to the Medical Keyring Device. | |||||
In July 2013, ACI elected to convert 190,000 shares of Series B Convertible Preferred Stock, issued in 2012, into 9,500,000 shares of the Company’s common stock. | |||||
During September 2013, the Company acquired license rights to ACI's BioCentric Cloud Device technology in consideration of the Company's issuance to ACI of 200,000 shares of its Series B Convertible Preferred Stock. Effective November 5, 2014, the Company increased the number of preferred shares designated as Series B, and accordingly, the shares were issued to ACI on November 10, 2014. | |||||
In accordance with Staff Accounting Bulletin (“SAB”) topic 5G “Transfers of Non-monetary Assets by Promoters and Shareholders” the Company recorded these transactions at ACI’s carrying basis of the Patents, which was $0. | |||||
Class A Common Stock | |||||
As of March 31, 2015, the Company has 50,000,000 shares of Class A common stock, par value $0.001, authorized and no shares issued and outstanding. In October 2003, the Company issued 50,000,000 shares of Class A common stock at par value ($50,000). These shares were converted into 50,000,000 shares of common stock in 2006. | |||||
Common Stock | |||||
The Company was incorporated on December 18, 2002, with 45,000,000 shares of Common Stock, par value $0.001. The articles of incorporation were amended in 2006 to increase the number of authorized shares to 100,000,000 shares, and again in 2009 to increase the number of authorized shares to 200,000,000. | |||||
As of March 31, 2015, the Company has 177,892,752 shares of common stock issued and outstanding. | |||||
During the three months ended September 30, 2013, the Company sold for cash 515,367 shares and twenty-four month warrants to purchase an additional 515,367 shares at $0.70 per share for net proceeds of $123,474. | |||||
During the three months ended September 30, 2013, the Company issued 130,875 shares for consulting services valued at $70,898, based on the stock price at the time of the respective agreements underlying the services provided. | |||||
During the three months ended December 31, 2013, the Company issued 2,134,166 shares for consulting services valued at $339,900, based on the stock price at the time of the respective agreements underlying the services provided. | |||||
During the three months ended December 31, 2013, the Company sold for cash 660,000 shares and twenty-four month warrants to purchase an additional 660,000 shares at $0.60 per share for net proceeds of $118,700. | |||||
During the three months ended March 31, 2014, the Company sold for cash 2,120,000 shares and twenty-four month warrants to purchase: (i) 4,240,000 shares at $0.70 per share, and (ii) 2,136,960 shares at $1.00 per share, for net proceeds of $338,687. | |||||
During the three months ended March 31, 2014, the Company issued 2,798,776 shares for consulting and legal services valued at $375,149, based on the stock price at the time of the respective agreements underlying the services provided. | |||||
During the three months ended June 30, 2014, the Company sold for cash 1,812,500 shares and twenty-four month warrants to purchase: (i) 3,625,000 shares at $0.70 per share, and (ii) 1,827,000 shares at $1.00 per share, for net proceeds of $289,405. | |||||
During the three months ended June 30, 2014, the Company issued 1,490,170 shares for consulting and legal services valued at $205,192, based on the stock price at the time of the respective agreements underlying the services provided. | |||||
During the three months ended September 30, 2014, the Company sold for cash 4,893,731 shares and twenty-four month warrants to purchase: (i) 1,375,000 shares at $0.70 per share, and (ii) 724,500 shares at $1.00 per share, for net proceeds of $307,662. | |||||
During the three months ended December 31, 2014, the Company sold for cash 1,599,994 shares and twelve month warrants to purchase: (i) 1,187,500 shares at $0.70 per share, and (ii) 598,500 shares at $1.00 per share, for net proceeds of $95,750. | |||||
During the three months ended March 31, 2015, the Company sold for cash 4,425,000 shares and twelve month warrants to purchase: (i) 2,375,000 shares at $0.70 per share, and (ii) 1,197,000 shares at $1.00 per share, for net proceeds of $189,557. | |||||
During the three months ended March 31, 2015, the Company issued 296,250 shares for consulting services valued at $17,775, based on the stock price at the time of the respective agreements underlying the services provided. | |||||
Warrants | |||||
From time to time the Company granted warrants in connection with private placements of securities, as described herein. | |||||
In October 2009, the Company executed a warrant agreement with an investor relations company for 5,000,000 warrants to be issued in two tranches. The first tranche of 2,500,000 warrants (the “October warrants”) has been issued in October 2009, and the second tranche of 2,500,000 warrants has been issued on March 31, 2010 (the “March warrants”). The October warrants, which were set to expire October 25, 2014(as extended) but have been further extended by the Company to expire on October 25, 2015, have strike prices as follows: 1,000,000 at $0.10 per share; 1,000,000 at $0.15 per share; and 500,000 at $0.20 per share. The March warrants, which were set to expire March 29, 2015 (as extended) but have been further extended by the Company to expire on March 29, 2016, have strike prices as follows: 500,000 at $0.20 per share; 1,000,000 at $0.25 per share; and 1,000,000 at $0.30 per share. | |||||
In June 2011, the Company issued warrants to purchase 1,000,000 shares of its common stock at an exercise price of $0.50 per share as partial consideration for a consulting agreement. These warrants were set to expire on June 3, 2014 (as extended) but have been further extended by the Company to expire on June 3, 2015. | |||||
In connection with the extension of the above referenced warrants during the year ended June 30, 2014, which were partial consideration in connection with a new consulting agreement, the Company assigned a value of $209,300 using the Black-Scholes option pricing model. The Company recorded the charge to consulting expenses over the term of the new consulting agreement, which expired in July 2014. | |||||
In May 2012, the Company issued warrants to purchase 250,000 shares of its common stock at an exercise price of $0.50 per share, as partial consideration for a consulting agreement for public relations services. The warrants expired in May 2014. | |||||
As of March 31, 2015 and June 30, 2014, the following is a breakdown of the Company’s warrant activity: | |||||
March 31, 2015: | |||||
Outstanding - June 30, 2014 | 19,004,326 | ||||
Issued | 7,457,500 | ||||
Exercised | - | ||||
Expired | - | ||||
Outstanding - March 31, 2015 | 26,461,826 | ||||
June 30, 2014: | |||||
Outstanding - June 30, 2013 | 21,757,578 | ||||
Issued | 13,004,326 | ||||
Exercised | - | ||||
Expired | -15,757,578 | ||||
Outstanding - June 30, 2014 | 19,004,326 | ||||
At March 31, 2015, all of the 26,461,826 warrants are vested and 20,461,826 warrants expire at various times through January 15, 2016, 1 million warrants expire on June 20, 2015, 2.5 million warrants expire on October 25, 2015, and 2.5 million warrants expire on March 29, 2016. | |||||
INCOME_TAXES
INCOME TAXES | 9 Months Ended | |
Mar. 31, 2015 | ||
Income Tax Disclosure [Abstract] | ||
INCOME TAXES | NOTE 7 - | INCOME TAXES |
The Company provides for income taxes at the end of each interim period based on the estimated effective tax rate for the full fiscal year. Cumulative adjustments to the Company’s estimate are recorded in the interim period in which a change in the estimated annual effective rate is determined. | ||
The Company has estimated its effective tax rate to be 0%, based primarily on losses incurred and the uncertainty of realization of the tax benefit of such losses. | ||
LITIGATION
LITIGATION | 9 Months Ended | |
Mar. 31, 2015 | ||
Litigation [Abstract] | ||
LITIGATION | NOTE 8 - | LITIGATION |
On July 27, 2010, the Company filed a second amended complaint (the “Visa and MasterCard Complaint”) in the United States District Court, Central District of California (the “Court”), Case No. 2:10-cv-01864, against MasterCard, Inc. and Visa, Inc. alleging patent infringement on the Company’s patent, U.S. Patent 6,792,464 (the “ ‘ 464 Patent”) (the “Visa and MasterCard Case”). | ||
In October 2013, the Federal District Court, Central District of California, held that the Defendants did not infringe on the ‘464 Patent. | ||
VISA and MasterCard asked the District Court to award them attorneys' fees and costs approximating $3 million. SmartMetric opposed this request, which SmartMetric believed was without merit because SmartMetric filed its suit in good faith and had litigated the case in an objectively reasonable manner. | ||
On March 25, 2015, The Federal District Court of the Southern District of California denied both Visa and Mastercard’s motion for fees and costs. A notice of appeal has been lodged with the Court by Mastercard while Visa declined to lodge an appeal and the time for such an appeal by Visa has now passed. | ||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2015 | |
Principles of Consolidation | Principles of Consolidation |
The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, SmartMetric Australia Pty. Ltd. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity 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 financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to income taxes and contingencies. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
The Company considers all highly liquid debt instruments and other short-term investments with an initial maturity of three months or less to be cash equivalents. Any amounts of cash in financial institutions over FDIC insured limits exposes the Company to cash concentration risk. The Company has no cash equivalents. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
The carrying amounts reported in the condensed consolidated balance sheet for cash, accounts payable, and accrued expenses approximate fair value because of the immediate or short-term maturity of these financial instruments. | |
ASC 820 defines fair value, provides a consistent framework for measuring fair value under generally accepted accounting principles and expands fair value financial statement disclosure requirements. ASC 820’s valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions. ASC 820 classifies these inputs into the following hierarchy: | |
Level 1 inputs: Quoted prices for identical instruments in active markets. | |
Level 2 inputs: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. | |
Level 3 inputs: Instruments with primarily unobservable value drivers. | |
Research and Development | Research and Development |
The Company annually incurs costs on activities that relate to research and development of new technology and products. Research and development costs are expensed as incurred. | |
Revenue Recognition | Revenue Recognition |
The Company has not recognized revenues to date. The Company anticipates recognizing revenue in accordance with the contracts it enters into for the sale and distribution of its products. | |
Accounts Receivable | Accounts Receivable |
The Company will extend credit based on its evaluation of the customers’ financial condition, generally without requiring collateral. Exposure to losses on receivables is expected to vary by customer due to the financial condition of each customer. The Company will monitor exposure to credit losses and maintains allowances for anticipated losses considered necessary under the circumstances. The Company has not recorded any receivables, and therefore no allowance for doubtful accounts. | |
Uncertainty in Income Taxes | Uncertainty in Income Taxes |
GAAP requires the recognition and measurement of uncertain income tax positions using a “more-likely-than-not” approach. Management evaluates Company tax positions on an annual basis and has determined that as of March 31, 2015 no accrual for uncertain income tax positions is necessary. | |
The Company files income tax returns in the United States ("U.S.") federal jurisdiction. Generally, the Company is no longer subject to U.S. federal examinations by tax authorities for fiscal years prior to 2010. The Company does not file in any other jurisdiction and remains open for audit for all tax years as the statute of limitations does not begin until the returns are filed. | |
Advertising Costs | Advertising Costs |
The Company will expense the cost associated with advertising as incurred. | |
Equipment | Equipment |
Equipment is stated at cost. Depreciation is computed using the straight-line method over the estimated economic useful lives of the assets ranging from 3 - 5 years. | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. The Company does not perform a periodic assessment of assets for impairment in the absence of such information or indicators. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or a significant adverse change that would indicate that the carrying amount of an asset or group of assets is not recoverable. For long-lived assets to be held and used, the Company recognizes an impairment loss only if its carrying amount is not recoverable through its undiscounted cash flows and measures the impairment loss based on the difference between the carrying amount and estimated fair value. | |
Loss Per Share of Common Stock | Loss Per Share of Common Stock |
Basic net loss per common share is computed using the weighted average number of common shares outstanding. The calculation of diluted earnings per share ("EPS") includes consideration of dilution arising from common stock equivalents, such as stock issuable pursuant to the exercise of stock options and warrants. Common stock equivalents were not included in the computation of diluted earnings per share on the consolidated statement of operations due to the fact that the Company reported a net loss and to do so would be anti-dilutive for the periods presented. | |
Stock-Based Compensation | Stock-Based Compensation |
The Company measures expense for issuances of stock-based compensation to employees and others at fair value of the stock and warrants issued, as this is more reliable than the fair value of the services received complete. The fair value of the equity instrument is charged directly to compensation expense and additional paid-in capital. | |
Reclassifications | Reclassifications |
Certain amounts in the prior period condensed consolidated financial statements have been reclassified for comparative purposes to conform to the presentation in the current period condensed consolidated financial statements. These reclassifications had no effect on previously reported results. | |
PATENT_COSTS_Tables
PATENT COSTS (Tables) | 9 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||
Schedule of Finite-Lived Intangible Assets | Patent costs as of March 31, 2015 and June 30, 2014 are summarized as follows: | ||||||||||
Estimated | March | June 30, | |||||||||
Useful Lives | 31, | 2014 | |||||||||
( Years) | 2015 | ||||||||||
Legal fees paid in connection with patent Applications | 10 | $ | 15,000 | $ | 15,000 | ||||||
Less: accumulated amortization | -15,000 | -14,625 | |||||||||
Patent costs, net | $ | 0 | $ | 375 | |||||||
STOCKHOLDERS_EQUITY_DEFICIT_Ta
STOCKHOLDERS' EQUITY (DEFICIT) (Tables) | 9 Months Ended | ||||
Mar. 31, 2015 | |||||
Stockholders' Equity Note [Abstract] | |||||
Schedule Of Share Based Compensation Warrant Activity | As of March 31, 2015 and June 30, 2014, the following is a breakdown of the Company’s warrant activity: | ||||
March 31, 2015: | |||||
Outstanding - June 30, 2014 | 19,004,326 | ||||
Issued | 7,457,500 | ||||
Exercised | - | ||||
Expired | - | ||||
Outstanding - March 31, 2015 | 26,461,826 | ||||
June 30, 2014: | |||||
Outstanding - June 30, 2013 | 21,757,578 | ||||
Issued | 13,004,326 | ||||
Exercised | - | ||||
Expired | -15,757,578 | ||||
Outstanding - June 30, 2014 | 19,004,326 | ||||
ORGANIZATION_AND_BASIS_OF_PRES1
ORGANIZATION AND BASIS OF PRESENTATION (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | |
Net Income (Loss) Attributable To Parent | ($273,777) | ($814,780) | ($1,256,840) | ($2,524,781) | |
Retained Earnings (Accumulated Deficit) | $20,570,781 | $20,570,781 | $19,313,941 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) | 9 Months Ended |
Mar. 31, 2015 | |
Property, Plant and Equipment, Depreciation Methods | straight-line method |
Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
PATENT_COSTS_Details
PATENT COSTS (Details) (USD $) | 9 Months Ended | |
Mar. 31, 2015 | Jun. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Legal fees paid in connection with patent Applications | $15,000 | $15,000 |
Less: accumulated amortization | -15,000 | -14,625 |
Patent costs, net | $0 | $375 |
Estimated Useful Lives (Years) | 10 years |
PATENT_COSTS_Details_Textual
PATENT COSTS (Details Textual) (USD $) | 9 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization | $375 | $1,125 |
COMMITMENTS_Details_Textual
COMMITMENTS (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||
Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 11, 2009 | Nov. 12, 2012 | Sep. 30, 2013 | Feb. 11, 2015 | |
Other Commitments [Line Items] | |||||||||||||
License Agreement Initiation Date | 1-Aug-04 | ||||||||||||
Percentage Of Revenue To Be Paid As License Fee | 2.00% | ||||||||||||
License Fee Periodic Payment Description | The license fee is to be paid within 45 days of the end of each quarter | ||||||||||||
Lease Agreement Initiation Date | Feb-12 | ||||||||||||
Lease Initiation Date | 1-Mar-12 | ||||||||||||
Lease Expiration Date | 31-Jan-15 | ||||||||||||
Operating Leases, Rent Expense | $13,883 | $55,769 | |||||||||||
Related Party Transaction, Rate | 5.00% | ||||||||||||
Deferred Compensation Liability, Current | 220,015 | 125,015 | 220,015 | ||||||||||
Stock Issued During Period, Shares, New Issues | 4,425,000 | 1,599,994 | 4,893,731 | 1,812,500 | 2,120,000 | 660,000 | 515,367 | ||||||
Due from Related Parties, Current | 25,522 | 0 | 25,522 | ||||||||||
Advances to Affiliate | 0 | 22,478 | 0 | ||||||||||
Chief Executive Officer [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Due to Related Parties | $270,015 | ||||||||||||
Series B Convertible Preferred Stock [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Stock Issued During Period, Shares, New Issues | 200,000 | ||||||||||||
Applied Cryptography, Inc [Member] | Series B Convertible Preferred Stock [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Stock Issued During Period, Shares, New Issues | 200,000 | 200,000 |
STOCKHOLDERS_EQUITY_DEFICIT_De
STOCKHOLDERS' EQUITY (DEFICIT) (Details) (Warrant [Member]) | 1 Months Ended | 9 Months Ended | 12 Months Ended |
Oct. 31, 2009 | Mar. 31, 2015 | Jun. 30, 2014 | |
Warrant [Member] | |||
Outstanding - beginning of year | 19,004,326 | 21,757,578 | |
Issued | 2,500,000 | 7,457,500 | 13,004,326 |
Exercised | 0 | 0 | |
Expired | 0 | -15,757,578 | |
Outstanding - end of year | 5,000,000 | 26,461,826 | 19,004,326 |
STOCKHOLDERS_EQUITY_DEFICIT_De1
STOCKHOLDERS' EQUITY (DEFICIT) (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Oct. 31, 2009 | Jun. 30, 2014 | Dec. 11, 2009 | Jul. 31, 2013 | Nov. 12, 2012 | Sep. 30, 2013 | Jun. 30, 2006 | 31-May-12 | Jun. 30, 2011 | Jun. 30, 2013 | Mar. 31, 2010 | Oct. 31, 2003 | Jun. 30, 2009 | Dec. 18, 2002 | |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | |||||||||||||||||||
Preferred Stock, Par Value Per Share | $0.00 | $0.00 | |||||||||||||||||||||
Preferred stock, shares issued | 410,000 | 210,000 | 410,000 | 210,000 | |||||||||||||||||||
Preferred Stock, Shares Outstanding | 410,000 | 210,000 | 410,000 | 210,000 | |||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 4,425,000 | 1,599,994 | 4,893,731 | 1,812,500 | 2,120,000 | 660,000 | 515,367 | ||||||||||||||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | |||||||||||||||||||
Common Stock, Par Or Stated Value Per Share | $0.00 | $0.00 | $0.00 | $0.00 | |||||||||||||||||||
Common stock, shares issued | 177,892,752 | 167,707,937 | 177,892,752 | 167,707,937 | |||||||||||||||||||
Common stock, shares outstanding | 177,892,752 | 167,707,937 | 177,892,752 | 167,707,937 | |||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 250,000 | 1,000,000 | |||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.50 | $0.50 | |||||||||||||||||||||
Proceeds from sale of common stock | $189,557 | $95,750 | $307,662 | $289,405 | $338,687 | $118,700 | $123,474 | $592,969 | $580,861 | ||||||||||||||
Legal and Consultancy Services [Member] | |||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 296,250 | 1,490,170 | 2,798,776 | 2,134,166 | 130,875 | ||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | 17,775 | 205,192 | 375,149 | 339,900 | 70,898 | ||||||||||||||||||
Warrant [Member] | |||||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | 209,300 | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 26,461,826 | 19,004,326 | 26,461,826 | 5,000,000 | 19,004,326 | 21,757,578 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 7,457,500 | 2,500,000 | 13,004,326 | ||||||||||||||||||||
March Warrant One 2010 [Member] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 500,000 | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $0.20 | ||||||||||||||||||||||
March Warrant Two 2010 [Member] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,000,000 | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $0.25 | ||||||||||||||||||||||
March Warrant Three 2010 [Member] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,000,000 | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $0.30 | ||||||||||||||||||||||
October Warrant One [Member] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,000,000 | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | 0.1 | ||||||||||||||||||||||
October Warrant Two [Member] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,000,000 | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | 0.15 | ||||||||||||||||||||||
October Warrant Three [Member] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 500,000 | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | 0.2 | ||||||||||||||||||||||
Twenty Four Months Warrant [Member] | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 660,000 | 515,367 | 515,367 | ||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.60 | $0.70 | $0.70 | ||||||||||||||||||||
Twenty Four Months Warrant One [Member] | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,375,000 | 4,240,000 | 4,240,000 | ||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.70 | $0.70 | $0.70 | ||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 3,625,000 | ||||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | 0.7 | ||||||||||||||||||||||
Twenty Four Months Warrant Two [Member] | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 724,500 | 2,136,960 | 2,136,960 | ||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $1 | $1 | $1 | ||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 1,827,000 | ||||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | 1 | ||||||||||||||||||||||
Expire on June 20 2015 [Member] | |||||||||||||||||||||||
Number Of Warrants To Be Expired | 1,000,000 | ||||||||||||||||||||||
Expire on October 25 2015 [Member] | |||||||||||||||||||||||
Number Of Warrants To Be Expired | 2,500,000 | ||||||||||||||||||||||
Expire on March 29 2016 [Member] | |||||||||||||||||||||||
Number Of Warrants To Be Expired | 2,500,000 | ||||||||||||||||||||||
Expire on January 15 2016 [Member] | |||||||||||||||||||||||
Number Of Warrants To Be Expired | 20,461,826 | ||||||||||||||||||||||
Twelve Month Warrants One [Member] | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 2,375,000 | 1,187,500 | 2,375,000 | ||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.70 | $0.70 | $0.70 | ||||||||||||||||||||
Twelve Month Warrants Two [Member] | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,197,000 | 598,500 | 1,197,000 | ||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $1 | $1 | $1 | ||||||||||||||||||||
Series B Convertible Preferred Stock [Member] | |||||||||||||||||||||||
Preferred stock, shares authorized | 500,000 | ||||||||||||||||||||||
Preferred Stock, Par Value Per Share | $0.00 | ||||||||||||||||||||||
Preferred Stock, Stated Value Per Share | $5 | ||||||||||||||||||||||
Conversion of Stock, Description | Holders of the Series B Convertible Preferred Stock are entitled to convert all or any one (1) share of the Series B Convertible Preferred Stock into fifty (50) shares of common stock. | ||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 200,000 | ||||||||||||||||||||||
Conversion Of Preferred Stock Into Common Stock | 190,000 | ||||||||||||||||||||||
Series B Convertible Preferred Stock [Member] | Maximum [Member] | |||||||||||||||||||||||
Preferred stock, shares authorized | 1,000,000 | ||||||||||||||||||||||
Series B Convertible Preferred Stock [Member] | Applied Cryptography, Inc [Member] | |||||||||||||||||||||||
Preferred Stock, Stated Value Per Share | $200,000 | $200,000 | |||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 200,000 | 200,000 | |||||||||||||||||||||
Series B Convertible Preferred Stock [Member] | Applied Cryptography, Inc [Member] | Minimum [Member] | |||||||||||||||||||||||
Stock Issued During Period, Value, New Issues | $1,000,000 | ||||||||||||||||||||||
Common Class [Member] | |||||||||||||||||||||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | |||||||||||||||||||||
Common Stock, Par Or Stated Value Per Share | $0.00 | $0.00 | $50,000 | ||||||||||||||||||||
Common stock, shares issued | 50,000,000 | ||||||||||||||||||||||
Conversion Of Preferred Stock Into Common Stock | 50,000,000 | ||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||
Common stock, shares authorized | 100,000,000 | 200,000,000 | 45,000,000 | ||||||||||||||||||||
Common Stock, Par Or Stated Value Per Share | $0.00 | ||||||||||||||||||||||
Conversion Of Preferred Stock Into Common Stock | 9,500,000 |
INCOME_TAXES_Details_Textual
INCOME TAXES (Details Textual) | 9 Months Ended |
Mar. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Percent | 0.00% |
LITIGATION_Details_Textual
LITIGATION (Details Textual) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Estimated Litigation Liability | $3 |