SmartMetric (SMME) 10-K 5 Oct 15 2015 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2015	Sep. 21, 2015	Dec. 31, 2014
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Trading Symbol	SMME
Entity Common Stock, Shares Outstanding		186,407,814
Entity Registrant Name	SmartMetric, Inc.
Entity Central Index Key	1,301,991
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 8,759,825

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Current assets:
Cash	$ 44,516	$ 97,924
Prepaid expenses and other current assets	84,417	307,491
Total current assets	128,933	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	128,933	428,268
Current liabilities:
Accounts payable and accrued expenses	439,828	325,877
Liability for stock to be issued	382,541	355,750
Deferred Officer salary	267,515	125,015
Shareholder loan	13,960	0
Total current liabilities	$ 1,103,844	$ 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, respectively	$ 410	$ 210
Common stock, $.001 par value; 200,000,000 shares authorized, 186,407,814 and 167,707,937 shares issued and outstanding, respectively	186,408	167,708
Additional paid-in capital	19,865,824	18,767,649
Accumulated deficit	(21,027,553)	(19,313,941)
Total stockholders' deficit	(974,911)	(378,374)
Total liabilities and stockholders' deficit	$ 128,933	$ 428,268

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Accumulated amortization of patent costs (in dollars)	$ 15,000	$ 14,625
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
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)	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	186,407,814	167,707,937
Common stock, shares outstanding	186,407,814	167,707,937

Consolidated Statements Of Oper

Consolidated Statements Of Operations - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Revenues	$ 0	$ 0
Expenses:
Officer's salary	190,000	190,000
Other general and administrative	1,361,240	2,669,693
Research and development	162,372	489,654
Total operating expenses	1,713,612	3,349,347
Loss from operations before income taxes	(1,713,612)	(3,349,347)
Income taxes	0	0
Net loss	$ (1,713,612)	$ (3,349,347)
Net loss per share, basic and diluted	$ (0.01)	$ (0.02)
Weighted average number of common shares outstanding, basic and diluted	175,013,149	161,252,272

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (1,713,612)	$ (3,349,347)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization	375	1,500
Common stock and warrants issued and issuable for services	311,172	1,057,755
Changes in assets and liabilities
(Increase) decrease in prepaid expenses and other current assets	223,074	492,208
(Increase) decrease in advances to shareholder	22,478	(22,478)
Increase (decrease) in accounts payable and accrued expenses	113,951	63,229
Increase (decrease) in deferred officer's salary	142,500	63,334
Net cash used in operating activities	(900,062)	(1,693,799)
CASH FLOWS FROM INVESTING ACTIVITIES	0	0
CASH FLOWS FROM FINANCING ACTIVITIES
Loans from related parties	13,960	(21,572)
Proceeds from sale of common stock	805,903	870,266
Liability for stock to be issued	26,791	138,772
Net cash provided by financing activities	846,654	987,466
NET (DECREASE) IN CASH	(53,408)	(706,333)
BEGINNING OF YEAR	97,924	804,257
END OF YEAR	44,516	97,924
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	0	0
Series B Preferred Stock [Member]
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Common Stock	$ 0	$ 0

Consolidated Statements of Chan

Consolidated Statements of Changes In Stockholders' Equity (Deficit) - USD ($)	Total	Class A Common Stock [Member]	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]
Balance at Jun. 30, 2013	$ 1,042,952	$ 0	$ 400	$ 147,699	$ 16,859,447	$ (15,964,594)
Balance, (in Shares) at Jun. 30, 2013		0	400,000	147,698,950
Shares issued upon conversion of preferred stock	0	$ 0	$ (190)	$ 9,500	(9,310)	0
Shares issued upon conversion of preferred stock (in shares)		0	(190,000)	9,500,000
Shares issued of common stock and warrants for services rendered	1,183,620	$ 0	$ 0	$ 6,015	1,177,605	0
Shares issued of common stock and warrants for services rendered (in shares)		0	0	6,014,821
Shares issued of common stock and warrants for cash	744,401	$ 0	$ 0	$ 4,494	739,907	0
Shares issued of common stock and warrants for cash (in shares)		0	0	4,494,166
Net loss for the year	(3,349,347)	$ 0	$ 0	$ 0	0	(3,349,347)
Balance at Jun. 30, 2014	(378,374)	$ 0	$ 210	$ 167,708	18,767,649	(19,313,941)
Balance, (in Shares) at Jun. 30, 2014		0	210,000	167,707,937
Shares issued upon conversion of preferred stock	200	$ 0	$ 200	$ 0	0	0
Shares issued upon conversion of preferred stock (in shares)		0	200,000	0
Shares issued of common stock and warrants for services rendered	125,470	$ 0	$ 0	$ 2,594	122,876	0
Shares issued of common stock and warrants for services rendered (in shares)		0	0	2,593,455
Shares issued of common stock and warrants for cash	991,405	$ 0	$ 0	$ 16,106	975,299	0
Shares issued of common stock and warrants for cash (in shares)		0	0	16,106,422
Net loss for the year	(1,713,612)	$ 0	$ 0	$ 0	0	(1,713,612)
Balance at Jun. 30, 2015	$ (974,911)	$ 0	$ 410	$ 186,408	$ 19,865,824	$ (21,027,553)
Balance, (in Shares) at Jun. 30, 2015		0	410,000	186,407,814

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	12 Months Ended
	Jun. 30, 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. Going Concern As shown in the accompanying consolidated financial statements the Company has incurred recurring losses of $ 1,713,612 3,349,347 21,027,553 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 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 ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company is considered to be in the development stage as defined in ASC 915-10, "Accounting and Reporting by Development Stage Enterprises". The 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. 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. 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 which exceed FDIC insured limits exposes the Company to cash concentration risk. The Company had no cash equivalents at June 30, 2015 and 2014. The carrying amounts reported in the consolidated balance sheet for cash, accounts payable, and accrued expenses including payroll withholdings, interest and penalties 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 1inputs: 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. 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. 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. 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 June 30, 2015 no accrual for uncertain income tax positions is necessary. The Company will expense the cost associated with advertising as incurred. 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 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. 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. 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. The fair value is measured at the value of the Company’s common stock on the date that the commitment for performance by the counterparty has been reached or the counterparty’s performance obligation is complete. The fair value of the equity instrument is charged directly to compensation expense and additional paid-in capital. Certain amounts in the 2014 consolidated financial statements have been reclassified for comparative purposes to conform to the presentation in the current year consolidated financial statements. These reclassifications had no effect on previously reported results.

PREPAID EXPENSES

PREPAID EXPENSES	12 Months Ended
	Jun. 30, 2015
Prepaid Expenses [Abstract]
PREPAID EXPENSES	NOTE 3 - PREPAID EXPENSES Prepaid expenses represent the unexpired terms of various consulting agreements and expire through January 2016, as well as advance rental payments. These consulting agreements were entered into for the issuance of common stock and warrants and were valued based on the stock price or computed warrant value at the time of the respective agreement.

PATENT COSTS

PATENT COSTS	12 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
PATENT COSTS	NOTE 4 - PATENT COSTS Estimated June June 30, Legal fees paid in connection with patent 10 $ 15,000 $ 15,000 Less: accumulated amortization (15,000) (14,625) Patent costs, net $ 0 $ 375 Amortization expense was $ 375 1,500

COMMITMENTS

COMMITMENTS	12 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	NOTE 5 - COMMITMENTS Patent License Agreement Effective August 1, 2004 1 2 2 The license fee is to be paid within 45 days of the end of each quarter 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 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 Lease Agreement In February 2012, the company entered into a facilities lease in Buenos Aires, Argentina for its manufacturing activities. The lease term was 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 years ended June 30, 2015 and 2014 was $ 35,502 59,635 Related Party Transactions The Company has made cash advances to its Chief Executive Officer with an aggregate amount due of $ 0 22,478 13,960 0 5.00 As of June 30, 2015 and June 30, 2014, the Company has accrued the amounts of $ 267,515 125,015

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT)	12 Months Ended
	Jun. 30, 2015
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY (DEFICIT)	NOTE 6 - STOCKHOLDERS’ EQUITY (DEFICIT) Preferred Stock As of June 30, 2015, the Company has 5,000,000 0.001 410,000 On December 11, 2009, the Company filed a Certificate of Designation with the State of Nevada, to designate 500,000 Each share of Series B Convertible Preferred Stock has a par value of $ 0.001 5.00 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 1,000,000 On November 12, 2012, the Company issued 200,000 In July 2013, ACI elected to convert 190,000 9,500,000 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 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 June 30, 2015, the Company has 50,000,000 0.001 50,000,000 50,000 50,000,000 Common Stock The Company was incorporated on December 18, 2002, with 45,000,000 0.001 100,000,000 200,000,000 As of June 30, 2015, the Company has 186,407,814 During the three months ended September 30, 2013, the Company sold for cash 515,367 515,367 0.70 123,474 During the three months ended September 30, 2013, the Company issued 130,875 70,898 During the three months ended December 31, 2013, the Company issued 2,134,166 339,900 During the three months ended December 31, 2013, the Company sold for cash 660,000 660,000 0.60 118,700 During the three months ended March 31, 2014, the Company sold for cash 2,120,000 4,240,000 0.70 2,136,960 1.00 338,687 During the three months ended March 31, 2014, the Company issued 2,798,776 375,149 During the three months ended June 30, 2014, the Company sold for cash 1,812,500 3,625,000 0.70 1,827,000 1.00 289,405 During the three months ended June 30, 2014, the Company issued 1,490,170 205,192 During the three months ended September 30, 2014, the Company sold for cash 4,893,731 1,375,000 0.70 724,500 1.00 307,662 During the three months ended December 31, 2014, the Company sold for cash 1,599,994 1,187,500 0.70 598,500 1.00 95,750 During the three months ended March 31, 2015, the Company sold for cash 4,425,000 2,375,000 0.70 1,197,000 1.00 189,557 During the three months ended March 31, 2015, the Company issued 296,250 17,775 During the three months ended June 30, 2015, the Company sold for cash 4,362,500 2,668,750 0.70 1,345,050 1.00 of $212,934. During the three months ended June 30, 2015, the Company issued 1,415,062 71,435 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 2,500,000 2,500,000 October 25, 2014 October 25, 2015 1,000,000 0.10 1,000,000 0.15 500,000 0.20 March 29, 2015 March 29, 2016 500,000 0.20 1,000,000 0.25 1,000,000 0.30 In June 2011, the Company issued warrants to purchase 1,000,000 0.50 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 $ 209,300 174,417 In May 2012, the Company issued warrants to purchase 250,000 0.50 June 30, 2015: Outstanding - beginning of year 19,004,326 Issued 11,471,300 Exercised - Expired (1,000,000) Outstanding - end of year 29,475,626 June 30, 2014: Outstanding - beginning of year 21,757,578 Issued 13,004,326 Exercised - Expired (15,757,578) Outstanding - end of year 19,004,326 At June 30, 2015, all of the 29,475,626 24,475,626 2.5 2.5

INCOME TAXES

INCOME TAXES	12 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 7 - INCOME TAXES Deferred income taxes are determined using the liability method for the temporary differences between the financial reporting basis and income tax basis of the Company’s assets and liabilities. Deferred income taxes are measured based on the tax rates expected to be in effect when the temporary differences are included in the Company’s tax return. Deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. The Company recognizes interest and penalties related to income tax matters as a component of income tax expense. 2015 2014 Net operating loss carryforward $ 6,031,857 $ 5,541,413 Warrant issuances - 240,966 Deferred officer compensation 90,955 42,505 Other 1,632 1,632 Valuation allowance (6,124,444) (5,826,516) $ - $ - Year ended June 30, 2015 2014 Balance as of beginning of fiscal year $ 164,869 $ 164,869 (Decreases) related to prior year positions (164,869) - Balance as of June 30, $ - $ 164,869 At June 30, 2015, the Company had a net operating loss carryforwards in the amount of approximately $ 17.7 available to offset future taxable income through 2034, which will begin to expire in 2022 2015 2014 Tax on income before income tax 34.00 % 34.00 % Effect of non-temporary differences (0.07) % (0.06) % Effect of prior year items (16.54) % (0.00) % Change in valuation allowance (17.39) % (33.94) % 0.00 % 0.00 % The total amount of unrecognized tax benefits can change due to tax examination activities, lapse of applicable statutes of limitations and the recognition and measurement criteria under the guidance related to accounting for uncertainty in income taxes. The Company does not believe any significant increases or decreases will occur within the next twelve months. 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 2011. 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.

LITIGATION

LITIGATION	12 Months Ended
	Jun. 30, 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 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 ACCOUN15

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jun. 30, 2015
Development Stage Company	Development Stage Company The Company is considered to be in the development stage as defined in ASC 915-10, "Accounting and Reporting by Development Stage Enterprises".
Principles of Consolidation	Principles of Consolidation The 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 which exceed FDIC insured limits exposes the Company to cash concentration risk. The Company had no cash equivalents at June 30, 2015 and 2014.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts reported in the consolidated balance sheet for cash, accounts payable, and accrued expenses including payroll withholdings, interest and penalties 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 1inputs: 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 June 30, 2015 no accrual for uncertain income tax positions is necessary.
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
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. The fair value is measured at the value of the Company’s common stock on the date that the commitment for performance by the counterparty has been reached or the counterparty’s performance obligation is 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 2014 consolidated financial statements have been reclassified for comparative purposes to conform to the presentation in the current year consolidated financial statements. These reclassifications had no effect on previously reported results.

PATENT COSTS (Tables)

PATENT COSTS (Tables)	12 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	Patent costs as of June 30, 2015 and June 30, 2014 are summarized as follows: Estimated June June 30, Legal fees paid in connection with patent 10 $ 15,000 $ 15,000 Less: accumulated amortization (15,000) (14,625) Patent costs, net $ 0 $ 375

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT) (Tables)	12 Months Ended
	Jun. 30, 2015
Stockholders' Equity Note [Abstract]
Schedule Of Share Based Compensation Warrant Activity	As of June 30, 2015 and 2014, the following is a breakdown of the activity: June 30, 2015: Outstanding - beginning of year 19,004,326 Issued 11,471,300 Exercised - Expired (1,000,000) Outstanding - end of year 29,475,626 June 30, 2014: Outstanding - beginning of year 21,757,578 Issued 13,004,326 Exercised - Expired (15,757,578) Outstanding - end of year 19,004,326

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Schedule of Deferred Tax Assets and Liabilities	At June 30, 2015 and 2014, deferred tax assets consist of the following: 2015 2014 Net operating loss carryforward $ 6,031,857 $ 5,541,413 Warrant issuances - 240,966 Deferred officer compensation 90,955 42,505 Other 1,632 1,632 Valuation allowance (6,124,444) (5,826,516) $ - $ -
Schedule of Unrecognized Tax Benefits Roll Forward	A reconciliation of the activity related to the liability for gross unrecognized tax benefits during fiscal 2015 and 2014 is as follows: Year ended June 30, 2015 2014 Balance as of beginning of fiscal year $ 164,869 $ 164,869 (Decreases) related to prior year positions (164,869) - Balance as of June 30, $ - $ 164,869
Schedule of Effective Income Tax Rate Reconciliation	A reconciliation of the Company’s effective tax rate as a percentage of income before taxes and federal statutory rate for the period ended June 30, 2015 and 2014 is summarized as follows: 2015 2014 Tax on income before income tax 34.00 % 34.00 % Effect of non-temporary differences (0.07) % (0.06) % Effect of prior year items (16.54) % (0.00) % Change in valuation allowance (17.39) % (33.94) % 0.00 % 0.00 %

ORGANIZATION AND BASIS OF PRE19

ORGANIZATION AND BASIS OF PRESENTATION (Details Textual) - USD ($)	12 Months Ended		150 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015
Net Income (Loss) Attributable To Parent	$ (1,713,612)	$ (3,349,347)	$ 21,027,553

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	12 Months Ended
	Jun. 30, 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 ($)	12 Months Ended
	Jun. 30, 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 ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Finite-Lived Intangible Assets [Line Items]
Amortization	$ 375	$ 1,500
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization	$ 375	$ 1,500

COMMITMENTS (Details Textual)

COMMITMENTS (Details Textual) - USD ($)	Nov. 12, 2012	Dec. 11, 2009	Sep. 30, 2013	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2015	Jun. 30, 2014
Other Commitments [Line Items]
License Agreement Initiation Date												Aug. 1, 2004
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 Initiation Date												Mar. 1, 2012
Lease Expiration Date												Jan. 31, 2015
Operating Leases, Rent Expense												$ 35,502	$ 59,635
Related Party Transaction, Rate												5.00%
Deferred Compensation Liability, Current				$ 267,515				$ 125,015				$ 267,515	125,015
Stock Issued During Period, Shares, New Issues				4,362,500	4,425,000	1,599,994	4,893,731	1,812,500	2,120,000	660,000	515,367
Shareholder Loan				$ 13,960				$ 0				13,960	0
Chief Executive Officer [Member]
Other Commitments [Line Items]
Due from Related Parties, Current				0				22,478				0	22,478
Shareholder Loan				$ 13,960				$ 0				$ 13,960	$ 0
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 (DEFICIT24

STOCKHOLDERS' EQUITY (DEFICIT) (Details) - Warrant [Member] - shares	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Outstanding - beginning of year	19,004,326	21,757,578
Issued	11,471,300	13,004,326
Exercised	0	0
Expired	(1,000,000)	(15,757,578)
Outstanding - end of year	29,475,626	19,004,326

STOCKHOLDERS' EQUITY (DEFICIT25

STOCKHOLDERS' EQUITY (DEFICIT) (Details Textual) - USD ($)	Nov. 12, 2012	Dec. 11, 2009	Mar. 29, 2015	Oct. 25, 2014	Sep. 30, 2013	Jul. 31, 2013	Mar. 31, 2010	Oct. 31, 2009	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2006	Jun. 30, 2013	May. 31, 2012	Jun. 30, 2011	Jun. 30, 2009	Oct. 31, 2003	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									$ 0.001								$ 0.001
Preferred stock, shares issued									410,000				210,000				410,000	210,000
Stock Issued During Period, Shares, New Issues									4,362,500	4,425,000	1,599,994	4,893,731	1,812,500	2,120,000	660,000	515,367
Stock Issued During Period, Value, New Issues																	$ 991,405	$ 744,401
Common stock, shares authorized									200,000,000				200,000,000				200,000,000	200,000,000
Common Stock, Par Or Stated Value Per Share									$ 0.001				$ 0.001				$ 0.001	$ 0.001
Common stock, shares issued									186,407,814				167,707,937				186,407,814	167,707,937
Common stock, shares outstanding									186,407,814				167,707,937				186,407,814	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									$ 212,934	$ 189,557	$ 95,750	$ 307,662	$ 289,405	$ 338,687	$ 118,700	$ 123,474	$ 805,903	$ 870,266
Legal and Consultancy Services [Member]
Stock Issued During Period, Shares, Issued for Services									1,415,062	296,250			1,490,170	2,798,776	2,134,166	130,875
Stock Issued During Period, Value, Issued for Services									$ 71,435	$ 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								5,000,000	29,475,626				19,004,326				29,475,626	19,004,326		21,757,578
Legal Fees																		$ 174,417
Warrant [Member] | Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number			500,000	1,000,000				2,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value			$ 0.20	$ 0.10
Warrant Expiration Date				Oct. 25, 2015				Oct. 25, 2014
Warrant [Member] | Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number			1,000,000	1,000,000			2,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value			$ 0.25	$ 0.15
Warrant Expiration Date			Mar. 29, 2016				Mar. 29, 2015
Warrant [Member] | Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number			1,000,000	500,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value			$ 0.30	$ 0.20
Twenty Four Months Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights					515,367				2,668,750						660,000	515,367	2,668,750
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 0.70				$ 0.70						$ 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									1,345,050			1,375,000	3,625,000	4,240,000			1,345,050	3,625,000
Class of Warrant or Right, Exercise Price of Warrants or Rights									$ 1			$ 0.70	$ 0.70	$ 0.70			$ 1	$ 0.70
Twenty Four Months Warrant Two [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights												724,500	1,827,000	2,136,960				1,827,000
Class of Warrant or Right, Exercise Price of Warrants or Rights												$ 1	$ 1	$ 1				$ 1
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																	24,475,626
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		$ 0.001
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] | 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]
Stock Issued During Period, Shares, New Issues																	0	0
Stock Issued During Period, Value, New Issues																	$ 0	$ 0
Common stock, shares authorized									50,000,000								50,000,000
Common Stock, Par Or Stated Value Per Share									$ 0.001								$ 0.001							$ 50,000
Common stock, shares issued																								50,000,000
Conversion Of Preferred Stock Into Common Stock																	0	0	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																									$ 0.001
Conversion Of Preferred Stock Into Common Stock						9,500,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Net operating loss carryforward	$ 6,031,857	$ 5,541,413
Warrant issuances	0	240,966
Deferred officer compensation	90,955	42,505
Other	1,632	1,632
Valuation allowance	(6,124,444)	(5,826,516)
Deferred Tax Assets, Net	$ 0	$ 0

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Balance as of beginning of fiscal year	$ 164,869	$ 164,869
(Decreases) related to prior year positions	(164,869)	0
Balance as of June 30,	$ 0	$ 164,869

INCOME TAXES (Details 2)

INCOME TAXES (Details 2)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Tax on income before income tax	34.00%	34.00%
Effect of non-temporary differences	(0.07%)	(0.06%)
Effect of prior year items	(16.54%)	(0.00%)
Change in valuation allowance	(17.39%)	(33.94%)
Effective Income Tax Rate Reconciliation, Percent	0.00%	0.00%

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual) $ in Millions	12 Months Ended
	Jun. 30, 2015USD ($)
Operating Loss Carryforwards	$ 17.7
Operating Loss Carryforwards, Limitations on Use	available to offset future taxable income through 2034, which will begin to expire in 2022

LITIGATION (Details Textual)

LITIGATION (Details Textual) $ in Millions	Jun. 30, 2015USD ($)
Estimated Litigation Liability	$ 3