Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Sep. 21, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | SmartMetric, Inc. | |
Entity Central Index Key | 1,301,991 | |
Current Fiscal Year End Date | --06-30 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Public Float | $ 16,298,813 | |
Trading Symbol | SMME | |
Entity Common Stock, Shares Outstanding | 203,735,166 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Current assets: | ||
Cash | $ 138,823 | $ 44,516 |
Prepaid expenses and other current assets | 14,417 | 84,417 |
Total current assets | 153,240 | 128,933 |
Total assets | 153,240 | 128,933 |
Current liabilities: | ||
Accounts payable and accrued expenses | 656,588 | 439,828 |
Liability for stock to be issued | 1,206,268 | 382,541 |
Deferred Officer salary | 394,181 | 267,515 |
Shareholder loan | 22,300 | 13,960 |
Total current liabilities | 2,279,337 | 1,103,844 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock, $.001 par value; 5,000,000 shares authorized, 410,000 and 410,000 shares issued and outstanding | 410 | 410 |
Common stock, $.001 par value; 300,000,000 shares authorized, 203,735,166 and 186,407,814 shares issued and outstanding , respectively | 203,735 | 186,408 |
Additional paid-in capital | 20,924,635 | 19,865,824 |
Accumulated deficit | (23,254,877) | (21,027,553) |
Total stockholders' deficit | (2,126,097) | (974,911) |
Total liabilities and stockholders' deficit | $ 153,240 | $ 128,933 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Jun. 30, 2015 |
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 | 410,000 |
Preferred stock, shares outstanding | 410,000 | 410,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 203,735,166 | 186,407,814 |
Common stock, shares outstanding | 203,735,166 | 186,407,814 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | $ 0 | $ 0 |
Expenses: | ||
Officer's salary | 190,000 | 190,000 |
Other general and administrative | 1,860,583 | 1,361,240 |
Research and development | 176,741 | 162,372 |
Total operating expenses | 2,227,324 | 1,713,612 |
Loss from operations before income taxes | (2,227,324) | (1,713,612) |
Income taxes | 0 | 0 |
Net loss | $ (2,227,324) | $ (1,713,612) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.01) | $ (0.01) |
Weighted average number of common shares outstanding, basic and diluted (in shares) | 192,882,517 | 175,013,149 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (2,227,324) | $ (1,713,612) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization | 0 | 375 |
Common stock and warrants issued and issuable for services | 1,019,069 | 311,172 |
Changes in assets and liabilities | ||
Decrease in prepaid expenses and other current assets | 70,000 | 223,074 |
Increase in accounts payable and accrued expenses | 216,760 | 113,951 |
Increase in deferred officer's salary | 126,666 | 142,500 |
Increase in shareholder loan | 8,340 | 22,478 |
Net cash used in operating activities | (786,489) | (900,062) |
CASH FLOWS FROM INVESTING ACTIVITIES | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Loans from related parties | 0 | 13,960 |
Proceeds from sale of common stock | 961,665 | 805,903 |
Liability for stock to be issued | (80,869) | 26,791 |
Net cash provided by financing activities | 880,796 | 846,654 |
NET INCREASE (DECREASE) IN | 94,307 | (53,408) |
CASH BEGINNING OF YEAR | 44,516 | 97,924 |
CASH END OF YEAR | 138,823 | 44,516 |
CASH PAID DURING THE YEAR FOR: | ||
Income taxes | 0 | 0 |
Interest | $ 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, 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 | |||
Shares issued of common stock and warrants for services rendered | 104,614 | $ 0 | $ 0 | $ 1,044 | 103,570 | 0 |
Shares issued of common stock and warrants for services rendered (in shares) | 0 | 0 | 1,044,520 | |||
Shares issued of common stock and warrants for cash | 971,524 | $ 0 | $ 0 | $ 16,283 | 955,241 | 0 |
Shares issued of common stock and warrants for cash (in shares) | 0 | 0 | 16,282,832 | |||
Net loss for the year | (2,227,324) | $ 0 | $ 0 | $ 0 | 0 | (2,227,324) |
Balance at Jun. 30, 2016 | $ (2,126,097) | $ 0 | $ 410 | $ 203,735 | $ 20,924,635 | $ (23,254,877) |
Balance, (in Shares) at Jun. 30, 2016 | 0 | 410,000 | 203,735,166 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Jun. 30, 2016 | |
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 $ 2,227,324 1,713,612 23,254,877 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, 2016 | |
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, 2016 and 2015. 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. 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, 2016 no accrual for uncertain income tax positions is necessary. The Company expenses advertising costs as incurred. 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. |
PREPAID EXPENSES
PREPAID EXPENSES | 12 Months Ended |
Jun. 30, 2016 | |
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. 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 |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | NOTE 4 - COMMITMENTS Lease Agreement The Company utilizes office in Las Vegas, NV on a short-term lease basis. The Company’s main office is located in Las Vegas, NV. Rent expense for the years ended June 30, 2016 and 2015 was $ 33,689 35,502 Related Party Transactions The Company’s Chief Executive Officer has made cash advances to the Company with an aggregate amount due of $ 22,300 13,960 5.00 As of June 30, 2016 and June 30, 2015, the Company has accrued the amounts of $ 394,181 267,515 |
STOCKHOLDERS' EQUITY (DEFICIT)
STOCKHOLDERS' EQUITY (DEFICIT) | 12 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY (DEFICIT) | NOTE 5 - STOCKHOLDERS’ EQUITY (DEFICIT) Preferred Stock As of June 30, 2016, 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 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, 2016, 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, 2016, the Company has 203,735,166 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 1.00 212,934 During the three months ended June 30, 2015, the Company issued 1,415,062 71,435 During the three months ended September 30, 2015, the Company sold for cash 2,150,000 2,687,500 0.70 1,354,500 1.00 214,633 During the three months ended December 31, 2015, the Company sold for cash 5,242,000 3,276,250 0.70 1,651,230 1.00 261,477 During the three months ended March 31, 2016, the Company sold for cash 2,140,000 1,337,500 0.70 674,100 1.00 106,771 During the three months ended June 30, 2016, the Company sold for cash 7,590,000 4,743,750 0.70 2,390,850 1.00 378,784 During the three months ended June 30, 2016, the Company authorized to be issued 5,000,000 shares for consulting services valued at $550,000, 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 2,500,000 2,500,000 October 25, 2014 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 In July 2015, as consideration for a consulting agreement, the Company issued warrants to purchase 300,000 0.01 0.14 150 1.71 0.14 42,000 In April 2016, as partial consideration for consulting services rendered, the Company authorized to be issued warrants to purchase 1 0.03 2 0.08 0.11 136 0.92 June 30, 2016: Outstanding - beginning of year 29,475,626 Issued 21,415,680 Exercised - Expired (38,351,107) Outstanding - end of year 12,540,199 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 At June 30, 2016, all of the 12,540,199 9,240,199 3,000,000 300,000 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 6 - 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. 2016 2015 Net operating loss carryforward $ 6,544,717 $ 6,031,857 Warrant issuances 192,990 - Deferred officer compensation 134,022 90,955 Other 1,632 1,632 Valuation allowance (6,873,361) (6,124,444) $ - $ - Year ended June 30, 2016 2015 Balance as of beginning of fiscal year $ - $ 164,869 Increases (decreases) related to current and prior year positions 192,990 (164,869) Balance as of June 30, $ 192,990 $ - At June 30, 2016, the Company had a net operating loss carryforwards in the amount of approximately $ 19.2 2016 2015 Tax on income before income tax 34.00 % 34.00 % Effect of non-temporary differences (0.05) % (0.07) % Effect of prior year items - % (16.54) % Effect of temporary differences (0.33) % - % Change in valuation allowance (33.62) % (17.39) % 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 2012. 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, 2016 | |
Litigation [Abstract] | |
LITIGATION | NOTE 7 - LITIGATION From time to time we may be a defendant or plaintiff in various legal proceedings arising in the normal course of our business. We know of no material, active, pending or threatened proceeding against us or our subsidiaries, nor are we, or any subsidiary, involved as a plaintiff or defendant in any material proceeding or pending litigation. |
SUMMARY OF SIGNIFICANT ACCOUN14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
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, 2016 and 2015. |
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, 2016 no accrual for uncertain income tax positions is necessary. |
Advertising Costs | The Company expenses advertising costs as incurred. |
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. |
STOCKHOLDERS' EQUITY (DEFICIT)
STOCKHOLDERS' EQUITY (DEFICIT) (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule Of Share Based Compensation Warrant Activity | As of June 30, 2016 and 2015, the following is a breakdown of the activity: June 30, 2016: Outstanding - beginning of year 29,475,626 Issued 21,415,680 Exercised - Expired (38,351,107) Outstanding - end of year 12,540,199 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 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | At June 30, 2016 and 2015, deferred tax assets consist of the following: 2016 2015 Net operating loss carryforward $ 6,544,717 $ 6,031,857 Warrant issuances 192,990 - Deferred officer compensation 134,022 90,955 Other 1,632 1,632 Valuation allowance (6,873,361) (6,124,444) $ - $ - |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the activity related to the liability for gross unrecognized tax benefits related to uncertain tax positions during fiscal 2016 and 2015 is as follows: Year ended June 30, 2016 2015 Balance as of beginning of fiscal year $ - $ 164,869 Increases (decreases) related to current and prior year positions 192,990 (164,869) Balance as of June 30, $ 192,990 $ - |
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, 2016 and 2015 is summarized as follows: 2016 2015 Tax on income before income tax 34.00 % 34.00 % Effect of non-temporary differences (0.05) % (0.07) % Effect of prior year items - % (16.54) % Effect of temporary differences (0.33) % - % Change in valuation allowance (33.62) % (17.39) % 0.00 % 0.00 % |
ORGANIZATION AND BASIS OF PRE17
ORGANIZATION AND BASIS OF PRESENTATION (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Net Income (Loss) Attributable To Parent | $ (2,227,324) | $ (1,713,612) |
Retained Earnings (Accumulated Deficit) | $ 23,254,877 | $ 21,027,553 |
COMMITMENTS (Details Textual)
COMMITMENTS (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Other Commitments [Line Items] | ||
Operating Leases, Rent Expense | $ 33,689 | $ 35,502 |
Deferred Compensation Liability, Current | $ 394,181 | 267,515 |
Chief Executive Officer [Member] | ||
Other Commitments [Line Items] | ||
Related Party Transaction, Rate | 5.00% | |
Due from Related Parties, Current | $ 22,300 | $ 13,960 |
STOCKHOLDERS' EQUITY (DEFICIT19
STOCKHOLDERS' EQUITY (DEFICIT) (Details) - Warrant [Member] - shares | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Outstanding - beginning of year | 29,475,626 | 19,004,326 |
Issued | 21,415,680 | 11,471,300 |
Exercised | 0 | 0 |
Expired | (38,351,107) | (1,000,000) |
Outstanding - end of year | 12,540,199 | 29,475,626 |
STOCKHOLDERS' EQUITY (DEFICIT20
STOCKHOLDERS' EQUITY (DEFICIT) (Details Textual) - USD ($) | Nov. 12, 2012 | Dec. 11, 2009 | Apr. 30, 2016 | Jul. 31, 2015 | Sep. 30, 2013 | Jul. 31, 2013 | Oct. 31, 2009 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2006 | Jun. 30, 2011 | Mar. 31, 2010 | Jun. 30, 2009 | Oct. 31, 2003 | Dec. 18, 2002 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | ||||||||||||||||||||
Preferred Stock, Par Value Per Share | $ 0.001 | ||||||||||||||||||||||
Preferred stock, shares issued | 410,000 | 410,000 | 410,000 | ||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 2,140,000 | 5,242,000 | 2,150,000 | 4,362,500 | 4,425,000 | 1,599,994 | 4,893,731 | ||||||||||||||||
Common stock, shares authorized | 300,000,000 | 300,000,000 | 300,000,000 | ||||||||||||||||||||
Common Stock, Par Or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||||||||||
Common stock, shares issued | 186,407,814 | 203,735,166 | 186,407,814 | ||||||||||||||||||||
Common stock, shares outstanding | 186,407,814 | 203,735,166 | 186,407,814 | ||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 300,000 | 1,000,000 | |||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.01 | $ 0.50 | |||||||||||||||||||||
Proceeds from sale of common stock | $ 106,771 | $ 261,477 | $ 214,633 | $ 212,934 | $ 189,557 | $ 95,750 | $ 307,662 | $ 961,665 | $ 805,903 | ||||||||||||||
Sale of Stock, Price Per Share | $ 0.11 | $ 0.14 | |||||||||||||||||||||
Fair Value Assumptions, Expected Volatility Rate | 136.00% | 150.00% | |||||||||||||||||||||
Fair Value Assumptions, Risk Free Interest Rate | 0.92% | 1.71% | |||||||||||||||||||||
Warrants and Rights Outstanding | $ 42,000 | ||||||||||||||||||||||
Class Ogf Warrant Or Right ,Yield Per Warrant ,Description | The criteria yielded a per-warrant value of $0.10 for the $0.03 warrants, and a per-warrant value of $0.09 for the $0.08 warrants, resulting in a total value of $280,000 for the 3 million warrants. | ||||||||||||||||||||||
Fair Value Assumptions, Expected Term | 3 years | 5 years | |||||||||||||||||||||
Legal and Consultancy Services [Member] | |||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 1,415,062 | 296,250 | |||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ 71,435 | $ 17,775 | |||||||||||||||||||||
Warrant [Member] | |||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 7,590,000 | ||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 4,743,750 | ||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.14 | $ 0.70 | |||||||||||||||||||||
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 | 29,475,626 | 12,540,199 | 29,475,626 | 19,004,326 | |||||||||||||||||||
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 | 2,500,000 | ||||||||||||||||||||||
Warrant Expiration Date | 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 | 2,500,000 | ||||||||||||||||||||||
October Warrant 2009 [Member] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 5,000,000 | ||||||||||||||||||||||
Warrant Two [Member] | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 674,100 | 1,651,230 | 1,354,500 | ||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1 | $ 1 | $ 1 | ||||||||||||||||||||
Twenty Four Months Warrant [Member] | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 2,668,750 | 2,668,750 | |||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 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 | 1,345,050 | ||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1 | $ 0.70 | $ 1 | ||||||||||||||||||||
Twenty Four Months Warrant Two [Member] | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 724,500 | ||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1 | ||||||||||||||||||||||
Twelve Month Warrants One [Member] | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 2,375,000 | 1,187,500 | |||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 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 | |||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1 | $ 1 | |||||||||||||||||||||
Warrant One [Member] | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,337,500 | 3,276,250 | 2,687,500 | 2,390,850 | |||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.70 | $ 0.70 | $ 0.70 | $ 1 | |||||||||||||||||||
Expire on July 12 2020 [Member] | |||||||||||||||||||||||
Number Of Warrants To Be Expired | 300,000 | ||||||||||||||||||||||
Expire on January 31, 2018 [Member] | |||||||||||||||||||||||
Number Of Warrants To Be Expired | 9,240,199 | ||||||||||||||||||||||
Warrant Three [Member] | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1 | ||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.03 | ||||||||||||||||||||||
Warrant Eight [Member] | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 2 | ||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.08 | ||||||||||||||||||||||
September 30 2019 [Member] | |||||||||||||||||||||||
Number Of Warrants To Be Expired | 3,000,000 | ||||||||||||||||||||||
Consultant [Member] | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award, Value Assigned | $ 550,000 | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5,000,000 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||
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] | |||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 200,000 | ||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 200,000 | ||||||||||||||||||||||
Series B Convertible Preferred Stock [Member] | Applied Cryptography, Inc [Member] | Minimum [Member] | |||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 1,000,000 | ||||||||||||||||||||||
Common Class [Member] | |||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 0 | 0 | |||||||||||||||||||||
Common stock, shares authorized | 50,000,000 | ||||||||||||||||||||||
Common Stock, Par Or Stated Value Per Share | $ 0.001 | $ 50,000 | |||||||||||||||||||||
Common stock, shares issued | 50,000,000 | ||||||||||||||||||||||
Conversion Of Preferred Stock Into Common Stock | 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, 2016 | Jun. 30, 2015 |
Net operating loss carryforward | $ 6,544,717 | $ 6,031,857 |
Warrant issuances | 192,990 | 0 |
Deferred officer compensation | 134,022 | 90,955 |
Other | 1,632 | 1,632 |
Valuation allowance | (6,873,361) | (6,124,444) |
Deferred Tax Assets, Net | $ 0 | $ 0 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Balance as of beginning of fiscal year | $ 0 | $ 164,869 |
Increases (decreases) related to current and prior year positions | 192,990 | (164,869) |
Balance as of June 30, | $ 192,990 | $ 0 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Tax on income before income tax | 34.00% | 34.00% |
Effect of non-temporary differences | (0.05%) | (0.07%) |
Effect of prior year items | 0.00% | (16.54%) |
Effect of temporary differences | (0.33%) | 0.00% |
Change in valuation allowance | (33.62%) | (17.39%) |
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, 2016USD ($) | |
Operating Loss Carryforwards | $ 19.2 |
Operating Loss Carryforwards, Limitations on Use | available to offset future taxable income through 2035, which will begin to expire in 2022. |