SmartMetric (SMME) 10-Q 15 May 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2017	May 09, 2017
Document And Entity Information
Entity Registrant Name	SmartMetric, Inc.
Entity Central Index Key	1,301,991
Document Type	10-Q
Trading Symbol	SMME
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filer	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		225,452,799
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($)	Mar. 31, 2017	Jun. 30, 2016
Current assets:
Cash	$ 14,920	$ 138,823
Prepaid expenses and other current assets	87,797	14,417
Total current assets	102,717	153,240
Other assets:
Total assets	102,717	153,240
Current liabilities:
Accounts payable and accrued expenses	637,079	656,587
Liability for stock to be issued	97,486	1,206,268
Deferred Officer salary	489,181	394,181
Shareholder loan	16,800	22,300
Total current liabilities	1,240,546	2,279,336
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, 225,452,799 and 203,735,166 shares issued and outstanding , respectively	225,453	203,735
Additional paid-in capital	22,749,087	20,924,635
Accumulated deficit	(24,112,779)	(23,254,876)
Total stockholders' deficit	(1,137,829)	(2,126,096)
Total liabilities and stockholders' deficit	$ 102,717	$ 153,240

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Mar. 31, 2017	Jun. 30, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized	5,000,000	5,000,000
Preferred stock, issued	410,000	410,000
Preferred stock, outstanding	410,000	410,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized	300,000,000	300,000,000
Common stock, issued	225,452,799	203,735,166
Common stock, outstanding	225,452,799	203,735,166

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Operations (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Revenues
Expenses:
Officer's salary	47,500	47,500	142,500	142,500
Other general and administrative	154,236	206,525	568,789	743,076
Research and development	48,923	22,071	146,523	130,869
Total operating expenses	250,659	276,096	857,812	1,016,445
Loss from operations before income taxes	(250,659)	(276,096)	(857,812)	(1,016,445)
Income taxes
Net loss	$ (250,659)	$ (276,096)	$ (857,812)	$ (1,016,445)
Net loss per share, basic and diluted (in dollars per share)	$ 0	$ 0	$ 0	$ (0.01)
Weighted average number of common shares outstanding, basic and diluted (in shares)	222,891,656	195,854,619	214,467,192	190,816,678

Condensed Consolidated Stateme5

Condensed Consolidated Statements Of Cash Flows (unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (857,812)	$ (1,016,445)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization
Common stock and warrants issued and issuable for services	186,130	178,869
Changes in assets and liabilities
Decrease in prepaid expenses and other current assets	(73,380)	70,000
Increase in advances to shareholder	(5,500)	(13,960)
(Decrease) increase in accounts payable and accrued expenses	(19,508)	163,263
Increase in deferred officer's salary	95,000	95,000
Net cash used in operating activities	(675,070)	(523,273)
CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Loans from related parties
Proceeds from sale of common stock	551,167	582,881
Liability for stock to be issued		(89,120)
Net cash provided by financing activities	551,167	493,761
NET (DECREASE) IN CASH	(123,903)	(29,512)
CASH BEGINNING OF PERIOD	138,823	44,516
CASH END OF PERIOD	14,920	15,004
CASH PAID DURING THE PERIOD FOR:
Income taxes
Interest

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	9 Months Ended
	Mar. 31, 2017
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 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, 2017 are not necessarily indicative of the results that may be expected for the year ending June 30, 2017. 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, 2016, 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 $857,812 and $1,016,445 for the nine months ended March 31, 2017 and 2016 respectively, and has an accumulated deficit of $24,112,779 at March 31, 2017. 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 ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Mar. 31, 2017
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 had no cash equivalents at March 31, 2017 and June 30, 2016. 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, 2017 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 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. 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. 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.

PREPAID EXPENSES

PREPAID EXPENSES	9 Months Ended
	Mar. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
PREPAID EXPENSES	NOTE 3 PREPAID EXPENSES Prepaid expenses represent the unexpired terms of various consulting agreements 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.

COMMITMENTS

COMMITMENTS	9 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	NOTE 4 - COMMITMENTS Lease Agreement The Company’s main office is located in Las Vegas, Nevada. Rent expense under all leases for the nine months ended March 31, 2017 and 2016 was $25,120 and $24,864, respectively. Related Party Transactions The Company’s Chief Executive Officer has made cash advances to the Company with an aggregate amount due of $16,800 and $22,300 at March 31, 2017 and June 30, 2016, respectively. These advances bear interest at the rate of five percent (5%) per annum. The Company has accrued the amounts of $489,181 and $394,181 at March 31, 2017 and June 30, 2016, respectively, as deferred officer’s salary, for the difference between the Chief Executive Officer’s annual salary and the amounts paid.

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT)	9 Months Ended
	Mar. 31, 2017
Equity [Abstract]
STOCKHOLDERS' EQUITY (DEFICIT)	NOTE 5 STOCKHOLDERS’ EQUITY (DEFICIT) Preferred Stock As of March 31, 2017, 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 preferred stock 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 each 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, 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. Class A Common Stock As of March 31, 2017, 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, authorized. The Articles of Incorporation were amended in 2006 to increase the number of authorized shares to 100,000,000 shares, and in 2009 to increase the number of authorized shares to 200,000,000. As a result of a screener's error, the Company previously disclosed in its Quarterly Report on Form 10-Q for the quarters ended September 30, 2015 and December 31, 2015 that it increased the number of authorized shares of common stock to 300,000,000. On March 31, 2016, our Board of Directors approved an amendment (the “Amendment”) to the Company’s Articles of Incorporation to increase the total number of shares of authorized capital stock to 305,000,000 shares, par value $0.001 per share, consisting of (i) 300,000,000 shares of Common Stock, up from 200,000,000 shares of Common Stock, and (ii) 5,000,000 shares of Preferred Stock, subject to shareholder approval (the “Proposal”). On March 31, 2016, a majority of the Company’s stockholders approved the Amendment. The Company filed a definitive information statement on Schedule 14C with the Securities and Exchange Commission on May 4, 2016 (the “Information As of March 31, 2017, the Company has 225,452,799 shares of common stock issued and outstanding. During the three months ended September 30, 2015, the Company sold for cash 2,150,000 shares of common stock and warrants to purchase: (i) 2,687,500 shares at $0.70 per share, and (ii) 1,354,500 shares at $1.00 per share, for net proceeds of $214,633. The warrants expired at various times through June 2016. During the three months ended December 31, 2015, the Company sold for cash 5,242,000 shares of common stock and warrants to purchase: (i) 3,276,250 shares at $0.70 per share, and (ii) 1,651,230 shares at $1.00 per share, for net proceeds of $261,477. The warrants expired at various times through October 28, 2016. During the three months ended March 31, 2016, the Company sold for cash 2,140,000 shares of common stock and warrants to purchase: (i) 1,337,500 shares at $0.70 per share, and (ii) 674,100 shares at $1.00 per share, for net proceeds of $106,771. The warrants expire at various times through January 15, 2018. During the three months ended June 30, 2016, the Company sold for cash 7,590,000 shares of common stock and warrants to purchase: (i) 4,743,750 shares at $0.70 per share, and (ii) 2,390,850 shares at $1.00 per share, for net proceeds of $378,784. The warrants expire at various times through January 15, 2018. During the three months ended June 30, 2016, the Company authorized to be issued 5,000,000 shares of common stock for consulting services valued at $550,000, based on the stock price at the time of the respective agreements underlying the services provided. During the three months ended September 30, 2016, the Company sold for cash 3,030,000 shares of common stock and warrants to purchase: (i) 1,893,750 shares at $0.70 per share, and (ii) 954,450 shares at $1.00 per share, for net proceeds of $151,016. The warrants expire at various times through January 15, 2018. During the three months ended September 30, 2016, the Company authorized to be issued 1,669,633 shares of common stock for consulting services valued at $84,400, based on the stock price at the time of the respective agreements underlying the services provided. During the three months ended December 31, 2016, the Company sold for cash 5,570,000 shares of common stock and warrants to purchase: (i) 3,481,250 shares at $0.70 per share, and (ii) 1,754,550 shares at $1.00 per share, for net proceeds of $282,859. The warrants expire at various times through January 31, 2018. During the three months ended March 31, 2017, the Company sold for cash 2,450,000 shares of common stock and warrants to purchase: (i) 1,531,250 shares at $0.70 per share, and (ii) 771,750 shares at $1.00 per share, for net proceeds of $122,272.50. The warrants expire at various times through September 27, 2018. During the three months ended March 31, 2017, the Company issued 2,423,000 shares of common stock for consulting services valued at $290,070, 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 July 2015, as consideration for a consulting agreement, the Company issued warrants to purchase 300,000 shares of its common stock at an exercise price of $0.01 per share. The warrants are fully vested and exercisable for five-years. The Company valued the warrants using the Black-Scholes method with the following criteria: stock price of $0.14; volatility 150%; term 5 years; and risk-free rate of 1.71%. The criteria yielded a per-warrant value of $0.14, resulting in a total value of $42,000 for the 300,000 warrants. The Company recorded the charge to consulting expense over the three-month term of the consulting agreement. During the three months ended September 30, 2016, the Company recorded a charge of $35,000 to consulting expense, which is included in other general and administrative expenses in the condensed consolidated statement of operations. In April 2016, as partial consideration for consulting services rendered, the Company authorized to be issued warrants to purchase 1,000,000 shares of its common stock at an exercise price of $0.03 per share (“$0.03 Warrants”), and 2,000,000 warrants to purchase shares of its common stock at an exercise price of $0.08 per share (“$0.08 Warrants,” and, together with the $0.03 Warrants, the “Warrants”). The Warrants are fully vested and exercisable for three-years. The Company valued the Warrants using the Black-Sholes option pricing model with the following criteria: stock price of $0.11; volatility 136%; term 3 years; and risk-free rate of 0.92%. 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 Warrants. The expense has been included in other general and administrative expenses in the consolidated statement of operations. As of March 31, 2017 and June 30, 2016, the following is a breakdown of the warrant activity: March 31, 2017: Outstanding - June 30, 2016 12,540,199 Issued 10,387,000 Exercised - Expired (2,895,200 ) Outstanding - March 31, 2017 20,031,999 June 30, 2016: Outstanding - June 30, 2015 29,475,626 Issued 21,415,680 Exercised - Expired (38,351,107 ) Outstanding - June 30, 2016 12,540,199 At March 31, 2017, all of the 20,031,999 warrants are vested and 16,731,999 warrants expire at various times through September 2018, 3,000,000 warrants expire in September 2019, and 300,000 warrants expire in July 2020.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 6 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, 2017
Commitments and Contingencies Disclosure [Abstract]
LITIGATION	NOTE 7 LITIGATION From time to time, the Company may be a plaintiff or defendant in various legal proceedings arising in the normal course of our business. We know of no material, active, pending or threatened proceedings 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 ACCOUN13

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
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 had no cash equivalents at March 31, 2017 and June 30, 2016.
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, 2017 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 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.
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.
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.

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT) (Tables)	9 Months Ended
	Mar. 31, 2017
Stockholders' Equity Note [Abstract]
Schedule of share based compensation warrant activity	As of March 31, 2017 and June 30, 2016, the following is a breakdown of the warrant activity: March 31, 2017: Outstanding - June 30, 2016 12,540,199 Issued 10,387,000 Exercised - Expired (2,895,200 ) Outstanding - March 31, 2017 20,031,999 June 30, 2016: Outstanding - June 30, 2015 29,475,626 Issued 21,415,680 Exercised - Expired (38,351,107 ) Outstanding - June 30, 2016 12,540,19 9

ORGANIZATION AND BASIS OF PRE15

ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ (250,659)	$ (276,096)	$ (857,812)	$ (1,016,445)
Accumulated deficit	$ 24,112,779		$ 24,112,779		$ 23,254,876

SUMMARY OF SIGNIFICANT ACCOUN16

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	9 Months Ended
	Mar. 31, 2017
Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life	3 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life	5 years

COMMITMENTS (Details Narrative)

COMMITMENTS (Details Narrative) - USD ($)	9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016
Rent expense	$ 25,120	$ 24,864
Deferred compensation liability	489,181		$ 394,181
Chaya Hendrick [Member]
Cash advances from related party	$ 16,800		$ 22,300
Interest rate	5.00%

STOCKHOLDERS' EQUITY (DEFICIT18

STOCKHOLDERS' EQUITY (DEFICIT) (Details) - Warrant [Member] - shares	9 Months Ended	12 Months Ended
	Mar. 31, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding - beginning of year	12,540,199	29,475,626
Issued	10,387,000	21,415,680
Exercised
Expired	(2,895,200)	(38,351,107)
Outstanding - end of year	20,031,999	12,540,199

STOCKHOLDERS' EQUITY (DEFICIT19

STOCKHOLDERS' EQUITY (DEFICIT) (Details Narrative) - USD ($)	Nov. 05, 2014	Oct. 31, 2003	Apr. 30, 2016	Jul. 31, 2015	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2015	Dec. 11, 2009	Jun. 30, 2009	Jun. 30, 2006	Dec. 18, 2002
Preferred stock, shares authorized					5,000,000			5,000,000				5,000,000
Preferred stock, par value (in dollars per share)					$ 0.001			$ 0.001				$ 0.001
Preferred stock, shares issued					410,000			410,000				410,000
Preferred stock, outstanding					410,000			410,000				410,000
Number of shares issued					2,450,000	5,570,000	3,030,000	7,590,000	2,140,000	5,242,000	2,150,000
Common stock, shares authorized					300,000,000			300,000,000				300,000,000
Common stock, par value (in dollars per share)					$ 0.001			$ 0.001				$ 0.001
Common stock, shares issued					225,452,799			203,735,166				225,452,799
Common stock, shares outstanding					225,452,799			203,735,166				225,452,799
Proceeds from sale of common stock					$ 122,273	$ 282,859	$ 151,016	$ 378,784	$ 106,771	$ 261,477	$ 214,633	$ 551,167	$ 582,881
Warrant expiration date					Sep. 27, 2018	Jan. 31, 2018	Jan. 15, 2018	Jan. 15, 2018	Jan. 15, 2018	Oct. 28, 2016	Jun. 30, 2016
Consultant [Member]
Number of shares issued for services					2,423,000
Common stock issued for services					$ 290,070
Value of shares authorized to be issued for consulting services							$ 84,400	$ 550,000
Number of shares authorized to be issued for consulting services (in shares)							1,669,633	5,000,000
Warrant One [Member]
Number of securities					1,531,250	3,481,250	1,893,750	4,743,750	1,337,500	3,276,250	2,687,500	1,531,250	1,337,500
Exercise price of warrants					$ 0.70	$ 0.70	$ 0.70	$ 0.70	$ 0.70	$ 0.70	$ 0.70	$ 0.70	$ 0.70
Warrant Two [Member]
Number of securities					771,750	1,754,550	954,450	2,390,850	674,100	1,651,230	1,354,500	771,750	674,100
Exercise price of warrants					$ 1	$ 1	$ 1	$ 1	$ 1	$ 1	$ 1	$ 1	$ 1
Warrant [Member]
Number of securities				300,000
Exercise price of warrants				$ 0.01
Number of warrant vested					20,031,999			12,540,199				20,031,999		29,475,626
Stock price per share			$ 0.11	$ 0.14
Expected volatility rate			136.00%	150.00%
Risk free interest rate			0.92%	1.71%
Warrants and rights outstanding			$ 280,000	$ 42,000
Description of warrant			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.
Expected term			3 years	5 years
Warrant Three [Member]
Number of securities			1,000,000
Exercise price of warrants			$ 0.03
Warrant Eight [Member]
Number of securities			2,000,000
Exercise price of warrants			$ 0.08
Warrant Expired On July 2020 [Member]
Number of warrants expired												300,000
Warrant Expired Through January 2018 [Member]
Number of warrants expired												16,731,999
Warrant Expired On September 2019 [Member]
Number of warrants expired												3,000,000
Common Class [Member]
Description of conversion of stock		These shares were converted into 50,000,000 shares of common stock in 2006.
Common stock, shares authorized					50,000,000							50,000,000
Common stock, par value (in dollars per share)		$ 50,000			$ 0.001							$ 0.001
Common stock, shares issued		50,000,000
Common Stock [Member]
Common stock, shares authorized									305,000,000	300,000,000	300,000,000		305,000,000			200,000,000	100,000,000	45,000,000
Common stock, par value (in dollars per share)									$ 0.001				$ 0.001					$ 0.001
Series B Convertible Preferred Stock [Member]
Preferred stock, shares authorized	1,000,000														500,000
Preferred stock, par value (in dollars per share)	$ 0.001														$ 0.001
Preferred stock, Stated Value Per Share	$ 5														$ 5
Description of conversion of stock	Holders of the Series B Convertible Preferred Stock are entitled to convert each share of the Series B Convertible Preferred Stock into fifty (50) shares of common stock.

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative)	9 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Effective tax rate	0.00%