| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES Basis
of Presentation The
unaudited interim condensed financial statements of the Company as of September 30, 2016 and for the three month periods ended
September 30, 2016 and 2015 included herein have been prepared in accordance with accounting principles generally accepted in
the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations
of the Securities and Exchange Commission (the “SEC”). The year-end condensed balance sheet dated as of June
30, 2016 is audited and is presented here as a basis for comparison. Although the financial statements and related information
included herein have been prepared without audit, and certain information and disclosures normally included in financial statements
prepared in accordance with GAAP have been condensed or omitted, the Company believes that the note disclosures are adequate to
make the information presented not misleading. These unaudited condensed financial statements should be read in conjunction
with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual
Report on Form 10-K as of June 30, 2016. In the opinion of our management, the unaudited interim financial statements included
herein reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the
Company’s financial position, results of operations, and cash flows for the periods presented. The results of operations
for interim periods are not necessarily indicative of the results expected for the full year or any future period. Principles
of Consolidation The
consolidated financial statements include the accounts of the Company and its subsidiaries in which we have a controlling voting
interest – 50% or more. To determine if we hold a controlling financial interest in an entity, we first evaluate if we are
required to apply the variable interest entity model (“VIE”) to the entity, otherwise the entity is evaluated under
the voting interest model. Where
we hold current or potential rights that give us the power to direct the activities of the VIE that most significantly impact
the VIE’s economic performance combined with a variable interest that gives us the right to receive potentially significant
benefits or the obligation to absorb potentially significant losses, we have a controlling financial interest in that VIE. Rights
held by others to remove the party with power over the VIE are not considered unless one party can exercise those rights unilaterally.
When changes occur to the design of an entity, we reconsider whether it is subject to the VIE model. We continuously evaluate
whether we have a controlling financial interest in a VIE. In the quarter ended September 30, 2016, the Company reassessed the
activities of EcoGen Europe Ltd. (EcoGen”), and concluded that EcoGen is a VIE and the Company has the power to direct the
activities of EcoGen and we have concluded that we are the primary beneficiary of EcoGen. Therefore, we have consolidated herein
the accounts of EcoGen. All
material intercompany accounts have been eliminated upon consolidation. Certain prior year amounts are sometimes reclassified
to be consistent with the current year financial statement presentation. Equity investments, which we have an ownership greater
than 20% but less than 50% through which we exercise significant influence over but do not control the investee and we are not
the primary beneficiary of the investee’s activities, are accounted for using the equity method of accounting. Equity investments,
which we have an ownership less than 20%, are recorded at cost. Use
of Estimates The
financial statements and related notes are prepared in conformity with GAAP which requires our 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. The Company
regularly evaluates estimates and assumptions related to valuation and impairment of investments and long-lived assets, and deferred
income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience
and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making
judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent
from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s
estimates. To the extent there are material differences between the estimates and the actual results, future results of operations
will be affected. Revenue
Recognition We
derive revenue from several types of activities – medical device sales, commercial real estate leasing and financial services.
Our medical device sales include the marketing and distribution of certain professional and consumer grade digital non-contact
thermometers, needle destruction unit and advanced bleeding control, non-compression hemostasis. Our real estate leasing revenues
are from certain commercial properties under long-term lease. The financial service revenue is from brokerage services earned
in connection with debt placement services. The Company offers customer discounts in certain cases. Such discounts are estimated
at time of product sale and deducted from gross revenues and recorded as deferred revenue. Cash
and Cash Equivalents We
consider highly liquid investments with an original maturity of 90 days or less to be cash equivalents. Marketable
Securities We
determine the appropriate classification of our marketable securities at the time of purchase and reassess the appropriateness
of the classification at each reporting date. At June 30, 2016, all marketable securities held by the Company have been classified
as available-for-sale and, as a result, are stated at fair value with unrealized gains and losses included as a component of accumulated
other comprehensive income or loss. Realized gains and losses on the sale of marketable securities are determined on a specific
identification basis. Interest and dividend income is recorded when it is earned and deemed realizable by the Company. At June
30, 2016, the fair value of the marketable securities on hand, which consisted entirely of widely recognized publicly-traded securities,
was $339,032. Gross unrealized loss on the fair market value of the marketable securities was $38,860 as of June 30, 2016. As
of June 30, 2016, we had trade date receivables of $302,288 recorded which was related to a sale of securities that had a trade
date prior to June 30, 2016 and a settlement date after that date. At September 30, 2016, the Company holds only $25,016 in marketable
equity securities which was subsequently sold in October 2016. Accounts
Receivable Accounts
receivables are amounts due from customers of our pharmaceutical, medical device and our financial services divisions. The amount
is reported at the billed amount, net of any expected allowance for bad debts. There was no allowance for doubtful accounts as
of September 30, 2016 and June 30, 2016. Inventory Inventory
consist of purchased thermometers and advanced bleeding control, non-compression hemostasis held for resale and are stated at
the lower of cost or net realizable value utilizing the first-in, first-out method. Property
and Improvements Property
and improvements are stated at cost. We provide for depreciation expense on a straight line basis over each asset’s useful
life depreciated to their estimated salvage value. Buildings are depreciated over a useful life of 20 years. Building improvements
are depreciated over a useful life of 5 to 10 years. Income
Taxes Potential
benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted
Accounting Standard Codification (which we refer to as “ASC”) 740, Income Taxes, Basic
and Diluted Net Loss Per Share The
Company computes net loss per share in accordance with ASC 260, Earnings Per Share, Comprehensive
Income (Loss) ASC
220, Comprehensive Income Financial
Instruments Pursuant
to ASC 820, Fair Value Measurements and Disclosures Level
1. Level
2. Level
3. The
Company had marketable securities with a fair market value of $339,032 and $25,016 at June 30, 2016 and September 30, 2016, respectively,
which are all publicly traded securities with quoted prices in active markets. The fair value is based on Level 1 assumptions. The
Company’s financial instruments consist principally of cash, marketable securities, accounts payable and accrued liabilities,
debt, and amounts due to related parties. Pursuant to ASC 820 and ASC 825, the fair value of our cash is determined based on “Level
1” inputs, which consist of quoted prices in active markets for identical assets. We
believe that the recorded values of all of our other financial instruments approximate their current fair values because of their
nature and respective maturity dates or durations. Recent
Accounting Pronouncements Revenue
Recognition In
May 2014, the Financial Accounting Standards Board (which we refer to as the “FASB”) issued new guidance intended
to change the criteria for recognition of revenue. The new guidance establishes a single revenue recognition model for all contracts
with customers, eliminates industry specific requirements and expands disclosure requirements. The core principle of the guidance
is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that
reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this
core principle, an entity should apply the following five steps: (1) identify contracts with customers, (2) identify the performance
obligations in the contracts, (3) determine the transaction price, (4) allocate the transaction price to the performance obligation
in the contract, and (5) recognize revenue as the entity satisfies performance obligations. In July 2015, the FASB permitted early
adoption and deferred the effective date of this guidance one year; therefore, it will be effective for the Company in the first
quarter of fiscal 2019 and may be implemented retrospectively to all years presented or in the period of adoption through a cumulative
adjustment. We are currently evaluating what impact the adoption of this guidance would have on our financial position, results
of operations, cash flows and disclosures. Going
Concern In
August 2014, the FASB issued guidance on disclosures of uncertainties about an entity’s ability to continue as a going concern.
The guidance requires management’s evaluation of whether there are conditions or events that raise substantial doubt about
the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued.
This assessment must be made in connection with preparing financial statements for each annual and interim reporting period. Management’s
evaluation should be based on the relevant conditions and events that are known and reasonably knowable at the date the financial
statements are issued. If conditions or events raise substantial doubt about the entity’s ability to continue as a going
concern, but this doubt is alleviated by management’s plans, the entity should disclose information that enables the reader
to understand what the conditions or events are, management’s evaluation of those conditions or events and management’s
plans that alleviate that substantial doubt. If conditions or events raise substantial doubt and the substantial doubt is not
alleviated, the entity must disclose this in the footnotes. The entity must also disclose information that enables the reader
to understand what the conditions or events are, management’s evaluation of those conditions or events and management’s
plans that are intended to alleviate that substantial doubt. The amendments are effective for annual periods and interim periods
within those annual periods beginning after December 15, 2016. We do not expect that adoption will have a material impact on our
financial position, results of operations, cash flows or disclosures. Debt
Issuance Costs In
April 2015, the FASB issued new guidance which requires debt issuance costs to be presented in the balance sheet as a direct deduction
from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The new guidance
does not affect the recognition and measurement of debt issuance costs. Therefore, the amortization of such costs will continue
to be calculated using the interest method and be reported as interest expense. The new guidance does not specifically address,
and therefore does not affect, the balance sheet presentation of debt issuance costs for revolving debt arrangements. This new
guidance is effective for the Company in the first quarter of fiscal 2017, and will be applied on a retrospective basis. Early
adoption is permitted for financial statements that have not been previously issued. To date, our debt issuance cost of $40,675
as of September 30, 2016 and $34,791 as of June 30, 2016 has not been significant. As the Company continues to raise capital to
execute its growth strategy, the use of debt in the future may have additional issuance costs to be accounted for under this guidance. Leases In
February 2016, the FASB issued ASU 2016-02, Leases |
