MV Portfolios (MVP) 10-Q 17 Apr 17 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2017
Details
Registrant Name	MV PORTFOLIOS, INC.
Registrant CIK	1,363,573
SEC Form	10-Q
Period End date	Mar. 31, 2015
Fiscal Year End	--06-30
Trading Symbol	mvp
Tax Identification Number (TIN)	830,483,725
Number of common stock shares outstanding		84,230,628
Filer Category	Smaller Reporting Company
Current with reporting	No
Voluntary filer	No
Well-known Seasoned Issuer	No
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Entity Incorporation, State Country Name	Nevada
Entity Address, Address Line One	2850 Isabella Boulevard
Entity Address, Address Line Two	Suite 50
Entity Address, City or Town	Jacksonville Beach
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32,250
City Area Code	904
Local Phone Number	903-4504

Consolidated Balance Sheets (un

Consolidated Balance Sheets (unaudited) - USD ($)	Mar. 31, 2015	Jun. 30, 2014
Current assets:
Cash	$ 2,154	$ 1,468,401
Prepaid expenses	0	280,880
Debt Issuance Costs, Current, Net	0	689,556
Assets, Current	2,154	2,438,837
Assets Held-for-sale, Long Lived, Fair Value Disclosure	0	3,608
Assets	2,154	2,442,445
Current liabilities:
Accounts payable and accrued expenses	1,103,563	640,364
Derivative liabilities	76,400	2,365,315
Convertible notes	0	3,959,995
Total current liabilities	1,179,963	6,965,674
Convertible notes, net of unamortized discounts of $211,543	0	113,457
Total liabilities	1,179,963	7,079,131
Stockholders' deficit:
Additional paid-in capital	19,953,892	(76,214)
Retained Earnings (Accumulated Deficit)	(21,167,315)	(4,579,498)
Total stockholders' deficit attributable to MV Portfolios, Inc.	(1,175,748)	(4,636,686)
Total stockholders equity attributable to noncontrolling interest	(2,061)	0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	(1,177,809)	(4,636,686)
Total liabilities and stockholders' deficit	2,154	2,442,445
Series A Preferred Stock
Stockholders' deficit:
Preferred Stock, Value, Issued	8,000	8,000
Series B Preferred Stock
Stockholders' deficit:
Preferred Stock, Value, Issued	750	0
Series C Preferred Stock
Stockholders' deficit:
Preferred Stock, Value, Issued	4,033	0
Series D Preferred Stock
Stockholders' deficit:
Preferred Stock, Value, Issued	$ 20	$ 0

Consolidated Balance Sheets (u3

Consolidated Balance Sheets (unaudited) - Parenthetical - USD ($)	Mar. 31, 2015	Jun. 30, 2014
Debt Instrument, Unamortized Discount	$ 0	$ 211,543
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	300,000,000	300,000,000
Common Stock, Shares, Issued	24,872,211	11,026,013
Common Stock, Shares, Outstanding	24,872,211	11,026,013
Series A Preferred Stock
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Preferred Stock, Shares Outstanding	8,000,000	8,000,000
Preferred Stock, Shares Issued	8,000,000	8,000,000
Series B Preferred Stock
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	3,592,238	3,592,238
Preferred Stock, Shares Outstanding	749,740	0
Preferred Stock, Shares Issued	749,740	0
Series C Preferred Stock
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Preferred Stock, Shares Outstanding	4,032,977	0
Preferred Stock, Shares Issued	4,032,977	0
Series D Preferred Stock
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Preferred Stock, Shares Outstanding	20,000	0
Preferred Stock, Shares Issued	20,000	0

Consolidated Statements of Oper

Consolidated Statements of Operations (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Other income (expenses):
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest			$ (16,588,388)	$ (5,068,201)
MV Portfolios, Inc. and Subsidiaries
Operating Expenses:
General and administrative	$ 1,901,234		14,243,752
Acquisiton related costs	0		0
Loss from operations	1,901,234		14,243,752
Other income (expenses):
Interest expense	0		(4,629,943)
Gain on change in fair value of derivative liabilities	151,675		2,288,915
Total other expenses, net	151,675		(2,341,028)
Loss from continuing operations	(1,749,559)		(16,584,780)
Loss from discontinued operations	0		(3,608)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(1,749,559)		(16,588,388)
Net Income (Loss) Attributable to Noncontrolling Interest	(571)		(571)
Net Income (Loss) Attributable to Parent	$ (1,748,988)		$ (16,587,817)
Basic and diluted net loss per share:
Loss from continuing operations per share	$ (0.07)		$ (0.84)
Loss from discontinued operations per share	0		0
Net loss per share	$ (0.07)		$ (0.84)
Weighted average number of common shares outstanding - basic and diluted	24,554,530		19,655,124
MV Patents, LLC
Operating Expenses:
General and administrative		$ 356,412		589,174
Acquisiton related costs		1,472,706		1,472,706
Loss from operations		1,829,118		2,061,880
Other income (expenses):
Interest expense		(404,994)		(413,335)
Gain on change in fair value of derivative liabilities		(2,380,540)		(2,380,540)
Total other expenses, net		(2,785,501)		(2,793,842)
Loss from continuing operations		(4,614,619)		(4,855,722)
Loss from discontinued operations		(212,479)		(212,479)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest		(4,827,098)		(5,068,201)
Net Income (Loss) Attributable to Noncontrolling Interest		0		0
Net Income (Loss) Attributable to Parent		$ (4,827,098)		$ (5,068,201)
Basic and diluted net loss per share:
Loss from continuing operations per share		$ (0.42)		$ (0.44)
Loss from discontinued operations per share		(0.02)		(0.02)
Net loss per share		$ (0.44)		$ (0.46)
Weighted average number of common shares outstanding - basic and diluted		10,918,321		10,918,321

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ (16,588,388)	$ (5,068,201)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Depreciation	441	294
Impairment of mining rights	450,000	0
Loss on disposal of assets held for sale	3,167	0
Amortization of debt discounts and deferred financing	4,561,099	347,068
Gain on change in fair value of derivative liabilities	(2,288,915)	2,380,540
Options expense	6,680,570	0
Stock based compensation	4,062,000	0
Warrants issued for services	305,837	0
Loss on common stock issued for liabilities	229,850	0
Loss on Series B preferred stock issued for liabilities	220,470	0
Convertible debt issued for settlement of legal fees	0	25,000
Changes in operating assets and liabilities:
Prepaid expenses	280,880	12,278
Accounts payable and accrued expenses	876,742	248,751
Net cash used in operating activities	(1,206,247)	(2,054,270)
Net Cash Provided by (Used in) Investing Activities
Cash received in reverse merger	0	209,392
Net cash used by operating activities	0	209,392
Cash flows from financing activities:
Proceeds from Noncontrolling Interests	40,000	0
Repayment of convertible notes	(300,000)	0
Stockholder contributions	0	2,757
Payments of Debt Issuance Costs	0	(295,150)
Proceeds from issuing convertible notes	0	3,934,995
Proceeds from demand note	0	50,000
Proceeds from participation notes	0	20,000
Net cash (used) provided by financing activities	(260,000)	3,712,602
Net increase (decrease) in cash	(1,466,247)	1,867,724
Cash, beginning of period	1,468,401	2,523
Cash, end of period	2,154	1,870,247
Supplemental disclosures of cash flow information:
Interest paid	15,000	0
Income taxes paid	0	0
Non-cash investing and financing activities:
Conversion of convertible notes to Series C preferred stock	3,660,000	0
Beneficial conversion feature	3,660,000	0
Common stock issued to related party for mining rights	450,000	0
Common stock issued for exchange of warrants	4,000	0
Conversion of Series C preferred stock to common stock	3,684	0
Common stock issued for liabilities	339,009	0
Conversion of convertible notes to Series B	325,000	0
Series B preferred stock issued for liabilities	300,000	0
Conversion of accrued interest to Series C preferred stock	198,578	0
Conversion of Series B preferred stock to common stock	2,843	0
Conversion of accrued interest to Series B preferred stock	$ 26,271	$ 0

1. Interim Financial Statements

1. Interim Financial Statements	9 Months Ended
	Mar. 31, 2015
Notes
1. Interim Financial Statements	1. Intrim Financial Statements The unaudited consolidated financial statements of MV Portfolios, Inc. and Subsidiaries (collectively the “Company”) as of March 31, 2015 and for the nine month periods ended March 31, 2015 and 2014 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. The consolidated balance sheet of the Company at June 30, 2014 has been derived from the audited financial statements at that date, but does not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. All adjustments that, in the opinion of management, are necessary for a fair presentation for the periods presented have been reflected as required by the SEC. Such adjustments are of a normal, recurring nature. It is suggested that these unaudited consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended June 30, 2014. The results of operations for interim periods are not necessarily indicative of the operating results to be expected for the full year or any other interim period.

2. General Organization and Bus

2. General Organization and Business	9 Months Ended
	Mar. 31, 2015
Notes
2. General Organization and Business	2. General Organization and Business MV Portfolios, Inc. and subsidiaries (collectively the “Company”) is a Nevada corporation. The Company was an exploration stage mining company with a focus on the identification, acquisition and development of rare and precious metals mining properties in the Americas. On February 7, 2014, the Company entered into a securities exchange agreement (the “Securities Exchange”) with MVP Portfolio, LLC (“MVP Portfolio”), a Florida limited liability company, MV Patents, LLC (“MV Patents”), a Florida limited liability company and majority member of MVP Portfolio, and other members of MVP Portfolio (all such members collectively, the “Members”). Pursuant to the Securities Exchange, the Members sold all of their membership interests in MVP Portfolio to the Company in exchange for an aggregate of 9,385,000 shares of common stock, $0.10 par value per share, after taking into account the 1 for 100 reverse stock split (the “Reverse Split”) of the Company’s issued and outstanding common stock. Following the Securities Exchange, the Company assumed the additional line of business of MVP Portfolio. The Securities Exchange was consummated in anticipation of a 1 for 100 Reverse Split. As the share exchange was dependent upon the Reverse Split, all share and per share amounts herein have been retroactively restated to reflect the 1 for 100 Reverse Split as if it has been effected during all periods presented. MV Patents, formed on July 11, 2011 has limited operations. MVP Portfolio was formed on July 26, 2013 as a wholly owned subsidiary of MV Patents. On August 30, 2013, MV Patents transferred a portion of its patents without recourse to MVP Portfolio. Pursuant to the Securities Exchange on February 7, 2014, MVP Portfolio ceased to be a subsidiary of MV Patents and became a wholly owned subsidiary of the Company. MV Patents is deemed to be the predecessor entity to MVP Portfolio. On March 6, 2014, MVP Portfolios changed its form of organization to a Florida corporation from a Florida limited liability company, and changed its name to Visual Real Estate, Inc. (“VRE”). VRE has historically maintained a June 30 fiscal year, through MV Patents, the predecessor business to MVP Portfolio. As of June 30, 2015 VRE has not commenced its planned principal operations, the business of patent licensing and assertion of rights under patents against parties believed to be selling goods or services that rely upon VRE’s patented technology. VRE owns a patent portfolio it refers to as “Video Drive-by” and online mapping, which has previously been used by its predecessors and licensees commercially. VRE currently owns a patent portfolio consisting of eight (8) issued and sixteen (16) pending patents. The patents disclose systems and methods for providing video drive-by data to enable a street level view of a neighborhood surrounding a geographic location. The systems include, generally, a video and data server farm incorporating at least one (1) video storage server that stores video image files containing video drive-by data corresponding to a geographic location, a data base server that processes a data query received from a user over the internet and an image processing server. VRE’s activities since inception have consisted principally of acquiring additional technology patents and raising capital. Subsequent to the Securities Exchange, the Company changed its fiscal year end to June 30, which is VRE’s year end. On November 20, 2014, the Company formed a wholly owned subsidiary, Flexine, Inc., which will explore productization potential from a patent from Harvard University for a novel material that may be used to create a unique variable focus lens for SmartPhone cameras. On November 20, 2014, the Company formed a wholly owned subsidiary, ResoCator, Inc.(which name was changed to LocatorX, Inc. in March 2016), which will explore productization potential from a patent from the University of Oxford for a Miniature Atomic Clock (“MAC”). MV Portfolios, Inc. has signed an option agreement for US Patent 82217724 with ISIS Innovations (University of Oxford’s patent licensing company).

3. Going Concern

3. Going Concern	9 Months Ended
	Mar. 31, 2015
Notes
3. Going Concern	Going Concern The Company is engaged in limited operations. The Company primary activities are carried out through its subsidiaries ResoCator, Inc., Flexine, Inc. and Visual Real Estate, Inc. The ongoing business plan of the Company is to assert its intellectual property rights to monetize its patents through net recoveries. Net recoveries relate to monetary payments received by the Company in respect to its patents through judgments, settlements, royalty agreements, or other disposition of the patents or cash proceeds of any equity actually received as consideration for any such disposition, including those received in connection with litigation. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. As shown in the accompanying consolidated financial statements, the Company has incurred losses for all periods presented, as the ongoing business has not yet commenced. The Company has not established an ongoing source of revenues and has funded activities to date primarily from convertible notes and common stock offerings. In addition, the Company had a working capital deficit as of March 31, 2015. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company is subject to a number of risks including, but not limited to, the need to obtain adequate funding and possible risk of failure to monetize its patents. If the Company does not successfully monetize its patents, it will be unable to generate revenues or achieve profitability. Management’s plan with respect to funding the ongoing operations is to secure equity financing through access to U.S. capital markets as a registrant of the U.S. Securities and Exchange Commission. While the Company believes, it will be successful in obtaining the necessary financing to (i) fund its operations, (ii) monetize its patents and meet revenue projections and (iii) manage costs, it does not currently have any financing plans in place and there are no assurances that such additional funding will be achieved and that it will succeed in its future operations. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts of liabilities that might be necessary should the Company be unable to continue as a going concern. Operating results for the nine-month period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2015.

4. Discontinued Operations

4. Discontinued Operations	9 Months Ended
	Mar. 31, 2015
Notes
4. Discontinued Operations	4. Discontinued Operations Pursuant to the Securities Exchange, the pre-existing mining business was discontinued. On April 28, 2014 the Company notified Mexivada Mining Corp. and Compania Minera Mexivada S.A de C.V., of termination of the Mexivada Property Option Agreement dated as of February 11, 2011, as amended October 24, 2011, and that the Company would not pay any further fees or expenses associated with the Agreement. The remaining interests were sold on July 24, 2014. The following table presents summarized operating results for these discontinued operations. The table below does not present MV Patents because the historical financial information represents the activity of MV Patents as the predecessor business to VRE, and does not include any of the operations of the discontinued exploration stage mining business. The historical financial information for MV Patents for the nine months ended March 31, 2014 is included in the accompanying consolidated financial statements. Nine Months Ended March 31, 2015 Loss from discontinued operations $ 3,608 Components of assets from discontinued operations consist of the following as of March 31, 2015 and June 30, 2014. March 31, 2015 June 30, 2014 Current assets: Property and equipment $ - $ 8,809 Less: accumulated depreciation - (5,201) Total assets held for sale $ - $ 3,608

5. Related Party Transactions

5. Related Party Transactions	9 Months Ended
	Mar. 31, 2015
Notes
5. Related Party Transactions	5. Related Party Transactions Officer and director fees totaled $322,500 and $335,060 for the nine month periods ended March 31, 2015 and 2014, respectively. The total compensation of officers and directors was recorded as a component of general and administrative expenses. In September 2014 the Company granted 5,140,339 common stock options to its officers (see Note 10). The total fair value of the award was estimated to be $9,605,675. Share-based compensation expense is recognized ratably over the vesting periods. For the nine month period ended March 31, 2015, the Company recognized share-based compensation expense as a component of general and administrative expenses of $6,676,385 As of March 31, 2015, and June 30, 2014 the Company owed its officers and directors $117,917 and $17,917 respectively for compensation which was recorded as accounts payable and accrued liabilities in its consolidated balance sheets. In August 2014, the Company issued 300,000 shares of common stock for certain unpatented mining claims valued at $450,000 on the date of the acquisition. The mining claims were owned by a company whose sole owner is an officer and Director of the Company. In addition, the Company determined that $450,000 was impaired and an expense was recognized in the nine months ended March 31, 2015.

6. Derivative Liabilities

6. Derivative Liabilities	9 Months Ended
	Mar. 31, 2015
Notes
6. Derivative Liabilities	6. Derivative Liabilities As of March 31, 2015 and June 30, 2014, there were 2,965,705 and 2,820,778 outstanding derivative warrants, respectively, with 1,475,043 and 1,410,389 common shares issuable upon exercise, respectively. The warrants qualify as derivative liabilities due to the existence of reset provisions which cause the instruments to no longer be indexed to the Company’s own stock under FASB ASC 815. The Company estimated the fair value of the outstanding derivative warrants using a probability-weighted scenario analysis model. As of March 31, 2015 and June 30, 2014, the fair value of the derivative warrants was determined to be $76,400 and $2,365,315, respectively resulting in a gain on the change in the fair value of derivative liabilities of $2,289,315 for the nine month period ended March 31, 2015. The following is a summary of the key assumptions used in the probability-weighted scenario analysis model to estimate the fair value of the warrants as of March 31, 2015 and June 30, 2014: March 31, 2015 June 30, 2014 Common stock issuable upon exercise of warrants 1,475,043 1,410,389 Exercise price $1.062 and $1.349 $0.90 and $1.10 Market price of the Company’s common stock $0.16 $1.75 Risk free interest rate 0.46% 0.47% Dividend yield 0.00% 0.00% Volatility 213.31% 278.08% Expected term 0.73-1.29 years 1.48-2.04 years See Note 7 for fair value hierarchy of the derivative liabilities.

7. Fair Value Measurements

7. Fair Value Measurements	9 Months Ended
	Mar. 31, 2015
Notes
7. Fair Value Measurements	7. Fair Value Measurements As defined in FASB ASC Topic 820, fair value is the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This Topic requires disclosure that establishes a framework for measuring fair value and expands disclosure about fair value measurements. The statement requires fair value measurements be classified and disclosed in one of the following categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Pricing inputs other than quoted market prices included in Level 1 that are based on observable market data and are directly or indirectly observable for substantially the full term of the asset or liability. These include quoted market prices for similar assets or liabilities, quoted market prices for identical or similar assets in markets that are not active, adjusted quoted market prices, inputs from observable data such as interest rate and yield curves, volatilities or default rates observable at commonly quoted intervals or inputs derived from observable market data by correlation or other means. Level 3: Pricing inputs that are unobservable or less observable from objective sources. Unobservable inputs should only be used to the extent observable inputs are not available. These inputs maintain the concept of an exit price from the perspective of a market participant and should reflect assumptions of other market participants. An entity should consider all market participant assumptions that are available without unreasonable cost and effort. These are given the lowest priority and are generally used in internally developed methodologies to generate management's best estimate of the fair value when no observable market data is available. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. Certain assets and liabilities are reported at fair value on a recurring or non-recurring basis in the Company’s consolidated balance sheets. The following methods and assumptions were used to estimate the fair values: Cash, Prepaid expenses, Accounts payable, Accrued liabilities The carrying amounts approximate fair value because of the short-term nature or maturity of the instruments. Derivative liabilities The Company’s determination of fair value of its derivative instruments incorporates various factors required under FASB Topic ASC 815. See Note 6 for the fair value calculations. The fair values of the Company’s derivatives are valued using less observable data from objective sources as inputs into internal valuation models. Therefore, the Company considers the fair value of its derivatives to be Level 3 hierarchy. The following table sets forth the fair value hierarchy within our financial assets and liabilities by level that they were accounted for at fair value on a recurring basis as of March 31, 2015 and June 30, 2014: Fair Value Measurement at March 31, 2015 Level 1 Level 2 Level 3 Liabilities: Warrant derivative liabilities - - 76,400 Fair Value Measurement at June 30, 2014 Level 1 Level 2 Level 3 Liabilities: Warrant derivative liabilities - - 2,365,315 The following table sets forth the changes in the fair value of derivative liabilities for the nine month period ended March 31, 2015: Balance, June 30, 2014 $ 2,365,315 Change in fair value of derivative liabilities (2,288,915) Balance, March 31, 2015 $ 76,400

8. Convertible Notes

8. Convertible Notes	9 Months Ended
	Mar. 31, 2015
Notes
8. Convertible Notes	8. Convertible Notes On September 2, 2014, the Company converted $351,271 of convertible notes, including accrued interest of $26,271, into 3,512,710 shares of the Company’s Series B convertible preferred stock, par value $0.001 (the “Series B Preferred Stock”), at a post-Reverse Split conversion price of $0.10 and subject to a 9.99% conversion blocker. Each share of Series B Preferred Stock will participate in dividends and other distributions on an equivalent basis with common stock. Holders of Series B Preferred Stock shall vote together with the holders of common stock as a single class, and each holder of outstanding shares of Series B Preferred Stock shall be entitled to cast the number of votes equal to the number of whole shares of common stock into which the shares of Series B Preferred Stock held by such holder are convertible as of the record date for determining stockholders entitled to vote on a particular matter. On August 26, 2014, the Company converted $3,858,578 of convertible notes, including accrued interest of $198,578 into 7,717,170 shares of the Company’s Series C convertible preferred stock, par value $0.001 (the “Series C Preferred Stock”), at a post-Reverse Split conversion price of $0.50 and subject to a 9.99% conversion blocker. Each share of Series C Preferred Stock will be entitled to a liquidation preference equal to $0.001 per share. Otherwise, the Series C Preferred Stock will be equivalent in all respects to the Common Stock, with each share of Series C Preferred stock entitled to one vote and the holders of the Series C Preferred Stock voting together with the holders of the Common Stock. The Series C Preferred Stock is convertible into common stock at a ratio of 1 to 1. Pursuant to the conversion of convertible notes into Series C Preferred Stock, the Company incurred interest expense of $3,660,000 related to a beneficial conversion feature that existed within the underlying transactions. During the nine month period ended March 31, 2015, additional amortization expense of $211,543 was recognized associated with the debt discounts and deferred financing costs, respectively, related to the notes originally issued in November 2013, February 2014 and March 2014. The discounts and deferred financing costs associated with these notes were completely amortized at December 31, 2014. In addition, $300,000 of convertible note was paid off in cash.

9. Stockholders' Equity

9. Stockholders' Equity	9 Months Ended
	Mar. 31, 2015
Notes
9. Stockholders' Equity	9. Stockholders’ Equity In August 2014, the Company issued 1,000,000 common shares to an unrelated party in exchange for financial advisory and investment banking services valued at $2,000,000. Additionally, 600,000 shares were issued for services with a fair value of $826,000. The expense was recognized in full during the nine months ended March 31, 2015. In August 2014, the Company issued 300,000 shares of common stock for certain unpatented mining claims valued at $450,000 on the date of the acquisition. The mining claims were owned by a company whose sole owner is a related party. In September 2014, the Company issued 79,530 shares of Series B Preferred Stock as settlement of an outstanding payable of $79,530 for legal fees owed to an unrelated party. The fair value of the shares was determined to be $300,000 resulting in an additional expense of $220,470 recognized during the nine months ended March 31, 2015. All shares of Series B Preferred Stock is convertible into common stock at a ratio of 1 to 1. In September 2014, the Company issued an aggregate of 169,505 common shares to two unrelated parties as settlement of outstanding payables of $109,159 owed for professional services. The fair value of the shares was determined to be $339,009 resulting in an additional expense of $229,850 recognized during the nine months ended December, 31, 2014. In September 2014, the Company issued 20,000 shares of Series D convertible preferred stock (the “Series D Preferred Stock”), to officers and Directors for compensation valued at $40,000, which was expensed during the nine months ending March 31, 2015. The Series D Preferred Stock will be equivalent in all respects to the Company’s common stock, except that each share of Series D Preferred Stock will be entitled to cast 1,000 votes per share and contain liquidation preference. All shares of Series D Convertible Preferred Stock is convertible into common stock at a ratio of 1 to 1. In October 2014, the Company issued a total of 1,250,000 common shares and warrants to purchase 900,000 common shares to a third party for consulting services valued at 1,501,837. There are 3 tranches of warrants, each comprising of warrants to purchase 300,000 shares, at exercise prices of $0.50, $1,00 and $2.00 per share. The warrants are exercisable immediately and expire on October 27, 2019. During the nine months ended March 31, 2015, the Company issued 2,842,500 common shares upon the conversion of 2,842,500 shares of Series B preferred stock. In October 2014, the Company issued an aggregate of 3,684,193 common shares upon the conversion of 3,684,193 shares of Series C preferred stock. As a result of the effectuation of the Reverse Split on September 8, 2014, the Company issued 4,000,000 common shares under an exchange agreement for warrants originally issued in November 2013. From February through March 2015, the Company’s wholly owned subsidiary LocatorX, Inc. issued 40,000 shares for proceeds of $40,000. The issuance of the subsidiary shares resulted in an adjustment to noncontrolling interest of $1,490. Outstanding shares of Series A convertible preferred stock are convertible into common shares at a ratio of 100 to 1.

10. Stock Options and Warrants

10. Stock Options and Warrants	9 Months Ended
	Mar. 31, 2015
Notes
10. Stock Options and Warrants	10. Stock Options and Warrants Options On February 7, 2014, the Company’s Board of Directors voted to terminate the 2007 Stock Option Plan and adopted the 2014 Equity Incentive Plan (the “2014 Plan”), which provides for the issuance of incentive awards of up to 6,150,564 shares of the Company’s Common Stock to officers, key employees, consultants and directors. The options’ exercise price will be no less than the closing price of the Company’s shares on the day of issuance. When incentive stock options are granted to an employee who, at the time the incentive stock option is granted, owns stock representing more than 10% of the voting power of all classes of stock of the Company, the per share exercise price will be no less than 110% of the closing price of the Company’s shares on the day of issuance. On February 7, 2014, the Company granted an aggregate of 4,690,339 common stock options to certain officers and advisors of the Company. The stock options were granted upon the effectuation of the Reverse Split on September 8, 2014. The options are exercisable at $0.50 per share and expire on February 7, 2024. 3,690,339 of the option vest in twelve quarterly installments beginning February 7, 2014 and 1,000,000 of the options vest in twelve monthly installments beginning February 7, 2014. The total fair value of the award was estimated to be $9,380,675. On October 21, 2014, the Company granted an aggregate of 450,000 common stock options to certain officers and advisors of the Company. The options are exercisable at $0.50 per share and expire on October 21, 2024. The options vest in four annual installments beginning October 21, 2014. The estimated fair value of each option award granted was determined on the date of effectiveness of the grant using the Black-Scholes option valuation model. The following weighted-average assumptions were used for the options granted during the nine months ended March 31, 2015: 31-Mar-15 Risk free interest rate 1.44% - 2.48% Expected stock price volatility 312.48% - 321.74% Dividend yield 0.00% Expected option term 2.5 - 5.9 years A summary of the status of the Company’s stock option plan as of March 31, 2015 and changes during the nine months ended March 31, 2015 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term (Years) Total Intrinsic Value Outstanding as of June 30, 2014 - $ - Granted 5,140,339 0.500 Forfeited - - /Outstanding as of December 31, 2014 5,140,339 $ 0.500 8.675 $ - Options vested and exercisable 2,066,808 $ 0.500 8.652 $ - LocatorX Options From January through March 2015, LocatorX granted an aggregate of 250,000 common stock options to certain consultants of the Company. The options are exercisable at $0.10 per share and expire on December 31, 2020. The options vest in twelve quarterly installments. The fair value of as of March 31, 2015 is $13,213 and the expense recognized for the nine months ended is $4,185. The estimated fair value of each option award granted was determined on the date of effectiveness of the grant using the Black-Scholes option valuation model. The following weighted-average assumptions were used for the options granted during the year ended June 30, 2015: 2015 Risk-free interest rate 1.07% Expected volatility 73.58% Dividend yield 0.00% Expected option term 3.0-4.4 years A summary of the status of LocatorX’s stock options as of March 31, 2015 is as follows: Options Weighted Average Exercise Price Weighted Average Remaining Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2014 - $ - Granted 250,000 0.100 Outstanding at March 31, 2015 250,000 0.100 5.76 $ - Exercisable at March 31, 2015 20,833 $ 0.100 5.76 $ - Warrants The following table presents the warrant activity during the nine month period ended March 31, 2015 presented on a post 1 for 100 Reverse Split basis: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term (Years) Total Intrinsic Value Outstanding as of June 30, 2014 1,995,600 $ 0.894 1.879 $ 1,860,154 Reset adjustments 69,743 1.352 Granted 900,000 1.167 Outstanding as of March 31, 2015 2,965,343 $ 1.110 2.169 $ - Options vested and exercisable 2,965,343 $ 1.110 2.169 $ -

11. Retirement Plan

11. Retirement Plan	9 Months Ended
	Mar. 31, 2015
Notes
11. Retirement Plan	11. Retirement Plan Effective January 1, 2014, the Company adopted a qualified 401(k) deferred compensation plan, with deferrals beginning in June 2014. All employees who are eighteen years or older and have worked for at least three consecutive months are eligible to participate in the plan. The plan provides for mandatory safe-harbor matching contributions and discretionary non-elective contributions as determined by management. The Company did not elect to make any contributions for the nine month period ended March 31, 2015.

12. Commitments and Contingenci

12. Commitments and Contingencies	9 Months Ended
	Mar. 31, 2015
Notes
12. Commitments and Contingencies	12. Commitments and Contingencies Concentration of Credit Risk The Company maintains its cash in a restricted escrow account in an institution insured by the Federal Deposit Insurance Corporation and, at times, balances may exceed government insured limits. The Company has never experienced any losses related to these balances. Employment Agreements The Company has employment agreements with two employees and a separate consulting agreement with one of the Company’s executive officers. The aggregate future commitment under these agreements is as follows: 2015 $ 322,000 2016 430,000 2017 44,767 $ 797,767 These agreements provide for additional bonus payments that are calculated as defined. Other The Company is involved in various legal proceedings and litigation arising in the ordinary course of business. In the opinion of management and legal counsel, the outcome of such proceedings and litigation will not have a material adverse effect on the Company's consolidated financial statements. On November 16, 2015 SiberLaw LLP filed for a default judgement against Visual Real Estate, Inc. for a liquidated amount of $146,736.43. The Duval county Florida court ruled in SiberLaw's favor, and the amount recorded as a liability on the balance sheet. SiberLaw registered a lien at the US Patent Trademark Office for all patents owned by the Company's subsidiary Visual Real Estate Inc. These patents relate to Video Drive By family of patents including US Patents 7389181, 7929800, 8078396, 8090633, 8207964, 8213743, 8558848, 8554015. Pursuant to the Securities Exchange the Company agreed to pay the members of MV Patents ten (10%) percent of the net proceeds to be received from any enforcement activities or sales transactions related to the patents owned or applications pending as of the closing of the Securities Exchange. Outstanding shares of common stock includes 150,000 shares that contain nonstandard anti-dilution provisions which reset with future issuances of common stock if the Company issues any common stock, or securities convertible into or exercisable for shares of common stock, at a price per share or conversion or exercise price per share less than $2.00. These anti-dilution rights mature on March 31, 2015.

13. Subsequent Events

13. Subsequent Events	9 Months Ended
	Mar. 31, 2015
Notes
13. Subsequent Events	13. Subsequent Events During the period from February to June 2015, the subsidiary LocatorX issued 90,000 shares in exchange for $110,000 cash. During the period from April 2015 to June 2016, the subsidiary LocatorX issued 4,090,000 options, with exercise price from $0.10/share to $0.20/share, and vesting term from 12 equal installments over 3 years, 8 equal installments over 3 years, to 1 installment over 1 quarter. In July 2015, the Company borrowed $5,000 from their officer. The note is due on demand, and bears no interest. During the period from July 2015 to April 2016, the subsidiary LocatorX issued 240,962 shares in exchange for $481,924 cash. During the period from September to November 2015, the Company issued 10,500,000 common shares for a total cash consideration of $420,000 and 5,250,000 warrants to purchase up to an additional 2,625,000 common shares at $0.06 per share through a private placement of securities. During the period from September to November 2015, the Company issued 9,500,000 common shares for a total fair value of $485,000 to settle $380,000 liabilities, and recognized a loss of $105,000. In addition, the Company issued 4,750,000 warrants to purchase up to an additional 2,375,000 common shares at $0.06 per share In May 2016, the Company issued a convertible note for $25,000. Along with the debt offering, the Company also issued 1,666,667 warrants. The warrants were exercisable immediately with an exercise price of $0.06 per share and has an expiration date of May 26, 2021. In June 2016, the Company issued 105,611 common shares upon the conversion of 105,611 shares of Series C preferred stock. In October, 2016, the Company issued 52,806 common shares upon the conversion of 52,806 shares of Series C preferred stock. On September 1, 2016, the Company formed a wholly owned subsidiary, Rabbit Drones, Inc. (which name was changed to 1 st In the period from November to March 2016, the Company issued 15,475,000 common shares for a consideration of $309,500 and 15,475,000 warrants to purchase up to an additional 7,737,500 common shares with an exercise price of $0.06/share through a private placement of securities. In addition, 11,225,000 additional common shares are to be deferred and issued at a later date. In total 26,700,000 were sold for cash. In connection with this private placement of securities, the Company agreed to become current with the reporting obligations under Section 12(g) of the Exchange Act and file all reports due thereunder. In January 2017, the subsidiary LocatorX entered into royalty fee agreement that replaced the prior royalty fee agreement. The royalty fee agreement has a variable royalty fee based on the annual earned royalty ranging from 10.0% to 5.0%, with a minimum annual royalty fee of $60,000, and options to purchase 2,000,000 shares at an exercise price of $1.20/share. In January 2017, the Company entered into employment agreements with the Chief Executive Officer and Chief Financial Officer. In connection with the employment agreements, options to purchase up to 10,000,000 common shares at $0.06 per share were issued. In March 2017, the Subsidiary LocatorX issued 580,000 options with exercise price of $0.4/share to $1.2/share, and vesting term from fully vested immediately to 8 installments over 2 years. In March 2017, the Company issued 4,400,000 common shares through a private placement of securities for a total consideration of $88,000, and issued warrants to purchase up to an additional 2,200,000 shares at $0.06 per share. In March 2017, the Company issued 5,600,000 common shares to its officer to settle accrued salary for the amount of $112,000. In March 2017, the Company issued 2,500,000 common shares to a third party for consulting services valued at $50,000. In March 2017, the Company issued 85,000 Series E shares with 1000 to 1 voting rights pursuant to the November 2016 private placement of securities.

4. Discontinued Operations_ Sch

4. Discontinued Operations: Schedule of Gain/Loss from Discontinued Operations (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Gain/Loss from Discontinued Operations	Nine Months Ended March 31, 2015 Loss from discontinued operations $ 3,608

4. Discontinued Operations_ Dis

4. Discontinued Operations: Disposal Groups, Including Discontinued Operations (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Disposal Groups, Including Discontinued Operations	March 31, 2015 June 30, 2014 Current assets: Property and equipment $ - $ 8,809 Less: accumulated depreciation - (5,201) Total assets held for sale $ - $ 3,608

6. Derivative Liabilities_ Sche

6. Derivative Liabilities: Schedule of Assumptions Used (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Assumptions Used	March 31, 2015 June 30, 2014 Common stock issuable upon exercise of warrants 1,475,043 1,410,389 Exercise price $1.062 and $1.349 $0.90 and $1.10 Market price of the Company’s common stock $0.16 $1.75 Risk free interest rate 0.46% 0.47% Dividend yield 0.00% 0.00% Volatility 213.31% 278.08% Expected term 0.73-1.29 years 1.48-2.04 years

7. Fair Value Measurements_ Sch

7. Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	Fair Value Measurement at March 31, 2015 Level 1 Level 2 Level 3 Liabilities: Warrant derivative liabilities - - 76,400 Fair Value Measurement at June 30, 2014 Level 1 Level 2 Level 3 Liabilities: Warrant derivative liabilities - - 2,365,315

7. Fair Value Measurements_ Fai

7. Fair Value Measurements: Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation	Balance, June 30, 2014 $ 2,365,315 Change in fair value of derivative liabilities (2,288,915) Balance, March 31, 2015 $ 76,400

10. Stock Options and Warrants_

10. Stock Options and Warrants: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	31-Mar-15 Risk free interest rate 1.44% - 2.48% Expected stock price volatility 312.48% - 321.74% Dividend yield 0.00% Expected option term 2.5 - 5.9 years

10. Stock Options and Warrant25

10. Stock Options and Warrants: Share-based Compensation, Stock Options, Activity (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Share-based Compensation, Stock Options, Activity	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term (Years) Total Intrinsic Value Outstanding as of June 30, 2014 - $ - Granted 5,140,339 0.500 Forfeited - - /Outstanding as of December 31, 2014 5,140,339 $ 0.500 8.675 $ - Options vested and exercisable 2,066,808 $ 0.500 8.652 $ -

10. Stock Options and Warrant26

10. Stock Options and Warrants: Schedule of Subsidiary Share-based Payment Award, Stock Options, Valuation Assumptions (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Subsidiary Share-based Payment Award, Stock Options, Valuation Assumptions	2015 Risk-free interest rate 1.07% Expected volatility 73.58% Dividend yield 0.00% Expected option term 3.0-4.4 years

10. Stock Options and Warrant27

10. Stock Options and Warrants: Share-based Compensation, Activity (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Share-based Compensation, Activity	Options Weighted Average Exercise Price Weighted Average Remaining Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2014 - $ - Granted 250,000 0.100 Outstanding at March 31, 2015 250,000 0.100 5.76 $ - Exercisable at March 31, 2015 20,833 $ 0.100 5.76 $ -

10. Stock Options and Warrant28

10. Stock Options and Warrants: Schedule of Other Share-based Compensation, Activity (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Other Share-based Compensation, Activity	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term (Years) Total Intrinsic Value Outstanding as of June 30, 2014 1,995,600 $ 0.894 1.879 $ 1,860,154 Reset adjustments 69,743 1.352 Granted 900,000 1.167 Outstanding as of March 31, 2015 2,965,343 $ 1.110 2.169 $ - Options vested and exercisable 2,965,343 $ 1.110 2.169 $ -

12. Commitments and Contingen29

12. Commitments and Contingencies: Aggregate future commitment under employment agreements (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Aggregate future commitment under employment agreements	2015 $ 322,000 2016 430,000 2017 44,767 $ 797,767

2. General Organization and B30

2. General Organization and Business (Details)	9 Months Ended
	Mar. 31, 2015$ / sharesshares
Details
Stock Issued During Period, Shares, Acquisitions | shares	9,385,000
Business Acquisition, Share Price | $ / shares	$ 0.10
Stockholders' Equity, Reverse Stock Split	1 for 100

4. Discontinued Operations_ S31

4. Discontinued Operations: Schedule of Gain/Loss from Discontinued Operations (Details)	9 Months Ended
	Mar. 31, 2015USD ($)
Details
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax	$ 3,608

4. Discontinued Operations_ D32

4. Discontinued Operations: Disposal Groups, Including Discontinued Operations (Details) - USD ($)	Mar. 31, 2015	Jun. 30, 2014
Details
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment	$ 0	$ 8,809
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	0	(5,201)
Disposal Group, Including Discontinued Operation, Assets	$ 0	$ 3,608

5. Related Party Transactions (

5. Related Party Transactions (Details) - USD ($)		9 Months Ended
		Mar. 31, 2015	Mar. 31, 2014
Officers' Compensation		$ 322,500	$ 335,060
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures		250,000
Accrued Salaries, Current		$ 117,917	$ 17,917
Officer
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	[1]		5,140,339
Allocated Share-based Compensation Expense		$ 6,676,385
Mining Claims Related Party
StockIssuedDuringPeriodSharesIssuedForMiningRight		300,000
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures		$ 450,000
[1]	See Note 10.

6. Derivative Liabilities (Deta

6. Derivative Liabilities (Details) - USD ($)	9 Months Ended
	Mar. 31, 2015	Jun. 30, 2014
Details
Class of Warrant or Right, Outstanding	2,965,705	2,820,778
Common shares issuable upon exercise, derivative warrants	1,475,043	1,410,389
Derivative, Fair Value, Net	$ 76,400	$ 2,365,315
Gain on change in Fair value of Derivative Liablities	$ 2,289,315

6. Derivative Liabilities_ Sc35

6. Derivative Liabilities: Schedule of Assumptions Used (Details) - $ / shares	Mar. 31, 2015	Jun. 30, 2014
Common stock issuable upon exercise of warrants	1,475,043	1,410,389
Market price of the Company's common stock	$ 0.16	$ 1.75
Fair Value Assumptions, Risk Free Interest Rate	0.46%	0.47%
Fair Value Assumptions, Expected Dividend Rate	0.00%	0.00%
Fair Value Assumptions, Expected Volatility Rate	213.31%	278.08%
Minimum
Fair Value Assumptions, Expected Term	8 months 23 days	1 year 5 months 23 days
Maximum
Fair Value Assumptions, Expected Term	1 year 3 months 14 days	2 years 14 days

7. Fair Value Measurements_ S36

7. Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)	Mar. 31, 2015	Jun. 30, 2014
Derivative liabilities	$ 76,400	$ 2,365,315
Fair Value, Inputs, Level 1
Derivative liabilities	0	0
Fair Value, Inputs, Level 2
Derivative liabilities	0	0
Fair Value, Inputs, Level 3
Derivative liabilities	$ 76,400	$ 2,365,315

7. Fair Value Measurements_ F37

7. Fair Value Measurements: Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation (Details)	9 Months Ended
	Mar. 31, 2015USD ($)
Details
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Beginning Balance	$ 2,365,315
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease)	(2,288,915)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance	$ 76,400

8. Convertible Notes (Details)

8. Convertible Notes (Details)	9 Months Ended
	Mar. 31, 2015USD ($)$ / shares
Interest Expense, Debt	$ 3,660,000
Amortization of Debt Discount (Premium)	211,543
Convertible Note paid off in cash	300,000
Convertible Note Payable 1
Debt Conversion, Converted Instrument, Amount	351,271
Debt Instrument, Convertible, If-converted Value in Excess of Principal	$ 26,271
Preferred Stock, Par or Stated Value Per Share | $ / shares	$ 0.001
Conversion Price | $ / shares	$ 0.10
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger	9.99%
Convertible Note Payable 2
Debt Conversion, Converted Instrument, Amount	$ 3,858,578
Debt Instrument, Convertible, If-converted Value in Excess of Principal	$ 198,578
Preferred Stock, Par or Stated Value Per Share | $ / shares	$ 0.001
Conversion Price | $ / shares	$ 0.50
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger	9.99%
Liquidation Preference | $ / shares	$ 0.001

9. Stockholders' Equity (Detail

9. Stockholders' Equity (Details)	9 Months Ended
	Mar. 31, 2015USD ($)shares
Unrelated party in exchange for financial advisory and investment banking services
Stock Issued During Period, Shares, New Issues | shares	1,000,000
Stock Issued During Period, Value, New Issues | $	$ 2,000,000
Issued for services
Stock Issued During Period, Shares, New Issues | shares	600,000
Stock Issued During Period, Value, New Issues | $	$ 826,000
Certain unpatented mining claims
Stock Issued During Period, Shares, New Issues | shares	300,000
Stock Issued During Period, Value, New Issues | $	$ 450,000
Settlement of an outstanding payable
Stock Issued During Period, Value, New Issues | $	$ 300,000
Auction Market Preferred Securities, Shares, Issued | shares	79,530
Repayments of Debt | $	$ 79,530
Allocated Share-based Compensation Expense | $	$ 220,470
Two unrelated parties as settlement of outstanding payables
Stock Issued During Period, Shares, New Issues | shares	169,505
Stock Issued During Period, Value, New Issues | $	$ 339,009
Repayments of Debt | $	109,159
Allocated Share-based Compensation Expense | $	229,850
Officers and Directors for compensation
Stock Issued During Period, Value, New Issues | $	$ 40,000
Auction Market Preferred Securities, Shares, Issued | shares	20,000
Third party for consulting services
Stock Issued During Period, Shares, New Issues | shares	1,250,000
Stock Issued During Period, Value, New Issues | $	$ 1,501,837
Conversion of 1,221,250 shares of Series B preferred stock
Stock Issued During Period, Shares, New Issues | shares	2,842,500
Conversion of 3,684,193 shares of Series C preferred stock
Stock Issued During Period, Shares, New Issues | shares	3,684,193
As a result of the effectuation of the Reverse Split
Stock Issued During Period, Shares, New Issues | shares	4,000,000
Subsidiary shares issued by LocatorX
Stock Issued During Period, Shares, New Issues | shares	40,000

10. Stock Options and Warrants

10. Stock Options and Warrants (Details)	9 Months Ended
	Mar. 31, 2015$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | shares	250,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares	$ 0.100
On February 7, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | shares	4,690,339
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares	$ 0.50
On October 21, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | shares	450,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares	$ 0.50

10. Stock Options and Warrant41

10. Stock Options and Warrants: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details)	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2015
Fair Value Assumptions, Risk Free Interest Rate	0.46%	0.47%
Fair Value Assumptions, Expected Volatility Rate	213.31%	278.08%
Fair Value Assumptions, Expected Dividend Rate	0.00%	0.00%
Minimum
Fair Value Assumptions, Expected Term	8 months 23 days	1 year 5 months 23 days
Maximum
Fair Value Assumptions, Expected Term	1 year 3 months 14 days	2 years 14 days
Options Held
Fair Value Assumptions, Expected Dividend Rate			0.00%
Options Held | Minimum
Fair Value Assumptions, Risk Free Interest Rate			1.44%
Fair Value Assumptions, Expected Volatility Rate			312.48%
Fair Value Assumptions, Expected Term			2 years 6 months
Options Held | Maximum
Fair Value Assumptions, Risk Free Interest Rate			2.48%
Fair Value Assumptions, Expected Volatility Rate			321.74%
Fair Value Assumptions, Expected Term			5 years 10 months 24 days

10. Stock Options and Warrant42

10. Stock Options and Warrants: Share-based Compensation, Stock Options, Activity (Details)	9 Months Ended
	Mar. 31, 2015USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	250,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares	$ 0.100
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	250,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares	$ 0.100
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	5 years 9 months 4 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $	$ 0
Exercisable at end of period	20,833
WeightedAverageExercisePriceExercisable	0.100
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	5 years 9 months 4 days
ExercisableAtEndOfPeriod	0
Options Held
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	5,140,339
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares	$ 0.500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ / shares	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	5,140,339
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares	$ 0.500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	8 years 8 months 3 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $	$ 0
Exercisable at end of period	2,066,808
WeightedAverageExercisePriceExercisable	0.500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	8 years 7 months 25 days
ExercisableAtEndOfPeriod	0

10. Stock Options and Warrant43

10. Stock Options and Warrants: Schedule of Subsidiary Share-based Payment Award, Stock Options, Valuation Assumptions (Details)	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2015
Fair Value Assumptions, Risk Free Interest Rate	0.46%	0.47%
Fair Value Assumptions, Expected Volatility Rate	213.31%	278.08%
Fair Value Assumptions, Expected Dividend Rate	0.00%	0.00%
Minimum
Fair Value Assumptions, Expected Term	8 months 23 days	1 year 5 months 23 days
Maximum
Fair Value Assumptions, Expected Term	1 year 3 months 14 days	2 years 14 days
LocatorX stock options
Fair Value Assumptions, Risk Free Interest Rate			1.07%
Fair Value Assumptions, Expected Volatility Rate			73.58%
Fair Value Assumptions, Expected Dividend Rate			0.00%
LocatorX stock options | Minimum
Fair Value Assumptions, Expected Term			3 years
LocatorX stock options | Maximum
Fair Value Assumptions, Expected Term			4 years 4 months 24 days

10. Stock Options and Warrant44

10. Stock Options and Warrants: Share-based Compensation, Activity (Details)	9 Months Ended
	Mar. 31, 2015USD ($)$ / sharesshares
Details
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	250,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares	$ 0.100
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	250,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares	$ 0.100
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	5 years 9 months 4 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $	$ 0
Exercisable at end of period	20,833
WeightedAverageExercisePriceExercisable	0.100
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	5 years 9 months 4 days
ExercisableAtEndOfPeriod	0

10. Stock Options and Warrant45

10. Stock Options and Warrants: Schedule of Other Share-based Compensation, Activity (Details)	9 Months Ended
	Mar. 31, 2015USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	250,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares	$ 0.100
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	250,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares	$ 0.100
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	5 years 9 months 4 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $	$ 0
Exercisable at end of period	20,833
WeightedAverageExercisePriceExercisable	0.100
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	5 years 9 months 4 days
ExercisableAtEndOfPeriod	0
Warrant
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance	1,995,600
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 0.894
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $	$ 1,860,154
Reset adjustments	69,743
Reset adjustments | $ / shares	$ 1.352
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	900,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares	$ 1.167
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	2,965,343
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares	$ 1.110
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	2 years 2 months 1 day
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $	$ 0
Exercisable at end of period	2,965,343
WeightedAverageExercisePriceExercisable	1.110
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	2 years 2 months 1 day
ExercisableAtEndOfPeriod	0

12. Commitments and Contingen46

12. Commitments and Contingencies (Details)	9 Months Ended
	Mar. 31, 2015shares
Details
Commission rate to MV Patents	10.00%
Share subject to anti-dilution provisions	150,000

13. Subsequent Events (Details)

13. Subsequent Events (Details)	9 Months Ended
	Mar. 31, 2015shares
During the period from February to June 2015
Shares issued during period for cash	90,000
During the period from April 2015 to June 2016
Debt Conversion, Converted Instrument, Warrants or Options Issued	4,090,000
In July 2015
Subsequent Event, Description	Company borrowed $5,000 from their officer
During the period from July 2015 to April 2016
Shares issued during period for cash	240,962
During the period from September to November 2015 (1)
Shares issued during period for cash	10,500,000
Debt Conversion, Converted Instrument, Warrants or Options Issued	5,250,000
During the period from September to November 2015 (2)
Debt Conversion, Converted Instrument, Warrants or Options Issued	4,750,000
Stock Issued During Period, Shares, Other	9,500,000
In May 2016
Debt Conversion, Converted Instrument, Warrants or Options Issued	1,666,667
Investment Warrants Expiration Date	May 26, 2021
In June 2016
Stock Issued During Period, Shares, Conversion of Convertible Securities	105,611
Conversion of Stock, Shares Converted	105,611
In October, 2016
Stock Issued During Period, Shares, Conversion of Convertible Securities	52,806
Conversion of Stock, Shares Converted	52,806
On September 1, 2016
Subsequent Event, Description	the Company formed a wholly owned subsidiary, Rabbit Drones, Inc.
In the period from November to December 2016
Debt Conversion, Converted Instrument, Warrants or Options Issued	15,475,000
Stock Issued During Period, Shares, Other	15,475,000
In January 2017 (2)
Subsequent Event, Description	the subsidiary LocatorX entered into royalty fee agreement that replaced the prior royalty fee agreement
In January 2017 (1)
Subsequent Event, Description	the Company entered into employment agreements with the Chief Executive Officer and Chief Financial Officer
In March 2017 (1)
Debt Conversion, Converted Instrument, Warrants or Options Issued	580,000
In March 2017 (2)
Stock Issued During Period, Shares, Other	4,400,000
In March 2017 (3)
Stock Issued During Period, Shares, Issued for Services	5,600,000
In March 2017 (4)
Stock Issued During Period, Shares, Issued for Services	2,500,000
In March 2017 (5)
Stock Issued During Period, Shares, Other	85,000