Cavitation (CVAT) 10-K 13 Oct 15 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2015	Oct. 09, 2015	Dec. 31, 2014
Document and Entity Information:
Entity Registrant Name	Cavitation Technologies, Inc.
Entity Trading Symbol	cvat
Document Type	10-K
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Entity Central Index Key	1,376,793
Current Fiscal Year End Date	--06-30
Entity Common Stock, Shares Outstanding		193,997,802
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Entity Public Float			$ 12,891,739

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Current assets:
Cash and cash equivalents	$ 1,478,565	$ 1,226,508
Inventory, net	135,599	116,644
Total current assets	1,614,164	1,343,152
Property and equipment, net	100,372	137,095
Patents, net	37,166	67,473
Other assets	9,500	9,500
Total assets	1,761,202	1,557,220
Current liabilities:
Accounts payable and accrued expenses	198,686	173,110
Accrued payroll and payroll taxes due officers	1,016,223	1,030,031
Related party payable	1,147	1,147
Advances from distributor	1,620,701	734,956
Total current liabilities	$ 2,836,757	$ 1,939,244
Commitments and contingencies
Stockholders' deficit:
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of June 30, 2015 and June 30, 2014, respectively.	$ 0
Common stock, $0.001 par value, 1,000,000,000 shares authorized, 184,968,551 and 177,906,365 shares issued and outstanding as of June 30, 2015 and 2014, respectively	184,968	$ 177,906
Additional paid-in capital	21,259,285	20,580,952
Common stock issuable, 9,029,251 shares	812,633	812,633
Accumulated deficit	(23,332,441)	(21,953,515)
Total stockholders' deficit	(1,075,555)	(382,024)
Total liabilities and stockholders' deficit	$ 1,761,202	$ 1,557,220

CONSOLIDATED BALANCE SHEETS PAR

CONSOLIDATED BALANCE SHEETS PARENTHETICALS - $ / shares	Jun. 30, 2015	Jun. 30, 2014
Parenthetical
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	184,968,551	177,906,365
Common stock, shares outstanding	184,968,551	177,906,365
Common stock, shares issuable	9,029,251	9,029,251

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Revenue
Revenue	$ 489,255	$ 1,855,707
Cost of revenue	73,253	120,170
Gross profit	416,002	1,735,537
General and administrative expenses	1,772,618	2,444,163
Research and development expenses	22,310	40,820
Total operating expenses	1,794,928	2,484,983
Loss from operations	(1,378,926)	(749,446)
Interest expense and other		(1,435,041)
Net Loss	$ (1,378,926)	$ (2,184,487)
Net loss per share, Basic and Diluted	$ (0.01)	$ (0.01)
Weighted average shares outstanding, Basic and Diluted	183,378,917	160,625,090

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($)	Preferred Shares	Preferred Amount	Common Stock Shares	Common Stock Amount	Additional Paid- in Capital	Common Stock Issuable	Accumalated Deficit	Total
Balance at Jun. 30, 2013	0	0	158,439,702	158,440	17,484,058	0	(19,769,028)	(2,126,530)
Common stock issued upon conversion of note payable	0		3,333,333	3,333	96,667	0	0	100,000
Fair value of warrants granted to settle notes payable	$ 0	$ 0	$ 0	$ 0	$ 811,355	$ 0	$ 0	$ 811,355
Fair value of common stock to be issued due to settle notes payable	$ 0	$ 0	$ 0	$ 0	$ 0	$ 812,633	$ 0	$ 812,633
Fair value of shares of common stock issued for services	0	0	1,000,000	1,000	89,000	0	0	90,000
Common stock issued for cash	0	0	15,133,330	15,133	1,006,367	0	0	1,021,500
Fair value of vested options and warrants	$ 0	$ 0	$ 0	$ 0	$ 1,093,505	$ 0	$ 0	$ 1,093,505
Net Loss	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ (2,184,487)	$ (2,184,487)
Balance . at Jun. 30, 2014	0	0	177,906,365	177,906	20,580,952	812,633	(21,953,515)	(382,024)
Fair value of shares of common stock issued for services	0	0	1,068,000	1,068	63,012	0	0	64,080
Common stock issued for cash	0	0	5,193,328	5,193	370,305	0	0	375,498
Common stock issued for cancelled options	0	0	800,858	801	(359)	0	0	442
Fair value of vested warrants	$ 0	$ 0	$ 0	$ 0	$ 245,375	$ 0	$ 0	$ 245,375
Net Loss	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ (1,378,926)	$ (1,378,926)
Balance , at Jun. 30, 2015	0	0	184,968,551	184,968	21,259,285	812,633	(23,332,441)	(1,075,555)

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities:
Net loss	$ (1,378,926)	$ (2,184,487)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	89,780	100,693
Amortization of convertible notes discount	0	55,174
Fair value of common stock issued for services	64,080	90,000
Fair value of vested options and warrants	245,375	1,093,505
Allowance for inventory obsolescence	22,852	36,393
Excess of fair value of common stock and warrants issued in exchange for face amount of demand notes	0	1,353,110
Fair value of common stock issued for cancelled options	442	0
Effect of changes in:
Inventory	(41,807)	(45,302)
Prepaid expenses and other current assets		3,125
Accounts payable and accrued expenses	25,576	(3,402)
Accrued payroll and payroll taxes	(13,808)	13,808
Advances from distributor	1,375,000	1,375,000
Reduction in advances due to revenues from distributor	(489,255)	(1,855,707)
Net cash (used in) provided by operating activities	(100,691)	31,910
Investing activities:
Purchase of property and equipment	(22,750)	(43,254)
Payments for patents		(25,624)
Net cash used in investing activities	(22,750)	(68,878)
Financing activities:
Proceeds from sale of common stock	375,498	1,021,500
Net cash provided by financing activities	375,498	1,021,500
Net increase in cash	252,057	984,532
Cash, beginning of period	1,226,508	241,976
Cash, end of period	1,478,565	1,226,508
Supplemental disclosures of cash flow information:
Cash paid for interest	0	5,000
Cash paid for income taxes	0	0
Supplemental disclosure of non-cash investing and financing activities:
Conversion of convertible notes payable and accrued interest to common stock	0	270,878
Common stock issued upon conversion of notes payable	$ 0	$ 100,000

Organization

Organization	12 Months Ended
	Jun. 30, 2015
Organization
Organization	Note 1 - Organization Cavitation Technologies, Inc. (referred to herein, unless otherwise indicated, as "the Company," "CTi," "we," "us," and "our") is a Nevada corporation originally incorporated under the name Bio Energy, Inc. CTi has developed, patented, and commercialized proprietary technology that may be used in liquid processing applications. CTi's patented Nano Reactor® Nano Neutralization® System

Basis of Presentation and Going

Basis of Presentation and Going Concern	12 Months Ended
	Jun. 30, 2015
Basis of Presentation and Going Concern:
Basis of Presentation and Going Concern	Note 2 - Basis of Presentation and Going Concern Going Concern The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles which contemplate continuation of the Company as a going concern. The Company has incurred recurring net losses and working capital deficiency. During the year ended June 30, 2015, the Company incurred a net loss of $1,378,926 and utilized $100,691 of cash in operations. As of June 30, 2015, the Company had a working capital deficiency of $1,222,593 and a stockholders' deficit of $1,075,555. The Company has also been dependent on certain of its funding from a technology agreement, which as described below, ended in May 2015. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from an inability of the Company to continue as a going concern. Management's plan is to generate income from operations by continuing to license its technology globally through our strategic partner with the Desmet Ballestra Group (Desmet). Pursuant to a R&D, Marketing and Technology License agreement, Desmet has provided us monthly advances of $125,000 which started in May 2012 and ended in May 2015. These advances will be applied against future sales to Desmet. During the years ended June 30, 2015 and 2014, advances received from Desmet amounted to $1,375,000. The agreement ended in May 2015 and the Company is currently in negotiations with Desmet for a new agreement and we expect all terms will remain the same except that the monthly advances will be changed to $50,000. However, there is no assurance that such new agreement will be finalized. We will also attempt to raise additional debt and/or equity financing to fund operations and to provide additional working capital. During the year ended June 30, 2015, the Company raised $375,498 through the issuance of 5,193,328 shares of our common stock for cash. There is no assurance that such financing will be available in the future or obtained in sufficient amounts necessary to meet the Company's needs, that the Company will be able to achieve profitable operations or that the Company will be able to meet its future contractual obligations. Should management fail to obtain such financing, the Company may curtail its operations.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Jun. 30, 2015
Significant Accounting Policies:
Significant Accounting Policies	Note 3 - Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of Cavitation Technologies, Inc. and its wholly owned subsidiary Hydrodynamic Technology, Inc. Intercompany transactions and balances have been eliminated in consolidation. Fair Value Measurement FASB Accounting Standards Codification ("ASC") 820-10 requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet for which it is practicable to estimate fair value. ASC 820-10 defines the fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. In addition to defining fair value, the standard expands the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which are determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1 - inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. Level 2 - inputs are based upon significant observable inputs other than quoted prices included in Level 1, such as quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. As of June 30, 2015, the carrying value of certain accounts such as inventory, accounts payable, accrued expenses and accrued payroll approximates their fair value due to the short-term nature of such instruments. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the financial statement date, and reported amounts of revenue and expenses during the reporting period. Significant estimates are used in reserves for inventory obsolescence, valuing our stock options, stock warrants and common stock issued for services, among other items. Actual results could differ from these estimates. Revenue Recognition Revenue from the sale of our Nano Reactor® Systems The Company is also entitled to certain profit share from its distributor from the sale of the reactors. The profit share is non-refundable and is recorded upon shipment and acceptance of the reactors by the distributor. Cash The Company considers highly liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents are carried at cost which approximates market value. The Company maintains its cash with one domestic financial institution. From time to time, cash balance in this domestic bank may exceed federally insured limits provided by the Federal Deposit Insurance Corporation ("FDIC") of up to $250,000. As of June 30, 2015 and 2014, before adjustments for outstanding checks and deposits in transit, the Company had approximately $1,489,000 and $1,226,000, respectively, on deposit with one bank. The Company believes that no significant concentration of credit risk exists with respect to this cash balances because of its assessment of the creditworthiness and financial viability of this financial institution. Inventory Inventory, net of an allowance for excess quantities and obsolescence, is stated at the lower of cost or market. Cost is determined on a specific item basis. Inventory is composed of finished goods and represents costs incurred to manufacture our Nano Reactor® Property and Equipment Property and equipment is presented at cost less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Betterments, renewals, and extraordinary repairs that extend the life of the assets are capitalized; other repairs and maintenance charges are expensed as incurred. The cost and related accumulated depreciation applicable to retired assets are removed from the Company's accounts, and the gain or loss on dispositions, if any, is recognized in the consolidated statements of operations. Property and equipment are recorded at cost and depreciated using the straight-line method over the following estimated useful lives. Leasehold improvements Shorter of life of asset or lease Furniture 5-7 Years Office equipment 5Years Lab equipment 4 Years Skid systems (demo units) 4 Years Management assesses the carrying value of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If there is indication of impairment, management prepares an estimate of future cash flows expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. For the years ended June 30, 2015 and 2014, the Company did not recognize any impairment for its property and equipment. Patents Capitalized patent costs represent legal fees associated with procuring and filing patent applications. The Company accounts for patents in accordance with ASC 350-30, General Intangibles Other Than Goodwill During the year ended June 30, 2014, the Company recognized patent amortization expense of $28,466. As of June 30, 2014, total capitalized patent costs amounted to $157,012 and accumulated amortization of $84,238. During the year ended June 30, 2015, the Company recognized patent amortization expense of $30,307. As of June 30, 2015, total capitalized patent costs amounted to $157,012 and accumulated amortization of $119,846. At June 30, 2015, future estimated patent amortization costs are: Year Ended June 30, Amount 2016 20,690 2017 13,501 2018 2,975 Total $ 37,166 Impairment of Intangible and Long-Lived Assets In accordance with ASC 350-30, General Intangibles Other than Goodwill Share-Based Compensation The Company periodically issues stock options and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for stock option and warrant grants issued and vesting to employees based on the authoritative guidance provided by the Financial Accounting Standards Board whereas the value of the award is measured on the date of grant and recognized over the vesting period. The Company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with the authoritative guidance of the Financial Accounting Standards Board whereas the value of the stock compensation is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Non-employee stock-based compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are no future performance requirements by the non-employee, option grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date. The fair value of the Company's common stock option and warrant grants is estimated using the Black-Scholes option pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the common stock options, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes option pricing model, and based on actual experience. The assumptions used in the Black-Scholes option pricing model could materially affect compensation expense recorded in future periods. Income Taxes The Company accounts for income taxes in accordance with ASC 740-10, Income Taxes ASC 740-10 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. The Company classifies interest and penalties as a component of interest and other expenses. To date, there have been no interest or penalties assessed or paid. The Company measures and records uncertain tax positions by establishing a threshold for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Only tax positions meeting the more-likely-than-not recognition threshold at the effective date may be recognized or continue to be recognized. Advertising costs Advertising costs (including marketing expense) incurred in the normal course of operations are expensed as incurred. Advertising expenses amounted to $23,285 and $7,871 for the years ended June 30, 2015 and 2014 respectively and was reported as part of General and administrative expenses in the accompanying Consolidated Statements of Operations. Research and Development Costs Research and development expenses relate primarily to the development, design, testing of preproduction prototypes and models, compensation, and consulting fees, and are expensed as incurred. Total research and development costs recorded during the years ended June 30, 2015 and 2014 amounted to $22,310 and $40,820, respectively. Warranty Policy The Company provides a limited warranty with every set of reactors sold, typically 2 to 5 years. The Company has not experienced significant claims under its warranty policy, and management determined no accrual for warranty reserve was necessary at June 30, 2015 and 2014. Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per share is computed similar to basic net income (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive securities had been issued. At June 30, 2015 potentially dilutive securities include options to acquire 12,810,957 shares of common stock and warrants to acquire 68,259,843 shares of common stock. Net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period. Basic and diluted net loss per common share is the same for all periods presented with a net loss because warrants and stock options outstanding are anti-dilutive. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers In June 2014, the FASB issued Accounting Standards Update No. 2014-12, Compensation – Stock Compensation (Topic 718) In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In July 2015, the FASB issued Accounting Standards Update 2015-11, Simplifying the Measurement of Inventory Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements. Dependence on Desmet Ballestra Our revenue is almost entirely dependent on Desmet Ballestra who is our exclusive distribution agent with regard to the CTi Nano Neutralization® System

Agreement with Desmet Ballestra

Agreement with Desmet Ballestra	12 Months Ended
	Jun. 30, 2015
Agreement with Desmet Ballestra:
Agreement with Desmet Ballestra	Note 4 - Agreement with Desmet Ballestra On May 14, 2012 we signed a global R and D, Marketing and Technology License Agreement NANO Neutralization System The Company and Desmet have worked together to determine the appropriate sales approach and installation process. The Company's Nano Neutralization is designed to be used as an add-on process to an existing neutralization system within soybean and other vegetable oil refineries. Desmet purchases Nano Reactor Systems from the Company and installs them at the refinery as part of an integrated neutralization system. We are therefore substantially dependent on Desmet to identify prospects, complete sales contracts, install the system and manage relationships with end-users. The agreement with Desmet expired in May 2015. The Company is currently in negotiations with Desmet for a new agreement and we expect all terms will remain the same except that the monthly advances will be changed to $50,000. However there is no assurance that such agreement will be finalized. During the years ended June 30, 2015 and 2014, we recorded revenues from Desmet amounting to $489,255 and $1,855,707. In addition, we received advances of $1,375,000 in each of the fiscal years 2015 and 2014 respectively. As of June 30, 2015 and 2014, Desmet has advanced to us an excess of funds of $1,620,701 and $734,956 which will be recognized as revenue as sales orders are shipped.

Property and Equipment

Property and Equipment	12 Months Ended
	Jun. 30, 2015
Property and Equipment
Property and Equipment	Note 5 - Property and Equipment Property and equipment consisted of the following as of June 30, 2015 and June 30, 2014: June 30, June 30, 2015 2014 Leasehold improvement $ 2,475 $ 2,475 Furniture 26,837 26,837 Office equipment 1,499 1,499 Equipment 68,380 68,380 Systems 291,090 268,340 390,281 367,531 Less: accumulated depreciation and amortization (289,909 ) (230,436 ) Property & Equipment, net $ 100,372 $ 137,095 Depreciation expense for the years ended June 30, 2015 and 2014 amounted to $59,473 and $72,227, respectively and was reported as part of General and administrative expenses in the accompanying Consolidated Statements of Operations.

Accrued Payroll and Payroll Tax

Accrued Payroll and Payroll Taxes	12 Months Ended
	Jun. 30, 2015
Accrued Payroll and Payroll Taxes
Accrued Payroll and Payroll Taxes	Note 6 - Accrued Payroll and Payroll Taxes to Officers and former officers As of June 30, 2015 and 2014, the Company had accrued unpaid salaries to officers and former officers amounting to $1,016,223 and $1,030,331, respectively.

Related Party Short-Term Loan a

Related Party Short-Term Loan and Payables	12 Months Ended
	Jun. 30, 2015
Related Party Short-Term Loan and Payables
Related Party Short-Term Loan and Payables	Note 7 - Related Party Short-Term Loan and Payables As of June 30, 2012, we had received $185,000 from West Point Partners, LLC, whose managing partner is the Company's Principal Accounting Officer. These funds were due on demand, and accrued an annual interest rate of 12%. On April 1, 2014, we granted an aggregate of 7,610,000 shares of common stock with a fair value of $684,900 along with 7,610,000 warrants with a fair value of $683,983 to settle this demand note with a face value of $185,000 and accrued interest of $43,300. As a result of this settlement, the Company recognized a loss of $1,140,583 which was accounted for as part of Interest expense and other in the accompanying Consolidated Statement of Operations for the year ended June 30, 2014 in order to account for the excess of the fair value of the equity instruments issued at the date of settlement. The 7,610,000 shares of common stock were subsequently issued on September 25, 2015.

Short-Term Loans

Short-Term Loans	12 Months Ended
	Jun. 30, 2015
Short-Term Loans:
Short-Term Loans	Note 8 - Short-Term Loans As of June 30, 2012, we had received $34,521 from a third party, Strategic IR. These funds were due on demand and pay an annual interest rate of 12%. On April 1, 2014, we granted an aggregate of 1,419,251 shares of common stock to Strategic IR with a fair value of $127,733 along with 1,419,251 warrants with a fair value of $127,432 to settle this demand note with a face value of $34,521 and accrued interest of $8,057. As a result of this settlement, the Company recognized a loss of $212,587 which was accounted for as part of Interest expense and other in the accompanying Consolidated Statement of Operations for the year ended June 30, 2014 in order to account for the excess of the fair value of the equity instruments issued at the date of settlement. The 1,419,251 shares of common stock were issued on September 25, 2015.

Convertible Note

Convertible Note	12 Months Ended
	Jun. 30, 2015
Convertible Note
Convertible Note	Note 9 - Convertible Note On December 17, 2012, we issued a convertible promissory note payable to a private party, in the amount of $100,000 with an interest rate of 12% per annum and due May 31, 2014. The note was unsecured, convertible into shares of our common stock at a conversion price of $0.03 per share. In connection with the note offering, we also issued fully vested warrants to purchase 3,333,333 shares of common stock with a fair value of $90,106. The warrants are exercisable at $0.07/share and will expire in 3 years. The fair value of the warrants was recorded as a note discount and was amortized to interest expense over the term of the note.

Stockholders' Deficit

Stockholders' Deficit	12 Months Ended
	Jun. 30, 2015
Stockholders' Deficit
Stockholders' Deficit	Note 10 - Stockholders' Deficit Common Stock Year ended June 30, 2015 In October 2014, we issued 1,068,000 shares of common stock valued at $64,080 as payment to a service provider. These shares were valued at fair value at the date of issuance. In July 2014 we issued 5,193,328 shares of common stock to various entities and individuals in exchange for cash proceeds of $375,498, net of commissions of $14,359. In addition, the Company also granted these entities and individuals five year, fully vested warrants to purchase 5,193,328 shares of common stock at $0.12 per share. The shares were issued in reliance on Section 4(2) of the Securities Act of 1933, as amended. The shares were not offered via general solicitation to the public. The Company issued rule 144 shares in connection with these issuances. In June 2015, we issued an aggregate of 800,858 shares of common stock to a consultant in exchange for the cancellation of 800,858 fully vested stock options that were granted in December 2012. As a result, the Company recognized compensation cost of $442 to account for the incremental difference in fair value of the 800,858 shares of common stock and the fair value of the cancelled 800,858 stock options. Year ended June 30, 2014 On December 2, 2013, we issued 3,333,333 shares of common stock to convert $100,000 of outstanding principal under the convertible promissory notes (see Note 9). In April 2014, we issued 1,000,000 shares of common stock valued at $90,000 as payment to a service provider. These shares were valued at fair value at the date of issuance. On June 30, 2014 we issued 15,133,330 shares of common stock to various entities and individuals in exchange for net cash proceeds of $1,021,500. In addition, the Company also granted these entities and individuals five year, fully vested warrants to purchase 15,133,330 shares of common stock at $0.12 per share. The shares were issued in reliance on Section 4(2) of the Securities Act of 1933, as amended. The shares were not offered via general solicitation to the public. The Company issued rule 144 shares in connection with these issuances. Preferred Stock On March 17, 2009, the Company filed Amended and Restated Articles of Incorporation and created two new series of preferred stock, the first of which is designated Series A Preferred Stock and the second of which is designated as Series B Preferred Stock. The total number of shares of Common Stock which this corporation shall have authority to issue is 1,000,000,000 shares of Common Stock and 10,000,000 shares of Preferred Stock of which 5,000,000 shares are designated as Series A Preferred Stock, and 5,000,000 shares are designated as Series B Preferred Stock, with the rights, preferences and privileges of the Series B Preferred Stock to be designated by the Board of Directors. Each share of Common Stock and Preferred Stock has a par value of $0.001. As of June 30, 2015 and 2014, there are no shares of Series A or Series B Preferred Stock issued and outstanding. Stock Options The Company has not adopted a formal stock option plan. However, it has assumed outstanding stock options resulting from the acquisition of its wholly-owned subsidiary, Hydrodynamic Technology, Inc. In addition, the Company has made periodic non- plan grants. A summary of the stock option activity from June 30, 2015 and 2014 is as follows: Weighted- Average Weighted- Remaining Average Contractual Exercise Life Options Price (Years) Outstanding June 30, 2013 13,611,815 0.10 8.17 - Granted - - - - Forfeited - - - - Exercised - - - - Expired - - - Outstanding June 30, 2014 13,611,815 0.10 6.37 - Granted - - - - Forfeited/Replaced (800,858 ) - - - Exercised - - - - Expired - - - Outstanding at June 30, 2015 12,810,957 0.10 5.35 Exercisable at June 30, 2015 12,810,957 0.10 5.35 In June 2015, the Company cancelled fully vested stock options to purchase 800,858 shares of common stock that were granted to a consultant in prior periods. In exchange for the cancellation, we granted the consultant 800,858 shares of common stock. The intrinsic value of the outstanding options was $330,000 and $590,043 as of June 30, 2015 and 2014, respectively. The following table summarizes additional information concerning options outstanding and exercisable at June 30, 2015. Options Outstanding Options Exercisable Weighted Weighted Weighted Average Average Average Exercise Number Remaining Exercise Number Remaining Price of Shares Life (Years) Price of Shares Life (Years) $ 0.03 11,000,000 5.96 $ 0.03 11,000,000 $ 5.96 $ 0.33 637,297 1.31 $ 0.33 637,297 $ 1.31 $ 0.67 1,173,660 1.68 $ 0.67 1,173,660 $ 1.68 12,810,957 12,810,957 Warrants A summary of the Company's warrant activity and related information from as of June 30, 2015 and 2014 is as follows. Weighted- Average Weighted- Remaining Average Contractual Exercise Life Warrants Price (Years) Outstanding at June 30, 2013 18,433,867 0.09 6.74 Granted 47,362,581 0.07 7.40 Exercised - - - Expired 2,729,934 0.50 - Outstanding at June 30, 2014 63,066,514 0.06 6.91 Granted 5,193,329 0.12 5.00 Exercised - Expired - Outstanding at June 30, 2015 68,259,843 0.07 5.77 Exercisable at June 30, 2015 68,259,843 0.07 5.77 2015 In July of 2014, the Company issued warrants to purchase 5,193,329 shares of common stock to the purchasers of our common stock offering. The warrants are exercisable at $0.12 per share, vesting immediately and expiring in 5 years from the grant date. During the year ended June 30, 2015, the Company recognized compensation expense of $245,375 to account for the fair value of vested warrants granted to a consultant and a member of our Board of Directors. 2014 In October 2013, the Company granted employees warrants to purchase 9,100,000 shares of common stock at $0.04 per share, vesting immediately and expiring in 5 and 10 years from the grant date. The fair value of the warrants amounted to $363,882 using the Black-Scholes Merton valuation model. In October 2013, the Company granted consultants warrants to purchase 13,100,000 shares of common stock at prices ranging from $0.04 up to $0.045 per share, vesting over a period of one year and expiring in 5 and 10 years from the grant date. The fair value of the warrants that vested during the current fiscal year amounted to $726,299 using the Black-Scholes Merton valuation model. In April 2014, the Company granted a total of 9,029,251 warrants to demand note holders pursuant to settlement agreements (see Note 7 and 8). In April 2014, the Company granted a new Board member warrants to purchase 1,000,000 shares of common stock at $0.08 per share which vest over a period of one year and expiring in 5 years from the grant date. The fair value of the warrants at the grant date amounted to $79,764 using the Black-Scholes Merton valuation model. During the year ended June 30, 2014, we recognized a total of $3,324 based upon the vesting of the warrants. In June of 2014, the Company issued warrants to purchase 15,133,330 shares of common stock to the purchasers of our common stock offering. The warrants are exercisable at $0.12 per share, vesting immediately and expiring in 5 years from the grant date. The intrinsic value of the outstanding warrants was $651,999 and $1,551,329 as of June 30, 2015 and 2014, respectively. The following table summarizes additional information concerning warrants outstanding and exercisable at June 30, 2015. Warrants Outstanding Warrants Exercisable Weighted Weighted Weighted Average Average Average Exercise Number Remaining Exercise Number Exercise Price of Shares Life (Years) Price of Shares Price $ 0.04 - 0.07 47,933,184 6.75 $ 0.05 44,641,518 $ 0.05 $ 0.12 20,326,659 4.25 $ 0.12 20,326,659 $ 0.12 68,259,843 68,259,843 The table below represents the assumptions used in valuing the stock options and warrants granted in fiscal 2015 and 2014: Year Ended June 30, 2015 2014 Expected life in years 3 - 10 3 - 10 Stock price volatility 183% - 191% 185% - 232% Risk free interest rate 2.75% - 3.21% 1.44% - 3.50% Expected dividends None None Forfeiture rate 0% 0% The assumptions used in the Black Scholes models referred to above are based upon the following data: (1) the contractual life of the underlying non-employee options is the expected life. The expected life of the employee option is estimated by considering the contractual term of the option, the vesting period of the option, the employees' expected exercise behavior and the post-vesting employee turnover rate. (2) The expected stock price volatility was based upon the Company's historical stock price over the expected term of the option. (3) The risk free interest rate is based on published U.S. Treasury Department interest rates for the expected terms of the underlying options. (4) The expected dividend yield was based on the fact that the Company has not paid dividends to common shareholders in the past and does not expect to pay dividends to common shareholders in the future. (5) The expected forfeiture rate is based on historical forfeiture activity and assumptions regarding future forfeitures based on the composition of current grantees.

Income Taxes

Income Taxes	12 Months Ended
	Jun. 30, 2015
Income Taxes:
Income Tax Disclosure	Note 11 - Income Taxes Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 34% to income before income tax expense as a result of the NOL carry forward. Therefore, the company's effective tax rate is 0.0%. The Company files income tax returns in the United States ("Federal") and California ("State") jurisdictions. The Company is subject to Federal and State income tax examinations by tax authorities for all years since its inception. At June 30, 2015, the Company had Federal and State net operating loss carry forwards available to offset future taxable income of approximately $9.4 million and $9.4 million, respectively. These carry forwards will begin to expire in the years ending June 30, 2027 and June 30, 2017, respectively, subject to IRS limitations, including change in ownership. The Company periodically evaluates the likelihood of the realization of deferred tax assets, and adjusts the carrying amount of the deferred tax assets by a valuation allowance to the extent the future realization of the deferred tax assets is not judged to be more likely than not. The Company considers many factors when assessing the likelihood of future realization of our deferred tax assets, including recent cumulative earnings experience by taxing jurisdiction, expectations of future taxable income or loss, the carry-forward periods available to us for tax reporting purposes, and other relevant factors. At June 30, 2015, based on the weight of available evidence, including cumulative losses in recent years and expectations of future taxable income, the Company determined that it was more likely than not that its deferred tax assets would not be realized. Accordingly, the Company has recorded a valuation allowance for 100% of its cumulative deferred tax assets. As a result of the implementation of certain provisions of ASC 740-10, the Company performed an analysis of its previous tax filings and determined that there were no positions taken that it considered uncertain. Therefore, there were no unrecognized tax benefits as of June 30, 2015. Future changes in the unrecognized tax benefit are not expected to have an impact on the effective tax rate due to the existence of the valuation allowance. The Company estimates that the unrecognized tax benefit will not change within the next twelve months. The Company will continue to classify income tax penalties and interest, if any, as part of interest and other expenses in its consolidated statements of operations. There is no interest or penalties accrued as of June 30, 2015. The following summarizes the open tax years for each major jurisdiction: Jurisdiction Open Tax Years Federal 2010 - 2014 California 2009 - 2014 The Company's net operating loss carry forwards are subject to IRS examination until they are utilized and such tax years are closed.

Commitment and Contingencies

Commitment and Contingencies	12 Months Ended
	Jun. 30, 2015
Commitment and Contingencies:
Commitments and Contingencies Disclosure	Note 12 - Commitments and Contingencies Lease Agreement The Company leases approximately 5,000 square feet of office and warehouse space at 10019 Canoga Ave in Chatsworth, California under a lease agreement which extends through February 1, 2016. Monthly payments are approximately $4,511 beginning May 2012. The Company has a security deposit of $9,500 associated with this lease. Future minimum lease payments under our non-cancelable operating lease through February 2016 is $31,577. Total rent expense was $61,236 and $54,130 for the years ended June 30, 2015 and 2014 and was reported as part of General and administrative expenses in the accompanying Consolidated Statements of Operations, Royalty Agreements On July 1, 2008, our wholly owned subsidiary entered into Patent Assignment Agreements with two parties, our President as well as our former Chief Executive Officer (CEO) and current Chief Technology Officer (CTO), where certain devices and methods involved in the hydrodynamic cavitation processes invented by the President and former CEO/current CTO have been assigned to the Company. In exchange, the Company agreed to pay a royalty of 5% of gross revenues to each of the CTO and President and former CEO for licensing of the technology and leasing of the related equipment embodying the technology. These agreements were subsequently assigned to Cavitation Technologies on May 13, 2010. The Company's CTO and President both waived their rights to receive royalty payments that have accrued, or that may accrue, on any gross revenue generated through June 30, 2015. On April 30, 2008 (as amended November 22, 2010), our wholly owned subsidiary entered into an employment agreement with the Director of Chemical and Analytical Department (the "Inventor") who shall receive an amount equal to 5% of actual gross royalties received from the royalty stream in the first year in which the Company receives royalty payments from the patent which the Inventor was the legally named inventor, and 3% of actual gross royalties received by the Company resulting from the patent in each subsequent year. As of June 30, 2015, no patents have been granted in which this person is the legally named inventor. Litigation The Company is involved in certain legal proceedings that arise from time to time in the ordinary course of our business. As of June 30, 2015, the Company was a party to legal proceedings related to claims for payment that are currently accrued for in its financial statements. Except for income tax contingencies, the Company record accruals for contingencies to the extent that management concludes that the occurrence is probable and that the related amounts of loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. Material legal proceedings that are currently pending are as follows: a. In August 2015, a former employee and former Director filed a claim of approximately $179,000 for unpaid wages, penalties and interest. The Company deemed that the claim of $179,000 is without merit. The Company believes that the total liability to the former employee is only up to $134,000 which was accrued in prior period as part of Accrued Payroll and payroll taxes due to officers in the accompanying Consolidated Balance Sheets for the years ended June 30, 2015 and 2014. The Company will appeal any unfavorable rulings and vigorously defend its case against the former employee. b. The Company has several patents issued by the US Patent Office with regards to the use and efficacy of its Nano Reactors. In August 2015, a competitor, Arisdyne System filed a complaint challenging the patentability of the Company’s Patent No. 8,911,808 B2 or Patent 808. Patent 808 is currently being used in the reactors purchased by our distributor, Desmet. The Company intends to vigorously respond to the complaint in order to maintain the patented status of Patent 808. There is no monetary compensation being claimed by Arisdyne.

Subsequent Events

Subsequent Events	12 Months Ended
	Jun. 30, 2015
Subsequent Events:
Subsequent Events	Note 13 - Subsequent Events In September of 2015 we issued a total of 9,029,251 shares of common stock to a related party and a former note holder that were reflected as common stock issuable at June 30, 2015 (see Note 7 and 8).

Accounting Policies (Policies)

Accounting Policies (Policies)	12 Months Ended
	Jun. 30, 2015
Accounting Policies (Policies):
Principles of Consolidation , Policy	Principles of Consolidation
Fair Value Measurement, Policy	Fair Value Measurement FASB Accounting Standards Codification ("ASC") 820-10 requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet for which it is practicable to estimate fair value. ASC 820-10 defines the fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. In addition to defining fair value, the standard expands the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which are determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1 - inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. Level 2 - inputs are based upon significant observable inputs other than quoted prices included in Level 1, such as quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. As of June 30, 2015, the carrying value of certain accounts such as inventory, accounts payable, accrued expenses and accrued payroll approximates their fair value due to the short-term nature of such instruments.
Use of Estimates, Policy	Use of Estimates
Revenue Recognition , Policy	Revenue Recognition Revenue from the sale of our Nano Reactor® Systems
Cash , Policy	Cash The Company considers highly liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents are carried at cost which approximates market value. The Company maintains its cash with one domestic financial institution. From time to time, cash balance in this domestic bank may exceed federally insured limits provided by the Federal Deposit Insurance Corporation ("FDIC") of up to $250,000. As of June 30, 2015 and 2014, before adjustments for outstanding checks and deposits in transit, the Company had approximately $1,489,000 and $1,226,000, respectively, on deposit with one bank. The Company believes that no significant concentration of credit risk exists with respect to this cash balances because of its assessment of the creditworthiness and financial viability of this financial institution.
Inventory, Policy	Inventory Nano Reactor®
Property, Plant and Equipment, Policy	Property and Equipment Property and equipment is presented at cost less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Betterments, renewals, and extraordinary repairs that extend the life of the assets are capitalized; other repairs and maintenance charges are expensed as incurred. The cost and related accumulated depreciation applicable to retired assets are removed from the Company's accounts, and the gain or loss on dispositions, if any, is recognized in the consolidated statements of operations. Property and equipment are recorded at cost and depreciated using the straight-line method over the following estimated useful lives. Leasehold improvements Shorter of life of asset or lease Furniture 5-7 Years Office equipment 5Years Lab equipment 4 Years Skid systems (demo units) 4 Years Management assesses the carrying value of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If there is indication of impairment, management prepares an estimate of future cash flows expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. For the years ended June 30, 2015 and 2014, the Company did not recognize any impairment for its property and equipment.
Patents , Policy	Patents Capitalized patent costs represent legal fees associated with procuring and filing patent applications. The Company accounts for patents in accordance with ASC 350-30, General Intangibles Other Than Goodwill During the year ended June 30, 2014, the Company recognized patent amortization expense of $28,466. As of June 30, 2014, total capitalized patent costs amounted to $157,012 and accumulated amortization of $84,238. During the year ended June 30, 2015, the Company recognized patent amortization expense of $30,307. As of June 30, 2015, total capitalized patent costs amounted to $157,012 and accumulated amortization of $119,846. At June 30, 2015, future estimated patent amortization costs are: Year Ended June 30, Amount 2016 20,690 2017 13,501 2018 2,975 Total $ 37,166
Impairment of Intangible and Long-Lived Assets , Policy	Impairment of Intangible and Long-Lived Assets General Intangibles Other than Goodwill
Share-Based Compensation Policy	Share-Based Compensation The Company periodically issues stock options and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for stock option and warrant grants issued and vesting to employees based on the authoritative guidance provided by the Financial Accounting Standards Board whereas the value of the award is measured on the date of grant and recognized over the vesting period. The Company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with the authoritative guidance of the Financial Accounting Standards Board whereas the value of the stock compensation is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Non-employee stock-based compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are no future performance requirements by the non-employee, option grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date. The fair value of the Company's common stock option and warrant grants is estimated using the Black-Scholes option pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the common stock options, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes option pricing model, and based on actual experience. The assumptions used in the Black-Scholes option pricing model could materially affect compensation expense recorded in future periods.
Income Taxes , Policy	Income Taxes The Company accounts for income taxes in accordance with ASC 740-10, Income Taxes ASC 740-10 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. The Company classifies interest and penalties as a component of interest and other expenses. To date, there have been no interest or penalties assessed or paid. The Company measures and records uncertain tax positions by establishing a threshold for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Only tax positions meeting the more-likely-than-not recognition threshold at the effective date may be recognized or continue to be recognized.
Advertising Costs, Policy	Advertising costs
Research and Development Expense, Policy	Research and Development Costs
Warranty Policy , Policy	Warranty Policy
Net Income (Loss) Per Share , Policy	Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per share is computed similar to basic net income (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive securities had been issued. At June 30, 2015 potentially dilutive securities include options to acquire 12,810,957 shares of common stock and warrants to acquire 68,259,843 shares of common stock. Net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period. Basic and diluted net loss per common share is the same for all periods presented with a net loss because warrants and stock options outstanding are anti-dilutive.
Recent Accounting Pronouncements , Policy	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers In June 2014, the FASB issued Accounting Standards Update No. 2014-12, Compensation – Stock Compensation (Topic 718) In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In July 2015, the FASB issued Accounting Standards Update 2015-11, Simplifying the Measurement of Inventory
Dependence on Desmet Ballestra , Policy	Dependence on Desmet Ballestra Our revenue is almost entirely dependent on Desmet Ballestra who is our exclusive distribution agent with regard to the CTi Nano Neutralization® System

Schedule Of Future Estimated Pa

Schedule Of Future Estimated Patent Amortization Costs (Tables)	12 Months Ended
	Jun. 30, 2015
Schedule Of Future Estimated Patent Amortization Costs (Tables):
Schedule Of Future Estimated Patent Amortization Costs (Tables)	At June 30, 2015, future estimated patent amortization costs are: Year Ended June 30, Amount 2016 20,690 2017 13,501 2018 2,975 Total $ 37,166

Schedule Of Property and Equipm

Schedule Of Property and Equipment (Tables)	12 Months Ended
	Jun. 30, 2015
Schedule Of Property and Equipment (Tables):
Schedule Of Property and Equipment (Tables)	Property and equipment consisted of the following as of June 30, 2015 and June 30, 2014: June 30, June 30, 2015 2014 Leasehold improvement $ 2,475 $ 2,475 Furniture 26,837 26,837 Office equipment 1,499 1,499 Equipment 68,380 68,380 Systems 291,090 268,340 390,281 367,531 Less: accumulated depreciation and amortization (289,909 ) (230,436 ) Property & Equipment, net $ 100,372 $ 137,095

Schedule Of Stock Option Activi

Schedule Of Stock Option Activity (Tables)	12 Months Ended
	Jun. 30, 2015
Schedule Of Stock Option Activity (Tables):
Schedule Of Stock Option Activity (Tables)	A summary of the stock option activity from June 30, 2015 and 2014 is as follows: Weighted- Average Weighted- Remaining Average Contractual Exercise Life Options Price (Years) Outstanding June 30, 2013 13,611,815 0.10 8.17 - Granted - - - - Forfeited - - - - Exercised - - - - Expired - - - Outstanding June 30, 2014 13,611,815 0.10 6.37 - Granted - - - - Forfeited/Replaced (800,858 ) - - - Exercised - - - - Expired - - - Outstanding at June 30, 2015 12,810,957 0.10 5.35 Exercisable at June 30, 2015 12,810,957 0.10 5.35
Schedule Of Options Outstanding And Exercisable (Tables)	The following table summarizes additional information concerning options outstanding and exercisable at June 30, 2015. Options Outstanding Options Exercisable Weighted Weighted Weighted Average Average Average Exercise Number Remaining Exercise Number Remaining Price of Shares Life (Years) Price of Shares Life (Years) $ 0.03 11,000,000 5.96 $ 0.03 11,000,000 $ 5.96 $ 0.33 637,297 1.31 $ 0.33 637,297 $ 1.31 $ 0.67 1,173,660 1.68 $ 0.67 1,173,660 $ 1.68 12,810,957 12,810,957

Schedule Of Warrants Activity (

Schedule Of Warrants Activity (Tables)	12 Months Ended
	Jun. 30, 2015
Schedule Of Warrants Activity (Tables):
Schedule Of Warrants Activity (Tables)	A summary of the Company's warrant activity and related information from as of June 30, 2015 and 2014 is as follows. Weighted- Average Weighted- Remaining Average Contractual Exercise Life Warrants Price (Years) Outstanding at June 30, 2013 18,433,867 0.09 6.74 Granted 47,362,581 0.07 7.40 Exercised - - - Expired 2,729,934 0.50 - Outstanding at June 30, 2014 63,066,514 0.06 6.91 Granted 5,193,329 0.12 5.00 Exercised - Expired - Outstanding at June 30, 2015 68,259,843 0.07 5.77 Exercisable at June 30, 2015 68,259,843 0.07 5.77
Schedule Of Warrants Outstanding And Exercisable (Tables)	following table summarizes additional information concerning warrants outstanding and exercisable at June 30, 2015. Warrants Outstanding Warrants Exercisable Weighted Weighted Weighted Average Average Average Exercise Number Remaining Exercise Number Exercise Price of Shares Life (Years) Price of Shares Price $ 0.04 - 0.07 47,933,184 6.75 $ 0.05 44,641,518 $ 0.05 $ 0.12 20,326,659 4.25 $ 0.12 20,326,659 $ 0.12 68,259,843 68,259,843
Schedule Of Assumptions Used In Valuing Stock Options And Warrants Granted (Tables)	The table below represents the assumptions used in valuing the stock options and warrants granted in fiscal 2015 and 2014: Year Ended June 30, 2015 2014 Expected life in years 3 - 10 3 - 10 Stock price volatility 183% - 191% 185% - 232% Risk free interest rate 2.75% - 3.21% 1.44% - 3.50% Expected dividends None None Forfeiture rate 0% 0%

Summary of the stock option act

Summary of the stock option activity (Details) {stockholders equity}	12 Months Ended
	Jun. 30, 2015USD ($)shares
Options
Outstanding	12,810,957
Granted	0
Forfeited | $	$ 0
Exercised	0
Expired	0
Outstanding	13,611,815
Granted	0
Forfeited/Replaced	(800,858)
Expired	0
Exercisable	12,810,957
Weighted-Average Exercise Price
Outstanding	0.10
Outstanding	0.10
Exercisable	0.10
Weighted- Average Remaining Contractual Life (Years)
Outstanding	5.35
Outstanding	6.37
Exercisable	5.35

Summary of additional informati

Summary of additional information concerning options outstanding and exercisable (Details){Stockholders equity}	12 Months Ended
	Jun. 30, 2015shares
Options Outstanding Number of shares
Options outstanding and exercisable with Exercise Price 0.03	11,000,000
Options outstanding and exercisable with Exercise Price 0.33	637,297
Options outstanding and exercisable with Exercise Price 0.67	1,173,660
Total Options outstanding and exercisable	12,810,957
Options Outstanding - Weighted Average Remaining Life (Years)
Options outstanding and exercisable with Exercise Price 0.03	5.96
Options outstanding and exercisable with Exercise Price 0.33	1.31
Options outstanding and exercisable with Exercise Price 0.67	1.68
Options Outstanding - Weighted-Average Exercise Price
Options outstanding and exercisable with Exercise Price 0.03	0.03
Options outstanding and exercisable with Exercise Price 0.33	0.33
Options outstanding and exercisable with Exercise Price 0.67	0.67
Options exercisable - Number of shares
Options outstanding and exercisable with Exercise Price 0.03	11,000,000
Options outstanding and exercisable with Exercise Price 0.33	637,297
Options outstanding and exercisable with Exercise Price 0.67	1,173,660
Total Options outstanding and exercisable	12,810,957
Options exercisable - Weighted Average Remaining Life (Years)
Options outstanding and exercisable with Exercise Price 0.03	5.96
Options outstanding and exercisable with Exercise Price 0.33	1.31
Options outstanding and exercisable with Exercise Price 0.67	1.68

Summary of the Company's warran

Summary of the Company's warrant activity (Details){stockholders equity}	12 Months Ended
	Jun. 30, 2015shares
Warrants
Outstanding Warrants	68,259,843
Warrants Granted	47,362,581
Warrants Expired	2,729,934
Warrants Granted	5,193,329
Exercisable Warrants	68,259,843
Warrants - Weighted-Average Exercise Price
Outstanding Warrants	0.07
Warrants Granted	0.07
Warrants Expired	0.50
Warrants Granted	0.12
Exercisable Warrants	0.07
Warrants - Weighted- Average Remaining Contractual Life (Years)
Outstanding Warrants	5.77
Warrants Granted	7.40
Warrants Exercised	0
Warrants Granted	5
Warrants Exercised	0
Warrants Expired	0
Exercisable Warrants	5.77

Summary of additional informa28

Summary of additional information concerning Warrants outstanding and exercisable (Details){Stockholders equity}	12 Months Ended
	Jun. 30, 2015shares
Warrants Outstanding Number of shares
Warrants outstanding and exercisable with Exercise Price 0.04 - 0.07	47,933,184
Warrants outstanding and exercisable with Exercise Price 0.12	20,326,659
Total Warrants outstanding and exercisable	68,259,843
Warrants Outstanding - Weighted Average Remaining Life (Years)
Warrants outstanding and exercisable with Exercise Price 0.04 - 0.07	6.75
Warrants outstanding and exercisable with Exercise Price 0.12	4.25
Warrants Outstanding - Weighted-Average Exercise Price
Warrants outstanding and exercisable with Exercise Price 0.04 - 0.07	0.05
Warrants outstanding and exercisable with Exercise Price 0.12	0.12
Warrants exercisable - Number of shares
Warrants outstanding and exercisable with Exercise Price 0.04 - 0.07	47,724,851
Warrants outstanding and exercisable with Exercise Price 0.12	20,326,659
Total Warrants outstanding and exercisable	68,051,510
Warrants exercisable - Weighted Average Remaining Life (Years)
Warrants outstanding and exercisable with Exercise Price 0.04 - 0.07	0.05
Warrants outstanding and exercisable with Exercise Price 0.12	0.12

Going Concern (Narrative) (Deta

Going Concern (Narrative) (Details)	12 Months Ended
	Jun. 30, 2015USD ($)shares
Going Concern Narrative Details
Company incurred a net loss during the period	$ 1,378,926
Working capital deficiency	1,222,593
Total stockholders' deficit	1,075,555
Minimum monthly advances from Desmet	125,000
Year-to-date advances from Desmet	1,375,000
Advances from Desmet as per new agreement	50,000
Company raised funds	$ 375,498
Company raised funds through issuance of shares of our common stock | shares	5,193,328

Significant Accounting Polici30

Significant Accounting Policies (Details)	Jun. 30, 2015USD ($)shares	Jun. 30, 2014USD ($)
Company cash details
Company maintains its cash with one domestic financial institution(FDIC) | $	$ 250,000	$ 250,000
Before adjustments for outstanding checks and deposits in transit | $	$ 1,489,000	$ 1,226,000
Property and Equipment Details
Leasehold improvements useful life	0
Furniture Estimated useful life minimum(years)	5
Furniture Estimated useful life maximum(years)	7
Office equipment estimated useful life (years)	5
Lab equipment estimated useful life (years)	4
Skid systems (demo units)estimated useful life (years)	4
Net income loss per share details
Potentially dilutive securities include options to acquire shares	12,810,957
Warrants to acquire shares of common stock	68,259,843

Significant Accounting polici31

Significant Accounting policies-Patents (Details)	12 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)
Significant Accounting policies-Patents
Company recognized patent amortization expense	$ 30,307	$ 28,466
Total capitalized costs amounted	157,012	157,012
Accumulated amortization	119,846	$ 84,238
Future estimated patent amortization cost in 2016	20,690
Future estimated patent amortization cost in 2017	13,501
Future estimated patent amortization cost in 2018	2,975
Total future estimated patent amortized cost	$ 37,166
Total number of patents	25

Significant Accounting polici32

Significant Accounting policies-Advetising and research Costs (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Significant Accounting policies-Advetising and research Costs
Advertising expenses amounted	$ 23,285	$ 7,871
Total research and development costs recorded	$ 22,310	$ 40,820

Agreement with Desmet Ballest33

Agreement with Desmet Ballestra ( Narrative) (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Agreement With Desmet Ballestra Narrative Details
Revenues from Desmet	$ 489,255	$ 1,855,707
Limited monthly advance payments against future sales	125,000
Advances received from Desmet	1,375,000	1,375,000
Desmet has advanced to Company an excess of funds which will be recognized as revenue as sales orders are shipped	$ 734,956	$ 1,620,701

Property and equipment consiste

Property and equipment consisted of the following (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Property and equipment consisted of the following
Leasehold improvement	$ 837	$ 2,475
Furniture	26,837	26,837
Office equipment	1,499	1,499
Equipment	68,380	68,380
Systems	291,090	268,340
Property and equipment, gross	390,281	367,531
Less: accumulated depreciation and amortization	(289,909)	(230,436)
Property Equipment, net	$ 100,372	$ 137,095

Property, Plant and Equipment (

Property, Plant and Equipment (Depreciation Expense Narrative) (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Property Plant And Equipment Depreciation Expense Narrative Details
Depreciation expense	$ 59,473	$ 72,227

Accrued Payroll and Payroll T36

Accrued Payroll and Payroll Taxes (Narrative) (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Accrued Payroll And Payroll Taxes Narrative Details
Accrued salaries of officers	$ 1,016,223	$ 1,030,331

Related Party Short-Term Loan37

Related Party Short-Term Loan and Payables (Details) - USD ($)	Apr. 01, 2014	Jun. 30, 2012
Related Party Short-Term Loan and Payables details
Company had received from west point partners		$ 185,000
Funds were due on demand, and accrued an annual interest rate		12.00%
Company granted an aggregate number of shares of common stock	7,610,000
Fair value of aggregate shares of common stock	$ 684,900
Number of warrants granted	7,610,000
Fair value of warrants	$ 683,983
Settled the demand note with a face value	185,000
Accured interest on demand note	43,300
Company recognised loss as a result of settlement	$ 1,140,583

Short-Term Loans (Details)

Short-Term Loans (Details) - USD ($)	Apr. 01, 2014	Jun. 30, 2012
Short-Term Loans Details
Company received funds from a third party, Strategic IR		$ 34,521
Strategic IR funds were due on demand and pay an annual interest rate		12.00%
Company granted an aggregate of shares of common stock to Strategic IR	1,419,251
Company granted an aggregate of shares of common stock to Strategic IR with a fair value	$ 127,733
Company granted an aggregate of warrants shares of common stock to Strategic IR on settlement	1,419,251
Company granted an aggregate of warrants shares of common stock to Strategic IR on settlement with a fair value	$ 127,432
Accrued interest on funds of Strategic IR	8,057
Company recognized a loss on settlement which was accounted for as part of Interest expense	$ 212,587

Convertible promissory note pay

Convertible promissory note payable (Details) - USD ($)	Dec. 02, 2013	Dec. 17, 2012
Convertible promissory note payable
Company issued a convertible promissory note payable to a private party, in the amount		$ 100,000
Rate of interest on convertible promissory note		12.00%
The note was unsecured, convertible into shares of our common stock at a conversion price per share		$ 0.03
Company issued fully vested warrants to purchase shares of common stock		3,333,333
Company issued fully vested warrants to purchase shares of common stock with a fair value		$ 90,106
The warrants are exercisable at a price per share		$ 0.07
Note was converted into shares of the Company's common stock	3,333,333
Unamortized balance of the note discount expensed as part of Interest expense	$ 55,174

Common stock transactions (Deta

Common stock transactions (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Common stock transactions
Company issued shares of common stock as payment to a service provider	1,068,000	1,000,000
Value of shares of common stock issued as payment to a service provider	$ 64,080	$ 90,000
Company issued shares of common stock to various entities and individuals	5,193,328	15,133,330
Cash proceeds from shares of common stock issued to various entities and individuals	$ 375,498	$ 1,021,500
Commissions on shares of common stock issued to various entities and individuals	$ 14,359
Company also granted these entities and individuals five year, fully vested warrants to purchase shares of common stock	5,193,328	15,133,330
Exercise price Per warrant	$ 0.12	$ 0.12
Shares of common stockissued to a consultant in exchange for the cancellation of fully vested stock options	800,858
Fully vested stock options cancelled by the consultant	800,858
Company issued shares of common stock to convert outstanding principal under the convertible promissory notes		3,333,333
Outstanding principal under the convertible promissory notes converted		$ 100,000

Preferred Stock (Details)

Preferred Stock (Details) - $ / shares	Jun. 30, 2015	Jun. 30, 2014	Mar. 17, 2009
Preferred Stock
The total authorized number of shares of Common Stock			1,000,000,000
The total authorized number of shares of Preferred Stock			10,000,000
Shares designated as Series A Preferred Stock			5,000,000
Shares designated as Series B Preferred Stock			5,000,000
Each share of Common Stock and Preferred Stock has a par value			$ 0.001
Series A or Series B Preferred Stock issued and outstanding	0	0

Options and warrants (Details)

Options and warrants (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014	Apr. 30, 2014	Oct. 31, 2013	Oct. 01, 2013
Options and warrants
The intrinsic value of the outstanding options	$ 330,000	$ 590,043
The intrinsic value of the outstanding warrants	651,999	$ 1,551,329
Company granted a total of warrants to demand note holders pursuant to settlement agreements			9,029,251
Company granted a new Board member warrants to purchase shares of common stock at $0.08 per share			1,000,000
The fair value of the warrants at the grant date amounted to a value using the Black-Scholes Merton valuation model	$ 245,375		$ 79,764	$ 363,882	$ 726,299
Company recognized compensation costs related to the vesting of warrants			$ 3,324
Company cancelled fully vested stock options to purchase shares of common stock	800,858

Assumptions used in valuing the

Assumptions used in valuing the stock options and warrants granted (Details)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Assumptions used in valuing the stock options and warrants granted
Expected life in years minimum	3	3
Expected life in years maximum	10	10
Stock price volatility minimum	183.00%	185.00%
Stock price volatility maximum	191.00%	232.00%
Risk free interest rate minimum	2.75%	1.44%
Risk free interest rate maximum	3.21%	3.50%
Expected dividends	0.00%	0.00%
Forfeiture rate	0.00%	0.00%

Lease and Royalty Agreements (D

Lease and Royalty Agreements (Details)	12 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)
Lease and Royalty Agreements
The Company leases office and warehouse space approximately in square feet	5,000
Monthly lease payments are approximately	$ 4,511
The Company has a security deposit associated with this lease	9,500
Future minimum lease payments under our non-cancelable operating lease through February 2016	31,577
Total rent expense on lease reported as part of General and administrative expenses	$ 61,236	$ 54,130
Company agreed to pay a royalty of of gross revenues to each of the CTO and President and former CEO	5.00%
Company agreed to pay a royalty of of gross royalties to inventor	5.00%

Litigation (Details)

Litigation (Details)	Aug. 01, 2015USD ($)
Litigation
Former employee and former Director filed a claim for unpaid wages, penalties and interest of approximately	$ 179,000
The Company deemed that the claim without merit	179,000
The Company believes that the total liability to the former employee	$ 134,000

Subsequent Events (Details)

Subsequent Events (Details)	Sep. 30, 2015shares
Subsequent Events Details
Issued a total of shares of common stock to a related party and a former note holder that were reflected as common stock issuable	9,029,251