Quantumsphere 10-K 13 Oct 16 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2016	Oct. 13, 2016	Dec. 31, 2015
Document And Entity Information
Entity Registrant Name	QUANTUMSPHERE, INC.
Entity Central Index Key	1,387,135
Document Type	10-K
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filer	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 36,963,040
Entity Common Stock, Shares Outstanding		22,857,082
Trading Symbol	QSIM
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

Balance Sheets

Balance Sheets - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Current Assets
Cash	$ 180,805	$ 398,570
Inventory, net		65,668
Prepaid expenses and other current assets	43,114	39,081
Total current assets	223,919	503,319
Property and Equipment, net	985,231	1,346,346
Patents, net	95,451	99,447
Other Assets	24,578	24,578
Total assets	1,329,179	1,973,690
Current Liabilities
Accounts payable and accrued expenses	1,758,158	425,582
Note payable, net of discount	795,287	197,639
Convertible notes payable, net of discounts	1,014,952	42,500
Derivative liabilities	7,387	1,141,700
Total current liabilities	3,575,784	1,807,421
Note payable, long-term portion, net of discounts		276,392
Total liabilities	3,575,784	2,083,813
Stockholders' Deficit
Convertible preferred stock - 10,000,000 shares authorized, no shares issued and outstanding
Common stock - 500,000,000 shares authorized, 22,728,437 and 22,261,884 shares issued and outstanding as of June 30, 2016 and 2015, respectively	22,728	22,262
Additional paid-in capital	44,209,388	41,987,111
Accumulated deficit	(46,478,721)	(42,119,496)
Total stockholders' deficit	(2,246,605)	(110,123)
Total liabilities and stockholders' deficit	$ 1,329,179	$ 1,973,690

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - shares	Jun. 30, 2016	Jun. 30, 2015
Statement of Financial Position [Abstract]
Convertible preferred stock, shares authorized	10,000,000	10,000,000
Convertible preferred stock, shares issued
Convertible preferred stock, shares outstanding
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	22,728,437	22,261,884
Common stock, shares outstanding	22,728,437	22,261,884

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Net Sales	$ 46,669	$ 48,047
Cost of Sales	11,828	14,448
Gross Profit	34,841	33,599
Operating Expenses
Research and development	1,114,051	2,137,628
Selling, marketing and advertising	25,474	73,862
General and administrative	3,841,256	2,392,467
Total operating expenses	4,980,781	4,603,957
Loss from Operations	(4,945,940)	(4,570,358)
Other Income (Expense)
Interest expense, net	(457,208)	(80,131)
Interest expense - amortization of note discounts	(909,861)	(228,404)
Gain (loss) from change in fair value of derivative liabilities	2,020,698	(449,600)
Loss from debt extinguishment	(68,972)
Gain on disposal of assets	9,400	17,353
Loss on intangible assets	(6,592)	(12,283)
Other income	50	15,284
Total other income (expense), net	587,515	(737,781)
Loss Before Provision for Income Taxes	(4,358,425)	(5,308,139)
Provision for Income Taxes	800	800
Net Loss	$ (4,359,225)	$ (5,308,939)
Basic and Diluted Loss Per Common Share	$ (0.19)	$ (0.24)
Basic and Diluted Weighted-Average Common Shares Outstanding	22,577,724	21,998,528

Statements of Stockholders' Def

Statements of Stockholders' Deficit - USD ($)	Convertible Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Jun. 30, 2014		$ 21,385	$ 40,232,630	$ (36,810,557)	$ 3,443,458
Balance, shares at Jun. 30, 2014		21,385,217
Options exercised		$ 877	879,123		$ 880,000
Options exercised, shares		876,667			(876,667)
Issuance of warrants with debt			1,745		$ 1,745
Stock-based compensation			873,613		873,613
Net loss				(5,308,939)	(5,308,939)
Balance at Jun. 30, 2015		$ 22,262	41,987,111	(42,119,496)	(110,123)
Balance, shares at Jun. 30, 2015		22,261,884
Issuance of warrants with debt			234,772		234,772
Stock-based compensation			511,047		511,047
Shares issued for services		$ 466	1,476,458		1,476,924
Shares issued for services, shares		466,553
Net loss				(4,359,225)	(4,359,225)
Balance at Jun. 30, 2016		$ 22,728	$ 44,209,388	$ (46,478,721)	$ (2,246,605)
Balance, shares at Jun. 30, 2016		22,728,437

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (4,359,225)	$ (5,308,939)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	388,840	398,056
Stock based compensation	511,047	873,613
Loss (gain) from change in fair value of derivative liabilities	(2,020,698)	449,600
Loss from debt extinguishment	68,972
Stock issued for services	1,476,924
Gain on disposal of fixed assets		(17,353)
Inventory reserve	65,668
Discount amortization on notes payable	909,861	228,404
Changes in operating assets and liabilities:
Inventory		(65,668)
Prepaid expenses and other current assets	(4,033)	21,105
Other assets
Accounts payable and accrued expenses	1,424,034	36,415
Net cash used in operating activities	(1,538,610)	(3,384,767)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for development of patents	(9,603)	(4,483)
Purchase of property and equipment	(14,126)	(193,479)
Cash received from disposal of equipment		17,353
Net cash used in investing activities	(23,729)	(180,609)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of common stock options		880,000
Proceeds from issuances of notes payable	1,197,500	637,500
Proceeds from issuance of convertible notes payable	625,000
Payment of notes payable	(458,526)	(144,559)
Common stock buy back	(19,400)	(111,884)
Net cash provided by financing activities	1,344,574	1,261,057
NET DECREASE IN CASH	(217,765)	(2,304,319)
CASH - beginning of year	398,570	2,702,889
CASH - end of year	180,805	398,570
ADDITIONAL CASH FLOW INFORMATION
Interest paid	152,675	75,315
Income taxes paid	800	800
SUPPLEMENTAL OF NONCASH INVESTING AND FINANCING ACTIVITIES
Fair value in connection with issuance of notes payable	996,000	343,000
Fair value in connection with services rendered	110,000	$ 25,000
Common stock valued in connection with services rendered	1,476,458
Conversion of notes payable and convertible notes payable, noncash principal amount	710,000
Conversion of notes payable and convertible notes payable, noncash interest	$ 72,058

Statements of Cash Flows (Paren

Statements of Cash Flows (Parenthetical) - shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Statement of Cash Flows [Abstract]
Warrants issued to purchase of common stock in conection with issuance of notes payable	1,616,312	321,305
Warrants issued to purchase of common stock in connection with services rendered	106,667
Common stock issued in connection with services rendered	466,553
Warrants issued in connection with services rendered	54,167
Options issued to purchase common stock in connection with services rendered		35,000

Organization and Business

Organization and Business	12 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	1. ORGANIZATION AND BUSINESS QuantumSphere, Inc. (the “Company” or “QuantumSphere”) was organized under the laws of the State of Nevada on December 1, 2005. The Company has developed a process to manufacture metallic nanopowders with end-use application focused on the chemical sector. The Company’s products are used on a stand-alone basis, in the validation of the Company’s nano-iron catalysts coated onto commercial iron catalysts used in the production of ammonia on a prospective basis. The Company’s major activities to date have included capital formation, research and development, and marketing of its metallic nanopowder products.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The accompanying financial statements are prepared in conformity with U.S. GAAP and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. The use of estimates may also affect the reported amounts of revenues and expenses during the reporting periods. Significant estimates made by management include, among others, realization of capitalized assets, valuation of equity instruments, and deferred income tax asset valuation allowances. Actual results could differ from those estimates. Revenue Recognition The Company recognizes revenue when all four of the following criteria are met: (i) persuasive evidence that an arrangement exists; (ii) delivery of the products and/or services has occurred; (iii) the selling price is fixed or determinable; and (iv) collectability is reasonably assured. The Company does not grant customers the right to return the products after such products have been accepted. Amounts billed for shipping and handling are recorded as a component of net sales and the cost incurred for freight is included as a component of operating expenses in the statements of operations. Cash and Cash Equivalents The Company considers demand deposits, U.S. treasury securities and highly-liquid debt investments purchased with original maturities of three months or less to be cash equivalents. The Company did not have any cash equivalents as of June 30, 2016 and June 30, 2015. The Company maintains its cash in major banks. From time to time, the Company’s cash balances exceed the Federal Deposit Insurance Corporation limit. The Company has not experienced and does not anticipate any losses relating to these amounts. Inventory Inventory consists primarily of manufactured nano materials and is comprised of raw materials, labor and manufacturing overhead. Inventory is stated at the lower of cost, determined on a first-in, first-out basis, or market. An inventory reserve is created when potentially slow-moving or obsolete inventories are identified in order to reflect the appropriate inventory value. While the Company’s inventory is not perishable and does not degrade with time, the Company recorded a reserve as its inventory was over one year old and there is no certainty that the inventory will be sold. At June 30, 2016, all inventory was reserved. At June 30, 2015 the Company did not have an excess and obsolete reserve. Property and Equipment Purchased property and equipment is stated at cost, less accumulated depreciation. Repairs and maintenance of equipment are charged to expense as incurred. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Gains or losses on dispositions of property and equipment are included in the results of operations when realized. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, ranging from three to seven years. Leasehold improvements are amortized over the shorter of terms of the leases or their estimated useful lives. Depreciation expense on assets acquired under capital leases is included in depreciation expense. Patents Costs incurred in applying for patents relating to the Company’s process for production of nanopowders have been capitalized. Patents are amortized to reflect the pattern of economic benefits consumed, on a straight-line basis, over the estimated periods benefited. As of June 30, 2016, ten patents have been issued and two patents are pending approval. Amortization relating to issued patents was not significant during the periods presented. Additional significant costs may be required for the continued development of end-use applications for the Company’s technology. Patents costs are reviewed periodically as to if any patents are no longer being pursued and associated costs should be written off. For the year ended June 30, 2016, the Company wrote off $6,592 in capitalized patents costs. Impairment of Long-Lived Assets Long-lived assets and intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates potential impairment by comparing the carrying amount of the assets with the estimated undiscounted future cash flows associated with them. Should the review indicate that an asset is not recoverable, the Company’s carrying value of the asset would be reduced by the estimated shortfall to fair value. Fair Value of Financial Instruments and Certain Other Assets and Liabilities The Company follows the guidance of U.S. GAAP with respect to assets and liabilities that are measured at fair value. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: ● Level 1 ● Level 2 ● Level 3 The Company’s financial instruments consist of cash, accounts receivable, accounts payable and accrued expenses and debt. The carrying amount approximates fair value because of the short-term nature of these items. Other than derivative liabilities, the Company did not have any assets or liabilities that are measured at fair value on a recurring or nonrecurring basis during the years ended June 30, 2016 and 2015. The following details the fair value measurement within the fair value hierarchy of the Company’s financial assets and liabilities at June 30, 2016. Fair Value Measurement Total Fair Value Level 1 Level 2 Level 3 Derivative liabilities $ 7,387 $ - $ - $ 7,387 The following details the fair value measurement within the fair value hierarchy of the Company’s financial assets and liabilities at June 30, 2015. Fair Value Measurement Total Fair Value Level 1 Level 2 Level 3 Derivative liabilities $ 1,141,700 $ - $ - $ 1,141,700 There were no transfers among Level 1, Level 2 and Level 3 during the years ended June 30,2016 and 2015. The change in fair value of the derivative liabilities during the years ended June 30, 2016 and 2015 are summarized as follows: Fair value at June 30, 2014 $ - Issuance of derivative liabilities 692,100 Change in fair value 449,600 Fair value at June 30, 2015 1,141,700 Issuance of derivative liabilities 871,611 Change in fair value (2,020,698 ) Fair value at June 30, 2016 $ 7,387 Derivative Liabilities A derivative is an instrument whose value is “derived” from an underlying instrument or index such as a future, forward, swap, option contract, or other financial instrument with similar characteristics, including certain derivative instruments embedded in other contracts and for hedging activities. As a matter of policy, we do not invest in separable financial derivatives or engage in hedging transactions. However, we have entered into certain financing transactions that involve financial equity instruments containing certain features that have resulted in the instruments being deemed derivatives. We may engage in other similar complex financing transactions in the future, but not with the intention to enter into derivative instruments. Derivatives are measured at fair value using the Block Scholes Merton model and marked to market through earnings. However, such new and/or complex instruments may have immature or limited markets. As a result, the pricing models used for valuation of derivatives often incorporate significant estimates and assumptions. Changes in these subjective assumptions can materially affect the estimate of the fair value of derivative liabilities and, consequently, the related amount recognized as loss due to change in fair value of derivative liabilities on the statement of operations. Furthermore, depending on the terms of a derivative, the valuation of derivatives may be removed from the financial statements upon exercise or conversion of the underlying instrument into some other security. The classification of a derivative instrument is reassessed at each balance sheet date. If the classification changes as a result of events during a reporting period, the instrument is reclassified as of the date of the event that caused the reclassification. There is no limit on the number of times a contract may be reclassified. Research and Development Costs Research and development costs are expensed as incurred. Costs incurred for research and development for new or improved processes to produce nanopowders as well as end use applications for the nanopowders are expensed until the production process or applications have been determined to be commercially viable. Costs incurred after the production process is viable and a working model of the equipment has been completed will be capitalized as long-lived assets. Income Taxes Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provision for income taxes represents the tax payable for the period, if any, and the change during the period in deferred tax assets and liabilities. The Company provides for tax contingencies, if any, for federal, state and local exposures relating to audit results, tax planning initiatives and compliance responsibilities. The development of these reserves requires judgments about tax issues, potential outcomes and timing. Although the outcome of such matters is uncertain, in management’s opinion adequate provisions for income taxes have been made for potential liabilities emanating from these reviews. If actual outcomes differ materially from these estimates, they could have a material impact on the Company’s results. Loss Per Share The Company calculates basic loss per share by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding. Diluted loss per share is computed similar to basic loss per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if such additional common shares had been issued and were dilutive. Potential common shares, consisting of convertible notes payable options and warrants, totaling 16,890,179 and 12,921,728, have been excluded from the computations of diluted net loss per share because the effect would have been anti-dilutive for the years ended June 30, 2016 and 2015. Stock-Based Compensation The Company measures all employee stock-based compensation awards using the Black-Scholes-Merton valuation model and allocates the related expense over the requisite service period. The expected volatility is based on the historical volatility of the Company’s stock as determined by its private placement offerings; the expected life of the award is determined using the simplified method. The Company accounts for nonemployee stock-based transactions using the fair value of the consideration received (i.e. the value of the goods or services) or the fair value of the equity instruments issued, whichever is more reliably measurable. Going Concern The Company has incurred recurring losses from operations from inception and has limited working capital. As of June 30, 2016, the Company had an accumulated deficit of approximately $46.5 million. The Company’s activities will necessitate significant uses of working capital beyond fiscal 2017. Additionally, the Company’s capital requirements will depend on many factors, including the success of its continued research and development efforts and the status of competitive products. The Company plans to continue financing its operations with cash received from financing activities. Management is currently working on securing additional debt capital from financing activities to sustain operations until the Company is able to generate sufficient cash flows from operations. There is no assurance that the Company will be able to raise sufficient capital to continue operations and, if available, on terms satisfactory to the Company. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Risks and Uncertainties The Company faces risks and uncertainties relating to its ability to successfully implement and fulfill its strategy. Among other things, these risks include the ability to obtain revenues; manage operations; competition; attract, retain and motivate qualified personnel; maintain and develop new strategic relationships; and the ability to anticipate and adapt to the changing nanotechnology market and any changes in government regulations. Therefore, the Company may be subject to the risks of delays in consummating contracts with customers and suppliers, raising sufficient capital to achieve its objectives and other uncertainties, including financial, operational, technological, regulatory and other risks associated with an emerging business, including the potential risks of business failure. Technology and manufacturing companies with whom the Company is expected to compete, in general, are well capitalized. The Company is competing against entities with the financial and intellectual resources and expressed intent of performing rapid technological innovation. The Company’s resources are limited and must be allocated to focused objectives in order to succeed. Recent Accounting Pronouncements The FASB issued ASU 2016-02, Leases In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40).” This ASU provides guidance to determine when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. ASU 2014-15 will be effective for all entities in the first annual period ending after December 15, 2016. Earlier adoption is permitted. ASU 2014-15 will be effective for the Company beginning June 30, 2017. The Company does not believe that this pronouncement will have a significant impact on its financial statements. In May 2014, the FASB issued ASU 2014-09, as amended by ASU 2015-14, “Revenue from Contracts with Customers (Topic 606),” which is the new comprehensive revenue recognition standard that will supersede all existing revenue recognition guidance under U.S. GAAP. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In July 2015, the FASB issued ASU 2015-14 to defer the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date and permitted early adoption of the standard, but not before the original effective date of December 15, 2016. The Company is currently evaluating the impact of adopting this guidance.

Selected Financial Statement Ca

Selected Financial Statement Captions	12 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Selected Financial Statement Captions	3. SELECTED FINANCIAL STATEMENT CAPTIONS Property and equipment as of June 30, 2016 and 2015 consisted of the following: 2016 2015 Production equipment $ 1,948,794 $ 1,948,794 Computer equipment and software 60,896 57,864 Office furniture and equipment 11,972 11,972 Leasehold improvements 11,842 11,842 Scientific equipment 72,379 61,284 Lab furniture and fixtures 41,942 41,942 2,147,825 2,133,698 Accumulated depreciation and amortization (1,162,594 ) (787,352 ) $ 985,231 $ 1,346,346 Accounts payable and accrued expenses as of June 30, 2016 and 2015 consisted of the following: 2016 2015 Stock cancellation liability (Note 6) $ 219,992 $ 239,392 Accounts payable 435,246 66,482 Other accrued professional fees 109,854 22,666 Accrued compensation and related expenses 721,905 87,581 Accrued legal 3,063 - Accrued interest 237,313 4,817 Other accrued expenses 30,785 4,644 $ 1,758,158 $ 425,582

Notes Payable

Notes Payable	12 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Notes Payable	4. NOTES PAYABLE Novus On June 19, 2014, the Company signed a loan and security agreement with Novus Capital Group that provides a loan in the amount of $500,000. The loan accrues at an annual rate of 15.5%, has a term of thirty-six months, and monthly payments are $17,455. The agreement includes a warrant to purchase 20,000 shares of common stock at an exercise price of $2.00 per share. The warrants were valued at approximately $11,000, using the Black Scholes Merton option pricing model, and recorded as a discount to the note payable. On June 5, 2015, the Company signed a loan and security agreement with Novus Capital Group that provides a loan in the amount of $127,500. The loan accrues interest at an annual rate of 15.5%, has a term of thirty-six months, and monthly payments are $4,451. The agreement includes a warrant to purchase 2,555 shares of common stock at an exercise price of $2.00 per share that expires June 30, 2020. The vested warrants were valued at approximately $2,000, using the Black Scholes Merton option pricing model, and recorded as a discount to the note payable. The two loans with Novus Capital Group are secured by substantially all of the Company’s assets. Bridge Notes On July 28, 2015, the Company issued a promissory note for $60,000. The note was due October 12, 2015 and interest was set at $20,000. On December 7, 2015, the note and interest were paid in full. In September 2015, the Company issued promissory notes totaling $350,000. The promissory notes bear interest at the rate of 10% per thirty (30) day period and are due six months from the date of issuance. In connection with the promissory notes, the Company also issued warrants exercisable at $3.00 per share and for a period of five (5) years. The number of warrants to be issued ranges between 120% - 160% of the face value of the promissory note depending on repayment date. The warrants were valued at approximately $87,000 using the Black Scholes Merton option pricing model, and recorded as a discount to the notes payable. In December 2015, $150,000 in principal and related accrued interest were paid in cash. In December 2015, $200,000 in principal and $45,000 of related accrued interest were converted to Series O-2 convertible notes payable. The Company accounted for the conversion as a debt extinguishment and recorded a net loss of approximately $69,000 in the accompanying statements of operations. In total, 140,000 warrants were issued and remain outstanding as of June 30, 2016. On November 9, 2015, and February 25, 2016, the Company issued promissory notes totaling $100,000. The notes were due December 9, 2015 and March 25, 2016, respectively and bear interest at 10% per each 30 day period. The agreement includes a warrant to purchase shares of common stock at 110% of the face value of the notes if the notes are repaid within 30 days, and an additional 10% of the face value of the note for each month the note remains unpaid. The exercise price is $3.00 per share and the warrant expires November 9, 2020. The warrants were valued at approximately $15,000 using the Black Scholes Merton option pricing model, and recorded as a discount to the note payable. As of June 30, 2016, the note remains unpaid. On April 29, 2016, the Company issued a promissory note for $100,000. The note was due May 29, 2016 and interest was set at $25,000. On June 10, 2016, the principal was paid. The interest remains accrued. On June 8, 2016, the Company issued promissory notes for cash totaling $500,000. The principal amount due on the notes was $587,500. The notes are due October 8, 2016 and bear interest at 5% per annum. The agreements include warrants to purchase shares of common stock at 150% of the face value of the notes with an exercise price equal to the price per share of the Company’s next equity round of financing. In the event of default, the note holders may convert the notes and accrued interest into shares of common stock at a price equal to 60% of the volume weighted average price of the common stock during the 30 day consecutive trading day period immediately preceding the trading day that the Company receives a notice of conversion. The warrants were valued at approximately $254,000 using the Black Scholes Merton option pricing model, and recorded as a discount to the note payable, along with the original issue discount. Because the number of warrants was fixed, such instruments were not considered derivative liabilities. The notes are secured by all of the stock, options, and warrants of the Company owned by Kevin Maloney and Gregory Hrncir. All such notes and accrued interest were outstanding as of June 30, 2016.

Convertible Notes Payable

Convertible Notes Payable	12 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Convertible Notes Payable	5. CONVERTIBLE NOTES PAYABLE Series 0-1 Notes In May 2015, the Company issued convertible promissory notes (“Series O-1 Notes”) totaling $510,000. The Series O-1 Notes bear interest at the rate of 10% per annum. The Series O-1 Notes will mature upon the earlier of (i) one year from the date of the issuance of the notes, or (ii) closing of an equity financing of Four Million Dollars or more (“Qualifying Equity Offering”). The Series O-1 Notes were convertible and had certain price protection features based on the closing of a Qualifying Equity Offering in the future. Additionally, the Company issued detachable warrants equal to 50% of the face value of the Series O-1 Notes based on the closing of a Qualifying Equity Offering in the future. As a Qualifying Equity Offering has not yet occurred, the total number of warrants to be issued was not yet fixed. Due to the price protection features of the convertible notes as well as the variable number of warrants that can be issued in connection with these notes, both the embedded conversion feature and the warrants were considered to be derivative liabilities. As such, the Company allocated the entire face amount of the notes as a debt discount and amortized the discount using the effective interest method. In December 2015, all $510,000 in principal and approximately $27,000 in accrued interest of the Series O-1 Notes were converted to Series O-2 Notes. All Series O-1 Notes and the initial warrants were surrendered as part of the conversion. Series 0-2 Notes In October and November 2015, the Company issued convertible promissory notes (“Series O-2 Notes”) totaling $625,000. The notes bear interest at the rate of 10% per annum, with a default rate of 18% per annum. The Series O-2 Notes will mature upon the earlier of (i) one year from the date of the issuance of the notes, or (ii) closing of an equity financing of Four Million Dollars or more (Qualifying Equity Financing”). All outstanding principal and accrued interest under the Series O-2 Notes will be automatically converted into shares of common stock at the closing of a Qualifying Equity Offering based upon a conversion price equal to $1.60 per share. Alternatively, the outstanding principal and accrued interest may be voluntarily converted at the sole discretion of the Lender, at any time prior to the close of the Qualifying Equity Offering, in whole or in part, at a conversion price per share equal to $1.60 per share. In connection with the Series O-2 Notes, the Company also issued approximately 469,000 warrants exercisable at $3.00 per share, exercisable for a period of five (5) years. Both the Series O-2 Notes and warrants also had certain price protection features based on the closing of a Qualifying Equity Offering in the future. Due to the price protection features of the convertible notes as well as the variable number of warrants that can be issued in connection with these notes, both the embedded conversion feature and the warrants were considered to be derivative liabilities. As such, the Company allocated $727,841 as a debt discount and amortized the discount using the effective interest method. All Series O-2 Notes were outstanding as of June 30, 2016.

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit)	12 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Stockholders' Equity (Deficit)	6. STOCKHOLDERS’ EQUITY (DEFICIT) Common Stock In early April 2014, the Company executed a 10,000 for 1 reverse split. As a result of the reverse split, the Company cancelled and repurchased fractional shares comprising approximately 585,000 shares of common stock for $2.00 per share. Shortly after the reverse split, the Company executed a 1 for 10,000 forward split. As of June 30, 2016, the Company had approximately $219,992 of accrued liabilities associated with the share cancellation. Convertible Preferred Stock The Company has authorized the issuance of 10,000,000 shares of convertible preferred stock with a $0.001 par value. Stock Options In 2004, the Company adopted the 2004 Stock Option and Incentive Plan (the “2004 Plan”) for directors, employees, consultants and other persons acting on behalf of the Company, under which 4,000,000 shares of common stock were authorized for issuance. Options granted under the 2004 Plan vest on the date of grant, over a fixed period of time, or upon the occurrence of certain events and are exercisable for up to ten years. In 2012, the shares authorized for issuance were increased to 6,000,000 shares of common stock. In 2014, the shares authorized for issuance were increased to 7,500,000 shares of common stock. As of June 30, 2016, there were 1,206,799 shares of common stock available for grant under the 2004 Plan. During the year ended June 30, 2016, the Company issued to employees, officers, directors, advisory board and consultants options to purchase 540,000 shares of common stock, which are exercisable at a weighted average price of $1.32 per share. During the year ended June 30, 2015, 870,000 options were exercised at a price of $1.00 per share and 6,667 options were exercised at a price of $1.50 per share. During the year ended June 30, 2015, the Company issued to employees, officers, directors, advisory board and consultants options to purchase 570,000 shares of common stock, which are exercisable at a price of $2.00 per share (the “2015 Options”). The fair value of stock options granted were estimated on their respective grant dates using the Black-Scholes-Merton option pricing model and the following assumptions for the years ended June 30, 2016 and 2015: 2016 2015 Risk free interest rate 1.0% - 1.7 % 0.9% - 1.8 % Expected term 3 - 6 years 3 - 6 years Expected volatility 62.3% - 84.9 % 44.2% - 52.1 % Dividend yield – – Stock compensation expense related to options was $511,000 and $729,000 for the years ended June 30, 2016 and June 30, 2015, respectively. Unrecognized compensation costs related to non-vested stock options was $149,000 as of June 30, 2016. The related cost is expected to be recognized over the remaining weighted-average vesting period of 0.7 years. A summary of the status of the Company’s options granted is as follows: Shares Weighted-Average Exercise Price Average Remaining Contractual Term (Years) Outstanding – June 30, 2014 6,088,078 $ 1.48 6.3 Granted 570,000 $ 2.00 Exercised (876,667 ) $ 1.00 Forfeited or expired (214,584 ) $ 1.74 Outstanding – June 30, 2015 5,566,827 $ 1.53 6.0 Granted 540,000 $ 1.32 Forfeited or expired (690,793 ) $ 1.51 Outstanding – June 30, 2016 5,416,034 $ 1.49 5.5 Exercisable: June 30, 2015 4,774,101 $ 1.52 5.5 June 30, 2016 5,036,448 $ 1.50 5.2 A summary of the status of the Company’s nonvested options and changes are presented below: Shares Weighted-Average Grant-Date Fair Value Nonvested – June 30, 2014 1,448,905 $ 0.67 Granted 570,000 $ 0.59 Forfeited or expired (103,195 ) $ 0.62 Vested (1,122,984 ) $ 0.61 Nonvested – June 30, 2015 792,726 $ 0.71 Granted 540,000 $ 0.77 Vested (817,296 ) $ 0.75 Forfeited or expired (135,844 ) $ 0.79 Nonvested – June 30, 2016 379,586 $ 0.67 The aggregate intrinsic value of vested and exercisable stock options was approximately $0 and $9,839,000 as of June 30, 2016 and 2015, respectively. Warrants From April 2015 through September 2015, the Company entered into one-year service agreements with firms to provide public relations, market awareness, and strategic advisory services. Each agreement called for a monthly cash retainer and shares of common stock. The shares were valued at the most recent market price at the date of each agreement and are amortized over the length of each agreement. In addition, agreements called for warrants to purchase common stock for periods from three to five years at exercise prices of $1.30 to $2.00 per share. The fair value of the warrants were valued using the Black-Scholes Merton option pricing model and are to be amortized over the length of each agreement. As of June 30, 2016, 433,220 shares and 106,667 warrants have been issued. In October 2015, the Company entered into a service agreement with an investor relations firm. The agreement is to conclude during the calendar fourth quarter of 2015 and provides for the issuance of 33,333 shares of common stock. The common stock was valued at the most recent market price at the date of the agreement. 33,333 shares have been issued as of June 30, 2016. The Company has recorded related expense when service was performed. During the year ended December 31, 2013, the Company issued warrants to purchase 500,000 shares of common stock, exercisable for a period of seven years at $1.30 per share, to a member of management subject to satisfaction of certain vesting conditions and are exercisable for up to seven years. 125,000 vested immediately and the balance vest 125,000 each upon certain milestones being met. As of June 30, 2016, vesting milestones have been met for 250,000 additional warrants (125,000 for achieving $3.0 million additional equity, 125,000 upon commercial validation of nano iron in China). 125,000 were forfeited upon the departure of the member in early 2016. The fair value of warrants granted were estimated on their respective grant dates using the Black-Scholes-Merton option pricing model and the following assumptions for the years ended June 30, 2016 and 2015: 2016 2015 Risk free interest rate 0.85% - 1.71 % 1.8 % Expected term 5 years 5 years Expected volatility 57.5% - 76.6 % 44.9 % Dividend yield - – Stock compensation expense related to warrants was $0 and $144,000 for the years ended June 30, 2016 and 2015, respectively. Unrecognized compensation costs related to non-vested warrants was approximately $310,000 as of June 30, 2016. The related cost is expected to be recognized over the remaining weighted-average vesting period of 4.9 years. A summary of the status of all warrants granted is as follows: Shares Weighted-Average Exercise Price Average Remaining Contractual Term (Years) Outstanding – June 30, 2014 12,958,802 $ 1.73 3.8 Granted 321,305 $ 1.60 Forfeited (1,507,480 ) $ 3.97 Outstanding – June 30, 2015 11,772,627 $ 1.44 3.2 Granted 1,735,479 $ 1.34 Forfeited (643,750 ) $ 1.51 Outstanding – June 30, 2016 12,864,356 $ 1.39 2.5 Exercisable: June 30, 2015 8,147,627 $ 1.41 2.9 June 30, 2016 11,853,731 $ 1.49 2.3 A summary of the status of the Company’s nonvested warrants granted in exchange for services or under compensation arrangements is presented below: Shares Weighted-Average Grant-Date Fair Value Nonvested – June 30, 2014 3,968,332 $ 0.71 Granted 321,305 $ 1.07 Forfeited (10,000 ) $ 0.58 Vested (654,637 ) $ 0.56 Nonvested – June 30, 2015 3,625,000 $ 0.72 Granted 1,735,479 $ 0.55 Forfeited (125,000 ) $ 0.62 Vested (4,224,854 ) $ 0.76 Nonvested – June 30, 2016 1,010,625 $ 0.31 The aggregate intrinsic value of vested and exercisable warrants was approximately $0 and $15,740,000 as of June 30, 2016 and 2015, respectively.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	7. RELATED PARTY TRANSACTIONS From July 2015 through June 2016, Kevin Maloney, CEO of the Company, has provided short-term loans or paid expenses on behalf of the Company totaling $128,629. As of June 30, 2016, $88,239 has been repaid. The loans/expense payments are similar to a revolving line of credit. Payment in full is to be made upon a financing of $1 million or more and interest is 10% per month (interest rate the same as the September 2015, November 2015, and February 2016 promissory notes with third parties).

Income Taxes

Income Taxes	12 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	8. INCOME TAXES For the years ended June 30, 2016 and 2015, the provision for income taxes consists entirely of state income taxes. The following is a reconciliation of the provision for income taxes computed at the statutory federal rate of 34% to the net provision for income taxes for the years ended June 30, 2016 and 2015. 2016 2015 Benefit at statutory rate (34%) $ (1,482,000 ) $ (1,805,000 ) State tax benefit, net of federal tax benefit (284,000 ) (224,000 ) Stock based compensation and other 515,000 378,000 Change in value of warrant liability (687,000 ) 153,000 Change in valuation allowance 1,938,800 1,498,800 Net provision for income taxes $ 800 $ 800 Significant components of deferred tax assets and liabilities at June 30, 2016 and June 30, 2015 consist of tax net operating loss carryforwards offset by full valuation allowances on deferred tax assets. Management believes that, based on a number of factors, including the available objective evidence it is more likely than not that deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. As of June 30, 2016 and June 30, 2015, the Company’s deferred tax assets were primarily comprised of net operating losses totaling approximately $13,128,000 and $11,483,000, respectively. As of June 30, 2016, the Company had federal and state tax net operating loss carryforwards of approximately $33,348,000 and $30,968,000, respectively. If unused, the federal and state net operating losses begin to expire in 2026 and 2016, respectively. Utilization of the net operating loss carryforwards may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended, as well as similar state provisions. The Company has not completed a study to assess whether an ownership change has occurred or whether there have been multiple ownership changes since the Company’s formation due to the complexity and cost associated with such a study, and the fact that there may be additional such ownership changes in the future. The Company does not believe it has any uncertain income tax positions that could materially affect its financial statements. The Company’s federal and state income tax returns remain open to agency examination for the standard statute length of time after filing.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. COMMITMENTS AND CONTINGENCIES The Company has noncancelable operating lease commitments for equipment through December 2016 and real property through February 2017. Rent expense under operating leases is recognized on the straight-line basis over the term of the leases. Rent expense for the years ended June 30, 2016 and June 30, 2015 were approximately $106,000 and $105,000, respectively.

Concentrations

Concentrations	12 Months Ended
	Jun. 30, 2016
Risks and Uncertainties [Abstract]
Concentrations	10. CONCENTRATIONS For the year ended June 30, 2016, 39% of net sales were to China, 26% of net sales were to the United States, and 26% of net sales were to South Korea. For the year ended June 30, 2015, 36% of net sales were to South Korea and 13% of net sales were to Canada. For the year ended June 30, 2016, 57% of net sales were to two customers. For the year ended June 30, 2015, 30% of net sales were to one customer. No other significant customers or foreign sales were noted during the years ended June 30, 2016 and 2015.

Significant Fourth Quarter Adju

Significant Fourth Quarter Adjustments	12 Months Ended
	Jun. 30, 2016
Quarterly Financial Information Disclosure [Abstract]
Significant Fourth Quarter Adjustments	11. SIGNIFICANT FOURTH QUARTER ADJUSTMENTS During the fourth quarter of 2016, several adjustments were recorded that related primarily to the recognition of derivative liabilities associated with financings throughout the year. The net impact of these adjustments was a increase of approximately $196,000 in net loss for the year, a decrease of approximately $664,000 in additional paid-in capital, and an increase of approximately $860,000 in derivative liabilities.

Subsequent Events (Unaudited)

Subsequent Events (Unaudited)	12 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events (Unaudited)	12. SUBSEQUENT EVENTS (UNAUDITED) On October 9, 2016, the Company was in default of $673,750 in promissory notes and $11,259 in related interest. The Company is currently in discussion with the note holders in regards to extension of the date of payments.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The accompanying financial statements are prepared in conformity with U.S. GAAP and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. The use of estimates may also affect the reported amounts of revenues and expenses during the reporting periods. Significant estimates made by management include, among others, realization of capitalized assets, valuation of equity instruments, and deferred income tax asset valuation allowances. Actual results could differ from those estimates.
Revenue Recognition	Revenue Recognition The Company recognizes revenue when all four of the following criteria are met: (i) persuasive evidence that an arrangement exists; (ii) delivery of the products and/or services has occurred; (iii) the selling price is fixed or determinable; and (iv) collectability is reasonably assured. The Company does not grant customers the right to return the products after such products have been accepted. Amounts billed for shipping and handling are recorded as a component of net sales and the cost incurred for freight is included as a component of operating expenses in the statements of operations.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers demand deposits, U.S. treasury securities and highly-liquid debt investments purchased with original maturities of three months or less to be cash equivalents. The Company did not have any cash equivalents as of June 30, 2016 and June 30, 2015. The Company maintains its cash in major banks. From time to time, the Company’s cash balances exceed the Federal Deposit Insurance Corporation limit. The Company has not experienced and does not anticipate any losses relating to these amounts.
Inventory	Inventory Inventory consists primarily of manufactured nano materials and is comprised of raw materials, labor and manufacturing overhead. Inventory is stated at the lower of cost, determined on a first-in, first-out basis, or market. An inventory reserve is created when potentially slow-moving or obsolete inventories are identified in order to reflect the appropriate inventory value. While the Company’s inventory is not perishable and does not degrade with time, the Company recorded a reserve as its inventory was over one year old and there is no certainty that the inventory will be sold. At June 30, 2016, all inventory was reserved. At June 30, 2015 the Company did not have an excess and obsolete reserve.
Property and Equipment	Property and Equipment Purchased property and equipment is stated at cost, less accumulated depreciation. Repairs and maintenance of equipment are charged to expense as incurred. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Gains or losses on dispositions of property and equipment are included in the results of operations when realized. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, ranging from three to seven years. Leasehold improvements are amortized over the shorter of terms of the leases or their estimated useful lives. Depreciation expense on assets acquired under capital leases is included in depreciation expense.
Patents	Patents Costs incurred in applying for patents relating to the Company’s process for production of nanopowders have been capitalized. Patents are amortized to reflect the pattern of economic benefits consumed, on a straight-line basis, over the estimated periods benefited. As of June 30, 2016, ten patents have been issued and two patents are pending approval. Amortization relating to issued patents was not significant during the periods presented. Additional significant costs may be required for the continued development of end-use applications for the Company’s technology. Patents costs are reviewed periodically as to if any patents are no longer being pursued and associated costs should be written off. For the year ended June 30, 2016, the Company wrote off $6,592 in capitalized patents costs.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived assets and intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates potential impairment by comparing the carrying amount of the assets with the estimated undiscounted future cash flows associated with them. Should the review indicate that an asset is not recoverable, the Company’s carrying value of the asset would be reduced by the estimated shortfall to fair value.
Fair Value of Financial Instruments and Certain Other Assets and Liabilities	Fair Value of Financial Instruments and Certain Other Assets and Liabilities The Company follows the guidance of U.S. GAAP with respect to assets and liabilities that are measured at fair value. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: ● Level 1 ● Level 2 ● Level 3 The Company’s financial instruments consist of cash, accounts receivable, accounts payable and accrued expenses and debt. The carrying amount approximates fair value because of the short-term nature of these items. Other than derivative liabilities, the Company did not have any assets or liabilities that are measured at fair value on a recurring or nonrecurring basis during the years ended June 30, 2016 and 2015. The following details the fair value measurement within the fair value hierarchy of the Company’s financial assets and liabilities at June 30, 2016. Fair Value Measurement Total Fair Value Level 1 Level 2 Level 3 Derivative liabilities $ 7,387 $ - $ - $ 7,387 The following details the fair value measurement within the fair value hierarchy of the Company’s financial assets and liabilities at June 30, 2015. Fair Value Measurement Total Fair Value Level 1 Level 2 Level 3 Derivative liabilities $ 1,141,700 $ - $ - $ 1,141,700 There were no transfers among Level 1, Level 2 and Level 3 during the years ended June 30,2016 and 2015. The change in fair value of the derivative liabilities during the years ended June 30, 2016 and 2015 are summarized as follows: Fair value at June 30, 2014 $ - Issuance of derivative liabilities 692,100 Change in fair value 449,600 Fair value at June 30, 2015 1,141,700 Issuance of derivative liabilities 871,611 Change in fair value (2,020,698 ) Fair value at June 30, 2016 $ 7,387
Derivative Liabilities	Derivative Liabilities A derivative is an instrument whose value is “derived” from an underlying instrument or index such as a future, forward, swap, option contract, or other financial instrument with similar characteristics, including certain derivative instruments embedded in other contracts and for hedging activities. As a matter of policy, we do not invest in separable financial derivatives or engage in hedging transactions. However, we have entered into certain financing transactions that involve financial equity instruments containing certain features that have resulted in the instruments being deemed derivatives. We may engage in other similar complex financing transactions in the future, but not with the intention to enter into derivative instruments. Derivatives are measured at fair value using the Block Scholes Merton model and marked to market through earnings. However, such new and/or complex instruments may have immature or limited markets. As a result, the pricing models used for valuation of derivatives often incorporate significant estimates and assumptions. Changes in these subjective assumptions can materially affect the estimate of the fair value of derivative liabilities and, consequently, the related amount recognized as loss due to change in fair value of derivative liabilities on the statement of operations. Furthermore, depending on the terms of a derivative, the valuation of derivatives may be removed from the financial statements upon exercise or conversion of the underlying instrument into some other security. The classification of a derivative instrument is reassessed at each balance sheet date. If the classification changes as a result of events during a reporting period, the instrument is reclassified as of the date of the event that caused the reclassification. There is no limit on the number of times a contract may be reclassified.
Research and Development Costs	Research and Development Costs Research and development costs are expensed as incurred. Costs incurred for research and development for new or improved processes to produce nanopowders as well as end use applications for the nanopowders are expensed until the production process or applications have been determined to be commercially viable. Costs incurred after the production process is viable and a working model of the equipment has been completed will be capitalized as long-lived assets.
Income Taxes	Income Taxes Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provision for income taxes represents the tax payable for the period, if any, and the change during the period in deferred tax assets and liabilities. The Company provides for tax contingencies, if any, for federal, state and local exposures relating to audit results, tax planning initiatives and compliance responsibilities. The development of these reserves requires judgments about tax issues, potential outcomes and timing. Although the outcome of such matters is uncertain, in management’s opinion adequate provisions for income taxes have been made for potential liabilities emanating from these reviews. If actual outcomes differ materially from these estimates, they could have a material impact on the Company’s results.
Loss Per Share	Loss Per Share The Company calculates basic loss per share by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding. Diluted loss per share is computed similar to basic loss per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if such additional common shares had been issued and were dilutive. Potential common shares, consisting of convertible notes payable options and warrants, totaling 16,890,179 and 12,921,728, have been excluded from the computations of diluted net loss per share because the effect would have been anti-dilutive for the years ended June 30, 2016 and 2015.
Stock-Based Compensation	Stock-Based Compensation The Company measures all employee stock-based compensation awards using the Black-Scholes-Merton valuation model and allocates the related expense over the requisite service period. The expected volatility is based on the historical volatility of the Company’s stock as determined by its private placement offerings; the expected life of the award is determined using the simplified method. The Company accounts for nonemployee stock-based transactions using the fair value of the consideration received (i.e. the value of the goods or services) or the fair value of the equity instruments issued, whichever is more reliably measurable.
Going Concern	Going Concern The Company has incurred recurring losses from operations from inception and has limited working capital. As of June 30, 2016, the Company had an accumulated deficit of approximately $46.5 million. The Company’s activities will necessitate significant uses of working capital beyond fiscal 2017. Additionally, the Company’s capital requirements will depend on many factors, including the success of its continued research and development efforts and the status of competitive products. The Company plans to continue financing its operations with cash received from financing activities. Management is currently working on securing additional debt capital from financing activities to sustain operations until the Company is able to generate sufficient cash flows from operations. There is no assurance that the Company will be able to raise sufficient capital to continue operations and, if available, on terms satisfactory to the Company. These factors raise substantial doubt about the Company’s ability to continue as a going concern.
Risks and Uncertainties	Risks and Uncertainties The Company faces risks and uncertainties relating to its ability to successfully implement and fulfill its strategy. Among other things, these risks include the ability to obtain revenues; manage operations; competition; attract, retain and motivate qualified personnel; maintain and develop new strategic relationships; and the ability to anticipate and adapt to the changing nanotechnology market and any changes in government regulations. Therefore, the Company may be subject to the risks of delays in consummating contracts with customers and suppliers, raising sufficient capital to achieve its objectives and other uncertainties, including financial, operational, technological, regulatory and other risks associated with an emerging business, including the potential risks of business failure. Technology and manufacturing companies with whom the Company is expected to compete, in general, are well capitalized. The Company is competing against entities with the financial and intellectual resources and expressed intent of performing rapid technological innovation. The Company’s resources are limited and must be allocated to focused objectives in order to succeed.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The FASB issued ASU 2016-02, Leases In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40).” This ASU provides guidance to determine when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. ASU 2014-15 will be effective for all entities in the first annual period ending after December 15, 2016. Earlier adoption is permitted. ASU 2014-15 will be effective for the Company beginning June 30, 2017. The Company does not believe that this pronouncement will have a significant impact on its financial statements. In May 2014, the FASB issued ASU 2014-09, as amended by ASU 2015-14, “Revenue from Contracts with Customers (Topic 606),” which is the new comprehensive revenue recognition standard that will supersede all existing revenue recognition guidance under U.S. GAAP. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In July 2015, the FASB issued ASU 2015-14 to defer the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date and permitted early adoption of the standard, but not before the original effective date of December 15, 2016. The Company is currently evaluating the impact of adopting this guidance.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Jun. 30, 2016
Summary Of Significant Accounting Policies Tables
Fair Value Assets Measured on Recurring Basis	The following details the fair value measurement within the fair value hierarchy of the Company’s financial assets and liabilities at June 30, 2016. Fair Value Measurement Total Fair Value Level 1 Level 2 Level 3 Derivative liabilities $ 7,387 $ - $ - $ 7,387 The following details the fair value measurement within the fair value hierarchy of the Company’s financial assets and liabilities at June 30, 2015. Fair Value Measurement Total Fair Value Level 1 Level 2 Level 3 Derivative liabilities $ 1,141,700 $ - $ - $ 1,141,700
Schedule of Changes In Fair value Derivative Liabilities	The change in fair value of the derivative liabilities during the years ended June 30, 2016 and 2015 are summarized as follows: Fair value at June 30, 2014 $ - Issuance of derivative liabilities 692,100 Change in fair value 449,600 Fair value at June 30, 2015 1,141,700 Issuance of derivative liabilities 871,611 Change in fair value (2,020,698 ) Fair value at June 30, 2016 $ 7,387

Selected Financial Statement 22

Selected Financial Statement Captions (Tables)	12 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment as of June 30, 2016 and 2015 consisted of the following: 2016 2015 Production equipment $ 1,948,794 $ 1,948,794 Computer equipment and software 60,896 57,864 Office furniture and equipment 11,972 11,972 Leasehold improvements 11,842 11,842 Scientific equipment 72,379 61,284 Lab furniture and fixtures 41,942 41,942 2,147,825 2,133,698 Accumulated depreciation and amortization (1,162,594 ) (787,352 ) $ 985,231 $ 1,346,346
Schedule of Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses as of June 30, 2016 and 2015 consisted of the following: 2016 2015 Stock cancellation liability (Note 6) $ 219,992 $ 239,392 Accounts payable 435,246 66,482 Other accrued professional fees 109,854 22,666 Accrued compensation and related expenses 721,905 87,581 Accrued legal 3,063 - Accrued interest 237,313 4,817 Other accrued expenses 30,785 4,644 $ 1,758,158 $ 425,582

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit) (Tables)	12 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Schedule of Fair Value of Stock Options Granted Estimated	The fair value of stock options granted were estimated on their respective grant dates using the Black-Scholes-Merton option pricing model and the following assumptions for the years ended June 30, 2016 and 2015: 2016 2015 Risk free interest rate 1.0% - 1.7 % 0.9% - 1.8 % Expected term 3 - 6 years 3 - 6 years Expected volatility 62.3% - 84.9 % 44.2% - 52.1 % Dividend yield – –
Summary of Status of the Options Granted	A summary of the status of the Company’s options granted is as follows: Shares Weighted-Average Exercise Price Average Remaining Contractual Term (Years) Outstanding – June 30, 2014 6,088,078 $ 1.48 6.3 Granted 570,000 $ 2.00 Exercised (876,667 ) $ 1.00 Forfeited or expired (214,584 ) $ 1.74 Outstanding – June 30, 2015 5,566,827 $ 1.53 6.0 Granted 540,000 $ 1.32 Forfeited or expired (690,793 ) $ 1.51 Outstanding – June 30, 2016 5,416,034 $ 1.49 5.5 Exercisable: June 30, 2015 4,774,101 $ 1.52 5.5 June 30, 2016 5,036,448 $ 1.50 5.2
Schedule of Nonvested Options Granted	A summary of the status of the Company’s nonvested options and changes are presented below: Shares Weighted-Average Grant-Date Fair Value Nonvested – June 30, 2014 1,448,905 $ 0.67 Granted 570,000 $ 0.59 Forfeited or expired (103,195 ) $ 0.62 Vested (1,122,984 ) $ 0.61 Nonvested – June 30, 2015 792,726 $ 0.71 Granted 540,000 $ 0.77 Vested (817,296 ) $ 0.75 Forfeited or expired (135,844 ) $ 0.79 Nonvested – June 30, 2016 379,586 $ 0.67
Schedule of Fair Value of Warrants Granted	The fair value of warrants granted were estimated on their respective grant dates using the Black-Scholes-Merton option pricing model and the following assumptions for the years ended June 30, 2016 and 2015: 2016 2015 Risk free interest rate 0.85% - 1.71 % 1.8 % Expected term 5 years 5 years Expected volatility 57.5% - 76.6 % 44.9 % Dividend yield - –
Schedule of Status of All Warrants Granted	A summary of the status of all warrants granted is as follows: Shares Weighted-Average Exercise Price Average Remaining Contractual Term (Years) Outstanding – June 30, 2014 12,958,802 $ 1.73 3.8 Granted 321,305 $ 1.60 Forfeited (1,507,480 ) $ 3.97 Outstanding – June 30, 2015 11,772,627 $ 1.44 3.2 Granted 1,735,479 $ 1.34 Forfeited (643,750 ) $ 1.51 Outstanding – June 30, 2016 12,864,356 $ 1.39 2.5 Exercisable: June 30, 2015 8,147,627 $ 1.41 2.9 June 30, 2016 11,853,731 $ 1.49 2.3
Schedule of Status of Company's Nonvested Warrants Granted	A summary of the status of the Company’s nonvested warrants granted in exchange for services or under compensation arrangements is presented below: Shares Weighted-Average Grant-Date Fair Value Nonvested – June 30, 2014 3,968,332 $ 0.71 Granted 321,305 $ 1.07 Forfeited (10,000 ) $ 0.58 Vested (654,637 ) $ 0.56 Nonvested – June 30, 2015 3,625,000 $ 0.72 Granted 1,735,479 $ 0.55 Forfeited (125,000 ) $ 0.62 Vested (4,224,854 ) $ 0.76 Nonvested – June 30, 2016 1,010,625 $ 0.31

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Schedule of Income Tax Provision	The following is a reconciliation of the provision for income taxes computed at the statutory federal rate of 34% to the net provision for income taxes for the years ended June 30, 2016 and 2015. 2016 2015 Benefit at statutory rate (34%) $ (1,482,000 ) $ (1,805,000 ) State tax benefit, net of federal tax benefit (284,000 ) (224,000 ) Stock based compensation and other 515,000 378,000 Change in value of warrant liability (687,000 ) 153,000 Change in valuation allowance 1,938,800 1,498,800 Net provision for income taxes $ 800 $ 800

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Details Narrative)	12 Months Ended
	Jun. 30, 2016USD ($)Patentsshares	Jun. 30, 2015USD ($)shares
Number of assets issued | Patents	10
Number of assets pending for approval | Patents	2
Write-down capitalized costs | $	$ 6,592
Potential common shares, consisting of options and warrants | shares	16,890,179	12,921,728
Accumulated deficit | $	$ 46,478,721	$ 42,119,496
Minimum [Member]
Estimated useful lives	3 years
Maximum [Member]
Estimated useful lives	7 years

Summary of Significant Accoun26

Summary of Significant Accounting Policies - Fair Value Assets Measured on Recurring Basis (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Derivative liabilities	$ 7,387	$ 1,141,700
Level 1 [Member]
Derivative liabilities
Level 2 [Member]
Derivative liabilities
Level 3 [Member]
Derivative liabilities	$ 7,387	$ 1,141,700

Summary of Significant Accoun27

Summary of Significant Accounting Policies - Schedule of Changes In Fair value Derivative Liabilities (Details) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Summary Of Significant Accounting Policies - Schedule Of Changes In Fair Value Derivative Liabilities Details
Fair value, beginning	$ 1,141,700
Issuance of derivative liabilities	871,611	692,100
Change in fair value	(2,020,698)	449,600
Fair value, ending	$ 7,387	$ 1,141,700

Selected Financial Statement 28

Selected Financial Statement Captions - Schedule of Property and Equipment (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Property and equipment, gross	$ 2,147,825	$ 2,133,698
Accumulated depreciation and amortization	(1,162,594)	(787,352)
Property, plant and equipment, net	985,231	1,346,346
Production Equipment [Member]
Property and equipment, gross	1,948,794	1,948,794
Computer Equipment and Software [Member]
Property and equipment, gross	60,896	57,864
Office Furniture and Equipment [Member]
Property and equipment, gross	11,972	11,972
Leasehold Improvements [Member]
Property and equipment, gross	11,842	11,842
Scientific Equipment [Member]
Property and equipment, gross	72,379	61,284
Lab Furniture and Fixtures [Member]
Property and equipment, gross	$ 41,942	$ 41,942

Selected Financial Statement 29

Selected Financial Statement Captions - Schedule of Accounts Payable and Accured Expenses (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Stock cancellation liability (Note 6)	$ 219,992	$ 239,392
Accounts payable	435,246	66,482
Other accrued professional fees	109,854	22,666
Accrued compensation and related expenses	721,905	87,581
Accrued legal	3,063
Accrued interest	237,313	4,817
Other accrued expenses	30,785	4,644
Accounts payable and accrued expenses, Total	$ 1,758,158	$ 425,582

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)	Jun. 08, 2016	Apr. 29, 2016	Feb. 25, 2016	Nov. 09, 2015	Jul. 28, 2015	Jun. 05, 2015	Jun. 19, 2014	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Conversion of debt extinguishment amount										$ (68,972)
Promissory Notes [Member]
Loan face amount	$ 587,500	$ 100,000			$ 60,000			$ 200,000	$ 350,000
Annual loan interest rate	5.00%								120.00%
Loan monthly payment amount					$ 20,000
Warrants exercise price per share								$ 3	$ 3
Loan term									30 days
Number of warrants exercisable								82,000
Debt maturity date	Oct. 8, 2016	May 29, 2016			Oct. 12, 2015
Warrants exercisable period									5 years
Repayment of debt								$ 150,000
Fair value of warrants									$ 87,000
Related accrued interest		$ 25,000						$ 45,000
Conversion of debt extinguishment amount										$ 69,000
Issuance of warrants to debt										140,000
Proceeds from issuance of debt	$ 500,000
Warrant to purchase shares of common stock, percentage	150.00%
Debt instrument percentage of stock price	60.00%
Warrants valued approximately	$ 254,000
Promissory Notes [Member] | November 9, 2015 And February 25, 2016 [Member]
Loan face amount				$ 100,000
Annual loan interest rate				120.00%
Warrants exercise price per share				$ 3
Warrant expiration date				Nov. 9, 2020
Debt maturity date			Mar. 25, 2016	Dec. 9, 2015
Warrants description				The agreement includes a warrant to purchase shares of common stock at 110% of the face value of the note if the note is repaid within 30 days, and an additional 10% of the face value of the note for each month the note remains unpaid
Fair value of warrants				$ 15,000
Promissory Notes [Member] | Minimum [Member]
Percentage of face value of promissory note									120.00%
Promissory Notes [Member] | Maximum [Member]
Percentage of face value of promissory note									160.00%
Loan and Security Agreement [Member] | Novus Capital Group [Member]
Loan face amount						$ 127,500
Annual loan interest rate						15.50%
Loan monthly payment amount						$ 4,451
Warrant to purchase of common stock						2,555
Warrants exercise price per share						$ 2
Loan discount note payable						$ 2,000
Loan term						36 months
Warrant expiration date						Jun. 30, 2020
Loan and Security Agreement [Member] | Novus Capital Group [Member] | Initial Loan [Member]
Loan face amount							$ 500,000
Annual loan interest rate							15.50%
Loan monthly payment amount							$ 17,455
Warrant to purchase of common stock							20,000
Warrants exercise price per share							$ 2
Loan discount note payable							$ 11,000
Loan term							36 months
Warrant expiration date							Jul. 1, 2019

Convertible Notes Payable (Deta

Convertible Notes Payable (Details Narrative) - USD ($)	May 31, 2015	May 31, 2015	Nov. 30, 2015	Dec. 31, 2015
Series O-1 Notes [Member]
Convertible promissory notes	$ 510,000	$ 510,000
Convertible promissory notes bear interest rate	10.00%	10.00%
Description of conversion price of debt		The Series O-1 Notes will mature upon the earlier of (i) one year from the date of the issuance of the notes, or (ii) closing of an equity financing of Four Million Dollars or more (“Qualifying Equity Offering”).
Principal debt amount				$ 510,000
Accrued interest				$ 27,000
Series O-1 Notes [Member] | Warrant [Member]
Description of conversion price of debt	The Company issued Detachable Warrants equal to 50% of the face value of the Series O-1 Notes based on the closing of a Qualifying Equity Offering in the future.
Percentage of warrants issued equal to convertible promissory notes	50.00%	50.00%
Series O-2 Notes [Member]
Convertible promissory notes			$ 625,000
Convertible promissory notes bear interest rate			10.00%
Number of warrant issued during period			469,000
Convertible promissory notes default interest rate			18.00%
Debt conversion price per share			$ 1.60
Warrants exercisable per share price			$ 3
Warrants exercisable period			5 years
Debt discount			$ 727,841

Stockholders' Equity (Deficit32

Stockholders' Equity (Deficit) (Details Narrative) - USD ($)	Apr. 30, 2014	Oct. 31, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2012
Description of reverse stock split	10,000 for 1 reverse split
Number of shares cancelled and repurchased	585,000
Common stock per share	$ 2
Accrued liabilities			$ 219,992
Convertible preferred stock, shares authorized			10,000,000	10,000,000
Convertible preferred stock, par value			$ 0.001
Number of options exercised, shares				(876,667)
Number of options exercise price, per share				$ 1
Stock options, exercisable, aggregate intrinsic value			$ 0	$ 9,839,000
Warrant, exercisable, aggregate intrinsic value			$ 0	$ 15,740,000
Warrant exercisable, term			5 years 2 months 12 days	5 years 6 months
Service Agreement With Public Relations Market Awareness And Strategic Advisory Services [Member]
Shares issued for services			433,220
Number of warrants issued during period			106,667
Service Agreement With Public Relations Market Awareness And Strategic Advisory Services [Member] | Minimum [Member]
Warrants expiration term			3 years
Warrants exercise price per share			$ 1.30
Service Agreement With Public Relations Market Awareness And Strategic Advisory Services [Member] | Maximum [Member]
Warrants expiration term			5 years
Warrants exercise price per share			$ 2
Service Agreement With Investor Relations Firm [Member]
Shares issued for services		33,333	33,333
Stock Options [Member]
Number of options exercised, shares				870,000
Number of options exercise price, per share				$ 1
Stock compensation expense			$ 511,000	$ 729,000
Unrecognized compensation costs			$ 149,000
Remaining weighted-average vesting period			8 months 12 days
Stock Options One [Member]
Number of options exercised, shares				6,667
Number of options exercise price, per share				$ 1.50
Warrant [Member]
Stock compensation expense			$ 0	$ 144,000
Unrecognized compensation costs			$ 310,000
Remaining weighted-average vesting period			4 years 10 months 24 days
Warrants exercise price per share					$ 1.30
Warrants to purchase, shares			(4,224,854)	(654,637)	500,000
Warrant exercisable, term					7 years
Number of vested options forfeited during the period			125,000	10,000
Warrant [Member] | Management [Member]
Warrants to purchase, shares					125,000
Warrant exercisable, term					7 years
Additional Warrant [Member]
Warrants to purchase, shares			125,000
Warrant aggregate intrinsic value, vested			$ 3,000,000
Number of vested options forfeited during the period			125,000
Additional Warrant [Member] | China [Member]
Warrant aggregate intrinsic value, vested			$ 125,000
Employees, Officers, Directors, Advisory Board And Consultants [Member]
Number of options to purchase, shares			540,000	570,000
Options to purchase weighted average exercisable price, per share			$ 1.32	$ 2
2004 Stock Option and Incentive Plan [Member]
Number of shares authorized for issuance			4,000,000			7,500,000	6,000,000
Number of shares available for grant			1,206,799
Stock option vested term			10 years

Stockholders' Equity (Deficit33

Stockholders' Equity (Deficit) - Schedule of Fair Value of Stock Options Granted Estimated (Details)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Dividend yield
Minimum [Member]
Risk free interest rate	1.00%	0.90%
Expected term	3 years	3 years
Expected volatility	62.30%	44.20%
Maximum [Member]
Risk free interest rate	1.70%	1.80%
Expected term	6 years	6 years
Expected volatility	84.90%	52.10%

Stockholders' Equity (Deficit34

Stockholders' Equity (Deficit) - Summary of Status of Options Granted (Details) - $ / shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Equity [Abstract]
Number of Shares Outstanding, Beginning Balance	5,566,827	6,088,078
Number of Shares Outstanding, Granted	540,000	570,000
Number of Shares Outstanding, Exercised		(876,667)
Number of Shares Outstanding, Forfeited or Expired	(690,793)	(214,584)
Number of Shares Outstanding, Ending Balance	5,416,034	5,566,827	6,088,078
Number of Shares Exercisable	5,036,448	4,774,101
Weighted-Average Exercise Price Outstanding, Beginning Balance	$ 1.53	$ 1.48
Weighted-Average Exercise Price Outstanding, Granted	1.32	2
Weighted-Average Exercise Price Outstanding, Exercised		1
Weighted-Average Exercise Price Outstanding, Forfeited or expired	1.51	1.74
Weighted-Average Exercise Price Outstanding, Ending Balance	1.49	1.53	$ 1.48
Weighted-Average Exercise Price Exercisable	$ 1.50	$ 1.52
Average Remaining Contractual Term (Years) Outstanding	5 years 6 months	6 years	6 years 3 months 18 days
Average Remaining Contractual Term (Years) Exercisable	5 years 2 months 12 days	5 years 6 months

Stockholders' Equity (Deficit35

Stockholders' Equity (Deficit) - Schedule of Nonvested Options Granted (Details) - $ / shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Equity [Abstract]
Number of Shares Nonvested, Beginning Balance	792,726	1,448,905
Number of Shares Nonvested, Granted	540,000	570,000
Number of Shares Nonvested, Vested	(817,296)	(1,122,984)
Number of Shares Nonvested, Forfeited or expired	(135,844)	(103,195)
Number of Shares Nonvested, Ending Balance	379,586	792,726
Weighted-Average Grant-Date Fair Value Nonvested, Beginning Balance	$ 0.71	$ 0.67
Weighted-Average Grant-Date Fair Value Nonvested, Granted	0.77	0.59
Weighted-Average Grant-Date Fair Value Nonvested, Vested	0.75	0.61
Weighted-Average Grant-Date Fair Value Nonvested, Forfeited or expired	0.79	0.62
Weighted-Average Grant-Date Fair Value Nonvested, Ending Balance	$ 0.67	$ 0.71

Stockholders' Equity (Deficit36

Stockholders' Equity (Deficit) - Schedule of Fair Value of Warrants Granted (Details)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Dividend yield
Minimum [Member]
Risk free interest rate	1.00%	0.90%
Expected term	3 years	3 years
Expected volatility	62.30%	44.20%
Maximum [Member]
Risk free interest rate	1.70%	1.80%
Expected term	6 years	6 years
Expected volatility	84.90%	52.10%
Warrant [Member]
Risk free interest rate		1.80%
Expected term	5 years	5 years
Expected volatility		44.90%
Dividend yield
Warrant [Member] | Minimum [Member]
Risk free interest rate	0.85%
Expected volatility	57.50%
Warrant [Member] | Maximum [Member]
Risk free interest rate	1.71%
Expected volatility	76.60%

Stockholders' Equity (Deficit37

Stockholders' Equity (Deficit) - Schedule of the Status of All Warrants Granted (Details) - Warrant [Member] - $ / shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Number of Shares Outstanding, Beginning Balance	11,772,627	12,958,802
Number of Shares Outstanding, Granted	1,735,479	321,305
Number of Shares Outstanding, Forfeited	(643,750)	(1,507,480)
Number of Shares Outstanding, Ending Balance	12,864,356	11,772,627	12,958,802
Number of Shares Exercisable	11,853,731	8,147,627
Weighted-Average Exercise Price Outstanding, Beginning Balance	$ 1.44	$ 1.73
Weighted-Average Exercise Price Outstanding, Granted	$ 1.34	$ 1.60
Weighted-Average Exercise Price Outstanding, Forfeited	1.51	3.97
Weighted-Average Exercise Price Outstanding, Ending Balance	$ 1.39	$ 1.44	$ 1.73
Weighted-Average Exercise Price Exercisable	$ 1.49	$ 1.41
Average Remaining Contractual Term (Years) Outstanding	2 years 6 months	3 years 2 months 12 days	3 years 9 months 18 days
Average Remaining Contractual Term (Years) Exercisable	2 years 3 months 18 days	2 years 10 months 24 days

Stockholders' Equity (Deficit38

Stockholders' Equity (Deficit) - Schedule of Status of Company's Nonvested Warrants Granted (Details) - Warrant [Member] - $ / shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2013
Number of Shares Nonvested, Beginning Balance	3,625,000	3,968,332
Number of Shares Nonvested, Granted	1,735,479	321,305
Number of Shares Nonvested, Forfeited	(125,000)	(10,000)
Number of Shares Nonvested, Vested	(4,224,854)	(654,637)	500,000
Number of Shares Nonvested, Ending Balance	1,010,625	3,625,000
Weighted-Average Grant-Date Fair Value Nonvested, Beginning Balance	$ 0.72	$ 0.71
Weighted-Average Grant-Date Fair Value Nonvested, Granted	0.55	1.07
Weighted-Average Grant-Date Fair Value Nonvested, Forfeited	0.62	0.58
Weighted-Average Grant-Date Fair Value Nonvested, Vested	0.76	0.56
Weighted-Average Grant-Date Fair Value Nonvested, Ending Balance	$ 0.31	$ 0.72

Related Party Transactions (Det

Related Party Transactions (Details Narrative)	12 Months Ended
	Jun. 30, 2016USD ($)
Promissory Notes [Member] | September 2015 [Member]
Debt instrument, interest rate during period percent	10.00%
Promissory Notes [Member] | November 2015 [Member]
Debt instrument, interest rate during period percent	10.00%
Promissory Notes [Member] | February 2016 [Member]
Debt instrument, interest rate during period percent	10.00%
Minimum [Member]
Payment in full is to be made upon a financing	$ 1,000,000
Debt instrument, interest rate during period percent	10.00%
Kevin Maloney [Member]
Short-term loan	$ 128,629
Repayment of related party debt	$ 88,239

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2016
Deferred tax assets	$ 11,483,000	$ 13,128,000
Federal operating loss carryforwards		33,348,000
State operating loss carryforwards		$ 30,968,000
Federal [Member]
Operating loss expiration date	2,026
State [Member]
Operating loss expiration date	2,016

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Tax Provision (Details) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Benefit at statutory rate (34%)	$ (1,482,000)	$ (1,805,000)
State tax benefit, net of federal tax benefit	(284,000)	(224,000)
Stock based compensation and other	515,000	378,000
Change in value of warrant liability	(687,000)	153,000
Change in valuation allowance	1,938,800	1,498,800
Net provision for income taxes	$ 800	$ 800

Income Taxes - Schedule of In42

Income Taxes - Schedule of Income Tax Provision (Details) (Parenthetical)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income tax statutory rate, percent	34.00%	34.00%

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 106,000	$ 105,000

Concentrations (Details Narrati

Concentrations (Details Narrative)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Concentrations risk
China [Member]
Concentrations risk	39.00%
United States [Member]
Concentrations risk	26.00%
South Korea [Member]
Concentrations risk	26.00%	36.00%
Canada [Member]
Concentrations risk		13.00%
Two Customers [Member]
Concentrations risk	57.00%
One Customer [Member]
Concentrations risk		30.00%

Significant Fourth Quarter Ad45

Significant Fourth Quarter Adjustments (Details Narrative)	12 Months Ended
	Jun. 30, 2016USD ($)
Significant Fourth Quarter Adjustments Details Narrative
Change in net loss	$ 196,000
Decrease in additional paid in capital	664,000
Increase in derivative liabilities	$ 860,000

Subsequent Events (Unaudited) (

Subsequent Events (Unaudited) (Details Narrative) - USD ($)	Oct. 09, 2016	Jun. 30, 2016	Jun. 30, 2015
Promissory note amount			$ 276,392
Interest payable amount		$ 237,313	$ 4,817
Subsequent Event [Member]
Promissory note amount	$ 673,750
Interest payable amount	$ 11,259