Quantum Materials (QTMM) 10-Q27 Oct 142015 Q1 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
Document and Entity Information	Sep. 30, 2014	Oct. 20, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'QUANTUM MATERIALS CORP.	'
Entity Central Index Key	'0001403570	'
Trading Symbol	'qtmm	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Filer Category	'Smaller Reporting Company	'
Current Fiscal Year End Date	'--06-30	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Amendment Flag	'false	'
Document Fiscal Year Focus	'2015	'
Document Fiscal Period Focus	'Q1	'
Entity Common Stock, Shares Outstanding	'	264,266,266

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2014	Jun. 30, 2014
Current	'	'
Cash	$363,454	$185,811
Debenture Receivable	100,200	'
Total current assets	463,654	185,811
Licenses	184,947	52,250
Furniture and equipment, net of accumulated deprecation of $20,659	338,378	295,926
Total assets	986,979	533,987
Current liabilities	'	'
Accounts payable and accrued liabilities	9,800	59,278
Accrued liabilities - related party	765,748	784,164
Accrued expenses	122,500	122,500
Deferred revenue	899	899
Fair value of derivative liabilities	1,307,790	1,871,337
Convertible debenture current portion	500,000	500,000
Total current liabilities	2,706,737	3,338,178
Convertible note, net of discount	508,241	324,317
Total liabilities	3,214,978	3,662,495
Stockholders' deficit	'	'
Common stock, $0.001 par value, 400,000,000 shares authorized, Issued and outstanding 262,016,266 and 256,582,767, respectively	262,017	256,583
Additional paid-in capital	19,283,664	18,290,201
Deficit accumulated during the development stage	-21,770,930	-21,675,292
Total stockholders' deficit	-2,225,249	-3,128,508
Total liabilities and stockholders' deficit	$989,729	$533,987

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parentheticals) (USD $)	Sep. 30, 2014	Jun. 30, 2014
Statement Of Financial Position [Abstract]	'	'
Accumulated depreciation of Furniture and equipment	$20,659	'
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized (in shares)	400,000,000	400,000,000
Common stock, shares, issued (in shares)	262,016,266	256,582,767
Common stock, shares, outstanding (in shares)	262,016,266	256,582,767

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (unaudited) (USD $)	3 Months Ended
Consolidated Statements of Operations (unaudited) (USD $)	Sep. 30, 2014	Sep. 30, 2013
Operating expenses:	'	'
General and administrative	$431,135	$559,324
Research and development	31,390	3,892
Total operating expenses	462,525	563,216
Loss from operations	-462,525	-563,216
Other expenses (income):	'	'
Change in fair value of derivative liabilities	-563,547	-199,771
Interest expense	196,660	38,334
Total other expenses / (income)	-366,887	-161,437
Net income / (loss)	($95,638)	($401,779)
Basic and diluted loss per common share	$0	$0
Weighted average number of common shares outstanding	257,609,341	194,045,427

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (unaudited) (USD $)	3 Months Ended
Consolidated Statements of Cash Flows (unaudited) (USD $)	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net loss	($95,638)	($401,779)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Stock issued for services	25,000	181,388
Stock issued for debenture interest	12,726	38,333
Beneficial conversion feature	171,976	'
Depreciation of furniture and office equipment	'	'
Amortization of deferred finance cost	11,947	'
Change in fair value of warrants and embedded conversion feature	-563,547	-199,771
Net change in operating assets and liabilities:	'	'
Accounts payable	-49,478	-75,000
Accrued liabilities - related party	-18,416	'
Deferred revenue	'	164,303
Cash flows used by operating activities	-493,044	-292,526
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Purchase of license	-137,743	'
Purchase of furniture & equipment	-52,541	'
Cash flows provided by investing activities	-190,284	'
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Proceeds from issuance of common stock	586,121	156,078
Proceeds from convertible debenture issued	274,850	'
Cash flows provided by financing activities	860,971	156,078
NET INCREASE (DECREASE) IN CASH	177,643	-136,448
Cash, beginning of the period	185,811	172,431
Cash, end of the period	363,454	35,983
Supplemental disclosure with respect to cash flows:	'	'
Cash paid for income taxes	'	'
Cash paid for interest	'	'
Non cash transactions	'	'
Warrants issued with debt, allocated deferred financing costs	$203,074	'

Summary_of_Significant_Account

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2014
Summary of Significant Accounting Policies [Abstract]	'
Summary of Significant Accounting Policies	'

	Note 1. Summary of Significant Accounting Policies

	Basis of Presentation

	The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the Securities and Exchange Commission for interim financial statements. Accordingly, our interim statements do not include all of the information and disclosures required for our annual financial statements. In the opinion of our management, the consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation of these interim results. These consolidated financial statements should be read in conjunction with our consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended June 30, 2014. The results for the three months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the full year ending June 30, 2015.

	Since November 4, 2008, the Company has changed its business plans and is no longer intending to pursue the mining of mineral rights located in Nevada. The Company intends to pursue the business plans of its subsidiary, Solterra Renewable Technologies, Inc. (“Solterra”). The following is a brief business overview of Solterra.



	Solterra is a start-up solar technology and quantum dot manufacturing firm which was founded by Stephen Squires. Mr. Squires perceives an opportunity to acquire a significant amount of both quantum dot and solar photovoltaic market share by commercializing a low cost quantum dot processing technology and a low cost quantum dot based third generation photovoltaic technology/solar cell, pursuant to an exclusive license agreement with William Marsh Rice University (“Rice University” or “Rice”). Our objective is to become the first bulk manufacture of high quality tetrapod quantum dots and the first solar cell manufacturer to be able to offer a solar electricity solution that competes on a non-subsidized basis with the price of retail electricity in key markets in North America, Europe, the Middle East and Asia.



	Going Concern

	The Company recorded losses from continuing operations in the current period presented. Current liabilities exceed current assets, resulting in a negative net worth and accumulated deficits. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon its ability to reverse negative operating trends, raise additional capital, and obtain debt financing.

	Management has revised its business strategy to include expansion into other lines of business. In conjunction with the anticipated new revenue streams, management is currently negotiating new debt and equity financing, the proceeds from which would be used to settle outstanding debts at more favorable terms, to finance operations, and to develop its business plans. However, there can be no assurance that the Company will be able to raise capital, obtain debt financing, or improve operating results sufficiently to continue as a going concern.

	The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary if the Company is unable to continue as a going concern.

Derivatives_and_Fair_Value

Derivatives and Fair Value	3 Months Ended
Derivatives and Fair Value	Sep. 30, 2014
Derivatives and Fair Value [Abstract]	'
Derivatives and Fair Value	'

	Note 2. Derivatives and Fair Value

	The Company has evaluated the application of ASC 815 to the Convertible Note issued November 4, 2008. Based on the guidance in ASC 815, the Company concluded these instruments were required to be accounted for as derivatives as of July 1, 2009 due to the down round protection feature on the conversion price and the exercise price. The Company records the fair value of these derivatives on its balance sheet at fair value with changes in the values of these derivatives reflected in the statements of operations as “Gain (loss) on derivative liabilities.” These derivative instruments are not designated as hedging instruments under ASC 815 and are disclosed on the balance sheet under Derivative Liabilities.

	ASC 825-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 825-10 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 825-10 describes three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities; Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3 – Unobservable inputs that are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation. The Company’s Level 3 liabilities consist of the derivative liabilities associated with the November 4, 2008 note. At June 30, 2012, all of the Company’s derivative liabilities were categorized as Level 3 fair value assets. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

	Level 3 Valuation Techniques

	Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 financial liabilities consist of the derivative liabilities for which there is no current market for these securities such that the determination of fair value requires significant judgment or estimation. At the date of the original transaction, we valued the convertible note that contains down round provisions using a lattice model, with the assistance of a valuation consultant, for which management understands the methodologies. This model incorporates transaction details such as the Company’s stock price, contractual terms, maturity, risk free rates, as well as assumptions about future financings, volatility, and holder behavior as of July 1, 2009. Using assumptions, consistent with the original valuation, the Company has subsequently used the Black-Scholes model for calculating the fair value, as of June 30, 2014 and 2013. The fair value of the derivatives as of July 1, 2009 upon implementation of ASC 815-40-15 was estimated by management to be $495,912. As part of implementing ASC 815-40-14 the Company decreased the accumulated deficit by $162,643 and decreased additional paid in capital by $212,184 and increased the discount on the convertible debenture by $446,371. The adjustment to the accumulated deficit was a result of the interest expense recorded in connection with the original derivative liability and the reversal of prior amortization expense, and the change in fair value of the derivative liability as of July 1, 2009.


		As of September 30, 2014
		Fair Value Measuring Using

			Carrying Value			Level 1		Level 2	Level 3		Total
	Derivatives Liability	$	1,307,790			—		—	1,307,790	$	1,307,790

	Total Derivatives Liability	$	1,307,790			—		—	1,307,790	$	1,307,790

	The table below provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the first three months of fiscal year 2014:



			Fair Value
			Measurements
			Using Level 3
			Inputs
			Derivative
			Liabilities			Totals
	Beginning Balance as of June 30, 2014	$	1,871,337		$	1,871,337
	Total Gains or Losses (realized/unrealized) Included in Net Loss		(563,547	)		(563,547	)
	Purchases, issuances and settelements		—			—
	Transfers in and/or out of Level 3		—			—

	Ending Balance at September 30, 2014	$	1,307,790		$	1,307,790

Convertible_Debentures

Convertible Debentures	3 Months Ended
	Sep. 30, 2014
Convertible Debentures [Abstract]	'
Convertible debentures	'

	Note 3. Convertible debentures

	Balance of convertible debenture issued in 2008 consist of the following as of June 30, 2014 and June 30, 2013:



		2014			2013
	Convertible debenture issued 2008	$	1,500,000		$	1,500,000
	Debenture discount		(1,500,000	)		(1,500,000	)
	Debenture discount amortized		1,500,000			1,500,000
	Debenture converted to shares		(1,000,000	)		—
	Convertible debenture, current portion	$	500,000		$	1,500,000



	On November 4, 2008, Quantum Materials Corp entered into a Securities Purchase Agreement, Debenture, Security Agreement, Subsidiary Guarantee Agreement, Registration Rights Agreement, Escrow Agreement, Stock Pledge Agreement and other related transactional documents (the “Transaction Documents”) to obtain $1,500,000 in gross proceeds from three non-affiliated parties (collectively hereinafter referred to as the “Lenders”) in exchange for 3,525,000 restricted shares of Common Stock of Quantum Materials Corp (the “Restricted Shares”) and Debentures in the principal amount aggregating $1,500,000. Each Debenture originally had a term of three years maturing on November 4, 2011 bearing interest at the rate of 8% per annum and is prepayable by Quantum Materials Corp at any time without penalty, subject to the Debenture holders’ conversion rights. In 2011, the Company obtained annual one year extension of the maturity date of the Debentures through November 4, 2014. In partial consideration of such a loan extension, the Company agreed to issue to the Debenture holders warrants to purchase an aggregate of 2,000,000 shares of Common Stock exercisable at $.10 per share. These Warrants contain cashless exercise provisions in the event that there is no current registration statement filed. The maturity date was extended to November 4, 2014 in June 2013 and the conversion price per share was lowered as described below.

	In recognition of the 3,525,000 shares issued at origination, the Company recorded a discount of $1,155,826. The discount is made up of two components: $577,913 related to the discount for the relative fair value of the shares issued; and $577,913 related to a beneficial conversion feature. The discount was amortized over the 3 year life of the debenture, using the interest rate method and recorded as interest expense. Each Debenture is convertible at the option of each Lender into Quantum Materials Corp’s Common Stock (the “Debenture Shares”, which together with the Restricted Shares shall collectively be referred to as the “Securities”) at a conversion price of $.2667 per share (the “Conversion Price”). In October 2010, the conversion price was decreased to $0.12 per share and in June 2013, the conversion price was lowered to $.06 per share.

	The Registration Rights Agreement requires Quantum Materials Corp to register the resale of the Securities within certain time limits and to be subject to certain penalties in the event Quantum Materials Corp fails to timely file the Registration Statement, fails to obtain an effective Registration Statement or, once effective, to maintain an effective Registration Statement until the Securities are saleable pursuant to Rule 144 without volume restriction or other limitations on sale. The Debentures are secured by the assets of Quantum Materials Corp and are guaranteed by Solterra as Quantum Materials Corp’s subsidiary. To date, no registration statement has been filed by the Company or demanded by the Debenture Holders.



	On June 30, 2014, $1 million of the Debentures were converted into 16,666,667 common shares. The remaining $500,000 of Debentures is currently due on November 4, 2014 and is convertible at $.06 per share, subject to anti-dilution protection for stock splits, stock dividends, combinations, reclassifications and sale of Quantum Materials Corp’s Common Stock a price below the Conversion Price. Certain changes of control or fundamental transactions such as a merger or consolidation with another company could cause an event of default under the Transaction Documents. As of the filing date of this Form 10-K, the Company believes it is in compliance with terms of the Transaction Documents and Debenture Holders have taken no action under the Transaction Documents to accelerate the payment date under the Debentures or any other rights or remedies that they may have thereunder.



	The Transaction Documents include a Stock Pledge Agreement pursuant to which Stephen Squires, the Company's Chief Executive Officer, had pledged 20,000,000 shares of our Common Stock to the Debenture holders (the “Holders”). The 20,000,000 shares which were the subject of a Pledge Agreement were released to Mr. Squires following the debt conversion described above.



	The Company has also issued shares, on a quarterly basis, for interest that has accrued on the outstanding debt.



	In accounting for the above convertible debentures, the Company has recognized a derivative liability associated with the conversion feature, in the amount of $1,307,790 and $1,871,337, as of September 30, 2014 and June 30, 2014, respectively.



	Convertible Notes



	Balance of convertible notes issued in 2014 consist of the following as of:



		30-Sep-14			30-Jun-14
	Convertible debenture, face value of $400,000, issued February 6, 2014, 8.0% interest rate, maturing January 31, 2016, convertible at $0.04, debt discount of $95,603, net of accumulated accreted interest of $21,333	$	336,265		$	324,317
	Convertible debentures, six (6) identical issues, aggregate face value of $375,050, issued September 18, 2014, 6.0% interest rate, maturing September 18, 2019, convertible at $0.15, debt discount of $203,074, net of accumulated accreted interest $0		171,976			—
	Total convertible debentures		508,241			324,317
	Convertible debt, current portion		—			—
	Convertible debt, long-term portion	$	508,241		$	324,317



	February 2014 Convertible Note:



	On February 6, 2014, the Company entered into a Securities Purchase Agreement, Debenture, Security Agreement, Subsidiary Guarantee Agreement, Registration Rights Agreement, Escrow Agreement, Stock Pledge Agreement and other related transactional documents (the “Transaction Documents”) to obtain $400,000 in gross proceeds from two non-affiliated parties (collectively hereinafter referred to as the “Lenders”) in exchange for 5,000,000 common stock warrants exercisable at $.06 per share through December 31, 2016. The Debenture has a term of two years maturing on January 31, 2016. The Debenture bears interest at the rate of 8% per annum and is pre-payable by the Company at any time without penalty, subject to the Debenture holders’ right of conversion at a conversion price of $.04 per share. The debt is secured by a security interest in certain microreactor equipment. Pursuant to the Securities Purchase Agreement, the investor has certain preferential rights to fund a second microreactor at a cost of up to $650,000. In the event of a second investment, the investor would receive warrants to purchase up to 8,125,000 shares, exercisable at $.06 per share with the second Debenture convertible at a conversion price of $.06 per share. The Agreement also provides for the investor to have the right to appoint one member to the Company’s Board of Directors in the event that any one of the aforementioned Debentures are converted into Common Stock of the Company.



In accounting for the above convertible debentures, the Company allocated the fair value of the warrants to the proceeds received and has recognized a beneficial conversion expense of $115,603, warrant expense of $95,603 recorded as debt financing costs, and interest expense of $19,920 for the year ended June 30, 2014. The debt discount or deferred financing costs are amortized using the effective interest rate method over the life of the loan terms, twenty-four months.



The debenture funds are held in escrow and released as progress payments are made on the microreactor construction. The funds which have been released as payment are originally classified as Deposits on Assets, until such time that the microreactor was put in service. The amounts are now classified as the Microreactor Equipment.



September 2014 Convertible Note



On September 18, 2014, the Company entered into a Convertible Debenture Agreements to obtain a total of $375,050 in gross proceeds from five non-affiliated parties (collectively hereinafter referred to as the “Lenders”). The Debenture has a term of five years maturing on September 18, 2019. The Debenture bears interest at the rate of 6% per annum and is pre-payable by the Company at any time without penalty. The Debenture holders’ have the right of conversion at a conversion price of $.15 per share at any date, and will receive an equal number of warrants (2,500,333) having a strike price of $.30 per share.



In accounting for the above convertible debentures, the Company allocated the fair value of the warrants to the proceeds received and has recognized a beneficial conversion expense of $171,976, warrant expense of $203,074 recorded as debt financing costs, and interest expense of $0 for the three months ended September 30, 2014. The debt discount or deferred financing costs are amortized using the effective interest rate method over the life of the loan terms, sixty months.

Related_Party_Transactions

Related Party Transactions	3 Months Ended
Related Party Transactions	Sep. 30, 2014
Related Party Transactions [Abstract]	'
Related party transactions	'

	Note 4. Related party transactions

	The Company expensed management fees to the CEO / major shareholder as well as other related party executives of $147,000 and $1,010,737 in the three months ended September 30, 2014 and the year ended June 30, 2014, respectively. The Company makes payments or issues shares in exchange for these accrued compensation. Accrued liabilities to related party was $765,748 and $784,164 as of September 30, 2014 and June 30, 2014, respectively.

	During the three months ended September 30, 2014 the Company recorded $2,880 of rent expense for the use of executive office space in the home of the CEO / major shareholder, $nil was paid and $2,880 was accrued.

Common_Stock

Common Stock	3 Months Ended
Common Stock	Sep. 30, 2014
Common Stock [Abstract]	'
Common stock	'

	Note 5. Common stock

	In July 2014, the Company had the following issuances of common stock:

	240,385 shares at $0.21 in exchange for cash of $50,000;

	766,667 shares at $0.06 in exchange for cash of $46,000;



	In August 2014, the Company had the following issuances of common stock:



	240,000 shares at $0.06 in exchange for cash of $14,400;

	262,034 shares at $0.23 in exchange for cash of $60,000;



	In September 2014, the Company had the following issuances of common stock:



	320,000 shares at $0.18 in exchange for cash of $57,600;

	249,999 shares at $0.10 in exchange for cash of $25,000;

	300,000 shares at $0.067 in exchange for cash of $20,000;

	138,899 shares at $0.18 in exchange for services valued at $25,000

	400,000 shares at $0.05 in exchange for cash of $20,000;

	538,462 shares at $0.065 in exchange for cash of $35,000;

	1,617,362 shares at $0.13 in exchange for cash of $210,000



	In the three months ended September 30, 2014 the Company issued 52,154 shares of the Company’s restricted Common Stock to pay $12,726 of accrued interest payable on the 8% Debenture.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Sep. 30, 2014
Commitments and Contingencies [Abstract]	'
Commitments and Contingencies	'

	Note 6. Commitments and Contingencies



	Contingency



	Certain default clauses related to the various agreements discussed in Item 2 (Management’s Plan of Operation) would result in a change of control of the board of directors. Certain debt holders would have the option to appoint independent members to the board under such default.



	License Agreement - Work-Study Arrangements

	License Agreement with Rice University



	On August 20, 2008, Solterra entered into a License Agreement with Rice University. In August 2013, Solterra entered into an amended License Agreement and Quantum Materials entered into a new License Agreement with Rice. Rice is the owner of certain inventions and patent applications, know-how and rights pertaining to the synthesis of uniform nanoparticle shapes with high selectivity. We have obtained the exclusive rights to license and sublicense (subject to Rice’s consent, which shall not be unreasonably withheld), develop, manufacture, market and exploit Rice’s inventions, patent applications and any issued patents in the case of Solterra, for the manufacture and sale of photovoltaic cells and photovoltaic applications and in the case of Quantum Materials for the manufacture and sale of quantum dots for electronic and medical applications (excluding photovoltaic applications). With respect to Rice’s patent applications, Rice made a provisional filing for an invention disclosure titled “synthesis of uniform nanoparticle shapes with high selectivity” with the United States Patent and Trademark Office on April 13, 2007 and a subsequent utility filing on April 11, 2008 under the Patent Cooperation Treaty (“PCT”). PCT enables the U.S. applicant to file one application, "an international application," in a standardized format in English in the U.S. Receiving Office (the U.S. Patent and Trademark Office), and have that application acknowledged as a regular national or regional filing in any State or region that is party to the PCT. Dr. Michael Wong is a director of our company and is the inventor of Rice’s patent application licensed by Solterra.



	Our initial agreement with Rice requires the payment of certain patent fees to Rice and for us to acquire additional funding and to meet certain milestones by specific dates. Rice and the Company recently established new milestones for the Company to achieve in the months and years ahead, the failure of which could lead to the termination of the license agreement.



	Rice is entitled to receive during the term of each License Agreement certain royalties under the License Agreement of adjusted gross sales (as defined) ranging from 2% to 4% for photovoltaic cells and 7.5% of adjusted gross sales for quantum dots sold in electronic and medical applications. Minimum royalties payable under the License Agreement include $29,450 due January 1, 2015, $217,000 due January 1, 2016, $648,750 due January 1, 2017, $2,038,500 due January 1, 2018 and $3,738,600 due January 1, 2019 and each January 1 of every year thereafter, subject to adjustments for changes in the consumer pricing index. The term of the License Agreement is to expire on the expiration date of Rice’s rights in its intellectual property and the Licensee’s rights are worldwide. Our Agreement, as amended, with Rice provides for termination of each Agreement in the event that we are determined to be insolvent as defined in the Agreements.



	Agreement with Arizona State University



	Solterra had an agreement with Arizona State University (“ASU”) pursuant to which ASU at a cost of $835,000 will assist Solterra under the direction of Dr. Ghassan Jabbour in scaling up or optimizing the solar cells so that they can be printed. As of June 30, 2010, $630,000 of these costs in this agreement have been incurred and a further $205,000 were to accrue before the end of the fiscal year ended June 30, 2010. During February 2010, Dr. Jabbour accepted a Directorship at the King Abdullah University of Science and Technology (KAUST), in Saudi Arabia, as a result of Dr. Jabbour now being located in Saudi Arabia it is no longer logistically feasible for him to conduct the development work at ASU. We have paid ASU $175,000 under our contract with ASU. Dr. Jabbour is continuing his development work at the KAUST facilities and we have attempted to negotiate a substantially reduced fee payable to ASU. Dr. Jabbour is also our Chief Science Officer and is an employee of QMC/Solterra.



	Agreement with University of Arizona



	Solterra has entered into an exclusive Patent License Agreement with the University of Arizona ("UA") to license US Patent # 7,015,052, which was issued on March 21, 2006, entitled “Screen Printing Techniques for the Fabrication of Organic Light - Emitting Diodes”. Pursuant to the License Agreement, Solterra has an exclusive license to market, sell and distribute licensed products within its field of use which is defined as organic light emitting diodes in printed electronic displays and all other printed electronic components. Solterra has the right to grant sublicenses with respect to the licensed product and the license method (as defined in the agreement). Pursuant to said agreement, as amended, we are obligated to pay minimum annual royalties of $5,000 by June 30, 2012, $25,000 by December 31, 2013, $50,000 by December 31, 2014, $125,000 by June 30, 2015 and $200,000 on each June 30th thereafter, subject to adjustments for increases in the Consumer Price Index. Royalties based on net sales are 2% of net sales of licensed products for non-display electronic component applications and 2.5% of net sales of licensed products for printed electronic displays. Our Agreement with UA may be terminated by UA in the event that we are in breach of any provision of this Agreement and said breach continues for 60 days after receiving written notice. Our Agreement with UA will also automatically terminate if Solterra becomes insolvent or unable to pay its debts as they become due. We can provide no assurances that we will be able to meet our obligations under our Agreement with UA. Termination of our Agreement with UA could materially adversely affect our operations.



	Agreement with Virginia Tech Intellectual Properties



	Quantum Materials has entered into an exclusive Option Agreement with Virginia Tech Intellectual Properties (VA Tech) to evaluate US Patent #61/906,927, entitled “Fabrication of Physically Unclonable Functions via Additive Manufacturing”. Pursuant to the Option Agreement, Quantum has a 12 month period to evaluate the usefulness of the above mentioned patent and to provide VA Tech with its desire to obtain the patent, along with Quantums plan for developing such patent into products or processes for public use. Quantum paid $10,000 in Q4 of FY 2014 for the 12 month option. Our agreement will terminate automatically on May 23, 2015 if Quantum has not yet expressed its desire to fully license the patent, or provide VA Tech with a plan on how it will develop the patent into a product or process.



	Agreement with Texas State University



	Quantum Materials has entered into a Memorandum of Understanding (MOU) with Texas State University (TSU) for the purpose of formalizing a collaboration in which TSU will support Quantums efforts to commercialize Quantum Dot materials. Both parties agree to cooperate in a mutually beneficial arrangement, in which TSU will provide access to facilities, faculty and students in several departments, with Quantum providing internship opportunities and business growth opportunities in the San Marcos, Texas area. The MOU expires on December 31, 2016, and either party can terminate the MOU with 30 days written notice.



Employment agreements

The Company has two employment agreements in effect. The CEO and Vice President of Research and Development each has a five year agreement which started in January 2013.

Warrants

Warrants	3 Months Ended
Warrants	Sep. 30, 2014
Warrants [Abstract]	'
Warrants	'

	Note 7. Warrants

	No warrants were issued in the three month period ending September 30, 2014, except as disclosed in convertible notes, issued and dated September 18, 2014.

Litigation

Litigation	3 Months Ended
Litigation	Sep. 30, 2014
Litigation [Abstract]	'
Litigation	'

	Note 8. Litigation

	In Q4 of FY 2014, the Company commenced an action against Robert Allan Glass in Federal Court in Austin, Texas regarding the termination of his employment agreement. The Company seeks to recover all common stock and cancel all options issued to Mr. Glass as part of his employment agreement. Mr. Glass has filed a counterclaim against the Company alleging breach of contract of the employment agreement seeking allegedly unpaid compensation.

Subsequent_Events

Subsequent Events	3 Months Ended
Subsequent Events	Sep. 30, 2014
Subsequent Events [Abstract]	'
Subsequent events	'

	Note 9. Subsequent events



	In October 2014, the Company received the $100,200 debenture receivable reflected on the Company’s balance sheet. In October 2014, the Company also entered into a one-year extension of its Corporate Advisory Consulting Agreement and agreed to issue 2,000,000 shares of restricted Common Stock. The Company’s Board of Directors also approved a six-month Investor Relation Agreement pursuant to which the Company would pay a $6,000 per month retainer and a one-time issuance of 250,000 shares of restricted Common Stock. The agreement contained a six-month renewal provision.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2014
Summary of Significant Accounting Policies [Abstract]	'
Basis of Presentation	'

	Basis of Presentation

	The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the Securities and Exchange Commission for interim financial statements. Accordingly, our interim statements do not include all of the information and disclosures required for our annual financial statements. In the opinion of our management, the consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation of these interim results. These consolidated financial statements should be read in conjunction with our consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended June 30, 2014. The results for the three months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the full year ending June 30, 2015.

	Since November 4, 2008, the Company has changed its business plans and is no longer intending to pursue the mining of mineral rights located in Nevada. The Company intends to pursue the business plans of its subsidiary, Solterra Renewable Technologies, Inc. (“Solterra”). The following is a brief business overview of Solterra.



	Solterra is a start-up solar technology and quantum dot manufacturing firm which was founded by Stephen Squires. Mr. Squires perceives an opportunity to acquire a significant amount of both quantum dot and solar photovoltaic market share by commercializing a low cost quantum dot processing technology and a low cost quantum dot based third generation photovoltaic technology/solar cell, pursuant to an exclusive license agreement with William Marsh Rice University (“Rice University” or “Rice”). Our objective is to become the first bulk manufacture of high quality tetrapod quantum dots and the first solar cell manufacturer to be able to offer a solar electricity solution that competes on a non-subsidized basis with the price of retail electricity in key markets in North America, Europe, the Middle East and Asia.
Going Concern	'

	Going Concern

	The Company recorded losses from continuing operations in the current period presented. Current liabilities exceed current assets, resulting in a negative net worth and accumulated deficits. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon its ability to reverse negative operating trends, raise additional capital, and obtain debt financing.

	Management has revised its business strategy to include expansion into other lines of business. In conjunction with the anticipated new revenue streams, management is currently negotiating new debt and equity financing, the proceeds from which would be used to settle outstanding debts at more favorable terms, to finance operations, and to develop its business plans. However, there can be no assurance that the Company will be able to raise capital, obtain debt financing, or improve operating results sufficiently to continue as a going concern.

	The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary if the Company is unable to continue as a going concern.

Derivatives_and_Fair_Value_Tab

Derivatives and Fair Value (Tables)	3 Months Ended
Derivatives and Fair Value (Tables)	Sep. 30, 2014
Derivatives and Fair Value [Abstract]	'
Schedule of change in fair value of derivative liability	'
		As of September 30, 2014
		Fair Value Measuring Using

			Carrying Value			Level 1		Level 2	Level 3		Total
	Derivatives Liability	$	1,307,790			—		—	1,307,790	$	1,307,790

	Total Derivatives Liability	$	1,307,790			—		—	1,307,790	$	1,307,790
Schedule of changes in fair value, measured on a recurring basis using significant unobservable inputs (Level 3)	'
			Fair Value
			Measurements
			Using Level 3
			Inputs
			Derivative
			Liabilities			Totals
	Beginning Balance as of June 30, 2014	$	1,871,337		$	1,871,337
	Total Gains or Losses (realized/unrealized) Included in Net Loss		(563,547	)		(563,547	)
	Purchases, issuances and settelements		—			—
	Transfers in and/or out of Level 3		—			—

	Ending Balance at September 30, 2014	$	1,307,790		$	1,307,790

Convertible_Debenturtes_Tables

Convertible Debenturtes (Tables)	3 Months Ended
Convertible Debenturtes (Tables)	Sep. 30, 2014
2008 Convertible Debenture	'
Short-term Debt [Line Items]	'
Schedule of balance of convertible debentures	'
		2014				2013
	Convertible debenture issued 2008		$	1,500,000			$	1,500,000
	Debenture discount			(1,500,000	)			(1,500,000	)
	Debenture discount amortized			1,500,000				1,500,000
	Debenture converted to shares			(1,000,000	)			—
	Convertible debenture, current portion		$	500,000			$	1,500,000


2014 Convertible Debenture	'
Short-term Debt [Line Items]	'
Schedule of balance of convertible debentures	'



			30-Sep-14				30-Jun-14
	Convertible debenture, face value of $400,000, issued February 6, 2014, 8.0% interest rate, maturing January 31, 2016, convertible at $0.04, debt discount of $95,603, net of accumulated accreted interest of $21,333		$	336,265			$	324,317
	Convertible debentures, six (6) identical issues, aggregate face value of $375,050, issued September 18, 2014, 6.0% interest rate, maturing September 18, 2019, convertible at $0.15, debt discount of $203,074, net of accumulated accreted interest $0			171,976				—
	Total convertible debentures			508,241				324,317
	Convertible debt, current portion			—				—
	Convertible debt, long-term portion		$	508,241			$	324,317

Derivatives_and_Fair_Value_Det

Derivatives and Fair Value (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Derivatives Liability	$1,307,790	$1,871,337
Total Derivatives liabilities	1,307,790	'
Carrying Value	'	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Derivatives Liability	1,307,790	'
Total Derivatives liabilities	1,307,790	'
Level 1	'	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Derivatives Liability	'	'
Total Derivatives liabilities	'	'
Level 2	'	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Derivatives Liability	'	'
Total Derivatives liabilities	'	'
Level 3	'	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Derivatives Liability	1,307,790	'
Total Derivatives liabilities	$1,307,790	'

Derivatives_and_Fair_Value_Det1

Derivatives and Fair Value (Details 1) (USD $)	3 Months Ended
Derivatives and Fair Value (Details 1) (USD $)	Sep. 30, 2014	Jun. 30, 2013
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]	'	'
Beginning Balance as of June 30, 2013	$1,871,337	$787,000
Total Gains or Losses (realized/unrealized) Included in Net Loss	-563,547	'
Purchases, issuances and settlements	'	'
Transfers in and/or out of Level 3	'	'
Ending Balance at September 30, 2014	1,307,790	787,000
Fair Value Measurements Using Level 3 Inputs - Derivative Liabilities	'	'
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]	'	'
Beginning Balance as of June 30, 2013	1,871,337	787,000
Total Gains or Losses (realized/unrealized) Included in Net Loss	-563,547	'
Purchases, issuances and settlements	'	'
Transfers in and/or out of Level 3	'	'
Ending Balance at September 30, 2014	$1,307,790	$787,000

Derivatives_and_Fair_Value_Det2

Derivatives and Fair Value (Details Textual) (USD $)	3 Months Ended
Derivatives and Fair Value (Details Textual) (USD $)	Sep. 30, 2014	Jul. 01, 2009
Derivatives and Fair Value [Abstract]	'	'
Amount of fair value of derivatives	'	$495,912
Decrease in accumulated deficit	162,643	'
Decrease in additional paid in capital	-212,184	'
Increase in discount on convertible debenture	$446,371	'

Convertible_Debenturtes_Detail

Convertible Debenturtes (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2013	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2014	Jun. 30, 2014
			2008 Convertible Debenture	2008 Convertible Debenture	2014 Convertible Debenture	2014 Convertible Debenture	2014 Convertible Debenture	2014 Convertible Debenture	2014 Convertible Debenture	2014 Convertible Debenture
							8.0% interest rate [Member]	8.0% interest rate [Member]	6.0% interest rate [Member]	6.0% interest rate [Member]
Short-term Debt [Line Items]	'	'	'	'	'	'	'	'	'	'
Convertible debenture	'	'	$1,500,000	$1,500,000	$508,241	$324,317	$336,265	$324,317	$171,976	'
Debenture discount	'	'	-1,500,000	-1,500,000	'	'	'	'	'	'
Debenture discount amortized	'	'	1,500,000	1,500,000	'	'	'	'	'	'
Debenture converted to shares	'	'	-1,000,000	'	'	'	'	'	'	'
Convertible debenture current portion	500,000	500,000	500,000	1,500,000	'	'	'	'	'	'
Convertible debt, long-term portion	$508,241	$324,317	'	'	$508,241	$324,317	'	'	'	'

Convertible_Debenturtes_Detail1

Convertible Debenturtes (Details Textual) (USD $)

3 Months Ended

12 Months Ended

0 Months Ended

3 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

Sep. 30, 2014

Sep. 30, 2013

Jun. 30, 2014

Feb. 28, 2014

Jan. 31, 2014

Sep. 30, 2014

Jun. 30, 2013

Sep. 30, 2014

Jun. 30, 2014

Nov. 04, 2008

Sep. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Sep. 18, 2014

Feb. 06, 2014

Jun. 30, 2014

Sep. 30, 2014

Feb. 06, 2014

Mr Squires [Member]

Minimum [Member]

Maximum [Member]

Convertible debt

2008 Convertible Debenture

2014 Convertible Debenture

Discount_components

Affiliate

Second Investment

Short-term Debt [Line Items]

Fair value of derivative liabilities

$1,307,790

$1,871,337

Proceeds from convertible debenture issued

274,850

1,500,000

375,050

400,000

Number of non-affiliated parties

Number of restricted stock issued

52,154

Number of common stock issued in exchange of debentures

20,000,000

3,525,000

16,666,667

3,525,000

5,000,000

Debenture principal amount

1,500,000

Debentures maturity period

'3 years

'5 years

'2 years

Debenture maturity date

4-Nov-11

4-Nov-14

18-Sep-19

31-Jan-16

Warrants issued with debt, allocated deferred financing costs

203,074

Interest bering rate of debentures per annum

8.00%

6.00%

8.00%

Maturity date of debentures, extension period

'1 year

Common stock purchased to issue warrants

20,000,000

2,000,000

2,500,333

8,125,000

Beneficial conversion feature on convertible note

-171,976

577,913

115,603

Exercise price of warrants (in dollars per share)

$0.06

$0.10

$0.06

Maximum funding amount

650,000

Debenture, conversion price

$0.06

$0.12

$0.27

$0.06

$0.15

$0.04

$0.06

Warrant expense

95,603

Interest expenses

19,920

Debenture convertion amount

1,155,826

1,000,000

Number of discount components

Discount for the relative fair value of the shares issued

577,913

Amortization term for discount

'3 years

Strike price

0.3

Convertible debenture outstanding

$500,000

$1,500,000

$500,000

Related_Party_Transactions_Det

Related Party Transactions (Details) (Chief Executive Officer [Member], USD $)	3 Months Ended	12 Months Ended
	Sep. 30, 2014	Jun. 30, 2014
Chief Executive Officer [Member]	'	'
Related Party Transaction [Line Items]	'	'
Amount of management fees	$147,000	$1,010,737
Accrued liabilities to related party	765,748	784,164
Operating leases, rent expense	2,880	'
Accrued rent	$2,880	'

Common_Stock_Details

Common Stock (Details) (USD $)

1 Months Ended

3 Months Ended

1 Months Ended

Sep. 30, 2014

Aug. 31, 2014

Jul. 31, 2014

Aug. 31, 2014

Sep. 30, 2014

$0.05 per share

$0.06 per share

$0.21 per share

$0.23 per share

$0.18 per share

$0.10 per share

$0.067 per share

$0.065 per share

$0.13 per share

Schedule Of Stock [Line Items]

Common stock issued for services (in shares)

138,899

Common stock issued for services

$25,000

Common shares issued in exchange for cash (in shares)

400,000

240,000

766,667

240,385

262,034

320,000

249,999

300,000

538,462

1,617,362

Per share price

$0.18

$0.05

$0.06

$0.21

$0.23

$0.18

$0.10

$0.07

$0.13

Number of common stock issued to pay accrued interest (in shares)

52,154

Accrued interest

12,726

Common shares issued in exchange for cash

$20,000

$14,400

$46,000

$50,000

$60,000

$57,600

$25,000

$20,000

$35,000

$210,000

Interest rate on debentures

8.00%

Commitments_and_Contingencies_

Commitments and Contingencies (Details Textual) (License agreements, Solterra Renewable Technologies, Inc, USD $)	3 Months Ended
	Sep. 30, 2014
Commitment and Contingencies [Line Items]	'
Royalties payable due in January 1, 2015	29,450
Royalties payable due in January 1, 2016	217,000
Royalties payable due in January 1, 2017	648,750
Royalties payable due in January 1, 2018	2,038,500
Royalties payable due in January 1, 2019	3,738,600
Photovoltaic cells \| Minimum	'
Commitment and Contingencies [Line Items]	'
Percentage of adjusted gross sales	2.00%
Photovoltaic cells \| Maximum	'
Commitment and Contingencies [Line Items]	'
Percentage of adjusted gross sales	4.00%
Quantum dots	'
Commitment and Contingencies [Line Items]	'
Percentage of adjusted gross sales	7.50%

Commitments_and_Contingencies_1

Commitments and Contingencies (Details Textual 1) (USD $)	3 Months Ended
Commitments and Contingencies (Details Textual 1) (USD $)	Sep. 30, 2014
Arizona State University Agreement \| Solterra Renewable Technologies, Inc	'
Commitment and Contingencies [Line Items]	'
Agreement Cost	$835,000
Agreement Cost Incurred	630,000
Accrued Agreement Cost	205,000
Agreement Cost Paid	175,000
Patent license agreement with University of Arizona \| Solterra Renewable Technologies, Inc	'
Commitment and Contingencies [Line Items]	'
Royalties, minimum payments, by June 30,2012	5,000
Royalties, future minimum payments, by December 31, 2013	25,000
Royalties, future minimum payments, by December 31, 2014	50,000
Royalties, future minimum payments, by June 30, 2015	125,000
Royalties, future minimum payments due on each June 30th thereafter	200,000
Period of breach continuation	'60 days
Patent license agreement with University of Arizona \| Solterra Renewable Technologies, Inc \| Non-display electronic component applications	'
Commitment and Contingencies [Line Items]	'
Percentage of sales	2.00%
Patent license agreement with University of Arizona \| Solterra Renewable Technologies, Inc \| Printed electronic displays	'
Commitment and Contingencies [Line Items]	'
Percentage of sales	2.50%
Employment agreements	'
Commitment and Contingencies [Line Items]	'
Number of agreements	2
Employment agreements \| Chief Technology Officer	'
Commitment and Contingencies [Line Items]	'
Term of agreement	'5 years
Option Agreement [Member] \| Virginia tech intellectual properties	'
Commitment and Contingencies [Line Items]	'
Agreement Cost	$10,000

Subsequent_Events_Details

Subsequent Events (Details) (USD $)	3 Months Ended	0 Months Ended
	Sep. 30, 2014	Oct. 31, 2014	Oct. 31, 2014
		Subsequent Event	Subsequent Event
			Board of Directors Chairman [Member]
Subsequent Event [Line Items]	'	'	'
Number of restricted stock issued	52,154	2,000,000	250,000
Debenture Receivable	$100,200	$100,200	'
Payment to retainer per month	'	'	$6,000