Quantum Materials (QTMM) 10-Q 13 Feb 15 2015 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Dec. 31, 2014	Jan. 31, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	QUANTUM MATERIALS CORP.
Entity Central Index Key	1403570
Trading Symbol	qtmm
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Dec-14
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Current Fiscal Year End Date	-24
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Entity Common Stock, Shares Outstanding		289,394,772

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Dec. 31, 2014	Jun. 30, 2014
Current
Cash	$98,457	$185,811
Total current assets	98,457	185,811
Licenses	175,310	52,250
Furniture and equipment, net of accumulated deprecation of $38650	332,774	295,926
Total assets	606,541	533,987
Current liabilities
Accounts payable and accrued Liabilities	12,300	59,278
Accrued liabilities - related party	456,306	784,164
Accrued expenses	122,500	122,500
Deferred revenue	899	899
Fair value of derivative liabilities		1,871,337
Convertible debenture current portion		500,000
Total current liabilities	592,005	3,338,178
Convertible debenture, net of discount	348,215	324,317
Total liabilities	940,220	3,662,495
Stockholders' deficit
Common stock, $0.001 par value, 400,000,000 shares authorized, Issued and outstanding 279,326,826 and 256,582,767, respectively	279,328	256,583
Additional paid-in capital	22,337,563	18,290,201
Deficit accumulated during the development stage	-22,950,570	-21,675,292
Total stockholders' deficit	-333,679	-3,128,508
Total liabilities and stockholders' deficit	$606,541	$533,987

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parentheticals) (USD $)	Dec. 31, 2014	Jun. 30, 2014
Statement Of Financial Position [Abstract]
Accumulated depreciation of Furniture and equipment	$38,650
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)	279,326,826	256,582,767
Common stock, shares, outstanding (in shares)	279,326,826	256,582,767

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (unaudited) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Operating expenses:
General and administrative	$1,515,185	$664,994	$1,946,317	$1,224,317
Research and development	16,271	934	47,662	4,826
Total operating expenses	1,531,456	665,928	1,993,979	1,229,143
Loss from operations	-1,531,456	-665,928	-1,993,979	-1,229,143
Other expenses (income):
Change in fair value of derivative liabilities	-16,123	-134,603	-579,670	-334,374
Gain on settlement of debt	-364,129	-364,129
Interest expense	28,436	37,877	225,098	76,211
Total other expenses / (income)	351,816	96,726	718,701	258,163
Net loss	($1,179,640)	($569,202)	($1,275,278)	($970,980)
Basic and diluted loss per common share	$0	$0	$0	($0.01)
Weighted average number of common shares outstanding	263,040,224	197,225,747	268,471,108	193,025,054

Consolidated_Statements_of_Sto

Consolidated Statements of Stockholders Equity (Deficit) (USD $)	Total	Common Stock	Additional paid in capital	Deficit accumulated during the development stage
Balance at Jun. 30, 2013	($3,934,529)	$182,988	$12,255,288	($16,372,805)
Balance (in shares) at Jun. 30, 2013		182,988,347
Common stock issued for cash	830,333	21,645	808,688
Common stock issued for cash (in shares)		21,645,055
Common stock issued for warrants exercised	43,200	880	42,320
Common stock issued for warrants exercised (in shares)		880,000
Common stock issued for debenture interest payable	163,530	3,297	160,233
Common stock issued for debenture interest payable (in shares)		3,297,377
Common stock issued in exchange for accrued salaries	767,085	13,242	753,843
Common stock issued in exchange for accrued salaries (in shares)		13,241,667
Common stock issued for services	902,300	16,500	885,800
Common stock issued for services (in shares)		16,500,000
Common stock issued for note payable conversion	201,820	3,364	198,456
Common stock issued for note payable conversion (in shares)		3,363,654
Common stock issued for debenture conversion	1,000,000	16,667	983,333
Common stock issued for debenture conversion (in shares)		16,666,667
Cancellation of Shares		-2,000	2,000
Cancellation of Shares (in shares)		-2,000,000
Beneficial conversion feature of debenture			115,603
Allocated value of warrants related to debenture	95,603		95,603
Stock options issued with note payable	64,929		64,929
Stock options issued for services	9,204		9,204
Stock options issued in exchange for accrued salaries	747,843		747,843
Employee stock options issued as compensation	1,116,260		1,116,260
Stock options issued for extension of debenture terms	19,900		19,900
Forgiveness of debt by related party	30,898		30,898
Net loss				-5,302,487
Balance at Jun. 30, 2014	-3,128,508	256,583	18,290,201	-21,675,292
Balance (in shares) at Jun. 30, 2014		256,582,767
Common stock issued for cash	567,470	4,616	562,854
Common stock issued for cash (in shares)		4,615,779
Common stock issued for warrants exercised	101,000	1,725	99,275
Common stock issued for warrants exercised (in shares)		1,725,000
Common stock issued for debenture interest payable	21,806	93	21,713
Common stock issued for debenture interest payable (in shares)		92,637
Common stock issued for services	887,283	4,811	882,472
Common stock issued for services (in shares)		4,810,643
Common stock issued for debenture conversion	2,117,498	11,500	2,105,998
Common stock issued for debenture conversion (in shares)		11,500,000
Beneficial conversion feature of debenture	171,976		171,976
Allocated value of warrants related to debenture	203,074		203,074
Net loss	-1,275,278			-1,275,278
Balance at Dec. 31, 2014	($333,679)	$279,328	$22,337,563	($22,950,570)
Balance (in shares) at Dec. 31, 2014		279,326,826

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (unaudited) (USD $)	6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	($1,275,278)	($970,980)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of furniture and office equipment	30,377
Stock issued for services	887,283	503,000
Stock issued for debenture interest	21,806	76,211
Beneficial conversion feature of debenture	171,976
Amortization of deferred finance cost	27,283
Change in fair value of warrants and embedded conversion feature	-579,670	-334,374
Gain on settlement of debt
Net change in operating assets and liabilities:
Accounts payable	-46,978	-57,500
Accrued liabilities - related party	36,271	410,861
Cash flows used by operating activities	-1,091,059	-372,782
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of license	-137,743
Purchase of furniture & equipment	-52,542
Cash flows provided by investing activities	-190,285
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock & warrants exercised	668,470	204,500
Proceeds from loans	525,520
Cash flows provided by financing activities	1,193,990	204,500
NET INCREASE (DECREASE) IN CASH	-87,354	-168,282
Cash, beginning of the period	185,811	172,431
Cash, end of the period	98,457	4,149
Supplemental disclosure with respect to cash flows:
Cash paid for income taxes
Cash paid for interest
Non cash transactions
Conversion of debt to equity	1,025,520
Allocation of derivative liability to the fair value of shares issued in debt conversion	1,307,790
Warrants issued with debt, allocated deferred financing costs	$203,074

Summary_of_Significant_Account

Summary of Significant Accounting Policies	6 Months Ended
	Dec. 31, 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 and six months ended December 31, 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 and has a history of losses, resulting in an accumulated deficit and negative net worth. 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	6 Months Ended
	Dec. 31, 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 December 31, 2014
		Fair Value Measuring Using
			Carrying Value			Level 1		Level 2	Level 3		Total
	Derivatives Liability	$	-			-		-	-	$	-
	Total Derivatives Liability	$	-			-		-	-	$	-
	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 six months of fiscal year 2015:
			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		(1,871,337	)		(1,871,337	)
	Purchases, issuances and settelements		-			-
	Transfers in and/or out of Level 3		-			-
	Ending Balance at December 31, 2014	$	-		$	-

Convertible_Debentures

Convertible Debentures	6 Months Ended
	Dec. 31, 2014
Convertible Debentures [Abstract]
Convertible debentures	Note 3.  Convertible debentures
	Balance of convertible debenture issued in 2008 consist of the following:
		31-Dec-14			30-Jun-14
	Convertible debenture issued 2008	$	500,000		$	500,000
	Debenture discount		(500,000	)		(500,000	)
	Debenture discount amortized		500,000			500,000
	Debenture converted to shares		(500,000	)		-
	Convertible debenture, current portion	$	-		$	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 was converted into 8,333,333 of common shares upon the due on November 4, 2014, converted at $.06 per share.  The Company recorded the conversion at the fair market value of the shares at the date of conversion, off-set by the reduction of the derivative liability.
	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 $0 and $1,871,337, as of December 31, 2014 and June 30, 2014, respectively.
	Convertible Notes
	Balance of convertible notes issued in 2014 consist of the following as of:
		31-Dec-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, net of unamortized debt discount of $95,603, net of accumulated accreted interest of $51,785	$	348,215		$	324,317
	Total convertible debentures		348,215			324,317
	Convertible debt, current portion		-			-
	Convertible debt, long-term portion	$	348,215		$	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 $23,901 and $19,917 and for the six months ending December 31, 2014 and year ended June 30, 2014, respectively. 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.
	September 2014 Convertible Note
	On September 18, 2014, the Company entered into a Convertible Debenture Agreements to obtain a total of $354,900 in gross proceeds from five non-affiliated parties (collectively hereinafter referred to as the “Lenders”).  An additional $175,000 was received in October through December 2014, for total loan proceeds of $529,900. 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. The holders of the notes converted their loans in the quarter ending December 31, 2014.
	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 $3,385 for the six months ended December 31, 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. The remaining balance was written off due to the conversion.
	In October 2014, $299,900 of the Debentures were converted into 1,999,333 shares of Common Stock and a like number of warrants exercisable at $.30 per share over a term of five years. In December 2014, an additional $55,000 of the Debentures were converted into 833,334 shares and a like number of warrants exercisable at $.30 per share over a term of five years.
	November 2014 Convertible Debenture
	On November 25, 2014, the Company entered into a Convertible Debenture Agreement which would allow us to borrow as needed up to a total of $500,000 in gross proceeds from a non-affiliate party. The Debenture has a term of five years maturing on November 25, 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 having a strike price of $.30 per share.  As of December 31, 2014 no monies were borrowed under this arrangement.

Related_Party_Transactions

Related Party Transactions	6 Months Ended
	Dec. 31, 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 $415,300 and $1,010,737 in the six months ended December 31, 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 $456,306 and $784,164 as of December 31, 2014 and June 30, 2014, respectively.
	During the six months ended December 31, 2014 the Company recorded $11,520 of rent expense for the use of executive office space in the home of the CEO / major shareholder, $nil was paid and $11,520 was accrued.

Common_Stock

Common Stock	6 Months Ended
	Dec. 31, 2014
Common Stock [Abstract]
Common stock	Note 5.  Common stock
	During the six months ending December 31, 2014, the Company issued 4,615,779 shares of common stock for proceeds of $567,470. Additionally, investors exercised options and warrants to purchase 1,725,000 shares of common stock for cash of $101,000.
	During the six months ending December 31, 2014, the Company granted 4,810,643 common shares to consultants, at the fair market value of $887,283, recognized in the period as operating expense.
	The Company issued 92,637 shares of common stock to a lender, in exchange for interest due, in the amount of $21,806.
	In the period from October 2014 through December 2014, holders of convertible notes elected to converted debt of 1,025,520 into 11,500,000 shares of common stock. The conversions were accounted for at the fair value of the exchanged shares, net against any deferred financing costs from their agreements and recognized derivative liability associated with their carrying valuation.

Commitments_and_Contingencies

Commitments and Contingencies	6 Months Ended
	Dec. 31, 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 was to provide assistance to Solterra under the direction of Dr. Ghassan Jabbour in scaling up or optimizing the solar cells so that they can be printed. 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	6 Months Ended
	Dec. 31, 2014
Warrants [Abstract]
Warrants	Note 7.  Warrants
	No warrants were issued in the six month period ending December 31, 2014, except as disclosed in convertible notes, issued and dated September 18, 2014.

Litigation

Litigation	6 Months Ended
	Dec. 31, 2014
Litigation [Abstract]
Litigation	Note 8.  Litigation
	In Q4 of fiscal year 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 was seeking 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.
	On December 22, 2014 the parties came to a non-appealable judgment agreement. Pursuant to this agreement, Robert Allan Glass and the Company agreed that he may retain 2.4 million shares that were issued to him as part of his prior employment agreement. As part of the agreement, Mr. Glass agreed to forego all accrued and unpaid wages and to terminate all outstanding options or warrants held in his name and to return 2.6 million shares of Common Stock to the Company for cancellation, which shares were part of his signing bonus, $364,129 for accrued and unpaid wages which were previous expensed were reversed and offset against salaries in December 2014.

Subsequent_Events

Subsequent Events	6 Months Ended
	Dec. 31, 2014
Subsequent Events [Abstract]
Subsequent events	Note 9.  Subsequent events
	In January 2015, the holders of the $400,000 convertible debenture elected to convert the entire amount into 10,067,946 shares. The conversion price was $0.04, with the shares being issued for the value of the debenture in addition to accrued interest owed through the conversion date of $2,718.
	In January 2015, $100,000 of the November 19, 2014 debenture described in Note 3 were borrowed by the company.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Dec. 31, 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 and six months ended December 31, 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 and has a history of losses, resulting in an accumulated deficit and negative net worth. 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)	6 Months Ended
	Dec. 31, 2014
Derivatives and Fair Value [Abstract]
Schedule of change in fair value of derivative liability
		As of December 31, 2014
		Fair Value Measuring Using
			Carrying Value			Level 1		Level 2	Level 3		Total
	Derivatives Liability	$	-			-		-	-	$	-
	Total Derivatives Liability	$	-			-		-	-	$	-
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		(1,871,337	)		(1,871,337	)
	Purchases, issuances and settelements		-			-
	Transfers in and/or out of Level 3		-			-
	Ending Balance at December 31, 2014	$	-		$	-

Convertible_Debenturtes_Tables

Convertible Debenturtes (Tables)	6 Months Ended
	Dec. 31, 2014
2008 Convertible Debenture [Member]
Short-term Debt [Line Items]
Schedule of balance of convertible debentures
		31-Dec-14			30-Jun-14
	Convertible debenture issued 2008	$	500,000		$	500,000
	Debenture discount		(500,000	)		(500,000	)
	Debenture discount amortized		500,000			500,000
	Debenture converted to shares		(500,000	)		-
	Convertible debenture, current portion	$	-		$	500,000
2014 Convertible Debenture [Member]
Short-term Debt [Line Items]
Schedule of balance of convertible debentures
		31-Dec-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, net of unamortized debt discount of $95,603, net of accumulated accreted interest of $51,785	$	348,215		$	324,317
	Total convertible debentures		348,215			324,317
	Convertible debt, current portion		-			-
	Convertible debt, long-term portion	$	348,215		$	324,317

Derivatives_and_Fair_Value_Det

Derivatives and Fair Value (Details) (USD $)	Dec. 31, 2014	Jun. 30, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivatives Liability		$1,871,337
Total Derivatives liabilities
Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivatives Liability
Total Derivatives liabilities
Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivatives Liability
Total Derivatives liabilities
Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivatives Liability
Total Derivatives liabilities
Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivatives Liability
Total Derivatives liabilities

Derivatives_and_Fair_Value_Det1

Derivatives and Fair Value (Details 1) (USD $)	6 Months Ended
	Dec. 31, 2014
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance as of June 30, 2014	$1,871,337
Total Gains or Losses (realized/unrealized) Included in Net Loss	-1,871,337
Purchases, issuances and settlements
Transfers in and/or out of Level 3
Ending Balance at December 31, 2014
Fair Value Measurements Using Level 3 Inputs - Derivative Liabilities [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance as of June 30, 2014	1,871,337
Total Gains or Losses (realized/unrealized) Included in Net Loss	-1,871,337
Purchases, issuances and settlements
Transfers in and/or out of Level 3
Ending Balance at December 31, 2014

Derivatives_and_Fair_Value_Det2

Derivatives and Fair Value (Details Textual) (USD $)	6 Months Ended
	Dec. 31, 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 $)	Dec. 31, 2014	Jun. 30, 2014
Short-term Debt [Line Items]
Convertible debenture current portion		$500,000
Convertible debt, long-term portion	348,215	324,317
2008 Convertible Debenture [Member]
Short-term Debt [Line Items]
Convertible debenture	500,000	500,000
Debenture discount	-500,000	-500,000
Debenture discount amortized	500,000	500,000
Debenture converted to shares	-500,000
Convertible debenture current portion		500,000
2014 Convertible Debenture [Member]
Short-term Debt [Line Items]
Convertible debenture	348,215	324,317
Convertible debenture current portion
Convertible debt, long-term portion	348,215	324,317
2014 Convertible Debenture [Member] | 8.0% interest rate [Member]
Short-term Debt [Line Items]
Convertible debenture	$348,215	$324,317

Convertible_Debenturtes_Detail1

Convertible Debenturtes (Details Textual) (USD $)	0 Months Ended	6 Months Ended		12 Months Ended	0 Months Ended		12 Months Ended	0 Months Ended	1 Months Ended
	Sep. 18, 2014	Dec. 31, 2014	Dec. 31, 2013	Jun. 30, 2014	Oct. 31, 2014	Nov. 04, 2008	Jun. 30, 2013	Feb. 06, 2014	Nov. 25, 2014	Feb. 28, 2014	Jan. 31, 2014
						Affiliate
Short-term Debt [Line Items]
Fair value of derivative liabilities				$1,871,337
Proceeds from loans	529,900	525,520
Number of restricted stock issued		52,154
Number of common stock issued in exchange of debentures				8,333,333
Debentures maturity period		5 years
Warrants issued with debt, allocated deferred financing costs		203,074
Common stock purchased to issue warrants		833,334
Beneficial conversion feature of debenture		-171,976
Exercise price of warrants (in dollars per share)		$0.06		$0.06						$0.06	$0.06
Interest expenses		3.385
Debenture convertion amount		55,000
Convertible debenture outstanding				500,000
Mr Squires [Member]
Short-term Debt [Line Items]
Number of common stock issued in exchange of debentures		20,000,000
Minimum [Member]
Short-term Debt [Line Items]
Debenture, conversion price							0.06
Maximum [Member]
Short-term Debt [Line Items]
Debenture, conversion price							0.12
Convertible debt [Member]
Short-term Debt [Line Items]
Number of common stock issued in exchange of debentures		3,525,000		16,666,667
Debentures maturity period					5 years
Common stock purchased to issue warrants				20,000,000	1,999,333
Beneficial conversion feature of debenture		577,913
Exercise price of warrants (in dollars per share)					$0.30
Debenture, conversion price		$0.27		$0.06
Debenture convertion amount		1,155,826		1,000,000	299,900
Number of discount components		2
Discount for the relative fair value of the shares issued		577,913
Amortization term for discount		3 years
2008 Convertible Debenture [Member]
Short-term Debt [Line Items]
Proceeds from loans						1,500,000
Number of non-affiliated parties						3
Number of common stock issued in exchange of debentures		3,525,000
Debenture principal amount						1,500,000
Debentures maturity period						3 years
Debenture maturity date						4-Nov-11	4-Nov-14
Interest bering rate of debentures per annum						8.00%
Maturity date of debentures, extension period						1 year
Common stock purchased to issue warrants						2,000,000
Exercise price of warrants (in dollars per share)						$0.10
Convertible debenture outstanding				500,000
2014 Convertible Debenture [Member]
Short-term Debt [Line Items]
Proceeds from loans	354,900							400,000	500,000
Number of common stock issued in exchange of debentures								5,000,000
Debentures maturity period	5 years							2 years	5 years
Debenture maturity date	18-Sep-19							31-Jan-16	25-Nov-19
Interest bering rate of debentures per annum	6.00%							8.00%	6.00%
Common stock purchased to issue warrants	2,500,333
Beneficial conversion feature of debenture				115,603
Exercise price of warrants (in dollars per share)								$0.06
Debenture, conversion price	$0.15							$0.04	$0.15
Warrant expense				95,603
Interest expenses		23,901		19,917				51,785
Strike price	0.3								0.3
Convertible debenture outstanding
Net of unamortized debt discount								95,603
2014 Convertible Debenture [Member] | Second Investment [Member]
Short-term Debt [Line Items]
Common stock purchased to issue warrants								8,125,000
Exercise price of warrants (in dollars per share)								$0.06
Maximum funding amount								$650,000
Debenture, conversion price								$0.06

Related_Party_Transactions_Det

Related Party Transactions (Details) (Chief Executive Officer [Member], USD $)	6 Months Ended	12 Months Ended
	Dec. 31, 2014	Jun. 30, 2014
Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Amount of management fees	$415,300	$1,010,737
Accrued liabilities to related party	456,306	784,164
Operating leases, rent expense	11,520
Accrued rent	$11,520

Common_Stock_Details

Common Stock (Details) (USD $)	1 Months Ended	6 Months Ended		12 Months Ended
	Sep. 30, 2014	Dec. 31, 2014	Dec. 31, 2013	Jun. 30, 2014
Common stock issued for cash		$567,470		$830,333
Common stock issued for warrants exercised		101,000		43,200
Common stock issued for services (in shares)	138,899
Common stock issued for services	25,000	887,283		902,300
Common stock issued for debenture interest payable		21,806		163,530
Conversion of debt to equity		1,025,520
Common Stock [Member]
Common stock issued for cash (in shares)		4,615,779		21,645,055
Common stock issued for cash		4,616		21,645
Common stock issued for warrants exercised (in shares)		1,725,000		880,000
Common stock issued for warrants exercised		1,725		880
Common stock issued for services (in shares)		4,810,643		16,500,000
Common stock issued for services		4,811		16,500
Common stock issued for debenture interest payable (in shares)		92,637		3,297,377
Common stock issued for debenture interest payable		$93		$3,297
Common stock issued for debenture conversion (in shares)		11,500,000		16,666,667

Commitments_and_Contingencies_

Commitments and Contingencies (Details Textual) (License agreements [Member], Solterra Renewable Technologies, Inc [Member], USD $)	6 Months Ended
	Dec. 31, 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 [Member] | Minimum [Member]
Commitment and Contingencies [Line Items]
Percentage of adjusted gross sales	2.00%
Photovoltaic cells [Member] | Maximum [Member]
Commitment and Contingencies [Line Items]
Percentage of adjusted gross sales	4.00%
Quantum dots [Member]
Commitment and Contingencies [Line Items]
Percentage of adjusted gross sales	7.50%

Commitments_and_Contingencies_1

Commitments and Contingencies (Details Textual 1) (USD $)	6 Months Ended
	Dec. 31, 2014
Arizona State University Agreement | Solterra Renewable Technologies, Inc [Member]
Commitment and Contingencies [Line Items]
Agreement Cost	$835,000
Agreement Cost Paid	175,000
Patent license agreement with University of Arizona | Solterra Renewable Technologies, Inc [Member]
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 [Member] | 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 [Member] | Printed electronic displays
Commitment and Contingencies [Line Items]
Percentage of sales	2.50%
Employment agreements [Member]
Commitment and Contingencies [Line Items]
Number of agreements	2
Employment agreements [Member] | 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

Litigation_Details

Litigation (Details) (USD $)	6 Months Ended
Share data in Millions, unless otherwise specified	Dec. 31, 2014
Litigation [Line Items]
Common stock cancellation shares	2.6
Accrued and unpaid wages	$364,129
Employment agreements [Member]
Litigation [Line Items]
Stock issued during period pursuant to agreement, Shares	2.4

Subsequent_Events_Details

Subsequent Events (Details) (USD $)	0 Months Ended	6 Months Ended
	Jan. 15, 2015	Dec. 31, 2014
Subsequent Event [Line Items]
Conversion of stock, shares converted	10,067,946
Debenture borrowed by company		$55,000
Subsequent Event
Subsequent Event [Line Items]
Convertible debenture	400,000
Debenture, conversion price	0.04
Debt instrument, accrued Interest	2,718
Debenture borrowed by company	100,000