Quantum Materials (QTMM) 10-Q 20 May 15 2015 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Mar. 31, 2015	20-May-15
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-Mar-15
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	Q3
Entity Common Stock, Shares Outstanding		297,724,783

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Jun. 30, 2014
CURRENT ASSETS
Cash	$19,439	$185,811
TOTAL CURRENT ASSETS	19,439	185,811
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $44,708 and $20,660	324,419	295,926
LICENSES, net of accumulated amortization of $27,070 and $2,750	165,673	52,250
TOTAL ASSETS	509,531	533,987
CURRENT LIABILITIES
Accounts payable and accrued expenses	9,300	59,278
Accrued liabilities - related party	506,563	784,164
Accrued expenses	122,500	122,500
Fair value of derivative liabilities		1,871,337
Current portion of convertible debenture	125,050	500,000
Deferred revenue	899	899
TOTAL CURRENT LIABILITIES	764,312	3,338,178
DEFERRED INCOME TAXES
CONVERTIBLE DEBENTURE, net of current portion and unamortized discount		324,317
TOTAL LIABILITIES	764,312	3,662,495
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' DEFICIT
Common stock, $.001 par value, authorized 400,000,000 shares, 292,083,555 and 256,582,767 issued and outstanding at March 31, 2015 and June 30, 2014, respectively	292,084	256,583
Additional paid-in capital	23,173,966	18,290,201
Accumulated deficit	-23,720,831	-21,675,292
TOTAL STOCKHOLDERS' DEFICIT	-254,781	-3,128,508
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$509,531	$533,987

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Statement Of Financial Position [Abstract]
Accumulated depreciation of Property and equipment	$44,708	$20,660
Accumulated amortization of licenses	$27,070	$2,750
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)	292,083,555	256,582,767
Common stock, shares, outstanding (in shares)	292,083,555	256,582,767

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (unaudited) (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
OPERATING EXPENSES
General and administrative	$738,928	$391,554	$2,684,458	$1,615,872
Research and development	12,571	13,038	60,233	17,864
TOTAL OPERATING EXPENSES	751,499	404,592	2,744,691	1,633,736
LOSS FROM OPERATIONS	-751,499	-404,592	-2,744,691	-1,633,736
OTHER EXPENSE (INCOME)
Change in fair value of derivative liabilities		169,709	-563,547	-164,665
(Gain) Loss on settlement of debt		136,569	-364,129	136,569
Beneficial conversion feature on convertible debenture		115,603	171,976	115,603
Interest expense, net	18,762	37,444	56,548	113,655
Warrant expense		115,503		115,503
TOTAL OTHER EXPENSE (INCOME)	18,762	574,828	-699,152	316,665
NET LOSS	($770,261)	($979,420)	($2,045,539)	($1,950,401)
LOSS PER COMMON SHARE
Basic	$0	($0.01)	($0.01)	($0.01)
Diluted	$0	($0.01)	($0.01)	($0.01)
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	284,126,245	195,356,712	270,852,218	197,738,959
Diluted	284,126,245	195,356,712	270,852,218	197,738,959

Consolidated_Statements_of_Sto

Consolidated Statements of Stockholders Equity (Deficit) (USD $)	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Balances at Jun. 30, 2013	($3,934,529)	$182,988	$12,255,288	($16,372,805)
Balances (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
Common stock cancelled		-2,000	2,000
Common stock cancelled (in shares)		-2,000,000
Beneficial conversion feature of debenture	115,603		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			-5,302,487
Balances at Jun. 30, 2014	-3,128,508	256,583	18,290,201	-21,675,292
Balances (in shares) at Jun. 30, 2014		256,582,767
Common stock issued for cash	727,833	7,544	720,289
Common stock issued for cash (in shares)		7,544,134
Common stock issued for warrants exercised	172,000	2,975	169,025
Common stock issued for warrants exercised (in shares)		2,975,001
Common stock issued for debenture interest payable	40,568	562	40,006
Common stock issued for debenture interest payable (in shares)		561,679
Common stock issued for services	1,099,783	5,977	1,093,806
Common stock issued for services (in shares)		5,977,311
Common stock issued for debenture conversion	2,710,830	22,167	2,688,663
Common stock issued for debenture conversion (in shares)		22,166,667
Common stock cancelled	-3,724	-3,724
Common stock cancelled (in shares)		-3,724,004
Beneficial conversion feature of debenture	171,976		171,976
Stock options issued for extension of debenture terms
Net loss	-2,045,539			-2,045,539
Balances at Mar. 31, 2015	($254,781)	$292,084	$23,173,966	($23,720,831)
Balances (in shares) at Mar. 31, 2015		292,083,555

Consolidated_Statement_of_Cash

Consolidated Statement of Cash Flows (unaudited) (USD $)	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	($2,045,539)	($1,950,401)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	48,368
Stock issued for services	1,099,783	708,000
Stock options issued for services		682,843
Allocated value of warrants related to debenture		95,603
Stock issued for debenture interest	40,568	113,711
Options issued for debenture extension		19,900
Beneficial conversion feature	171,976	115,603
Change in fair value of warrants and embedded conversion feature	-563,547	-164,665
Effects of changes in operating assets and liabilities:
Accounts payable	-49,978	-40,001
Accrued liabilities - related party	-277,601	24,491
NET CASH USED IN OPERATING ACTIVITIES	-1,575,970	-394,916
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	-52,542	-185,511
Purchase of license	-137,743
NET CASH USED IN INVESTING ACTIVITIES	-190,285	-185,511
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock	899,833	209,500
Proceeds from convertible debenture	700,050	400,000
NET CASH PROVIDED BY FINANCING ACTIVITIES	1,599,883	609,500
NET (DECREASE) INCREASE IN CASH	-166,372	29,073
CASH, beginning of period	185,811	172,431
CASH, end of period	$19,439	$201,504

Basis_of_Presentation

Basis of Presentation	9 Months Ended
	Mar. 31, 2015
Basis of Presentation [Abstract]
BASIS OF PRESENTATION	NOTE 1 – BASIS OF PRESENTATION
	General
	The accompanying Consolidated Financial Statements include the accounts of Quantum Materials Corp. (the “Company”).
	The Consolidated Financial Statements of the Company as of and for the three and nine months ended March 31, 2015 are unaudited and have been prepared on the same basis as the audited Consolidated Financial Statements as of and for the year ended June 30, 2014. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the U.S. In the opinion of management, the accompanying unaudited financial information includes all adjustments necessary for a fair presentation of the interim financial information. Operating results for the interim periods are not necessarily indicative of the results of any subsequent periods. Certain information in the footnote disclosures normally included in annual Consolidated Financial Statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) has been condensed or omitted for the interim periods presented under the United States Securities and Exchange Commission (“SEC”) rules and regulations. As such, these interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended June 30, 2014. Certain amounts in the current year Consolidated Financial Statements have been reclassified to conform to the classifications in the prior year Consolidated Financial Statements.
	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. The ability of the Company to continue as a going concern is dependent upon its ability to reverse negative operating trends, obtain revenues from operations, raise additional capital, and/or 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	9 Months Ended
	Mar. 31, 2015
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 Debenture 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 “Change in fair value of 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, the Company valued the convertible debenture 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 March 31, 2015
		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 nine 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 settlements		-			-
	Transfers in and/or out of Level 3		-			-
	Ending Balance at March 31, 2015	$	-		$	-

Convertible_Debentures

Convertible Debentures	9 Months Ended
	Mar. 31, 2015
Convertible Debentures [Abstract]
CONVERTIBLE DEBENTURES	NOTE 3 – CONVERTIBLE DEBENTURES
	The following table sets forth activity associated with the convertible debentures:
		March 31,		June 30,
		2015		2014
		(unaudited)
	Convertible debenture issued November 4, 2008	$	500,000	$	1,500,000
	Convertible debenture issued February 6, 2014		400,000		400,000
	Convertible debenture issued September 18, 2014		500,050		-
	Convertible debenture issued November 25, 2014		200,000		-
			1,600,050		1,900,000
	Less:  unamortized discount		-		75,683
	Less:  amount converted to shares		1,475,000		1,000,000
			125,050		824,317
	Less:  current portion		125,050		500,000
	Total convertible debentures, net of current portion	$	-	$	324,317
	November 2008 Convertible Debenture
	On November 4, 2008, 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 $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 the Company (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 pre-payable by the Company at any time without penalty, subject to the Debenture holders’ conversion rights.  In 2011, the Company obtained annual one year extensions 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 the Company 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.
	On June 30, 2014, $1 million of the Debentures were converted into 16,666,667 common shares. The remaining $500,000 of Debentures were converted into 8,333,333 of common shares at the due date 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 had 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 March 31, 2015 and June 30, 2014, respectively.
	February 2014 Convertible Debenture
	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 $21,805 and $0 and for the nine months ended March 31, 2015 and 2014, respectively. The debt discount and deferred financing costs are amortized using the effective interest rate method over the life of the loan terms, twenty-four months.
	In January 2015, the holders of the $400,000 convertible debenture converted the debt into 10,000,000 common shares.
	September 2014 Convertible Debenture
	On September 18, 2014, the Company entered into a Convertible Debenture Agreement to obtain a total of $375,050 in gross proceeds from five non-affiliated parties (collectively hereinafter referred to as the “Lenders”).  An additional $125,000 was received in October through December 2014, for total loan proceeds of $500,050. 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, 3,333,667, 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 $4,073 for the nine months ended March 31, 2014. The debt discount and 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, $350,000 of the Debentures were converted into 2,333,333 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 $125,000 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 the Company 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 March 31, 2015 $200,000 has been borrowed under this agreement, of which $100,000 was converted in January 2015 into 666,667 of common stock.

Related_Party_Transactions

Related Party Transactions	9 Months Ended
	Mar. 31, 2015
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 $571,583 and $536,404 in the nine months ended March 31, 2015 and 2014, respectively.  The Company makes payments or issues shares in exchange for accrued compensation. Accrued liabilities to related party was $506,563 and $784,164 as of March 31, 2015 and June 30, 2014, respectively.
	During the nine months ended March 31, 2014 the Company recorded $17,280 of rent expense for the use of executive office space in the home of the CEO / major shareholder, of which $0 was paid and $17,280 accrued.

Common_Stock

Common Stock	9 Months Ended
	Mar. 31, 2015
Common Stock [Abstract]
COMMON STOCK	NOTE 5 – COMMON STOCK
	During the nine months ending March 31, 2015, the Company issued 7,544,134 shares of common stock for proceeds of $727,833. Additionally, investors exercised options and warrants to purchase 2,975,001 shares of common stock for cash of $172,000.
	During the nine months ending March 31, 2015, the Company granted 5,977,311 common shares to consultants, at the fair market value of $1,099,783, recognized in the period as operating expense.
	The Company issued 561,679 shares of common stock to a lender, in exchange for interest due, in the amount of $40,568.
	In the period from October 2014 through March 2015, holders of convertible notes elected to convert debt of $1,475,000 into 22,166,667 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.

Loss_Per_Share

Loss Per Share	9 Months Ended
	Mar. 31, 2015
Loss Per Share [Abstract]
LOSS PER SHARE	NOTE 6 – LOSS PER SHARE
	The Company follows ASC 260, “Earnings Per Share” for share-based payments that are considered to be participating securities within the definition provided by the standard. All share-based payment awards that contained non-forfeitable rights to dividends, whether paid or unpaid, were designated as participating securities and included in the computation of earnings per share (“EPS”).
	The following table sets forth the computation of basic and diluted loss per share:
		Three Months Ended						Nine Months Ended
		March 31,						March 31,
		2015			2014			2015			2014
		(unaudited)						(unaudited)
	Net loss	$	(770,261	)	$	(979,420	)	$	(2,045,539	)	$	(1,950,401	)
	Weighted average common shares outstanding:
	Basic		284,126,245			195,356,712			270,852,218			197,738,959
	Diluted		-			-			-			-
	Total		284,126,245			195,356,712			270,852,218			197,738,959
	Basic loss per share	$	(.00	)	$	(.01	)	$	(.01	)	$	(.01	)
	Diluted loss per share	$	(.00	)	$	(.01	)	$	(.01	)	$	(.01	)
	For the periods ended March 31, 2015 and 2014, 24,769,879 and 24,656,879 potential common shares related to outstanding warrants to purchase the Company’s common stock were excluded from diluted EPS as the Company had net losses for the periods.
	For the periods ended March 31, 2015 and 2014, 51,437,749 and 44,521,081 potential common shares related to outstanding stock options were excluded from diluted EPS as the Company had net losses for the periods.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Mar. 31, 2015
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 7 - COMMITMENTS AND CONTINGENCIES
	License Agreements - Work-Study Arrangements
	Agreement with Rice University
	On August 20, 2008, Solterra Renewable Technologies, Inc. (“Solterra”), a wholly owned subsidiary of the Company, 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 University (“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. With respect to this intellectual property, the Company has 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). In November 2012, Rice was granted US Patent 8,313,714 titled “synthesis of uniform nanoparticle shapes with high selectivity” by the United States Patent and Trademark Office. One of the inventors, Dr. Michael Wong is a member of our Scientific Advisory Board.
	The Company’s initial agreement with Rice requires the payment of certain patent fees to Rice and for the Company 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. The Company’s agreement, as amended, with Rice provides for termination of each agreement in the event that the Company is determined to be insolvent as defined in the agreements. The January 1, 2015 minimum royalty was paid to Rice in the current quarter. The Company can provide no assurances that the Company will be able to meet the obligations under the agreement with Rice. Termination of the agreement with Rice could materially adversely affect operations.
	Agreement with Arizona State University
	Solterra previously had an agreement with Arizona State University (“ASU”) pursuant to which ASU 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. Currently, there is no agreement in place with ASU however Dr. Jabbour remains as our Chief Science Officer and is an employee of the Company.
	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 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, the Company is 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. The agreement with UA may be terminated by UA in the event that the Company is in breach of any provision of this Agreement and said breach continues for 60 days after receiving written notice. The agreement with UA will also automatically terminate if Solterra becomes insolvent or unable to pay its debts as they become due. The Company can provide no assurances that the Company will be able to meet the obligations under the agreement with UA. Termination of the agreement with UA could materially adversely affect 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 the Company’s 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. Quantum Materials has expressed desire to move forward with the license and such negotiations are currently in 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 the Company’s 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 the Company 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.

Litigation

Litigation	9 Months Ended
	Mar. 31, 2015
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 previously expensed were reversed and offset against salaries in December 2014.

Subsequent_Events

Subsequent Events	9 Months Ended
	Mar. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 9 - SUBSEQUENT EVENTS
	Between April and May 20, 2015, 10,050,000 shares of common stock were issued related to a private placement offering at a price of $0.10 per share for proceeds of $1,005,000. The offering closed on April 30, 2015.
	In May 2015, proceeds of $150,000 were received by the company under the November 2014 convertible debenture agreement.

Derivatives_and_Fair_Value_Tab

Derivatives and Fair Value (Tables)	9 Months Ended
	Mar. 31, 2015
Derivatives and Fair Value [Abstract]
Schedule of change in fair value of derivative liability		As of March 31, 2015
		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 settlements		-			-
	Transfers in and/or out of Level 3		-			-
	Ending Balance at March 31, 2015	$	-		$	-

Convertible_Debenturtes_Tables

Convertible Debenturtes (Tables)	9 Months Ended
	Mar. 31, 2015
Convertible Debentures [Abstract]
Schedule of convertible debentures
		March 31,		June 30,
		2015		2014
		(unaudited)
	Convertible debenture issued November 4, 2008	$	500,000	$	1,500,000
	Convertible debenture issued February 6, 2014		400,000		400,000
	Convertible debenture issued September 18, 2014		500,050		-
	Convertible debenture issued November 25, 2014		200,000		-
			1,600,050		1,900,000
	Less:  unamortized discount		-		75,683
	Less:  amount converted to shares		1,475,000		1,000,000
			125,050		824,317
	Less:  current portion		125,050		500,000
	Total convertible debentures, net of current portion	$	-	$	324,317

Loss_Per_Share_Tables

Loss Per Share (Tables)	9 Months Ended
	Mar. 31, 2015
Loss Per Share [Abstract]
Schedule of computation of basic and diluted loss per share		Three Months Ended						Nine Months Ended
		March 31,						March 31,
		2015			2014			2015			2014
		(unaudited)						(unaudited)
	Net loss	$	(770,261	)	$	(979,420	)	$	(2,045,539	)	$	(1,950,401	)
	Weighted average common shares outstanding:
	Basic		284,126,245			195,356,712			270,852,218			197,738,959
	Diluted		-			-			-			-
	Total		284,126,245			195,356,712			270,852,218			197,738,959
	Basic loss per share	$	(.00	)	$	(.01	)	$	(.01	)	$	(.01	)
	Diluted loss per share	$	(.00	)	$	(.01	)	$	(.01	)	$	(.01	)

Derivatives_and_Fair_Value_Det

Derivatives and Fair Value (Details) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivatives Liability		$1,871,337
Total Derivatives Liability
Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivatives Liability
Total Derivatives Liability
Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivatives Liability
Total Derivatives Liability
Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivatives Liability
Total Derivatives Liability
Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivatives Liability
Total Derivatives Liability

Derivatives_and_Fair_Value_Det1

Derivatives and Fair Value (Details 1) (USD $)	9 Months Ended
	Mar. 31, 2015
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 March 31, 2015
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 March 31, 2015

Derivatives_and_Fair_Value_Det2

Derivatives and Fair Value (Details Textual) (USD $)	9 Months Ended
	Mar. 31, 2015	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_Debentures_Details

Convertible Debentures (Details) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Short-term Debt [Line Items]
Convertible debenture	$1,600,050	$1,900,000
Less: unamortized discount		75,683
Less: amount converted to shares	1,475,000	1,000,000
Total convertible debt	125,050	824,317
Less: current portion	125,050	500,000
Total convertible debentures, net of current portion		324,317
Convertible debenture issued November 4, 2008 [Member]
Short-term Debt [Line Items]
Convertible debenture	500,000	1,500,000
Convertible debenture issued February 6, 2014 [Member]
Short-term Debt [Line Items]
Convertible debenture	400,000	400,000
Convertible debenture issued September 18, 2014 [Member]
Short-term Debt [Line Items]
Convertible debenture	500,050
Convertible debenture issued November 25, 2014 [Member]
Short-term Debt [Line Items]
Convertible debenture	$200,000

Convertible_Debentures_Details1

Convertible Debentures (Details Textual) (USD $)	0 Months Ended	3 Months Ended	9 Months Ended		12 Months Ended	0 Months Ended		12 Months Ended	0 Months Ended	1 Months Ended		3 Months Ended
	Sep. 18, 2014	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Jun. 30, 2014	Oct. 31, 2014	Nov. 04, 2008	Jun. 30, 2013	Feb. 06, 2014	Jan. 31, 2015	Nov. 25, 2014	Dec. 31, 2014	Feb. 28, 2014	Jan. 31, 2014
							Affiliate
Short-term Debt [Line Items]
Fair value of derivative liabilities					$1,871,337
Proceeds from loans	500,050		700,050	400,000
Number of restricted stock issued			52,154
Number of common stock issued in exchange of debentures					8,333,333
Debenture principal amount			1,600,050		1,900,000
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 on convertible debenture		115,603	171,976	115,603	115,603
Exercise price of warrants (in dollars per share)			$0.06		$0.06								$0.06	$0.06
Interest expenses				4,073
Convertible debenture outstanding			125,050		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	2,333,333
Exercise price of warrants (in dollars per share)						$0.30
Debenture, conversion price			$0.27		$0.06
Debenture conversion amount			1,155,826		1,000,000	350,000
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			500,000		1,500,000
Debentures maturity period							3 years
Debenture maturity date							4-Nov-11	4-Nov-14
Interest 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
2014 Convertible Debenture [Member]
Short-term Debt [Line Items]
Proceeds from loans	375,050								400,000		500,000	125,000
Number of common stock issued in exchange of debentures									5,000,000	10,000,000
Debenture principal amount			400,000		400,000
Debentures maturity period	5 years								2 years		5 years
Debenture maturity date	18-Sep-19								31-Jan-16		25-Nov-19
Interest rate of debentures per annum	6.00%								8.00%		6.00%
Common stock purchased to issue warrants	3,333,667
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			21,805	0					51,785
Debenture conversion amount										400,000
Strike price	0.3										0.3
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
Convertible debenture issued November 25, 2014 [Member]
Short-term Debt [Line Items]
Number of common stock issued in exchange of debentures										666,667
Debenture principal amount			200,000
Debenture conversion amount										$100,000

Related_Party_Transactions_Det

Related Party Transactions (Details) (Chief Executive Officer [Member], USD $)	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Jun. 30, 2014
Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Amount of management fees	$571,583	$536,404
Accrued liabilities to related party	506,563		784,164
Operating leases, rent expense	17,280
Accrued rent	$17,280

Common_Stock_Details

Common Stock (Details) (USD $)	9 Months Ended	12 Months Ended
	Mar. 31, 2015	Jun. 30, 2014
Common stock issued for cash	$727,833	$830,333
Common stock issued for warrants exercised	172,000	43,200
Common stock issued for services	1,099,783	902,300
Common stock issued for debenture interest payable	40,568	163,530
Conversion of debt to equity	1,475,000
Common Stock [Member]
Common stock issued for cash	7,544	21,645
Common stock issued for cash (in shares)	7,544,134	21,645,055
Common stock issued for warrants exercised	2,975	880
Common stock issued for warrants exercised (in shares)	2,975,001	880,000
Common stock issued for services	5,977	16,500
Common stock issued for services (in shares)	5,977,311	16,500,000
Common stock issued for debenture interest payable	$562	$3,297
Common stock issued for debenture interest payable (in shares)	561,679	3,297,377
Common stock issued for debenture conversion (in shares)	22,166,667	16,666,667

Loss_Per_Share_Details

Loss Per Share (Details) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Jun. 30, 2014
Loss Per Share [Abstract]
Net loss	($770,261)	($979,420)	($2,045,539)	($1,950,401)	($5,302,487)
Weighted average common shares outstanding:
Basic	284,126,245	195,356,712	270,852,218	197,738,959
Diluted	284,126,245	195,356,712	270,852,218	197,738,959
Basic loss per share	$0	($0.01)	($0.01)	($0.01)
Diluted loss per share	$0	($0.01)	($0.01)	($0.01)

Loss_Per_Share_Details_Textual

Loss Per Share (Details Textual)	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock excluded from diluted EPS	24,769,879	24,656,879
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock excluded from diluted EPS	51,437,749	44,521,081

Commitments_and_Contingencies_

Commitments and Contingencies (Details Textual) (License agreements [Member], Solterra Renewable Technologies, Inc [Member], USD $)	9 Months Ended
	Mar. 31, 2015
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 $)	9 Months Ended
	Mar. 31, 2015
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 $)	9 Months Ended
Share data in Millions, unless otherwise specified	Mar. 31, 2015
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) (Subsequent Event [Member], USD $)	1 Months Ended	2 Months Ended
	11-May-15	20-May-15
Subsequent Event [Member]
Subsequent Event [Line Items]
Common stock shares issued related to private placement offering		10,050,000
Shares issued, price per share		$0.10
Proceeds from issuance of private placement		$1,005,000
Debenture borrowed by company	$150,000