Quantum Materials (QTMM) 10-Q 13 Nov 15 2016 Q1 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - shares	3 Months Ended
	Sep. 30, 2015	Nov. 09, 2015
Document and Entity Information
Entity Registrant Name	QUANTUM MATERIALS CORP.
Entity Central Index Key	1,403,570
Trading Symbol	qtmm
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Current Fiscal Year End Date	--06-30
Document Type	10-Q
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Period End Date	Sep. 30, 2015
Document Fiscal Period Focus	Q1
Entity Common Stock, Shares Outstanding		319,737,045

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2015	Jun. 30, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 542,595	$ 673,839
Restricted cash		65,330
Prepaid expenses and other current assets	418,696	258,391
TOTAL CURRENT ASSETS	961,291	997,560
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $84,024 and $63,615	790,779	776,039
LICENSES AND PATENTS, net of accumulated amortization of $46,344 and $36,707	146,399	156,036
TOTAL ASSETS	1,898,469	1,929,635
CURRENT LIABILITIES
Accounts payable and accrued expenses	547,309	364,797
Accrued salaries	667,274	577,027
Deferred revenue	225,000
TOTAL CURRENT LIABILITIES	1,439,583	941,824
CONVERTIBLE DEBENTURE, net of current portion and unamortized discount	301,025	258,838
TOTAL LIABILITIES	$ 1,740,608	$ 1,200,662
COMMITMENTS AND CONTINGENCIES.
STOCKHOLDERS' EQUITY
Common stock, $.001 par value, authorized 400,000,000 shares, 312,488,760 and 307,097,420 issued and outstanding at September 30, 2015 and June 30, 2015, respectively	$ 312,489	$ 307,097
Additional paid-in capital	24,389,622	24,099,177
Accumulated deficit	(24,544,250)	(23,677,301)
TOTAL STOCKHOLDERS' EQUITY	157,861	728,973
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,898,469	$ 1,929,635

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2015	Jun. 30, 2015
Statement Of Financial Position [Abstract]
Accumulated depreciation of property and equipment	$ 84,024	$ 63,615
Accumulated amortization of licenses and patents	$ 46,344	$ 36,707
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	400,000,000	400,000,000
Common stock, shares, issued (in shares)	312,488,760	307,097,420
Common stock, shares, outstanding (in shares)	312,488,760	307,097,420

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
OPERATING EXPENSES
General and administrative	$ 897,894	$ 431,135
Research and development	90,331	31,390
TOTAL OPERATING EXPENSES	988,225	462,525
Loss from operations	(988,225)	(462,525)
OTHER (INCOME) EXPENSE
Change in fair value of derivative liability		(563,547)
Gain on settlement	(174,568)
Beneficial conversion expense		171,976
Interest expense, net	11,105	12,736
Accretion of debt discount	42,187	11,948
TOTAL OTHER INCOME	(121,276)	(366,887)
NET LOSS	$ (866,949)	$ (95,638)
LOSS PER COMMON SHARE
Basic and Diluted (in dollars per share)	$ 0	$ 0
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic and Diluted (in shares)	307,812,314	257,609,341

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - 3 months ended Sep. 30, 2015 - USD ($)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balances at Jun. 30, 2015	$ 307,097	$ 24,099,177	$ (23,677,301)	$ 728,973
Balances (in shares) at Jun. 30, 2015	307,097,420
Increase (decrease) in Stockholders' Equity (Deficit)
Common stock issued for warrant and option exercises	$ 3,630	74,370		78,000
Common stock issued for warrant and option exercises (in shares)	3,629,640
Common stock issued for services	$ 2,400	237,600		240,000
Common stock issued for services (in shares)	2,400,000
Cancellation of shares	$ (638)	(252,930)		(253,568)
Cancellation of shares (in shares)	(638,300)
Stock-based compensation		231,405		231,405
Net loss			(866,949)	(866,949)
Balances at Sep. 30, 2015	$ 312,489	$ 24,389,622	$ (24,544,250)	$ 157,861
Balances (in shares) at Sep. 30, 2015	312,488,760

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (866,949)	$ (95,638)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	30,046	12,385
Stock-based compensation	231,405
Stock issued for services	8,743
Stock issued for interest		12,778
Gain on settlement	(174,568)
Beneficial conversion expense		171,976
Change in fair value of derivative liability		(563,547)
Accretion of debt discount	42,187	11,948
Effects of changes in operating assets and liabilities:
Prepaid expenses and other current assets	70,952	(100,200)
Accounts payable and accrued expenses	182,512	(49,478)
Accrued salaries	11,247	(18,416)
Deferred revenue	225,000
NET CASH USED IN OPERATING ACTIVITIES	(239,425)	(618,192)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(35,149)	(52,541)
Purchase of license and patents		(137,743)
Change in restricted cash investments	65,330	64,865
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	30,181	(125,419)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock	78,000	611,069
Proceeds from issuance of convertible debenture		375,050
NET CASH PROVIDED BY FINANCING ACTIVITIES	78,000	986,119
NET (DECREASE) INCREASE IN CASH	(131,244)	242,508
CASH AND CASH EQUIVALENTS, beginning of period	673,839
CASH AND CASH EQUIVALENTS, end of period	$ 542,595	$ 363,009

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Sep. 30, 2015
BASIS OF PRESENTATION
BASIS OF PRESENTATION	NOTE 1 — BASIS OF PRESENTATION General The accompanying consolidated financial statements include the accounts of Quantum Materials Corp. and its wholly owned subsidiary, Solterra Renewable Technologies, Inc. (collectively referred to as the “Company”). The consolidated financial statements of the Company as of and for the three months ended September 30, 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, 2015. The year-end balance sheet data was derived from audited consolidated 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, 2015. Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the classifications of the current year consolidated financial statements. Nature of Operations The Company is a nanotechnology company specializing in the design, development, production and supply of quantum dots, including tetrapod quantum dots, a high performance variant of quantum dots, and highly uniform nanoparticles, using its patented automated continuous flow production process. Quantum dots and nanoparticles are expected to be increasingly utilized in a range of applications in the life sciences, television and display, solid state lighting, solar energy, battery, security ink, and sensor sectors of the market. Key uncertainties and risks to the Company include, but are not limited to, if and how quickly various industries adopt and fully embrace quantum dot technology and technological changes, including those developed by our competitors, rendering our technology uncompetitive or obsolete. Going Concern The Company recorded losses from continuing operations in the current period presented and has a history of losses. 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. In conjunction with anticipated revenue streams, management is currently negotiating equity financing, the proceeds from which would be used to settle outstanding debts, to finance operations, and for general corporate purposes. 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.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Sep. 30, 2015
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	NOTE 2 — PROPERTY AND EQUIPMENT Property and equipment consisted of the following: September 30, June 30, 2015 2015 (unaudited) Furniture and fixtures $ $ Computers and software Machinery and equipment Less: accumulated depreciation Total property and equipment, net $ $ Depreciation expense for the three months ended September 30, 2015 and 2014 was $20,409 and $7,339, respectively.

LICENSES AND PATENTS

LICENSES AND PATENTS	3 Months Ended
	Sep. 30, 2015
LICENSES AND PATENTS
LICENSES AND PATENTS	NOTE 3 — LICENSES AND PATENTS Licenses and patents consisted of the following: September 30, June 30, 2015 2015 (unaudited) William Marsh Rice University $ $ University of Arizona Bayer acquired patents Less: accumulated amortization Total licenses and patents, net $ $ Amortization expense for the three months ended September 30, 2015 and 2014 was $9,637 and $5,046, respectively.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Sep. 30, 2015
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 4 — FAIR VALUE OF FINANCIAL INSTRUMENTS The Company follows ASU 2011-04 “Fair Value Measurement” as it relates to financial assets and financial liabilities, which defines fair value, establishes a framework for measuring fair value under GAAP and expands disclosures about fair value measurements. The provisions of this standard apply to other accounting pronouncements that require or permit fair value measurements. This guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Hierarchical levels, as defined in this guidance and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities are as follows: Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 — Inputs that are both significant to the fair value measurement and unobservable. The reported fair values for financial instruments that use Level 2 and Level 3 inputs to determine fair value are based on a variety of factors and assumptions. Accordingly, certain fair values may not represent actual values of the financial instruments that could have been realized as of September 30, 2015 or that will be realized in the future and do not include expenses that could be incurred in an actual sale or settlement. The carrying amounts of cash and cash equivalents and accounts payable approximate their fair value due to the short maturity of those instruments. Convertible Debentures The Company measured the estimated fair value of the convertible debentures using significant other observable inputs, representative of a Level 2 fair value measurement, including the interest and conversion rates for the instruments. The following table sets forth the fair value of the Company’s convertible debentures as of September 30, 2015 and June 30, 2015: September 30, 2015 June 30, 2015 (unaudited) Carrying Fair Carrying Fair Amount Value Amount Value Convertible debentures issued September 18, 2014 $ $ $ $ Convertible debentures issued January 15, 2015 $ $ $ $ Derivative Liabilities The Company has evaluated the application of ASC 815, “ Derivatives and Hedging”, 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 consolidated balance sheets at fair value with changes in the values of these derivatives reflected in the consolidated statements of operations as “Change in fair value of derivative liabilities.” These derivative instruments are not designated as hedging instruments under ASC 815. At June 30, 2014, all of the Company’s derivative liabilities were categorized as Level 3 fair value assets. During the three months ended September 30, 2014, the Company recognized a gain of $563,547 and is included in the statements of operations as change in fair value of derivative liabilities. Due to the conversion of the notes, at June 30, 2015 all of the Company’s derivative liabilities have been realized. 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 incorporated 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. Using assumptions, consistent with the original valuation, the Company has subsequently used the Black-Scholes model for calculating the fair value. The Company is not a party to any hedge arrangements, commodity swap agreements or any other derivative financial instruments other than described above.

CONVERTIBLE DEBENTURES

CONVERTIBLE DEBENTURES	3 Months Ended
	Sep. 30, 2015
CONVERTIBLE DEBENTURES.
CONVERTIBLE DEBENTURES	NOTE 5 — CONVERTIBLE DEBENTURES The following table sets forth activity associated with the convertible debentures: September 30, June 30, 2015 2015 (unaudited) Convertible debentures issued November 4, 2008 $ — $ Convertible debentures issued February 6, 2014 — Convertible debentures issued September 18, 2014 Convertible debentures issued November 25, 2014 — Convertible debentures issued January 15, 2015 Less: amount converted to shares — Total convertible debentures outstanding Less: unamortized discount Less: current portion — — Total convertible debentures, net of current portion $ $ 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 “Debenture Holders”) 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 a 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 $0.10 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 to $0.06 per share. On June 30, 2014, $1,000,000 of the Debentures were converted into 16,666,667 common shares. The remaining $500,000 was converted at $0.06 per share into 8,333,333 of common shares at the due date November 4, 2014. 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. For the three months ended September 30, 2015 and 2014 the Company recognized interest expense of $0 and $12,778, respectively. As of September 30 and June 30, 2015, $0 of principal was outstanding. February 2014 Convertible Debenture On February 6, 2014, the Company entered into a Securities Purchase Agreement, Debenture and Escrow Agreement to obtain $400,000 in gross proceeds from two non-affiliated parties (collectively hereinafter referred to as the “Debenture Holders”). The Debentures have a term of two years maturing on January 31, 2016 and bear interest at the rate of 8% per annum. The Debentures are pre-payable by the Company at any time without penalty. The Debenture Holders have the right of conversion at a conversion price of $0.04 per share at any date. The Debenture Holders received 5,000,000 common stock warrants exercisable at $0.06 per share through December 31, 2016. 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. Such rights were exercised as described under the January 2015 Convertible Debenture below. In accounting for the above convertible debentures, the Company allocated the fair value of the warrants to the proceeds received in the amount of $95,603, recorded as debt discount. In January 2015, the holders of the $400,000 convertible debenture converted into 10,000,000 shares of common stock. As of September 30 and June 30, 2015, $0 of principal was outstanding. September 2014 Convertible Debenture Between September 16, 2014 and October 28, 2014, the Company entered into Convertible Debenture Agreements to obtain a total of $500,050 in gross proceeds from five non-affiliated parties (collectively hereinafter referred to as the “Debenture Holders”). The Debentures have terms of five years maturing between September 16, 2019 and October 30, 2019. The Debentures bear interest at the rate of 6% per annum and are pre-payable by the Company at any time without penalty. The Debenture Holders have the right of conversion at a conversion price of $0.15 per share at any date, and will receive an equal number of warrants having a strike price of $0.30 per share and a term of five years. In accounting for the above convertible debentures, the Company allocated the fair value of the warrants to the proceeds received in the amount of $203,074, recorded as debt discount. The debt discount is amortized using the effective interest rate method over the life of the loan, five years, and the Company has recognized $0 and $11,948 of accretion expense for the three months ended September 30, 2015 and 2014, respectively. During the three months ended September 30, 2015 and 2014, the Company recognized a beneficial conversion expense of $0 and $171,976 and interest expense of $384 and $0, respectively. In October 2014, $350,000 of the Debentures were converted into 2,333,333 shares of common stock and an equal number of warrants and in December 2014, $125,000 of the Debentures were converted into 833,334 shares of common stock and an equal number of warrants. As of September 30 and June 30, 2015, $25,050 of principal was outstanding. November 2014 Convertible Debenture On November 25, 2014, the Company entered into a Convertible Debenture Agreement which would allow the Company to borrow up to a total of $500,000 in gross proceeds from a non-affiliated party. The Debenture has a term of five years maturing on November 25, 2019 and bears interest at the rate of 6% per annum and is pre-payable by the Company at any time without penalty. As of June 30, 2015 the debenture holder funded five times between December 2014 and April 2015 for total proceeds to the Company of $350,000. The first three fundings of $50,000 each have the right of conversion at a conversion price of $0.15 per share at any date, and will receive an equal number of warrants having a strike price of $0.30 per share and a term of two years. The fourth funding of $50,000 has the right of conversion at a conversion price of $0.12 per share at any date, and will receive an equal number of warrants having a strike price of $0.24 per share and a term of two years. The fifth funding of $150,000 has the right of conversion at a conversion price of $0.10 per share at any date, and will receive an equal number of warrants having a strike price of $0.20 per share and a term of two years. In January 2015 $100,000 was converted into 666,667 of common stock and in April 2015 $250,000 was converted into 2,250,000 of common stock. As of September 30 and June 30, 2015, $0 of principal was outstanding. On September 18, 2015, the Company notified the debenture holder that per the terms of the debenture, the debenture was deemed cancelled. January 2015 Convertible Debenture On January 15, 2015, the Company entered into Convertible Debenture Agreements to obtain $500,000 in gross proceeds from two non-affiliated parties (collectively hereinafter referred to as the “Debenture Holders”). The Debentures have a term of two years maturing on January 15, 2017 and bear interest at the rate of 8% per annum. The debentures are pre-payable by the Company at any time without penalty. The Debenture Holders have the right of conversion at a conversion price of $0.06 per share at any date. The Debenture Holders received 6,250,000 common stock warrants exercisable at $0.06 per share through January 15, 2017. The debt is secured by a security interest in certain microreactor equipment. The Agreement also provides for the investors 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 convertible debentures, the Company allocated the fair value of the warrants to the proceeds received in the amount of $348,105, recorded as debt discount and is amortized using the effective interest rate method over the life of the loan, two years. During the three months ended September 30, 2015 and 2014, the Company recognized $42,187 and $0 of accretion expense, respectively. As of September 30 and June 30, 2015, $500,000 of principal was outstanding.

DEFERRED REVENUE

DEFERRED REVENUE	3 Months Ended
	Sep. 30, 2015
DEFERRED REVENUE
DEFERRED REVENUE	NOTE 6 — DEFERRED REVENUE During the three months ended September 30, 2015, the Company recorded $225,000 of deferred revenue. This represents full payment pursuant to the previously announced funded development agreement with Nitto Denko Corporation (the “Agreement”). The Agreement does not require specific deliverables by the Company, however it does place certain restrictions on the Company’s ability to communicate with a limited number of specifically named businesses during the four month term of the Agreement. Management does not believe that the restrictions have a material negative affect on the Company’s business prospects.

EQUITY TRANSACTIONS

EQUITY TRANSACTIONS	3 Months Ended
	Sep. 30, 2015
EQUITY TRANSACTIONS
EQUITY TRANSACTIONS	NOTE 7 — EQUITY TRANSACTIONS Common Stock During the three months ended September 30, 2015, investors exercised options and warrants to purchase 3,629,640 shares of common stock for cash proceeds of $78,000. Included were cashless exercises of 3,325,000 options and 400,000 warrants that resulted in the issuance of 2,146,629 and 183,010 shares of common stock, respectively. During the three months ended September 30, 2015, the Company granted 2,400,000 shares of common stock to consultants at the fair market value of $240,000. This was recognized as a prepaid asset and will be amortized to expense over the life of the agreement. During the three months ended September 30, 2015, the Company cancelled 638,300 shares of common stock. See Note 13. Stock Warrants A summary of activity of the Company’s stock warrants for the three months ended September 30, 2015 is presented below: Weighted Weighted Average Weighted Average Remaining Average Exercise Number of Contractual Grant Date Price Warrants Term in Years Fair Value Balance as of June 30, 2015 $ $ Expired ) Granted Exercised ) Cancelled — — — Balance as of September 30, 2015 $ $ Vested and exercisable as of September 30, 2015 $ $ During the three months ended September 30, 2015, 400,000 warrants were exercised in a cashless transaction that resulted in the issuance of 183,010 shares of common stock. Outstanding warrants at September 30, 2015 expire during the period October 2015 to November 2019 and have exercise prices ranging from $0.04 to $0.30.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Sep. 30, 2015
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION.	NOTE 8 — STOCK-BASED COMPENSATION The Company follows ASC 718 “Compensation — Stock Compensation” for share-based payments which requires all stock-based payments, including stock options, to be recognized as an operating expense over the vesting period, based on their grant date fair values. In October 2009 the Board of Directors authorized the approval of a stock option plan covering 7,500,000 shares of common stock, which was increased to 10,000,000 shares in December 2009 and approved by stockholders in January 2010. The Plan provides for the direct issuance of common stock and the grant of incentive and non-incentive stock options. As of September 30, 2015, 9,200,000 options have been granted, with terms ranging from five to ten years, and 250,000 have been cancelled. In January 2013 the Board of Directors authorized the approval of a stock option plan covering 20,000,000 shares of common stock, which was increased to 60,000,000 shares in March 2013 and approved by stockholders in March 2013. The Plan provides for the direct issuance of common stock and the grant of incentive and non-incentive stock options. As of September 30, 2015, 60,703,473 options have been granted, with terms ranging from five to ten years, 3,325,000 have been exercised and 8,403,225 have been cancelled. In March 2012 3,500,000 stock options with a term of five years, were granted outside of the 2009 and 2013 stock option plans. In May and September 2015, 2,000,000 and 1,000,000 stock options, respectively, with terms of ten years, were granted outside of the 2009 and 2013 stock option plans. Incentive Stock Options: The Company estimates the fair value of each stock option on the date of grant using the Black-Scholes-Merton valuation model. The volatility is based on expected volatility over the expected life of sixty months. As the Company has not historically declared dividends, the dividend yield used in the calculation is zero. Actual value realized, if any, is dependent on the future performance of the Company’s common stock and overall stock market conditions. There is no assurance the value realized by an optionee will be at or near the value estimated by the Black-Scholes-Merton model. The Company did not grant any stock options during the three months ended September 30, 2014. The following assumptions were used for the three months ended September 30, 2015: Three Months Ended September 30, 2015 Expected volatility % Expected dividend yield — Risk-free interest rates % Expected term (in years) The computation of expected volatility during the three months ended September 30, 2015 was based on the historical volatility. Historical volatility was calculated from historical data for the time approximately equal to the expected term of the option award starting from the grant date. The risk-free interest rate assumption is based upon the U.S. Treasury yield curve in effect at the time of grant for the period corresponding with the expected life of the option. A summary of the activity of the Company’s stock options for the three months ended September 30, 2015 is presented below: Weighted Weighted Weighted Average Average Average Number of Remaining Optioned Aggregate Exercise Optioned Contractual Grant Date Intrinsic Price Shares Term in Years Fair Value Value Balance as of June 30, 2015 $ Expired — — — Granted Exercised ) Cancelled ) Balance as of September 30, 2015 $ $ $ Vested and exercisable as of September 30, 2015 $ $ $ Outstanding options at September 30, 2015 expire during the period March 2017 to September 2025 and have exercise prices ranging from $0.03 to $0.17. Compensation expense associated with stock options of $178,474 and $0 for the three months ended September 30, 2015 and 2014, respectively, was included in general and administrative expenses in the consolidated statements of operations. At September 30, 2015, the Company had 17,300,000 shares of nonvested stock option awards. The total cost of nonvested stock option awards which the Company had not yet recognized was $2,066,272 at September 30, 2015. Such amounts are expected to be recognized over a period of 2.75 years. Restricted Stock: To encourage retention and performance, the Company granted certain employees restricted shares of common stock with a fair value per share determined in accordance with conventional valuation techniques, including but not limited to, arm’s length transactions, net book value or multiples of comparable company earnings before interest, taxes, depreciation and amortization, as applicable. Generally, the stock vests over a 3 year period. A summary of the activity of the Company’s restricted stock awards for the three months ended September 30, 2015 is presented below: Number of Weighted Nonvested Average Restricted Grant Date Share Awards Fair Value Nonvested restricted shares outstanding at June 30, 2015 $ Granted — — Vested ) Forfeited — — Nonvested restricted shares outstanding at September 30, 2015 $ Compensation expense associated with restricted stock of $52,931 and $0 for the three months ended September 30, 2015 and 2014, respectively, was included in general and administrative expenses in the consolidated statements of operations. The total cost of nonvested stock awards which the Company had not yet recognized was $375,699 at September 30, 2015. This amount is expected to be recognized over a period of two years. Agreements with Officers and Employees: In September 2015, the Company’s officers and certain employees owning options to purchase 57,979,414 shares of the Company’s common stock entered into an agreement with the Company that such persons cannot exercise their options and the Company does not have to reserve for the issuance of shares of common stock underlying their options until the earlier of August 1, 2016 or the Company having unreserved shares sufficient for all outstanding options to be exercised. This could happen through an increase in authorized common shares, the cancellation of outstanding convertible notes or warrants, or a shareholder approved reverse stock split.

LOSS PER SHARE

LOSS PER SHARE	3 Months Ended
	Sep. 30, 2015
LOSS PER SHARE
LOSS PER SHARE	NOTE 9 — 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 September 30, 2015 2014 (unaudited) Net loss $ ) $ ) Weighted average common shares outstanding: Basic and Diluted Basic and diluted loss per share $ ) $ ) For the three months ended September 30, 2015 and 2014, 46,091,776 and 37,552,348 stock warrants, respectively, were excluded from diluted earnings per share because they are considered anti-dilutive. For the three months ended September 30, 2015 and 2014, 64,425,248 and 59,103,473 stock options, respectively, were excluded from diluted earnings per share because they are considered anti-dilutive.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 2015
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIES	NOTE 10 - COMMITMENTS AND CONTINGENCIES Agreement with Rice University On August 20, 2008, Solterra entered into a License Agreement with Rice University (the “Solterra Rice License Agreement”). In August 2013, Solterra entered into an amended License Agreement and Quantum Materials Corp. (“QMC”) entered into a new License Agreement with Rice (“QMC Rice License Agreement”, and together with the Solterra Rice License Agreement, the “Rice License Agreements”). The initial agreement between each of QMC and Solterra with Rice requires the payment of certain patent fees to Rice and for QMC and Solterra to acquire additional funding and to meet certain milestones by specific dates. QMC, Solterra and Rice recently established new milestones for QMC and Solterra to achieve in the months and years ahead pursuant to the respective Rice License Agreements, the failure of which could lead to the termination of such Rice License Agreements. Pursuant to the Solterra Rice License Agreement, Rice is entitled to receive, during the term, certain royalties of adjusted gross sales (as defined therein) ranging from 2% to 4% for photovoltaic cells and 7.5% of adjusted gross sales for QDs sold in electronic and medical applications. Additionally, minimum royalties payable under the Solterra Rice License Agreement include $100,000 due January 1, 2016, $356,250 due January 1, 2017, $1,453,500 due January 1, 2018, $3,153,600 due January 1, 2019 and each January 1 of every year thereafter, subject to adjustments for changes in the consumer pricing index. Pursuant to the QMC Rice License Agreement, Rice is entitled to receive, during the term, a royalty of 7.5% of adjusted gross sales for QDs sold in electronic and medical applications. Additionally, minimum royalties payable under the QMC Rice License Agreement include $29,450 paid January 1, 2015, $117,000 due January 1, 2016, $292,500 due January 1, 2017, $585,000 due January 1, 2018 and each January 1 of every year thereafter, subject to adjustments for changes in the consumer pricing index. The respective terms of the Rice License Agreements are to expire on the expiration date of Rice’s rights in its intellectual property and the Licensee’s rights are worldwide. The Rice License Agreements require the payment of a success fee of $700,000 to Rice in the event a Liquidity Event (as define therein) such as the sale of a majority of QMC’s or Solterra’s shares in a merger or consolidation with another entity or in the case of a sale, lease, transfer or other disposition of all or substantially all of the Company’s assets. The respective Rice License Agreements, as amended, provide for termination of each agreement in certain circumstances, including the event that the Company or Solterra is determined to be insolvent (as defined therein). Agreement with University of Arizona Solterra has entered into an exclusive Patent License Agreement with the University of Arizona (“UA”) on March 21, 2006. Pursuant to UA License Agreement, as amended, Solterra is obligated to pay minimum annual royalties of $50,000 by December 31, 2015, $125,000 by June 30, 2016 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 UA License Agreement may be terminated by UA in the event that Solterra is in breach of any provision of the agreement and said breach continues for 60 days after receiving written notice. The UA License Agreement will also automatically terminate if Solterra becomes insolvent or unable to pay its debts as they become due. Agreement with Texas State University The Company entered into a Service Agreement with Texas State University (“TSU”) by which the Company occupies certain office and lab space at TSU’s STAR Park (Science Technology and Advanced Research) Facility. The agreement is month-to-month and can be terminated with 30-days written notice of either party.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Sep. 30, 2015
INCOME TAXES.
INCOME TAXES	NOTE 11 — INCOME TAX The Company follows ASC 740 “Income Taxes” regarding the accounting for deferred tax assets and liabilities. Under the asset and liability method required by this guidance, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A deferred tax asset will be reduced by a valuation allowance when, based on the Company’s estimates, it is more likely than not that a portion of those assets will not be realized in a future period. The Company assesses the likelihood that deferred tax assets will be recovered from the existing deferred tax liabilities or future taxable income. To the extent the Company believes that recovery will not meet the more likely than not threshold, it establishes a valuation allowance. The Company has recorded valuation allowances in the U.S. for its net deferred tax assets since management believes it is more likely than not that these assets will not be realized because future taxable income necessary to utilize these losses cannot be established or projected. The effective income tax rate for the three months ended September 30, 2015 and 2014 was 0%. The Company’s effective income tax rate differs from the federal statutory rate primarily due to non-deductible expenses and valuation allowances.

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	3 Months Ended
	Sep. 30, 2015
SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION.	NOTE 12 — SUPPLEMENTAL CASH FLOW INFORMATION The following is supplemental cash flow information: Three Months Ended September 30, 2015 2014 (unaudited) Cash paid for interest $ — $ — Cash paid for income taxes $ — $ — The following is supplemental disclosure of non-cash investing and financing activities: Three Months Ended September 30, 2015 2014 (unaudited) Allocated value of warrants issued with convertible debentures $ — $ Prepaid expense paid in shares of common stock $ $ —

TRANSACTIONS WITH AFFILIATED PA

TRANSACTIONS WITH AFFILIATED PARTY	3 Months Ended
	Sep. 30, 2015
TRANSACTIONS WITH AFFILIATED PARTY
TRANSACTIONS WITH AFFILIATED PARTY	NOTE 13 — TRANSACTIONS WITH AFFILIATED PARTY During the three months ended September 30, 2015, the Company’s former CFO surrendered 638,300 shares of common stock and options to purchase an additional 987,500 shares in exchange for the cancellation of indebtedness to the Company aggregating $79,000. As a result of this surrender, the Company recorded a gain of $174,568 which is presented in the consolidated statements of operations as Gain on Settlement.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Sep. 30, 2015
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 14 - SUBSEQUENT EVENTS In November 2015, certain officers and employees converted accrued salaries of $409,667 into 6,827,778 warrants to purchase the Company’s common stock. The warrants are exercisable at $0.06 per share for a period of two years.

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Sep. 30, 2015
PROPERTY AND EQUIPMENT
Schedule of property and equipment	September 30, June 30, 2015 2015 (unaudited) Furniture and fixtures $ $ Computers and software Machinery and equipment Less: accumulated depreciation Total property and equipment, net $ $

LICENSES AND PATENTS (Tables)

LICENSES AND PATENTS (Tables)	3 Months Ended
	Sep. 30, 2015
LICENSES AND PATENTS
Schedule of licenses and patents	September 30, June 30, 2015 2015 (unaudited) William Marsh Rice University $ $ University of Arizona Bayer acquired patents Less: accumulated amortization Total licenses and patents, net $ $

FAIR VALUE OF FINANCIAL INSTR23

FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Sep. 30, 2015
FAIR VALUE OF FINANCIAL INSTRUMENTS
Schedule of fair value of convertible debentures	September 30, 2015 June 30, 2015 (unaudited) Carrying Fair Carrying Fair Amount Value Amount Value Convertible debentures issued September 18, 2014 $ $ $ $ Convertible debentures issued January 15, 2015 $ $ $ $

CONVERTIBLE DEBENTURES (Tables)

CONVERTIBLE DEBENTURES (Tables)	3 Months Ended
	Sep. 30, 2015
CONVERTIBLE DEBENTURES.
Schedule of convertible debentures	September 30, June 30, 2015 2015 (unaudited) Convertible debentures issued November 4, 2008 $ — $ Convertible debentures issued February 6, 2014 — Convertible debentures issued September 18, 2014 Convertible debentures issued November 25, 2014 — Convertible debentures issued January 15, 2015 Less: amount converted to shares — Total convertible debentures outstanding Less: unamortized discount Less: current portion — — Total convertible debentures, net of current portion $ $

EQUITY TRANSACTIONS (Tables)

EQUITY TRANSACTIONS (Tables)	3 Months Ended
	Sep. 30, 2015
EQUITY TRANSACTIONS
Summary of activity of the Company's stock warrants	Weighted Weighted Average Weighted Average Remaining Average Exercise Number of Contractual Grant Date Price Warrants Term in Years Fair Value Balance as of June 30, 2015 $ $ Expired ) Granted Exercised ) Cancelled — — — Balance as of September 30, 2015 $ $ Vested and exercisable as of September 30, 2015 $ $

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Sep. 30, 2015
STOCK-BASED COMPENSATION
Schedule of valuation assumptions used to estimate fair value of stock options	Three Months Ended September 30, 2015 Expected volatility % Expected dividend yield — Risk-free interest rates % Expected term (in years)
Summary of award activity under stock option plans	Weighted Weighted Weighted Average Average Average Number of Remaining Optioned Aggregate Exercise Optioned Contractual Grant Date Intrinsic Price Shares Term in Years Fair Value Value Balance as of June 30, 2015 $ Expired — — — Granted Exercised ) Cancelled ) Balance as of September 30, 2015 $ $ $ Vested and exercisable as of September 30, 2015 $ $ $
Summary of award activity under restricted stock plans	Number of Weighted Nonvested Average Restricted Grant Date Share Awards Fair Value Nonvested restricted shares outstanding at June 30, 2015 $ Granted — — Vested ) Forfeited — — Nonvested restricted shares outstanding at September 30, 2015 $

LOSS PER SHARE (Tables)

LOSS PER SHARE (Tables)	3 Months Ended
	Sep. 30, 2015
LOSS PER SHARE
Schedule of computation of basic and diluted loss per share	Three Months Ended September 30, 2015 2014 (unaudited) Net loss $ ) $ ) Weighted average common shares outstanding: Basic and Diluted Basic and diluted loss per share $ ) $ )

SUPPLEMENTAL CASH FLOW INFORM28

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	3 Months Ended
	Sep. 30, 2015
SUPPLEMENTAL CASH FLOW INFORMATION
Schedule of supplemental cash flow information	Three Months Ended September 30, 2015 2014 (unaudited) Cash paid for interest $ — $ — Cash paid for income taxes $ — $ — Three Months Ended September 30, 2015 2014 (unaudited) Allocated value of warrants issued with convertible debentures $ — $ Prepaid expense paid in shares of common stock $ $ —

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Furniture and Equipment
Total	$ 874,803		$ 839,654
Less: accumulated depreciation	84,024		63,615
Total property and equipment, net	790,779		776,039
Depreciation expense	20,409	$ 7,339
Furniture and fixtures
Furniture and Equipment
Total	1,625		1,625
Computers and software
Furniture and Equipment
Total	11,447		11,447
Machinery and equipment
Furniture and Equipment
Total	$ 861,731		$ 826,582

LICENSES AND PATENTS (Details)

LICENSES AND PATENTS (Details) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
LICENSES AND PATENTS
Licenses and patents, gross	$ 192,743		$ 192,743
Less: accumulated amortization	(46,344)		(36,707)
Total licenses and patents, net	146,399		156,036
Amortization expense	9,637	$ 5,046
Licensing Agreements | William Marsh Rice University
LICENSES AND PATENTS
Licenses and patents, gross	40,000		40,000
Licensing Agreements | University Of Arizona
LICENSES AND PATENTS
Licenses and patents, gross	15,000		15,000
Patents | Bayer
LICENSES AND PATENTS
Licenses and patents, gross	$ 137,743		$ 137,743

FAIR VALUE OF FINANCIAL INSTR31

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2015	Jun. 30, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation
Change in fair value of derivative liabilities	$ 563,547
Convertible debentures issued September 18, 2014 | Level 2 | Carrying Value
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation
Convertible debentures		$ 25,050	$ 25,050
Convertible debentures issued September 18, 2014 | Level 2 | Fair Value
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation
Convertible debentures		28,390	31,730
Convertible debentures issued January 15, 2015 | Level 2 | Carrying Value
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation
Convertible debentures		500,000	500,000
Convertible debentures issued January 15, 2015 | Level 2 | Fair Value
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation
Convertible debentures		$ 1,416,667	$ 1,583,333

CONVERTIBLE DEBENTURES (Details

CONVERTIBLE DEBENTURES (Details) - USD ($)	Sep. 30, 2015	Jun. 30, 2015	Feb. 06, 2014	Nov. 04, 2008
Convertible debentures
Convertible debenture	$ 525,050	$ 2,250,050
Less: amount converted to shares		1,725,000
Total convertible debentures outstanding	525,050	525,050
Less: unamortized discount	224,025	266,212
Total convertible debt	301,025	258,838
Total convertible debentures, net of current portion	301,025	258,838
Convertible debentures issued November 4, 2008
Convertible debentures
Convertible debenture		500,000		$ 1,500,000
Total convertible debt	0	0
Convertible debentures issued February 6, 2014
Convertible debentures
Convertible debenture		400,000	$ 400,000
Total convertible debt	0	0
Convertible debentures issued September 18, 2014
Convertible debentures
Convertible debenture	25,050	500,050
Total convertible debt	25,050	25,050
Convertible debentures issued November 25, 2014
Convertible debentures
Convertible debenture		350,000
Total convertible debt	0	0
Convertible debentures issued January 15, 2015
Convertible debentures
Convertible debenture	500,000	$ 500,000
Total convertible debt	$ 500,000

CONVERTIBLE DEBENTURES (Detai33

CONVERTIBLE DEBENTURES (Details 2)	Jan. 15, 2015USD ($)itemdirector$ / sharesshares	Nov. 25, 2014USD ($)	Nov. 04, 2014USD ($)$ / sharesshares	Feb. 06, 2014USD ($)Lender$ / sharesshares	Nov. 04, 2008USD ($)Lender	Apr. 30, 2015USD ($)shares	Jan. 31, 2015USD ($)shares	Dec. 31, 2014USD ($)shares	Oct. 31, 2014USD ($)shares	Oct. 28, 2014USD ($)Lender$ / shares	Jun. 30, 2014USD ($)shares	Sep. 30, 2015USD ($)$ / shares	Sep. 30, 2014USD ($)	Dec. 31, 2011$ / sharesshares	Jun. 30, 2015USD ($)item	Jun. 30, 2013$ / shares
Convertible debentures
Proceeds from issuance of convertible debenture													$ 375,050
Debt instrument principal amount												$ 525,050			$ 2,250,050
Convertible debt												301,025			258,838
Beneficial conversion expense													171,976
Accretion of debt discount												42,187	11,948
Convertible debentures issued November 4, 2008
Convertible debentures
Proceeds from issuance of convertible debenture					$ 1,500,000
Debt instrument principal amount					$ 1,500,000										500,000
Number of non-affiliated parties | Lender					3
Shares issued in exchange for debentures					$ 3,525,000
Debt term					3 years
Interest rate (as a percent)					8.00%
Annual extension periods														1 year
Debenture, conversion price | $ / shares			$ 0.06													$ 0.06
Debenture conversion amount			$ 500,000								$ 1,000,000
Shares issued for conversion of debentures | shares			8,333,333								16,666,667
Convertible debt												0			0
Interest expense												0	12,778
Convertible debentures issued November 4, 2008 | November 2008 Convertible Debenture Extension Warrant
Convertible debentures
Aggregate number of warrants issued | shares														2,000,000
Exercise price of warrants (in dollars per share) | $ / shares														$ 0.10
Convertible debentures issued February 6, 2014
Convertible debentures
Debt instrument principal amount				$ 400,000											400,000
Number of non-affiliated parties | Lender				2
Debt term				2 years
Interest rate (as a percent)				8.00%
Debenture, conversion price | $ / shares				$ 0.04
Debenture conversion amount							$ 400,000
Shares issued for conversion of debentures | shares							10,000,000
Convertible debt												0			0
Debt instrument, preferential right to fund				$ 650,000
Allocated value of warrants related to debenture				$ 95,603
Convertible debentures issued February 6, 2014 | February 2014 Convertible Debenture Warrant
Convertible debentures
Aggregate number of warrants issued | shares				5,000,000
Exercise price of warrants (in dollars per share) | $ / shares				$ 0.06
Convertible debentures issued September 18, 2014
Convertible debentures
Proceeds from issuance of convertible debenture										$ 500,050
Debt instrument principal amount												25,050			500,050
Number of non-affiliated parties | Lender										5
Debt term										5 years
Interest rate (as a percent)										6.00%
Debenture, conversion price | $ / shares										$ 0.15
Debenture conversion amount								$ 125,000	$ 350,000
Shares issued for conversion of debentures | shares								833,334	2,333,333
Convertible debt												25,050			25,050
Allocated value of warrants related to debenture										$ 203,074
Beneficial conversion expense												0	171,976
Interest expense												384	0
Accretion of debt discount												0	11,948
Convertible debentures issued September 18, 2014 | September 2014 Convertible Debenture Warrant
Convertible debentures
Exercise price of warrants (in dollars per share) | $ / shares										$ 0.30
Warrant term										5 years
Convertible debentures issued November 25, 2014
Convertible debentures
Authorized borrowing		$ 500,000
Debt instrument principal amount															350,000
Debt term		5 years
Interest rate (as a percent)		6.00%
Debenture conversion amount						$ 250,000	$ 100,000
Shares issued for conversion of debentures | shares						2,250,000	666,667
Convertible debt												$ 0			$ 0
Number of fundings | item															5
Convertible debentures issued November 25, 2014 | November 2014 Convertible Debenture Warrant
Convertible debentures
Exercise price of warrants (in dollars per share) | $ / shares												$ 0.30
Warrant term												2 years
November 2014 Convertible Debt, First Three Fundings
Convertible debentures
Debt instrument principal amount															$ 50,000
Debenture, conversion price | $ / shares												$ 0.15
November 2014 Convertible Debt, Fourth Funding
Convertible debentures
Debt instrument principal amount												$ 50,000
Debenture, conversion price | $ / shares												$ 0.12
November 2014 Convertible Debt, Fourth Funding | November 2014 Convertible Debenture Warrant
Convertible debentures
Exercise price of warrants (in dollars per share) | $ / shares												$ 0.24
Warrant term												2 years
November 2014 Convertible Debt, Fifth Funding
Convertible debentures
Debt instrument principal amount												$ 150,000
Debenture, conversion price | $ / shares												$ 0.10
November 2014 Convertible Debt, Fifth Funding | November 2014 Convertible Debenture Warrant
Convertible debentures
Exercise price of warrants (in dollars per share) | $ / shares												$ 0.20
Warrant term												2 years
Convertible debentures issued January 15, 2015
Convertible debentures
Proceeds from issuance of convertible debenture	$ 500,000
Debt instrument principal amount												$ 500,000			$ 500,000
Number of non-affiliated parties | item	2
Debt term	2 years
Interest rate (as a percent)	8.00%
Debenture, conversion price | $ / shares	$ 0.06
Convertible debt												500,000
Allocated value of warrants related to debenture	$ 348,105
Accretion of debt discount												$ 42,187	$ 0
Number of members that may be appointed by holder | director	1
Convertible debentures issued January 15, 2015 | January 2015 Convertible Debenture Warrant
Convertible debentures
Aggregate number of warrants issued | shares	6,250,000
Exercise price of warrants (in dollars per share) | $ / shares	$ 0.06

DEFERRED REVENUE (Details)

DEFERRED REVENUE (Details)	3 Months Ended
	Sep. 30, 2015USD ($)
Deferred Revenue Arrangement [Line Items]
Deferred revenue	$ 225,000
Development agreement | Nitto Denko
Deferred Revenue Arrangement [Line Items]
Deferred revenue	$ 225,000
Term of agreement	4 months

EQUITY TRANSACTIONS (Details)

EQUITY TRANSACTIONS (Details)	3 Months Ended
	Sep. 30, 2015USD ($)shares
Proceeds from exercise of options and warrants | $	$ 78,000
Number of options exercised in noncash transaction (in shares)	3,325,000
Number of warrants exercised in noncash transaction (in shares)	400,000
Number of shares of stock issued for warrants exercised in noncash transaction (in shares)	183,010
Common stock issued for services | $	$ 240,000
Common Stock
Stock issued for exercise of options and warrants (in shares)	3,629,640
Number of warrants exercised in noncash transaction (in shares)	400,000
Number of shares issued upon exercise of options in noncash transactions (in shares)	2,146,629
Number of shares of stock issued for warrants exercised in noncash transaction (in shares)	183,010
Common stock issued for services (in shares)	2,400,000
Common stock issued for services | $	$ 2,400
Number of shares of common stock surrendered by related party	638,300

EQUITY TRANSACTIONS (Details 2)

EQUITY TRANSACTIONS (Details 2)	3 Months Ended
	Sep. 30, 2015$ / sharesshares
Weighted Average Exercise Price
Beginning balance (in dollars per share)	$ 0.09
Expired (in dollars per share)	0.05
Granted (in dollars per share)	0.06
Exercised (in dollars per share)	0.07
Ending balance (in dollars per share)	0.09
Weighted average exercise price of warrants exercisable (in dollars per share)	$ 0.09
Number of Warrants
Beginning balance (in shares) | shares	48,284,833
Expired (in shares) | shares	(1,187,500)
Granted (in shares) | shares	694,444
Exercised (in shares) | shares	(1,700,001)
Ending balance (in shares) | shares	46,091,776
Exercisable (in shares) | shares	46,091,776
Weighted Average Remaining Contractual Term in Years
Weighted average remaining contractual term of warrants outstanding (in years)	1 year 1 month 21 days
Weighted average remaining contractual term of warrants exercisable (in years)	1 year 1 month 21 days
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 0.13
Expired (in dollars per share)	0.07
Granted (in dollars per share)	0.11
Exercised (in dollars per share)	0.08
Ending balance (in dollars per share)	0.13
Weighted average grant date fair value of warrants exercisable (in dollars per share)	$ 0.13
Number of warrants exercised in noncash transaction (in shares) | shares	400,000
Number of shares of stock issued for warrants exercised in noncash transaction (in shares) | shares	183,010
Minimum
Weighted Average Grant Date Fair Value
Exercise price of warrants (in dollars per share)	$ 0.04
Maximum
Weighted Average Grant Date Fair Value
Exercise price of warrants (in dollars per share)	$ 0.30

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($)	1 Months Ended			3 Months Ended
	Sep. 30, 2015	May. 31, 2015	Mar. 31, 2012	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015	Mar. 31, 2013	Jan. 31, 2013	Jan. 31, 2010	Oct. 31, 2009
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term (in years)	10 years	10 years	5 years
Assumptions
Expected volatility (as a percent)				148.50%
Expected dividend yield (as a percent)				0.00%
Risk-free interest rates (as a percent)				1.44%
Expected term (in years)				5 years
Weighted Average Exercise Price
Balance (in dollars per share)				$ 0.07
Granted (in dollars per share)				0.17
Exercised (in dollars per share)				0.06
Cancelled (in dollars per share)				0.06
Balance (in dollars per share)	$ 0.07			0.07
Vested and exercisable (in dollars per share)	$ 0.06			$ 0.06
Number of Optioned Shares
Balance (in shares)				67,737,748
Granted (in shares)	1,000,000	2,000,000	3,500,000	1,000,000
Exercised (in shares)				(3,325,000)
Cancelled (in shares)				(987,500)
Balance (in shares)	64,425,248			64,425,248
Vested and exercisable (in shares)	47,125,248			47,125,248
Weighted Average Remaining Contractual Term in Years
Balance (in years)				4 years 9 months 29 days
Vested and exercisable (in years)				4 years 1 month 6 days
Weighted Average Optioned Grant Date Fair Value
Balance (in dollar per share)				$ 0.10
Granted (in dollars per share)				0.18
Exercised (in dollars per share)				0.06
Cancelled (in dollars per share)				0.13
Balance (in dollar per share)	$ 0.11			0.11
Vested and exercisable (in dollars per share)	$ 0.09			$ 0.09
Aggregate Intrinsic Value
Aggregate intrinsic value	$ 6,543,444			$ 6,543,444		$ 8,357,574
Vested and exercisable	$ 5,402,444			5,402,444
Additional Disclosure
Compensation expense				$ 178,474	$ 0
Nonvested stock option awards (in shares)	17,300,000			17,300,000
Cost of nonvested stock option awards not yet recognized	$ 2,066,272			$ 2,066,272
Period of nonvested stock option awards not yet recognized for recognition				2 years 9 months
Stock Options | Minimum
Additional Disclosure
Exercise price (in dollars per shares)	$ 0.03			$ 0.03
Stock Options | Maximum
Additional Disclosure
Exercise price (in dollars per shares)	$ 0.17			$ 0.17
Restricted Stock
Additional Disclosure
Compensation expense				$ 52,931	$ 0
Cost of nonvested stock option awards not yet recognized	$ 375,699			$ 375,699
Period of nonvested stock option awards not yet recognized for recognition				2 years
Vesting period				3 years
Number of Nonvested Restricted Shares Awards
Nonvested Restricted Shares Outstanding (in shares)				1,500,000
Vested (in shares)				(500,000)
Nonvested Restricted Shares Outstanding (in shares)	1,000,000			1,000,000
Weighted Average Grant Date Fair Value
Nonvested Restricted Shares Outstanding (in dollars per share)				$ 0.42
Vested (in dollars per share)				0.42
Nonvested Restricted Shares Outstanding (in dollars per share)	$ 0.42			$ 0.42
Stock option plan authorized in 2009 | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock authorized (in shares)									10,000,000	7,500,000
Options granted (in shares)	9,200,000			9,200,000
Options cancelled (in shares)	250,000			250,000
Stock option plan authorized in 2009 | Stock Options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term (in years)				5 years
Stock option plan authorized in 2009 | Stock Options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term (in years)				10 years
Stock option plan authorized in 2013 | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock authorized (in shares)							60,000,000	20,000,000
Options granted (in shares)	60,703,473			60,703,473
Options exercised (in shares)	3,325,000			3,325,000
Options cancelled (in shares)	8,403,225			8,403,225
Stock option plan authorized in 2013 | Stock Options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term (in years)				5 years
Stock option plan authorized in 2013 | Stock Options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term (in years)				10 years
Officers and employees | Stock Options
Weighted Average Grant Date Fair Value
Number of shares restricted for exercise under stock option plan and no common stock reserved	57,979,414			57,979,414

LOSS PER SHARE (Details)

LOSS PER SHARE (Details) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
LOSS PER SHARE
Net loss	$ (866,949)	$ (95,638)
Weighted average common shares outstanding:
Basic and Diluted (in shares)	307,812,314	257,609,341
Basic and diluted loss per share (in dollars per share)	$ 0	$ 0

LOSS PER SHARE (Details 2)

LOSS PER SHARE (Details 2) - shares	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock excluded from diluted EPS	46,091,776	37,552,348
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock excluded from diluted EPS	64,425,248	59,103,473

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - William Marsh Rice University - USD ($)	1 Months Ended	3 Months Ended
	Jan. 31, 2015	Sep. 30, 2015
Licensing Agreements
Collaborative arrangements
Payment of success fee, in case of liquidity event		$ 700,000
Licensing Agreements Entered Into During August 2008 | Solterra Renewable Technologies Inc.
Collaborative arrangements
Royalties payable due in first installment period		100,000
Royalties payable due in second installment period		356,250
Royalties payable due in third installment period		1,453,500
Royalties, future minimum payments due on each January 1st thereafter		$ 3,153,600
Licensing Agreements Entered Into During August 2008 | Solterra Renewable Technologies Inc. | Photovoltaic cells | Minimum
Collaborative arrangements
Percentage of adjusted gross sales		2.00%
Licensing Agreements Entered Into During August 2008 | Solterra Renewable Technologies Inc. | Photovoltaic cells | Maximum
Collaborative arrangements
Percentage of adjusted gross sales		4.00%
Licensing Agreements Entered Into During August 2008 | Solterra Renewable Technologies Inc. | Quantum dots
Collaborative arrangements
Percentage of adjusted gross sales		7.50%
Licensing Agreements Entered Into During August 2013
Collaborative arrangements
Royalties paid	$ 29,450
Royalties payable due in first installment period		$ 117,000
Royalties payable due in second installment period		292,500
Royalties, future minimum payments due on each January 1st thereafter		$ 585,000
Licensing Agreements Entered Into During August 2013 | Quantum dots
Collaborative arrangements
Percentage of adjusted gross sales		7.50%

COMMITMENTS AND CONTINGENCIES41

COMMITMENTS AND CONTINGENCIES (Details 2)	3 Months Ended
	Sep. 30, 2015USD ($)
Licensing Agreements | Solterra Renewable Technologies Inc. | University Of Arizona
Collaborative arrangements
Royalties payable due in first installment period	$ 50,000
Royalties payable due in second installment period	125,000
Royalties, future minimum payments due on each June 30th thereafter	$ 200,000
Period of breach continuation	60 days
Licensing Agreements | Solterra Renewable Technologies Inc. | University Of Arizona | Non-display electronic component applications
Collaborative arrangements
Royalty Rate	2.00%
Licensing Agreements | Solterra Renewable Technologies Inc. | University Of Arizona | Printed electronic displays
Collaborative arrangements
Royalty Rate	2.50%
Service Agreement | Texas State University
Collaborative arrangements
Period of termination notice for the Memorandum of Understanding	30 days

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Effective Income Tax Rate
Tax at U.S. federal statutory rate (as a percent)	0.00%	0.00%

SUPPLEMENTAL CASH FLOW INFORM43

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Supplemental disclosure of non-cash investing and financing activities:
Allocated value of warrants issued with convertible debentures		$ 203,074
Prepaid expense paid in shares of common stock	$ 231,257

TRANSACTIONS WITH AFFILIATED 44

TRANSACTIONS WITH AFFILIATED PARTY (Details)	3 Months Ended
	Sep. 30, 2015USD ($)shares
Transactions with affiliated party
Gain on settlement	$ 174,568
Former CFO | Cancellation of related party indebtedness
Transactions with affiliated party
Number of shares of common stock surrendered by related party | shares	638,300
Number of common stock options surrendered by related party | shares	987,500
Cancellation of indebtedness of related party	$ 79,000
Gain on settlement	$ 174,568

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)	Nov. 16, 2015	Nov. 16, 2015	Sep. 30, 2015
Subsequent Event [Line Items]
Granted (in shares)			694,444
Subsequent Event
Subsequent Event [Line Items]
Accrued salaries converted to warrants	$ 409,667
Subsequent Event | Common stock warrants issued in exchange for conversion of accrued salaries and wages
Subsequent Event [Line Items]
Granted (in shares)		6,827,778
Exercise price of warrants (in dollars per share)	$ 0.06	$ 0.06
Warrant exercisable period		2 years

Uncategorized Items - qtmm-2015

Label	Element	Value
Debt Instrument, Convertible, Beneficial Conversion Feature	us-gaap_DebtInstrumentConvertibleBeneficialConversionFeature	$ 171,976