Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Sep. 26, 2014 | Dec. 31, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Entity Registrant Name | 'GelTech Solutions, Inc. | ' | ' |
Entity Central Index Key | '0001403676 | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 42,264,310 | ' |
Entity Public Float | ' | ' | $13.70 |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Current assets | ' | ' |
Cash and cash equivalents | $66,266 | $90,275 |
Accounts receivable trade, net | 35,276 | 37,277 |
Inventories | 843,864 | 588,703 |
Prepaid expenses and other current assets | 88,836 | 66,756 |
Total current assets | 1,034,242 | 783,011 |
Furniture, fixtures, and equipment, net | 175,751 | 158,184 |
Deposits | 30,086 | 26,886 |
Total assets | 1,240,079 | 968,081 |
Current liabilities | ' | ' |
Accounts payable | 228,063 | 265,122 |
Accrued expenses | 189,933 | 176,734 |
Litigation accrual | 505,000 | 505,000 |
Accrual for severance agreement | ' | 102,056 |
Convertible notes - related parties, net of discount | ' | 79,261 |
Convertible notes - third parties, net of discount | ' | 192,163 |
Insurance premium finance contract | 13,574 | 11,796 |
Deferred revenue | ' | 7,019 |
Total current liabilities | 936,570 | 1,339,151 |
Convertible notes - related party, net of discounts | 2,201,824 | 1,899,316 |
Total liabilities | 3,138,394 | 3,238,467 |
Commitments and contingencies (Note 10) | ' | ' |
Stockholders' deficit | ' | ' |
Preferred stock: $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding | ' | ' |
Common stock: $0.001 par value; 50,000,000 shares authorized; 40,301,979 and 33,084,671 shares issued and outstanding as of June 30, 2014 and 2013, respectively. | 40,302 | 33,084 |
Additional paid in capital | 33,194,961 | 25,718,163 |
Accumulated deficit | -35,133,578 | -28,021,633 |
Total stockholders' deficit | -1,898,315 | -2,270,386 |
Total liabilities and stockholders' deficit | $1,240,079 | $968,081 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ' | ' |
Preferred stock, par value per share | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $0.00 | $0.00 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 40,301,979 | 33,084,671 |
Common stock, shares outstanding | 40,301,979 | 33,084,671 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ' | ' |
Sales | $814,587 | $526,010 |
Cost of goods sold | 393,102 | 180,427 |
Gross profit | 421,485 | 345,583 |
Operating expenses: | ' | ' |
Selling, general and administrative expenses | 6,601,353 | 6,103,435 |
Research and development | 274,005 | 179,158 |
Total operating expenses | 6,875,358 | 6,282,593 |
Loss from operations | -6,453,873 | -5,937,010 |
Other income (expense) | ' | ' |
Interest income | 276 | 864 |
Loss on settlement | ' | -5,088 |
Loss on sale of assets | -11,413 | -9,822 |
Loss on extinguishment of debt | ' | -25,515 |
Loss on conversion of interest | -201,175 | ' |
Other income (loss) | 17,000 | 1,298,920 |
Cost of repricing warrants to induce exercise | ' | -70,491 |
Interest expense | -462,760 | -473,605 |
Total other income (expense) | -658,072 | 715,263 |
Net loss | ($7,111,945) | ($5,221,747) |
Net loss per common share - basic and diluted | ($0.20) | ($0.18) |
Weighted average shares outstanding - basic and diluted | 36,410,142 | 29,479,048 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (USD $) | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Accumulated Deficit [Member] |
Balance at Jun. 30, 2012 | ($2,965,902) | $24,914 | $19,809,070 | ($22,799,886) |
Balance, shares at Jun. 30, 2012 | ' | 24,914,474 | ' | ' |
Common stock issued for cash | 1,658,000 | 3,539 | 1,654,461 | ' |
Common stock issued, shares | ' | 3,539,321 | ' | ' |
Common stock issued in connection with stock purchase agreement | 810,003 | 1,334 | 808,669 | ' |
Common stock issued in connection with stock purchase agreement, shares | ' | 1,333,820 | ' | ' |
Common stock and warrants issued for cash | 300,000 | 375 | 299,625 | ' |
Common stock and warrants issued for cash, shares | ' | 375,000 | ' | ' |
Common stock upon exercise of options | 6,534 | 12 | 6,522 | ' |
Common stock upon exercise of options, shares | ' | 11,667 | ' | ' |
Common stock issued upon exercise of warrants | 910,000 | 1,829 | 908,171 | ' |
Common stock issued upon exercise of warrants, shares | ' | 1,829,171 | ' | ' |
Common stock issued for interest | 77,784 | 210 | 77,574 | ' |
Common stock issued for interest, shares | ' | 210,226 | ' | ' |
Grant of restricted stock units | 90,000 | 200 | 89,800 | ' |
Grant of restricted stock units, shares | ' | 200,000 | ' | ' |
Convertible note conversions | 435,495 | 871 | 434,624 | ' |
Convertible note conversions, shares | ' | 870,992 | ' | ' |
Cancellation of restricted stock units grant under clawback provision | -90,000 | -200 | -89,800 | ' |
Cancellation of restricted stock units grant under clawback provision, shares | ' | -200,000 | ' | ' |
Options and stock appreciation rights vested | 1,407,534 | ' | 1,407,534 | ' |
Beneficial conversion feature of debt offerings | 309,342 | ' | 309,342 | ' |
Cost of repricing warrants to induce warrant exercise | 70,491 | ' | 70,491 | ' |
Cancellation of stock appreciation rights grant under clawback provision | -67,920 | ' | -67,920 | ' |
Net loss | -5,221,747 | ' | ' | -5,221,747 |
Balance at Jun. 30, 2013 | -2,270,386 | 33,084 | 25,718,163 | -28,021,633 |
Balance, shares at Jun. 30, 2013 | 33,084,671 | 33,084,671 | ' | ' |
Common stock issued for cash | 2,131,527 | 3,353 | 2,128,174 | ' |
Common stock issued, shares | ' | 3,352,726 | ' | ' |
Common stock issued in connection with stock purchase agreement | 570,000 | 577 | 569,423 | ' |
Common stock issued in connection with stock purchase agreement, shares | ' | 577,428 | ' | ' |
Common stock and warrants issued for cash | 1,705,000 | 2,576 | 1,702,424 | ' |
Common stock and warrants issued for cash, shares | ' | 2,575,579 | ' | ' |
Common stock upon exercise of options | 18,200 | 20 | 18,180 | ' |
Common stock upon exercise of options, shares | ' | 20,000 | ' | ' |
Common stock issued upon exercise of warrants | 25,000 | 20 | 24,980 | ' |
Common stock issued upon exercise of warrants, shares | ' | 20,000 | ' | ' |
Common stock issued for interest | 355,426 | 437 | 354,989 | ' |
Common stock issued for interest, shares | ' | 436,912 | ' | ' |
Convertible note conversions | 82,132 | 235 | 81,897 | ' |
Convertible note conversions, shares | ' | 234,663 | ' | ' |
Options and stock appreciation rights vested | 1,682,833 | ' | 1,682,833 | ' |
Beneficial conversion feature of debt offerings | 913,898 | ' | 913,898 | ' |
Net loss | -7,111,945 | ' | ' | -7,111,945 |
Balance at Jun. 30, 2014 | ($1,898,315) | $40,302 | $33,194,961 | ($35,133,578) |
Balance, shares at Jun. 30, 2014 | 40,301,979 | 40,301,979 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows from operating activities | ' | ' |
Net loss | ($7,111,945) | ($5,221,747) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation | 55,284 | 49,269 |
Bad debt expense | 20,068 | ' |
Amortization of beneficial conversion feature of convertible notes | 223,025 | ' |
Amortization of original issue discounts related to convertible notes | 5,791 | 385,650 |
Equity compensation expense | 1,682,833 | 1,497,534 |
Cost of repricing warrants to induce exercise | ' | 70,491 |
Loss on disposal of assets | 11,413 | 9,822 |
Loss on stock issued for interest | 201,175 | 4,205 |
Other income from the clawback of equity compensation | ' | -157,920 |
Reversal of litigation accrual | ' | -941,000 |
Payment by insurance company of prior period litigation expense | ' | -200,000 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -18,067 | 17,883 |
Inventories | -266,574 | -42,585 |
Prepaid expenses and other current assets | 46,862 | 26,500 |
Other assets | -3,200 | -11,255 |
Accounts payable | -37,059 | 30,748 |
Accrual for severance agreement | -102,056 | 102,056 |
Deferred revenue | -7,019 | 7,019 |
Accrued expenses | 167,450 | 177,675 |
Net cash used in operating activities | -5,132,019 | -4,195,655 |
Cash flows from Investing Activities | ' | ' |
Proceeds from sale of asset | ' | 15,000 |
Purchases of equipment | -72,851 | -43,496 |
Net cash used in investing activities | -72,851 | -28,496 |
Cash flows from Financing Activities | ' | ' |
Proceeds from sale of stock through private placements | 2,131,527 | 1,658,000 |
Proceeds from the sale of stock and warrants through private placements | 1,705,000 | 300,000 |
Proceeds from sale of stock under stock purchase agreement | 570,000 | 810,003 |
Proceeds from exercise of warrants | 25,000 | 910,000 |
Proceeds from exercise of stock options | 18,200 | 6,534 |
Repayments of convertible notes from third parties | -115,822 | ' |
Payments on notes with related parties | -85,880 | -84,380 |
Proceeds from convertible notes with third parties | ' | 175,000 |
Proceeds from convertible notes with related parties | 1,000,000 | 500,000 |
Payments on insurance finance contract | -67,164 | -44,925 |
Net cash provided by financing activities | 5,180,861 | 4,230,232 |
Net increase (decrease) in cash and cash equivalents | -24,009 | 6,081 |
Cash and cash equivalents - beginning | 90,275 | 84,194 |
Cash and cash equivalents - ending | 66,266 | 90,275 |
Supplemental Disclosure of Cash Flow Information: | ' | ' |
Cash paid for interest | 2,736 | 2,702 |
Cash paid for income taxes | ' | ' |
Supplementary Disclosure of Non-cash Investing and Financing Activities: | ' | ' |
Financing of prepaid insurance contracts | 68,942 | 47,471 |
Beneficial conversion feature of convertible notes | 913,898 | 309,342 |
Conversion of notes for common stock | 82,132 | 435,495 |
Common stock issued for accrued interest | $154,251 | $77,784 |
NATURE_OF_OPERATIONS_BASIS_OF_
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2014 | |
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' |
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
1 | |
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Nature of Operations | |
GelTech Solutions, Inc., or GelTech or the Company, generates revenue primarily from marketing the following three products: (1) FireIce®, a water enhancing powder that can be utilized both as a fire suppressant in urban firefighting, including underground utility fires, and in wildland firefighting and as a medium-term fire retardant to protect wildlands, structures and firefighters; (2) Soil2O® "Dust Control", our application which is used for dust mitigation in the aggregate, road construction, mining, as well as, other industries that deal with daily dust control issues and (3) Emergency Manhole FireIce Delivery System, or EMFIDS, an innovative system designed to deliver FireIce® into a manhole in the event of a fire. Other products currently being marketed include (1) FireIce® Home Defense Unit, a system for applying FireIce® to structures to protect them from wildfires; and (2) Soil2O®, a product which reduces the use of water and is primarily marketed to golf courses, commercial landscapers and the agriculture market. During the fourth quarter of fiscal 2014, the Company developed and began marketing two new products, (1) GT-W14, an industrial absorbent powder used to contain and clean up industrial liquid spills; and (2) Soil2O® Soil Cap, a dust suppressant technology designed to stabilize stockpile dust and reduce soil erosion. Our consolidated financial statements have been prepared on a going concern basis, and we need to generate sufficient material revenues to support the ongoing business of GelTech. | |
The corporate office is located in Jupiter, Florida. | |
Principles of Consolidation | |
The accompanying consolidated financial statements include the accounts of the Company and its three wholly-owned subsidiaries: FireIce Gel, Inc., GelTech International, Inc. and Weather Tech Innovations, Inc. There has been no activity in Weather Tech Innovations, Inc. and GelTech International, Inc. All intercompany balances and transactions have been eliminated in consolidation. | |
Cash and Cash Equivalents | |
For the purposes of the statements of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. The Company's cash equivalents consist of a brokerage money market account. | |
Investments in Marketable Securities | |
The Company may invest in various marketable securities and accounts for such investments in accordance with ASC 320-10. | |
Certain securities that the Company may invest in may be determined to be non-marketable. Non-marketable securities where the Company owns less than 20% of the investee are accounted for at cost pursuant to ASC 323-10. | |
Management determines the appropriate classification of its investments at the time of acquisition and reevaluates such determination at each balance sheet date. Trading securities that the Company may hold are treated in accordance with ASC 320-10 with any unrealized gains and losses included in earnings. Available-for-sale securities are carried at fair value, with unrealized gains and losses, net of tax, reported as a separate component of stockholders' equity. Investments classified as held-to-maturity are carried at amortized cost. In determining realized gains and losses, the cost of the securities sold is based on the specific identification method. | |
The Company periodically reviews its investments in marketable and non-marketable securities and records a reserve for impairment for any securities whose value is considered non-recoverable. The Company's determination of whether a security is other than temporarily impaired incorporates both quantitative and qualitative information. GAAP requires the exercise of judgment in making this assessment for qualitative information, rather than the application of fixed mathematical criteria. The Company considers a number of factors including, but not limited to, the length of time and the extent to which the fair value has been less than cost, the financial condition and near term prospects of the issuer, the reason for the decline in fair value, changes in fair value subsequent to the balance sheet date, and other factors specific to the individual investment. The Company's assessment involves a high degree of judgment and accordingly, actual results may differ materially from the Company's estimates and judgments. | |
Accounts Receivable | |
Accounts receivable are customer obligations due under normal trade terms. Senior management reviews accounts receivable on a monthly basis to determine if any receivables will potentially be uncollectible. The Company includes any accounts receivable balances that are determined to be uncollectible, along with a general reserve, in its overall allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. | |
Inventories | |
Inventories are stated at the lower of cost or market, with cost determined using a first-in, first-out method. | |
Property and Equipment and Depreciation | |
Property and equipment is recorded at cost. Depreciation is computed using the straight-line method based on the estimated useful lives of the related assets of 3 to 7 years. Leasehold improvements are amortized over the lesser of the lease term or the useful life of the improvements. Expenditures for maintenance and repairs are expensed as incurred. | |
Impairment of Long-Lived Assets | |
The Company accounts for long-lived assets in accordance with the provisions of ASC 360-10. This statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. | |
Fair Value of Financial Instruments and Fair Value Measurements | |
We measure our financial assets and liabilities in accordance with ASC 820 "Fair Value Measurements and Disclosures". For certain of our financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued expenses, the carrying amounts approximate fair value due to their short maturities. The carrying amount of our convertible and other debt approximates the fair value because the interest rate on those debts do not vary materially from the market rate for similar debt instruments. | |
We adopted accounting guidance for fair value measurements of financial assets and liabilities and adopted the same guidance for non-financial assets and liabilities effective July 1, 2009. The adoption did not have a material impact on our results of operations, financial position or liquidity. The standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: | |
Level 1: | |
Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. | |
Level 2: | |
Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. | |
Level 3: | |
Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use. | |
The Company had no financial or non-financial assets or liabilities measured at fair value and subject to this accounting standard as of June 30, 2014 or 2013. | |
Revenue Recognition | |
Revenue from sales of products is recognized when persuasive evidence of an arrangement exists, products have been shipped to the customer, economic risk of loss has passed to the customer, the price is fixed or determinable, collection is reasonably assured, and any future obligations of the Company are insignificant. Revenue is shown net of returns and allowances. The Company does provide certain customers with the right of return for unsold product. Sales to these customers are recorded as the customer sells the product, thus removing the right of return. | |
Products shipped from either our third-party fulfillment companies or our Jupiter, Florida or Irwindale, California locations are shipped FOB shipping point. Normal payment terms are net 30 or net 60 days depending on the arrangement we have with the customer. As such, revenue is recognized when product has been shipped from either the third-party fulfillment company or from the Jupiter, Florida or Irwindale, California locations. | |
The Company follows the guidance of ASC 605-50-25, "Revenue Recognition, Customer Payments". Accordingly, any incentives received from vendors are recognized as a reduction of the cost of products. Promotional products or samples given to customers or potential customers are recognized as a cost of goods sold. However, products we utilize to perform demonstrations for potential customers are recorded as a marketing expense in operations. During the fiscal years ended June 30, 2014 and 2013, these demonstration costs amounted to $4,195 and $10,889, respectively. Cash incentives provided to our customers are recognized as a reduction of the related sale price, and, therefore, are a reduction in sales. | |
Shipping and Handling Costs | |
Amounts invoiced to customers for shipping and handling are included in revenues. Shipping and handling costs related to sales of products are included in selling, general and administrative expenses and were $52,594 and $51,943 in 2014 and 2013, respectively. | |
Research and Development | |
In accordance with ASC 730-10 expenditures for research and development of the Company's products are expensed when incurred, and are included in operating expenses. The Company recognized research and development costs of $274,005 and $179,158 for the fiscal years ended June 30, 2014 and 2013, respectively. | |
Advertising | |
The Company conducts advertising for the promotion of its products and services. In accordance with ASC 720-35, advertising costs are charged to operations when incurred; such amounts aggregated $42,575 in fiscal 2014 and $26,931 in fiscal 2013. | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that the estimates utilized in preparing its consolidated financial statements are reasonable; however, actual results could differ materially from these estimates. Significant estimates in fiscal 2014 and fiscal 2013 include the allowance for doubtful accounts, depreciation and amortization, valuation of inventories, valuation of the beneficial conversion features associated with convertible notes, valuation of options and warrants granted for services or settlements, valuation of common stock granted for services or for debt conversion, accruals for litigation losses and the valuation of deferred tax assets. | |
Net Earnings (Loss) per Share | |
The Company computes net earnings (loss) per share in accordance with ASC 260-10. ASC 260-10 requires presentation of both basic and diluted earnings per share ("EPS") on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period. Diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive. For the years ended June 30, 2014 and 2013, there was no separate computation of dilutive net loss per share since the common stock equivalents outstanding were anti-dilutive due to the net losses. At June 30, 2014 there were options to purchase 9,742,840 shares and warrants to purchase 3,387,121 shares of common stock outstanding which may dilute future earnings per share. In addition, there are 6,707,094 shares reserved for issuance related to convertible note agreements. | |
Stock-Based Compensation | |
The Company accounts for stock-based compensation in accordance with ASC 718-10 "Compensation - Stock Compensation" which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options, restricted stock units, and stock appreciation rights are based on estimated fair values. Stock option compensation expense recognized under ASC 718-10 for the years ended June 30, 2014 and 2013 was $1,680,358 and $1,480,377, respectively, related to employee, director and advisory board stock options, and is included in selling, general and administrative expenses in the consolidated statements of operations. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. At June 30, 2014, the total compensation cost for stock options not yet recognized was $836,656. This cost will be amortized on a straight-line basis over the remaining vesting period of the options. | |
The Company accounts for non-employee stock based awards at fair value in accordance with the measurement and recognition criteria of ASC 505-50 "Equity Based payments to Non-Employees. Stock based compensation to non-employees recognized for the years ended June 30, 2014 and 2013 was $2,475 and $17,157, respectively. | |
2007 Equity Incentive Plan | |
In January 2007, the Company established the 2007 Equity Incentive Plan under which provided for the issuance of up to 1,500,000 stock options, stock appreciation rights, restricted stock or restricted stock units to our directors, employees and consultants. In September 2008, the Board of Directors approved an amendment to the Company's 2007 Equity Incentive Plan to increase the number of shares authorized by the plan from 1,500,000 to 3,500,000. In fiscal 2012, Board of Directors increased the number of share authorized under the Plan to 4,500,000. In June 2013, the Board of Directors approved an amendment to increase the number of shares authorized by the plan to 15,000,000. | |
Under the Equity Incentive Plan, all directors who are not employees or own 10% or more of the Company's outstanding stock at the time of grant shall automatically receive a grant of stock options as follows: | |
Initial Grants | |
A - Chairman of the Board | |
- 50,000 options | |
B - Director | |
- 30,000 options | |
C - Chair of a Committee | |
- 10,000 options | |
D - Member of a Committee | |
- 5,000 options | |
In June 2013, the Board of Directors increased the annual grants to the following amounts: | |
Annual Grants | |
A - Chairman of the Board | |
- 70,000 options | |
B - Director | |
- 100,000 options | |
C - Chair of a Committee | |
- 20,000 options | |
D - Member of a Committee | |
- 10,000 options | |
All initial grants of options to new non-employee directors and committee members vest annually over a three year period on the anniversary date of the grant, subject to continuing service as a director, Committee member, Chairman of the Board or Chairman of a Committee on the applicable vesting date. Options automatically granted annually under the 2007 Equity Incentive Plan vest the following June 30th, subject to continuing service as a director. The exercise price of options or stock appreciation rights granted under the 2007 Equity Incentive Plan shall not be less than the fair market value of the underlying common stock at the time of grant. In the case of incentive stock options, the exercise price may not be less than 110% of the fair market value in the case of 10% shareholders. Options and stock appreciation rights granted under the 2007 Equity Incentive Plan shall expire no later than ten years after the date of grant. The option price may be paid in United States dollars by check or wire transfer or, at the discretion of the Board of Directors or Compensation Committee, by delivery of shares of our common stock having fair market value equal as of the date of exercise to the cash exercise price, or a combination thereof. | |
The identification of individuals entitled to receive awards, the terms of the awards, and the number of shares subject to individual awards, are determined by the Board of Directors or the Compensation Committee, in their sole discretion. The purchase price per share, if applicable, shall be adjusted for any increase or decrease in the number of issued shares resulting from a recapitalization, reorganization, merger, consolidation, exchange of shares, stock dividend, stock split, reverse stock split, or other subdivision or consolidation of shares. | |
The Board of Directors or the Compensation Committee may from time to time alter, amend, suspend, or discontinue the Equity Incentive Plan with respect to any shares as to which awards of stock rights have not been granted. However no rights granted with respect to any awards under this Equity Incentive Plan before the amendment or alteration shall be impaired by any such amendment, except with the written consent of the grantee. Under the terms of the Equity Incentive Plan, the Board of Directors or the Compensation Committee may also grant awards which will be subject to vesting under certain conditions. The vesting may be time-based or based upon meeting performance standards, or both. | |
In April 2010, the Company amended the 2007 Equity Incentive Plan to increase the number of stock options granted annually to directors from 20,000 to 50,000. In June 2013, the Company amended the 2007 Equity Incentive Plan to increase the number of stock options granted annually to directors to 100,000. | |
All of our Stock Option Agreements provide for "clawback" provisions, which enable our Board of Directors to cancel stock awards and recover past profits if the person is dismissed for cause or commits certain acts which harm us. | |
Determining Fair Value under ASC 718-10 | |
The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing formula. This fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. The Company's determination of fair value using an option-pricing model is affected by the stock price as well as assumptions regarding the number of highly subjective variables. | |
Income Taxes | |
The Company accounts for income taxes pursuant to the provisions of ASC 740-10, "Accounting for Income Taxes," which requires, among other things, an asset and liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized. | |
The Company follows the provisions of the ASC 740 -10 related to, Accounting for Uncertain Income Tax Positions. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits. | |
Effective July 1, 2007, the Company adopted ASC 740-10-25 Definition of Settlement, which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion of an examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open. As of June 30, 2014, the fiscal tax years ended June 30, 2011, 2012 and 2013 are still subject to audit. | |
Legal Costs and Contingencies | |
In the normal course of business, the Company incurs costs to hire and retain external legal counsel to advise it on regulatory, litigation and other matters. The Company expenses these costs as the related services are received. | |
If a loss is considered probable and the amount can be reasonably estimated, the Company recognizes an expense for the estimated loss. If the Company has the potential to recover a portion of the estimated loss from a third party, the Company makes a separate assessment of recoverability and reduces the estimated loss, if recovery is also deemed probable. | |
New Accounting Pronouncements | |
Accounting Standards Updates (ASUs) which were not effective until after June 30, 2014 are not expected to have a significant effect on the Company's consolidated financial position or results of operations. |
GOING_CONCERN
GOING CONCERN | 12 Months Ended |
Jun. 30, 2014 | |
GOING CONCERN [Abstract] | ' |
GOING CONCERN | ' |
2 | |
GOING CONCERN | |
These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize it assets and discharge its liabilities in the normal course of business. The Company has a net loss and net cash used in operating activities in fiscal 2014 of $7,111,945 and $5,132,019 respectively and has an accumulated deficit and stockholders' deficit of $35,133,578 and $1,898,315, respectively, at June 30, 2014. In addition, the Company has not yet generated revenue sufficient to support ongoing operations. These factors raise substantial doubt regarding the Company's ability to continue as a going concern. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders, the ability of the Company to obtain necessary debt or equity financing to continue operations, and the attainment of profitable operations. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. | |
During the year ended June 30, 2014 the Company received $2,131,527 in exchange for common stock and $1,705,000 in exchange for common stock and warrants in connection with private placements, received $43,200 in connection with the exercise of options and warrants and received $1,000,000 in exchange for convertible notes. In addition, the Company received $570,000 under the stock purchase agreement with Lincoln Park Capital, signed in January 2012. This stock purchase agreement expired in July 2014. | |
Management believes that the actions presently being taken provide the opportunity for the Company to continue as a going concern. |
ACCOUNTS_RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
ACCOUNTS RECEIVABLE [Abstract] | ' | |||||||
ACCOUNTS RECEIVABLE | ' | |||||||
3 | ||||||||
ACCOUNTS RECEIVABLE | ||||||||
Accounts receivable at June 30, 2014 and 2013 was as follows: | ||||||||
2014 | 2013 | |||||||
Accounts receivable | $ | 95,869 | $ | 77,802 | ||||
Allowance for doubtful accounts | (60,593 | ) | (40,525 | ) | ||||
$ | 35,276 | $ | 37,277 | |||||
Bad debt expense on trade accounts receivable for 2014 and 2013 was $20,068 and $-0-, respectively. |
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
INVENTORIES [Abstract] | ' | |||||||
INVENTORIES | ' | |||||||
4 | ||||||||
INVENTORIES | ||||||||
Inventories consisted of the following at June 30, 2014 and 2013: | ||||||||
2014 | 2013 | |||||||
Finished goods | $ | 491,409 | $ | 333,987 | ||||
Raw materials | 352,455 | 254,716 | ||||||
$ | 843,864 | $ | 588,703 |
FURNITURE_FIXTURES_AND_EQUIPME
FURNITURE, FIXTURES AND EQUIPMENT | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
FURNITURE, FIXTURES AND EQUIPMENT [Abstract] | ' | |||||||||
FURNITURE, FIXTURES AND EQUIPMENT | ' | |||||||||
5 | ||||||||||
FURNITURE, FIXTURES AND EQUIPMENT | ||||||||||
Furniture, fixtures and equipment consisted of the following as of June 30, 2014 and 2013: | ||||||||||
Estimated | June 30, | |||||||||
Useful Life | 2014 | 2013 | ||||||||
Equipment | 3 - 5 years | $ | 111,488 | $ | 88,875 | |||||
Storage facilities | 3 years | 20,802 | 20,802 | |||||||
Vehicles | 5 - 7 years | 214,470 | 164,232 | |||||||
Furniture and fixtures | 5 years | 20,420 | 20,420 | |||||||
367,180 | 294,329 | |||||||||
Accumulated depreciation | (191,429 | ) | (136,145 | ) | ||||||
$ | 175,751 | $ | 158,184 | |||||||
Depreciation expense in 2014 and 2013 was $55,284 and $49,269, respectively. |
CONVERTIBLE_AND_NONCONVERTIBLE
CONVERTIBLE AND NON-CONVERTIBLE NOTE AGREEMENTS | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
CONVERTIBLE AND NON-CONVERTIBLE NOTE AGREEMENTS [Abstract] | ' | ||||||||||||
CONVERTIBLE AND NON-CONVERTIBLE NOTE AGREEMENTS | ' | ||||||||||||
6 | |||||||||||||
CONVERTIBLE AND NON-CONVERTIBLE NOTE AGREEMENTS | |||||||||||||
On May 29, 2009, the Company received a line of credit ("Line of Credit") from the Company's principal stockholder (the "Lender"). In connection with this Line of Credit, the Company executed a Revolving Promissory Note which permitted the Company to borrow up to $2,500,000. Interest, at an annual rate of 5%, was due monthly on the 20th day of each month which commenced on July 20, 2009. | |||||||||||||
In February 2011, the Company renegotiated the Line of Credit Agreement with the Lender. As part of the renegotiation, the Company issued 892,857 shares of the Company's common stock and five-year warrants to purchase 1,000,000 shares of the Company's common stock at an exercise price of $1.25 per share in exchange for a $1,000,000 reduction in the principal amount of the Line of Credit. In addition, the remaining principal amount due under the line of credit of $1,497,483 was replaced by a five-year convertible note of the same amount, convertible at $1.12 per share (fair market value on transaction date based upon the quoted trading price) and bearing annual interest of 5%, due on the maturity date of the note (the "2011 Note"). As an inducement for the Lender to enter into the convertible note agreement, the Company granted the Lender five-year warrants to purchase 300,000 shares of the Company's common stock at an exercise price of $1.75 per share. These warrants were exercised in September 2012 in exchange for $150,000 in connection with the Company's offer to all warrant holders to exercise warrants at $0.50 per share instead of the exercise price negotiated on the date of the grant. In February 2013, the 2011 Note, plus a $275,000 convertible original issue discount note were combined into one convertible note, see discussion below. | |||||||||||||
In December 2011, the Company received short term advances from its then Chief Executive Officer, former President and Chief Financial Officer in the amounts of $10,000, $29,380 and $50,000, respectively. The advances bear interest rates of 0.7%, 5.0% and 5.0%, respectively. In addition, as further inducement for the advance from the Chief Financial Officer, the Company approved the reduction in the exercise price of 150,000 options granted to the Chief Financial Officer from $1.95 to $0.60 per share. In connection with this repricing, the expense related to the vesting of these options was increased by $15,067 which will be recognized over the remaining service period. As of June 30, 2014, the Company has repaid all amounts due related to these advances. | |||||||||||||
On March 9, 2012, the Company received $105,000 from third parties in exchange for nine month convertible original issue discount notes in the amount of $107,625. The notes bear an annual interest rate of 5% and are convertible into the Company's common stock at the rate of $0.50 per share. In connection with the issuance of the notes, the Company recorded a loan discount related to the intrinsic value of the beneficial conversion feature in the amount of $84,562 which will be amortized to interest expense over the life of the notes. In September 2012, the Company issued new one-year convertible original issue discount notes in the amount of $120,540, bearing annual interest of 12% and convertible at $0.50 per share in exchange for cancellation of the old notes. This modification was not considered a debt extinguishment. In accordance with ASC 470, the Company recognized a debt discount related to the change in fair value of the embedded conversion option in the amount of $35,138 which was amortized to interest expense over the life of the convertible notes. In August 2013, the Company paid one note in the amount of $34,440 by issuing 8,880 shares of common stock and a payment of $30,000. The remaining note in the amount of $86,100 was retired in August 2013 by the payment of $85,822. | |||||||||||||
On March 10, 2012, the Company received $75,000 from a director in exchange for a nine month convertible original issue discount note in the amount of $76,875. The note bears an annual interest rate of 5% and is convertible into the Company's common stock at the rate of $0.50 per share. In connection with the issuance of the note, the Company recorded a loan discount related to the intrinsic value of the beneficial conversion feature in the amount of $63,038 was amortized to interest expense over the life of the note. In September 2012, the Company issued a new one-year convertible original issue discount note in the amount of $86,100, bearing annual interest of 12% and convertible at $0.50 per share in exchange for cancellation of the old note. This modification was not considered a debt extinguishment. In accordance with ASC 470, the Company recognized a debt discount related to the change in fair value of the embedded conversion option in the amount of $24,971 which was amortized to interest expense over the life of the convertible note. In September 2013, the Company repaid the note. | |||||||||||||
In August 2012, the Company received $175,000 in exchange for six month convertible original issue discount notes in the amount of $179,375 with two accredited investors. The notes are convertible into common stock at $0.50 per share. The notes bear an annual interest rate of 5% and are convertible into the Company's common stock at the rate of $0.50 per share. In connection with the issuance of the notes, the Company recorded a loan discount related to the intrinsic value of the beneficial conversion feature in the amount of $106,600 and an original issue discount of $4,375 which are being amortized to interest expense over the life of the notes. In February 2013, one note holder was issued 205,000 shares of the Company's common stock in exchange for a note in the amount of $102,500. In addition, the other note holder was issued a new one year original issue discount note for $86,100 convertible at $0.35 per share. The Company recorded an original issue discount of $9,225 and a beneficial conversion feature discount of $4,920 in connection with the new note. For the period February 2013 to August 2013, the Company recognized interest expense of $7,552 and $4,920, respectively, related to the amortization of the original issue discount and the beneficial conversion feature discount. In August 2013, the Company issued 234,663 shares of common stock valued at $82,132, in connection with the early conversion of this note. | |||||||||||||
On December 28, 2012, the Company received $250,000 from its principal stockholder in exchange for a one year convertible original issue discount note in the amount of $275,000 (the "2012 Note"). The note bears an annual interest rate of 10% and is convertible into the Company's common stock at the rate of $0.35 per share. In connection with the issuance of the note, the Company recorded a loan discount related to the intrinsic value of the beneficial conversion feature in the amount of $23,571 and an original issue discount of $25,000 which is being amortized to interest expense over the life of the note. | |||||||||||||
In February 2013, the Company entered into a new convertible note agreement in the amount of $1,997,483, convertible into common stock at a conversion price of $0.35 per share, bearing interest at an annual rate of 7.5% and due on December 31, 2016. This note was issued in exchange for the 2011 Note and the 2012 Note and receipt of $250,000. In connection with the transaction, the Company issued 210,226 shares of common stock in exchange for accrued interest of $73,579 due on the 2011 and 2012 notes resulting in a loss on conversion of interest of $4,204. The exchange of cash and the 2011 and 2012 notes was recorded as a debt extinguishment which resulted in a loss on extinguishment of debt in the amount of $21,311 for the year ended June 30, 2013. Because this convertible debt instrument contained an embedded beneficial conversion feature, and was extinguished before conversion, the amount of the reacquisition price to be allocated to the repurchased beneficial feature was measured using the intrinsic value of that conversion feature at the extinguishment date and was immaterial. In connection with the new note agreement, the Company recorded a note discount in the amount of $114,142 related to the beneficial conversion feature of the note calculated using the intrinsic value, of which $55,110 has been amortized as of June 30, 2014. The Company issued 428,032 shares of common stock in satisfaction of accrued interest in the amount $149,811. In connection with the issuance, the Company recorded a loss on conversion of interest of $201,175 representing the difference between the conversion rate of $0.35 per share and the market price of the stock of $0.82 per share. | |||||||||||||
In July 2013, the Company received $1 million from its Chief Operating Officer and principal stockholder in exchange for a five year, $1 million convertible note with a conversion rate of $1.00 per share and an annual interest of 7.5%, plus five year warrants to purchase 500,000 shares of the common stock at $1.30 per share. The Company estimated the relative fair market value of the warrants to be $311,949 using the Black-Scholes model using a volatility of 91.46% (derived using the historical market price for the Company's common stock since it began trading in June 2008), an expected term of 5 years (the term of the warrants) and a discount rate of 1.4%. In addition, the Company estimated the intrinsic value of the beneficial conversion feature of the note to be $601,949. For the year ended June 30, 2014, the Company recognized interest expense from the amortization of the debt discounts related to this note in the amount of $177,271. As of June 30, 2014, accrued interest due under the note amounted to $75,000. | |||||||||||||
A summary of notes payable and related discounts as of June 30, 2014 is as follows: | |||||||||||||
Principal | Unamortized | Debt, | |||||||||||
Discount | Net of Discount | ||||||||||||
Related parties | |||||||||||||
Convertible notes payable | $ | 2,997,483 | $ | (795,659 | ) | $ | 2,201,824 | ||||||
Less current portion | - | - | - | ||||||||||
Convertible notes payable, net of current portion | $ | 2,997,483 | $ | (795,659 | ) | $ | 2,201,824 | ||||||
A summary of notes payable and related discounts as of June 30, 2013 is as follows: | |||||||||||||
Principal | Unamortized | Debt, | |||||||||||
Discount | Net of Discount | ||||||||||||
Third parties | |||||||||||||
Convertible notes payable | $ | 206,640 | $ | (14,477 | ) | $ | 192,163 | ||||||
Less current portion | 206,640 | (14,477 | ) | 192,163 | |||||||||
Convertible notes payable, net of current portion | $ | - | $ | - | $ | - | |||||||
Related parties | |||||||||||||
Convertible notes payable | $ | 2,083,583 | $ | (105,006 | ) | $ | 1,978,577 | ||||||
Less current portion | 86,100 | (6,839 | ) | 79,261 | |||||||||
Convertible and non-convertible note payable, net of current portion | $ | 1,997,483 | $ | (98,167 | ) | $ | 1,899,316 |
STOCKHOLDERS_EQUITY_DEFICIT
STOCKHOLDERS' EQUITY (DEFICIT) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
STOCKHOLDERS' EQUITY (DEFICIT) [Abstract] | ' | ||||||||||||||||
STOCKHOLDERS' EQUITY (DEFICIT) | ' | ||||||||||||||||
7 | |||||||||||||||||
STOCKHOLDERS' EQUITY (DEFICIT) | |||||||||||||||||
Preferred Stock | |||||||||||||||||
The Company has authorized 5,000,000 shares of preferred stock, par value $0.001 per share with such rights, preferences and limitations as may be set from time to time by resolution of the board of directors and the filing of a certificate of designation as required by Delaware law. | |||||||||||||||||
Common Stock Issued for Cash | |||||||||||||||||
On January 5, 2012, the Company signed a $5 million common stock purchase agreement with Lincoln Park Capital Fund, LLC ("LPC"), an Illinois limited liability company. Upon signing the agreement, the Company received $100,000 from LPC as an initial purchase under the $5 million commitment in exchange for 316,667 shares of the Company's common stock. | |||||||||||||||||
The Company also entered into a registration rights agreement with LPC whereby it agreed to file a registration statement related to the transaction with the Securities and Exchange Commission ("SEC") covering the shares issued to LPC under the purchase agreement. The Company filed a registration statement on January 6, 2012 which became effective on March 26, 2012. Under the registration statement, the Company registered 4.4 million shares of the Company's common stock. | |||||||||||||||||
The Company had the right, in its sole discretion, over a 30-month period to sell shares of common stock to LPC in amounts up to $500,000 per sale, depending on certain conditions as set forth in the purchase agreement, which at the time of the purchase agreement was signed was up to an additional $4.9 million. During the year ended June 30, 2013, the Company issued 1,333,820 shares of common stock in exchange for $810,003 in connection with the purchase agreement. During the year ended June 30, 2014, the Company issued 577,428 shares of common stock in exchange for $570,000 in connection with the purchase agreement. | |||||||||||||||||
In consideration for entering into the purchase agreement, the Company issued to LPC 150,000 shares of common stock as a commitment fee and will issue up to 450,000 shares pro rata as LPC purchases additional shares. As of June 30, 2014, 320,810 "pro-rata" shares have been issued. The commitment shares are subject to a 30 month lock up restriction. The purchase agreement may be terminated by the Company at any time at our discretion without any cost to it. Except for a limitation on variable priced financings, there are no financial or business covenants, restrictions on future fundings, rights of first refusal, participation rights, penalties or liquidated damages in the agreement. In accordance with its terms, the purchase agreement expired in July 2014. | |||||||||||||||||
Issuances of Common Stock | |||||||||||||||||
Private Placements | |||||||||||||||||
During the year ended June 30, 2013, the Company issued 3,914,321 shares of common stock in exchange for $1,958,000 in connection with private placements with 13 accredited investors, including issuances of 1,910,714 shares to our Chief Operating Officer and principal stockholder in exchange for $950,000 and 241,379 shares each to our Chief Executive Officer and Chief Technology Officer in exchange for a total of $280,000. | |||||||||||||||||
During the year ended June 30, 2014, the Company issued 3,352,726 shares of common stock in exchange for $2,131,527 in connection with private placements with 15 accredited investors, including issuances of 1,434,060 shares to our Chief Operating Officer and principal stockholder in exchange for $925,000. | |||||||||||||||||
Issuances of Common Stock and Warrants for Cash | |||||||||||||||||
During the year ended June 30, 2014, the Company issued 2,575,579 shares of common stock and warrants to purchase 1,258,378 shares of common stock in exchange for $1,705,000 in connection with private placements with 6 accredited investors, including issuances of 1,817,932 shares and warrants to purchase 908,966 shares of common stock to our Chief Operating Officer and principal stockholder in exchange for $1,125,000 and 200,000 shares and warrants to purchase 100,000 shares of common stock to a director in exchange for $150,000. | |||||||||||||||||
Common Stock Issued for Interest | |||||||||||||||||
In February 2013, the Company issued 210,226 shares of common stock to its Chief Operating Officer and principal stockholder as payment of accrued interest in the amount of $73,579. The Company recorded a loss on conversion of interest of $4,204 in connection with this transaction representing the difference between the conversion price of $0.35 per share and the fair market value of the stock on the date of conversion, $0.37 per share. | |||||||||||||||||
In July 2013, the Company issued 8,880 shares of common stock as payment for accrued interest of $4,440 on a convertible note. | |||||||||||||||||
In April 2014, the Company issued 428,032 shares of common stock to its Chief Operating Officer and principal stockholder as payment of accrued interest of $149,811 which was due as of February 1, 2014, in accordance with the terms of the convertible note agreement. The Company recorded a loss on conversion of interest of $201,175 in connection with this transaction representing the difference between the conversion price of $0.35 per share and the fair market value of the stock on the date of conversion, $0.82 per share. | |||||||||||||||||
Common Stock Issued for Exercise of Options and Warrants and Cashless Exercise of Warrants | |||||||||||||||||
In September 2012, the Company issued 1,740,000 shares of common stock in exchange for $870,000 in connection with the exercise of 1,640,000 warrants and 100,000 options to purchase shares of the Company's common stock related to an offer by the Company to reduce the exercise price to $0.50 per share. The original exercise prices of the warrants and options ranged from $1.25 to $1.75 per share. The cost of repricing warrants recognized by the Company amounted to $70,491 for the three months ended September 30, 2012. The cost represents the incremental increase in the fair value of the repriced warrants and options as compared to the original warrants and options granted, valued on the exercise date. The fair value of the warrants and options was determined using the Black-Scholes option pricing model. | |||||||||||||||||
In October 2012, the Company issued 80,000 shares of common in exchange for $40,000 in connection with the exercise of warrants at $0.50 per share. | |||||||||||||||||
In March 2013, the Company issued 9,171 shares of common stock related to the cashless exercise of 45,000 warrants to purchase common stock at an exercise price of $1.25 per share based upon a fair market value of our stock of $1.57 on the date of exercise. | |||||||||||||||||
In June 2013, the Company issued 11,667 shares of common stock in exchange for $6,534 in connection with the exercise of options by a director. | |||||||||||||||||
In July 2013, the Company issued 20,000 shares of common stock to a director in exchange for $18,200 in connection with the exercise of options at an exercise price of $0.91 per share. | |||||||||||||||||
In August 2013, the Company issued 20,000 shares of common stock in exchange for $25,000 in connection with the exercise of warrants with an exercise price of $1.25 per share. | |||||||||||||||||
Common Stock Issued for Conversion of Debt | |||||||||||||||||
In September 2012, our Chief Operating Officer and principal stockholder converted his $322,996 convertible original issue discount note which was due on September 28, 2012 into 665,992 shares of common stock. | |||||||||||||||||
In February 2013, the Company issued 205,000 shares of common stock in connection with the conversion of a convertible original issue discount note in the amount of $102,500. | |||||||||||||||||
In August 2013, the Company issued 234,663 shares of common stock in connection with the early conversion of a convertible note in the amount of $82,132. | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
On November 14, 2012 , the Compensation Committee of the Board of Directors granted its former Executive Chairman 800,000 restricted stock units ("RSU"), of which (i) 200,000 units vested immediately, (ii) 200,000 units vest upon the Company generating $3,000,000 in revenue in any 12-month period, (iii) another 200,000 units vest upon the Company generating $5,000,000 in revenue in any 12-month period and (iv) another 200,000 units vest upon the Company generating $6,000,000 in revenue in any 12-month period. Vested Units shall be paid in shares of the Company's common stock. The Company valued the 200,000 RSU's which vested immediately, at $0.45 per share based on the closing bid price on the vesting date and recorded stock compensation expense of $90,000 during the year ended June 30, 2013, resulting from the obligation to issue 200,000 shares of common stock. | |||||||||||||||||
In June 2013 the Executive Chairman was terminated for cause and the clawback provisions of the RSU agreement provided for the cancellation of the Company's obligation to issue these 200,000 shares of common stock. As the shares had not been delivered, the Company reduced its common stock issuable and recognized Other Income in fiscal 2013 for the grant date fair value of $90,000 for these shares in accordance with guidance in ASC 718-20-35, Awards Classified as Equity, Subsequent Measurement in conjunction with a clawback feature since the $196,000 fair value of the 200,000 shares at the cancellation date exceeds the grant date value of $90,000. | |||||||||||||||||
The fair value of stock option grants for the fiscal year ended June 30, 2014 and 2013 were estimated using the following weighted- average assumptions: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Risk free interest rate | 0.45% - 2.61% | 0.53% - 2.49% | |||||||||||||||
Expected term in years | 2.5 - 6.5 | 2.5 - 10.0 | |||||||||||||||
Dividend yield | - | - | |||||||||||||||
Volatility of common stock | 89.98% - 91.94% | 89.67% - 93.11% | |||||||||||||||
Estimated annual forfeitures | - | - | |||||||||||||||
The Black-Scholes option-pricing model was developed for use in estimating the fair value of non-traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because the Company's stock options and warrants have characteristics different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarily provide a reliable single measure of the fair value of such stock options In fiscal 2014 and 2013, the Company used the Company's trading prices in calculating the stock price volatility and based its volatility on historical volatility. The expected term was estimated using the simplified method for employee stock options since the Company does not have adequate historical exercise data to estimate the expected term. | |||||||||||||||||
Options to Purchase Common Stock | |||||||||||||||||
A summary of stock option transactions issued to employees under the 2007 Plan for the fiscal years ended June 30, 2014 and 2013 is as follows: | |||||||||||||||||
Employee Options and Stock Appreciation Rights | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life | |||||||||||||||||
Balance at June 30, 2012 | 4,589,507 | $ | 1.04 | 5.95 | |||||||||||||
Granted | 4,622,500 | $ | 0.55 | 9.64 | |||||||||||||
Exercised | - | $ | - | - | |||||||||||||
Forfeited | (2,875,000 | ) | $ | 0.92 | - | ||||||||||||
Expired | - | $ | - | - | |||||||||||||
Outstanding at June 30, 2013 | 6,337,007 | $ | 0.75 | 6.62 | $ | 2,505,808 | |||||||||||
Exercisable at June 30, 2013 | 3,696,174 | $ | 0.9 | 5.7 | $ | 1,056,738 | |||||||||||
Weighted average fair value of options granted during the year ended June 30, 2013 | $ | 0.41 | |||||||||||||||
Balance at June 30, 2013 | 6,337,007 | $ | 0.75 | 6.62 | |||||||||||||
Granted | 1,425,500 | $ | 1.34 | 7.81 | |||||||||||||
Exercised | - | $ | - | - | |||||||||||||
Forfeited | - | $ | - | - | |||||||||||||
Expired | - | $ | - | - | |||||||||||||
Outstanding at June 30, 2014 | 7,762,007 | $ | 0.87 | 5.98 | $ | 792,305 | |||||||||||
Exercisable at June 30, 2014 | 4,352,674 | $ | 0.93 | 4.55 | $ | 265,364 | |||||||||||
Weighted average fair value of options granted during the year ended June 30, 2014 | $ | 0.69 | |||||||||||||||
On September 21, 2012, the Company granted options to purchase 70,000 shares of the Company's common stock at an exercise price of $0.63 per share to the father of the Company's Chief Executive Officer and Chief Technology Officer in recognition of his service. Of the options granted, 35,000 vest immediately with the remainder vesting semi-annually each December 31 and June 30 over a three year period, subject to continued employment on the vesting date. The Company valued the options at $28,358 using the Black-Scholes option pricing model using a volatility of 90.09%, based upon the historical price of the Company's common stock since June 2008, an estimated term of 4 years, using the Simplified Method and a discount rate of 0.53%. | |||||||||||||||||
On September 21, 2012, the Company granted five-year options to purchase 265,000 shares of common stock at an exercise price of $0.60 per share to non-executive employees. The options vest 25% immediately with the remainder vesting annually over three years, subject to continued employment. The Company valued the options at $101,029 using the Black-Scholes option pricing model using a volatility of 89.93%, based upon the historical price of the Company's common stock since June 2008, an estimated term of 4 years, using the Simplified Method and a discount rate of 0.53%. The resulting expense will be recognized 25% immediately and the remainder over the vesting period. | |||||||||||||||||
On November 14, 2012, in connection with the signing of new employment agreements, the Compensation Committee of the Board of Directors granted its then Chief Executive Officer, Chief Financial Officer, Chief Technology Officer and former President, 800,000 stock settled stock appreciation rights ("SARS") each, of which (i) 200,000 rights vested immediately, (ii) 200,000 rights vest upon the Company generating $3,000,000 in revenue in any 12-month period, (iii) another 200,000 rights vest upon the Company generating $5,000,000 in revenue in any 12-month period and (iv) another 200,000 rights vest upon the Company generating $6,000,000 in revenue in any 12-month period. The SARs are exercisable at $0.45 per share over a 10-year period. The Company valued the 3,200,000 SARS at $1,086,560 using the Black-Scholes option pricing model using a volatility of 89.67%, based upon the historical price of the Company's common stock since June 2008, an estimated term of 6.5 years, using the Simplified Method and a discount rate of 0.93%. Compensation expense of $271,640 was recognized immediately relating to the 800,000 SARS that vested immediately. The remaining compensation expense will be recognized based on management's assessment that the performance targets are likely to be met within 30 months of the grant date, resulting in the $814,920 of unrecognized compensation expense being expensed by June 30, 2015. | |||||||||||||||||
In connection with this grant, the Company's then Chief Executive Officer, former President and Chief Technology Officer agreed to cancel 250,000 stock options granted to each of them in their prior employment agreements. Because the fair value of the options cancelled exceeded the fair value of the new options granted, no additional expense will be recognized relating to these options. | |||||||||||||||||
In connection with a Termination and Release Agreement (the "Release Agreement") effective February 8, 2013, the Company issued its former President options to purchase 112,500 shares of common stock at an exercise price of $0.39 per share, subject to a lockup agreement for the option shares and the other shares he currently owns. The options are fully vested and have a ten year term. The Company valued the options at $43,875 using the Black-Scholes option pricing model using a volatility of 89.67%, based upon the historical price of the Company's common stock since June 2008, an estimated term of 9.42 years, using the Simplified Method and a discount rate of 0.93%. Additionally, in connection with the Release Agreement the Company cancelled options to purchase 1,325,000 shares of common stock at exercise prices from $0.667 to $1.22 per share and under a clawback provision rescinded 800,000 stock appreciation rights. As a result of the clawback, the Company recorded other income of $67,920 representing the expense previously recognized for the vested portion of the Stock Appreciation Rights. | |||||||||||||||||
In June 2013, the Company granted its Chief Executive Officer, Chief Technology Officer and Chief Financial Officer 125,000 each ten-year options to purchase shares of common stock at an exercise price of $1.10 per share. The options vest in equal amounts annually on the anniversary date of the grant over three years, subject to continued employment. The Company valued the options at $317,963 using the Black-Scholes option pricing model using a volatility of 91.6%, based upon the historical price of the Company's common stock since June 2008, an estimated term of 6.5 years, using the Simplified Method and a discount rate of 1.78%. The resulting expense will be recognized over the requisite service period of three years. | |||||||||||||||||
In July 2013, the Company issued ten year options to purchase 250,000 shares of common stock, each to its then Chief Executive Officer, Chief Technology Officer and Chief Financial Officer. The options have an exercise price of $1.30 per share and vest 50% upon the market value of the Company's common stock trading at or greater than $2.00 per share for any 10 day period out of a 30 day trading period and the other 50% vesting upon the market value of the Company's common stock trading at or greater than $3.00 per share for any 10 day period out of a 30 day trading period. The options were valued using the Black-Scholes model using a volatility of 93.11% (derived using the historical market price for the Company's common stock since it began trading in June 2008), an expected term of 6.5 years (using the simplified method) and a discount rate of 2.62%. The value of these options was estimated by management in accordance with ASC 718, which requires an estimate of the probability that these market conditions will occur and for the resulting discounted value be expensed immediately. Accordingly management has expensed $63,180 to stock compensation expense. | |||||||||||||||||
In July 2013, the Company granted 100,000 options to a new employee in connection with his employment. Of the options granted, 50,000 are exercisable at $1.25 per share and 50,000 are exercisable at $1.75 per share. Both grants are for a five year term vest 25% immediately and 75% in equal amounts over three years. The options were valued using the Black-Scholes model using a volatility of 91.61% (derived using the historical market price for the Company's common stock since it began trading in June 2008), an expected term of 4.0 years (using the simplified method) and a discount rate of 1.14%. The value of these options, $80,413 will be recognized as an expense over the requisite service period. | |||||||||||||||||
In July 2013, the Company granted ten year options to purchase 25,000 shares of the Company's common stock at an exercise price of $1.30 per share to the father of the Company's CEO and CTO in recognition of his service. The options vest over a three year period. The Company valued the options at $25,272 using the Black-Scholes option pricing model using a volatility of 91.72%, based upon the historical price of the Company's common stock since June 2008, an estimated term of 1.5 years, using the Simplified Method and a discount rate of 2.61%. | |||||||||||||||||
In July 2013, the Board of Directors approved a pool of 400,000 options to be granted to employees at the discretion of the executive management of the Company. In September 2013, management granted 100,000 of these options to employees. The options vested immediately, are exercisable for five years and have an exercise price of $1.30 per share, the market value of our common stock on the date of the grant. The Company valued the options at $69,452 using the Black-Scholes option pricing model using a volatility of 91.72%, based upon the historical price of the Company's common stock since June 2008, an estimated term of 2.5 years, using the Simplified Method and a discount rate of 0.45%. In December 2013, management granted 90,500 of these options to employees. The options vested immediately, are exercisable for five years and have an exercise price of $0.72 per share, the market value of our common stock on the date of the grant. The Company valued the options at $34,610 using the Black-Scholes option pricing model using a volatility of 90.96%, based upon the historical price of the Company's common stock since June 2008, an estimated term of 2.5 years, using the Simplified Method and a discount rate of 0.55%. In February 2014, the Company granted an additional 5,000 fully vested options to an employee at an exercise price of $0.77 per share. The options were valued at $2,044 using the Black-Scholes option pricing model using a volatility of 90.968% to 90.96%, based upon the historical price of the Company's common stock since June 2008, estimated term of 2.5 years, using the Simplified Method and a discount rate of 0.55%. The amount was recorded as expense during the year ended June 30, 2014. No additional grants from the pool were made during the year ended June 30, 2014. | |||||||||||||||||
In August 2013, the Company granted 150,000 stock settled Stock Appreciation Rights (SARS) to a new employee in connection with his employment. The SARS are exercisable at $1.52 per share, are for a five year term and vest 50,000 immediately and the remaining options will vest 33,334 upon the Company reaching $3 million in sales in any twelve month period, 33,333 upon the Company reaching sales of $5 million in any twelve month period and 33,333 upon the Company reaching sales of $6 million in any twelve month period. The SARS were valued using the Black-Scholes model using a volatility of 91.91% (derived using the historical market price for the Company's common stock since it began trading in June 2008), an expected term of 4.0 years (using the simplified method) and a discount rate of 1.97%. The value of these SARS, $176,413 will be recognized as expense over the period required to meet the performance criteria which is estimated to be approximately two years. | |||||||||||||||||
A summary of options issued to directors under the 2007 Plan and changes during the period from June 30, 2012 to June 30, 2013 and from June 30, 2013 to June 30, 2014 is as follows: | |||||||||||||||||
Options Issued to Directors | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life | |||||||||||||||||
Balance at June 30, 2012 | 857,500 | $ | 1.36 | 7.96 | |||||||||||||
Granted | 610,000 | $ | 0.95 | 10 | |||||||||||||
Exercised | (11,667 | ) | $ | 0.56 | - | ||||||||||||
Forfeited | (255,000 | ) | $ | 1.38 | - | ||||||||||||
Expired | - | $ | - | - | |||||||||||||
Outstanding at June 30, 2013 | 1,200,833 | $ | 1.16 | 8.04 | $ | 165,386 | |||||||||||
Exercisable at June 30, 2013 | 795,168 | $ | 1.24 | 7.25 | $ | 98,654 | |||||||||||
Weighted average fair value of options granted during the year ended June 30, 2013 | $ | 0.72 | |||||||||||||||
Balance at June 30, 2013 | 1,200,833 | $ | 1.16 | 8.04 | |||||||||||||
Granted | 495,000 | $ | 1.19 | 10 | |||||||||||||
Exercised | (20,000 | ) | $ | 0.91 | 10 | ||||||||||||
Forfeited | - | $ | - | - | |||||||||||||
Expired | - | $ | - | - | |||||||||||||
Outstanding at June 30, 2014 | 1,675,833 | $ | 1.12 | 7.62 | $ | 8,337 | |||||||||||
Exercisable at June 30, 2014 | 1,389,168 | $ | 1.14 | 7.36 | $ | 8,404 | |||||||||||
Weighted average fair value of options granted during the year ended June 30, 2014 | $ | 0.76 | |||||||||||||||
On July 1, 2012, as an automatic grant under the Equity Incentive Plan, the Company issued options to purchase 230,000 shares of common stock to directors. The options have an exercise price of $0.91 per share, vest on June 30, 2013¸ subject to continuing service as a director and bear a ten year term. The options were valued using the Black-Scholes model using a volatility of 91.04% (derived using the historical market price for the Company's common stock since it began trading in June 2008), an expected term of 5.5 years (using the simplified method) and a discount rate of 0.82%. The value of these options will be recognized as expense over the requisite service period. | |||||||||||||||||
On December 6, 2012, the Company issued options to purchase 5,000 shares of common stock to a director upon his appointment to the audit committee. The options have an exercise price of $0.36 per share, and vest over three years, subject to continued service and bear a ten year term. The options were valued using the Black-Scholes model using a volatility of 89.86% (derived using the historical market price for the Company's common stock since it began trading in June 2008), an expected term of 6.5 years (using the simplified method) and a discount rate of 0.90%. The value of these options, $1,360, will be recognized as expense over the requisite service period. | |||||||||||||||||
In March 2013, the Company granted each of its three non-employee directors ten year options to purchase 125,000 shares of common stock at an exercise price of $0.99 per share. The options vest annually over a three year period, subject to continued service as a director. The options were valued using the Black-Scholes model using a volatility of 93.11 (derived using the historical market price for the Company's common stock since it began trading in June 2008), an expected term of 6.5 years (using the simplified method) and a discount rate of 1.25%. The value of these options, $287,405, will be recognized as expense over the requisite service period. | |||||||||||||||||
In June 2013 in connection with the termination for cause of its former Executive Chairman, the Company clawed back options to purchase 255,000 shares of common stock with exercise prices from $0.91 to $1.95 per share previously granted to the Executive Chairman. In addition, the Company rescinded a grant of 800,000 restricted stock units with an exercise price of $0.45 per share, of which 200,000 had vested. | |||||||||||||||||
In July 2013, the Company issued ten year options to purchase 50,000 shares of common stock to a director. The options have an exercise price of $1.30 per share and vested immediately. The options were valued using the Black-Scholes model using a volatility of 93.11% (derived using the historical market price for the Company's common stock since it began trading in June 2008), an expected term of 6.5 years (using the simplified method) and a discount rate of 2.67%. The value of these options was recognized as expense during the year ended June 30, 2014. | |||||||||||||||||
In September 2013, the Company issued ten year options to purchase 15,000 shares of common stock to a director. The options have an exercise price of $1.01 per share and vested immediately. The options were valued using the Black-Scholes model using a volatility of 91.6% (derived using the historical market price for the Company's common stock since it began trading in June 2008), an expected term of 5.0 years (using the simplified method) and a discount rate of 1.62%. The value of these options, $10,702, was recognized as expense during the year ended June 30, 2014. | |||||||||||||||||
In October 2013, the Company issued ten year options to purchase 60,000 shares of common stock at an exercise price of $1.17 per share to a new director. The options vest annually subject to continued service. The options were valued using the Black-Scholes model using a volatility of 91.94% (derived using the historical market price for the Company's common stock since it began trading in June 2008), an expected term of 6.5 years (using the simplified method) and a discount rate of 1.89%. The value of these options, $54,285 will be recognized as expense over the vesting period. | |||||||||||||||||
A summary of options issued to non-employees, non-directors under the 2007 Plan and changes during the fiscal years ended June 30, 2014 and 2013 is as follows: | |||||||||||||||||
Non-Employee, Non-Director Options | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life | |||||||||||||||||
Balance at June 30, 2012 | 540,000 | $ | 1.16 | 3.14 | |||||||||||||
Granted | 275,000 | $ | 1.23 | 10 | |||||||||||||
Exercised | (100,000 | ) | $ | 0.5 | - | ||||||||||||
Forfeited | - | $ | - | - | |||||||||||||
Expired | (155,000 | ) | $ | 1 | - | ||||||||||||
Outstanding at June 30, 2013 | 560,000 | $ | 1.22 | 5.96 | $ | 6,250 | |||||||||||
Exercisable at June 30, 2013 | 285,000 | $ | 1.21 | 2.22 | $ | - | |||||||||||
Weighted average fair value of options granted during the year ended June 30, 2013 | $ | 1 | |||||||||||||||
Balance at June 30, 2013 | 560,000 | $ | 1.22 | 5.96 | |||||||||||||
Granted | 25,000 | $ | 1.11 | 5 | |||||||||||||
Exercised | - | $ | - | - | |||||||||||||
Forfeited | (275,000 | ) | $ | 1.23 | - | ||||||||||||
Expired | (35,000 | ) | $ | 1.15 | - | ||||||||||||
Outstanding at June 30, 2014 | 275,000 | $ | 1.21 | 1.7 | $ | - | |||||||||||
Exercisable at June 30, 2014 | 275,000 | $ | 1.21 | 1.7 | $ | - | |||||||||||
Weighted average fair value of options granted during the year ended June 30, 2014 | $ | 0.79 | |||||||||||||||
In September 2012, the Company issued 100,000 shares of common stock in exchange for $50,000 in connection with the exercise of 100,000 options to purchase shares of the Company's common stock related to an offer by the Company to reduce the exercise price to $0.50 per share. The original exercise price of the options was $1.25 per share. The Company recognized a loss resulting from the reduction of the exercise price of the options exercised in the amount of $391 representing the difference in the fair market value of the repriced options as compared to the fair market value of the original options on the exercise date. The fair market value of the options was determined using the Black-Scholes options pricing model. | |||||||||||||||||
In March 2013, the Company granted ten year options to purchase 150,000 shares of common stock at an exercise price of $1.33 per share to a consultant. The options vest annually over a three year period, subject to continued service as a consultant. The options were valued using the Black-Scholes model using a volatility of 93.11 (derived using the historical market price for the Company's common stock since it began trading in June 2008), an expected term of 6.5 years (using the simplified method) and a discount rate of 1.23%. The value of these options, $154,415, will be recognized as expense over the requisite service period. | |||||||||||||||||
In June 2013, the Company granted a consultant ten-year options to purchase 125,000 shares of common stock at an exercise price of $1.10 per share. The options vest in equal amounts annually on the anniversary date of the grant over three years, subject to continued engagement as a consultant. The Company valued the options at $119,618 using the Black-Scholes option pricing model using a volatility of 91.6%, based upon the historical price of the Company's common stock since June 2008, an estimated term of 10.0 years, the term of the option and a discount rate of 2.49%. The resulting expense will be recognized over the requisite service period, three years. | |||||||||||||||||
In October 2013, the Company granted five-year options to purchase 20,000 shares of common stock at an exercise price of $1.18 per share to two consultants. The Company valued the options at $16,670 using the Black-Scholes option pricing model using a volatility of 91.94%, based upon the historical price of the Company's common stock since June 2008, an estimated term of 5.0 years, the term of the options and a discount rate of 1.38%. | |||||||||||||||||
In March 2014, the Company granted five-year fully vested options to purchase 5,000 shares of common stock at an exercise price of $0.85 per share to a consultant. The Company valued the options at $2,962 using the Black-Scholes option pricing model using a volatility of 89.96%, based upon the historical price of the Company's common stock since June 2008, an estimated term of 5.0 years, the term of the options and a discount rate of 1.76%. The expense was recognized during the three months ended March 31, 2014. | |||||||||||||||||
Warrants Issued as Settlements | |||||||||||||||||
Number of | Weighted | Remaining | |||||||||||||||
Warrants | Average | Contractual | |||||||||||||||
Exercise | Life | ||||||||||||||||
Price | |||||||||||||||||
Balance at June 30, 2012 | 344,508 | $ | 1.05 | 0.92 | |||||||||||||
Granted | 350,000 | $ | 0.63 | 5 | |||||||||||||
Exercised | - | $ | - | - | |||||||||||||
Forfeited | - | $ | - | - | |||||||||||||
Expired | (344,508 | ) | $ | 1.05 | - | ||||||||||||
Outstanding at June 30, 2013 | 350,000 | $ | 0.63 | 4.22 | |||||||||||||
Exercisable at June 30, 2013 | 350,000 | $ | 0.63 | 4.22 | |||||||||||||
Weighted average fair value of warrants granted during the year ended June 30, 2013 | $ | 0.33 | |||||||||||||||
Balance at June 30, 2013 | 350,000 | $ | 0.63 | 4.22 | |||||||||||||
Granted | - | $ | - | - | |||||||||||||
Exercised | - | $ | - | - | |||||||||||||
Forfeited | - | $ | - | - | |||||||||||||
Expired | - | $ | - | - | |||||||||||||
Outstanding at June 30, 2014 | 350,000 | $ | 0.63 | 3.22 | |||||||||||||
Exercisable at June 30, 2014 | 350,000 | $ | 0.63 | 3.22 | |||||||||||||
Weighted average fair value of warrants granted during the year ended June 30, 2014 | N/A | ||||||||||||||||
On September 21, 2012, the Company granted five year warrants to purchase 350,000 shares of the Company's common stock at an exercise price of $0.63 per share to a director in recognition of his exemplary five years of service to the Company. The warrants vested immediately. The Company valued the warrants at $115,883 using the Black-Scholes option pricing model using a volatility of 90.09%, based upon the historical price of the Company's common stock since June 2008, an estimated term of 2.5 years, using the Simplified Method and a discount rate of 0.32%. | |||||||||||||||||
In May 2013, warrants to purchase 344,058 shares of common stock at an exercise price of $1.05 per share held by a director expired. | |||||||||||||||||
A summary of warrants issued for cash and changes during the periods June 30, 2012 to June 30, 2013 and from June 30, 2013 to June 30, 2014 is as follows: | |||||||||||||||||
Warrants issued for cash or services | |||||||||||||||||
Number of | Weighted | Remaining | |||||||||||||||
Warrants | Average | Contractual | |||||||||||||||
Exercise | Life | ||||||||||||||||
Price | |||||||||||||||||
Balance at June 30, 2012 | 4,461,200 | $ | 1.46 | 2.46 | |||||||||||||
Granted | 362,500 | $ | 1.16 | 10 | |||||||||||||
Exercised | (1,865,000 | ) | $ | 0.5 | - | ||||||||||||
Forfeited | - | $ | - | - | |||||||||||||
Expired | (1,425,000 | ) | $ | 1.6 | - | ||||||||||||
Outstanding at June 30, 2013 | 1,533,700 | $ | 1.25 | 2.06 | |||||||||||||
Exercisable at June 30, 2013 | 1,533,700 | $ | 1.25 | 2.06 | |||||||||||||
Weighted average fair value of warrants granted during the year ended June 30, 2013 | $ | 0.44 | |||||||||||||||
Balance at June 30, 2013 | 1,533,700 | $ | 1.25 | 2.06 | |||||||||||||
Granted | 1,863,421 | $ | 1.58 | 3.53 | |||||||||||||
Exercised | (20,000 | ) | $ | 1.25 | - | ||||||||||||
Forfeited | - | $ | - | - | |||||||||||||
Expired | (340,000 | ) | $ | 1.6 | - | ||||||||||||
Outstanding at June 30, 2014 | 3,037,121 | $ | 1.45 | 2.73 | |||||||||||||
Exercisable at June 30, 2014 | 3,037,121 | $ | 1.45 | 2.73 | |||||||||||||
Weighted average fair value of warrants granted during the year ended June 30, 2014 | N/A | ||||||||||||||||
On September 21, 2012, the Company granted five year warrants to purchase 50,000 shares of the Company's common stock at an exercise price of $0.63 per share to the Company's Investor Relations firm in recognition of their performance over the past year. The warrants vested immediately. The Company valued the warrants at $21,787 using the Black-Scholes option pricing model using a volatility of 90.09%, based upon the historical price of the Company's common stock since June 2008, an estimated term of 5 years, the term of the warrants, and a discount rate of 0.70%. | |||||||||||||||||
During the year ended June 30, 2013, the Company issued 1,820,000 shares of common stock in exchange for $910,000 in connection with the exercise of 1,820,000 warrants to purchase shares of the Company's common stock related to an offer by the Company to reduce the exercise price to $0.50 per share. The original exercise prices of the warrants ranged from $1.25 to $1.75 per share. The cost of repricing warrants recognized by the Company amounted to $70,491 for the year ended June 30, 2013. The cost represents the incremental increase in the fair value of the repriced warrants as compared to the original warrants granted, valued on the exercise date. The fair value of the warrants was determined using the Black-Scholes option pricing model. | |||||||||||||||||
In March 2013, the Company issued 9,171 shares of common stock in connection with the cashless exercise of warrants to purchase 45,000 shares of common stock with an exercise price of $1.25 and a fair market value of the Company's common stock of $1.57 on the date of exercise. | |||||||||||||||||
In May 2013, the Company issued five year warrants to purchase 312,500 shares of common stock at an exercise price of $1.25 per share in connection with two private placements with its Chief Operating Officer and principal stockholder. | |||||||||||||||||
During the year ended June 30, 2013, warrants to purchase 1,425,000 shares of the Company's common stock at an exercise price of $1.60 per share expired unexercised. | |||||||||||||||||
In July 2013, the Company issued five year warrants to purchase 29,412 shares of common stock at an exercise price of $1.30 per share in connection with a private placement with an accredited investor. | |||||||||||||||||
In July 2013, the Company issued five year warrants to purchase 500,000 shares of common stock at an exercise price of $1.30 per share to its principal stockholder in connection with a $1.0 million convertible note agreement. | |||||||||||||||||
In August 2013, the Company issued 20,000 shares of common stock in exchange for $25,000 in connection with the exercise of warrants with an exercise price of $1.25 per share. | |||||||||||||||||
In October 2013, the Company issued five year warrants to purchase 100,000 shares of common stock at an exercise price of $1.00 per share in connection with a private placement with its principal shareholder. | |||||||||||||||||
In October 2013, the Company issued five year warrants to purchase 200,000 shares of common stock at an exercise price of $1.00 per share in connection with private placements with a director and his wife. | |||||||||||||||||
In October 2013, the Company issued five year warrants to purchase 120,000 shares of common stock at an exercise price of $1.00 per share in connection with private placements with three accredited investors. | |||||||||||||||||
During the year ended June 30, 2014, warrants to purchase 360,000 shares of common stock at an exercise price of $1.25 per share expired unexercised. | |||||||||||||||||
Options to Purchase Common Stock and Stock Appreciation Rights | |||||||||||||||||
Stock-based compensation expense recognized under ASC 718-10 for the fiscal years ended June 30, 2014 and 2013 was $1,682,833 and $1,497,534, respectively, for stock options and stock appreciation rights granted to employees, directors and a consultant. This expense is included in selling, general and administrative expenses in the consolidated statements of operations. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. At June 30, 2014, the total compensation cost for stock options and stock appreciation rights not yet recognized is $836,656. This cost will be recognized over the remaining vesting term of the options and stock appreciation rights of approximately five years. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
INCOME TAXES [Abstract] | ' | ||||||||||||||||
INCOME TAXES | ' | ||||||||||||||||
8 | |||||||||||||||||
INCOME TAXES | |||||||||||||||||
Due to the net losses incurred, there was no income tax provision for the fiscal years ended June 30, 2014 and 2013. Deferred tax assets and liabilities as of June 30, 2014 and 2013, were as follows: | |||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net operating loss carryforward | $ | 10,754,202 | $ | 8,817,486 | |||||||||||||
Allowance for bad debt | 38,051 | 15,250 | |||||||||||||||
Stock-based compensation | 1,493,004 | 1,304,426 | |||||||||||||||
Less: Deferred tax liability - depreciation | (2,627 | ) | (9,557 | ) | |||||||||||||
Net deferred tax assets | 12,282,630 | 10,127,605 | |||||||||||||||
Less valuation allowance | (12,282,630 | ) | (10,127,605 | ) | |||||||||||||
Net deferred tax asset | $ | - | $ | - | |||||||||||||
The Company had available at June 30, 2014, net operating loss carryforwards for federal and state tax purposes of approximately $28,578,798 that could be applied against taxable income in subsequent years through June 30, 2034. The amount of net operating loss carryforward that can offset future taxable income may be limited in accordance with IRC Section 382 following certain ownership changes. | |||||||||||||||||
Based on the weight of available evidence, both positive and negative, a valuation allowance to fully provide for the net deferred tax assets has been recorded since it is more likely than not that the deferred tax assets will not be realized. The valuation allowance was increased by $2,155,025 during fiscal year ended June 30, 2014. | |||||||||||||||||
Reconciliation of the differences between income tax benefit computed at the federal and state statutory tax rates and the provision for income tax benefit for the fiscal years ended June 30, 2014 and 2013 was as follows: | |||||||||||||||||
For the Fiscal Year Ended | |||||||||||||||||
June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Amount | % | Amount | % | ||||||||||||||
Tax at U.S. statutory rate | $ | (2,401,741 | ) | -34 | % | $ | (1,775,395 | ) | -34 | % | |||||||
State taxes, net of federal benefit | (255,305 | ) | -3.61 | % | (188,025 | ) | -3.6 | % | |||||||||
Other | 502,021 | 7.1 | % | (66,830 | ) | -1.28 | % | ||||||||||
Change in valuation allowance | 2,155,025 | 30.51 | % | 2,030,250 | 38.88 | % | |||||||||||
$ | - | 0 | % | $ | - | 0 | % |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | |
Jun. 30, 2014 | ||
RELATED PARTY TRANSACTIONS [Abstract] | ' | |
RELATED PARTY TRANSACTIONS | ' | |
9 | ||
RELATED PARTY TRANSACTIONS | ||
In addition to the acting Chief Executive Officer (CEO) and the Chief Technology Officer (CTO) the following related parties are employed at GelTech: | ||
· | The CEO's sister-in-law is our Controller and her compensation is $1,092 per week, | |
· | The CEO's father is a researcher and his compensation is $2,123 per week, and | |
· | The CEO's mother is a receptionist and her compensation is $600 per week. | |
The Company has employment arrangements with its executive officers which are described in Note 10. | ||
The Company has entered into a series of credit facilities with its largest principal stockholder as more fully described in Note 6. | ||
In September 2012, the Company granted options to purchase 70,000 shares of the Company's common stock to the father of the Company's CEO as more fully described in Note 7. | ||
In September 2012, the Company granted warrants to purchase 350,000 shares of the Company's common stock to a director as more fully described in Note 7. | ||
Effective February 8, 2013, the Company's President and Director resigned from the Company to pursue other opportunities. In connection with his separation, the Company agreed to pay the former President $150,000 plus COBRA payments over 14 months. In addition, the Company agreed to issue the former President ten year fully vested options to purchase 112,500 shares of the Company's common stock at an exercise price of $0.39 per share, subject to a lockup agreement for the option shares and the other shares he currently owns. In addition, options and stock appreciation rights to purchase 2,125,000 shares of the Company's common stock at exercise prices from $0.45 to $1.22 per share, previously issued to him, were cancelled. The Company recognized a severance expense of $168,920 for the year ended June 30, 2013 representing the total liability to the Company under the severance agreement. As of June 30, 2014, there is no remaining liability under the agreement. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2014 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
10 | |
COMMITMENTS AND CONTINGENCIES | |
The Company leases office and warehouse space located in Jupiter, Florida and rents space in an industrial yard in Irvine, California under a month-to-month lease. In February 2013, the Company entered into a one year lease agreement for a support facility in Brooklyn, New York at a monthly rent of $3,600. In February 2014, the Company extended the lease at a monthly rent of $4,000. Effective August 31, 2014 the Company terminated the lease. Rent expense for the fiscal year ended June 30, 2014 and 2013 was $169,547 and $143,614, respectively. | |
On November 14, 2012, the Compensation Committee approved new employment agreements for the Company's then Chief Executive Officer, then President, Chief Technology Officer and Chief Financial Officer. The employment agreements each provide for base salaries of $150,000 and 800,000 stock settled stock appreciation rights ("SARS") of which (i) 200,000 vested immediately, (ii) 200,000 vest upon the Company generating $3,000,000 in revenue in any 12-month period, (iii) another 200,000 vest upon the Company generating $5,000,000 in revenue in any 12-month period and (iv) another 200,000 vest upon the Company generating $6,000,000 in revenue in any 12-month period. The SARs are exercisable at $0.45 per share over a 10-year period. The Company's then Chief Executive Officer, then President and Chief Technology Officer agreed to cancel the 250,000 stock options granted to each of them in their prior employment agreements. These executives' base salary will increase to: (i) $170,000 upon the Company generating $3,000,000 in revenue in any 12-month period, (ii) $190,000 upon the Company generating $5,000,000 in any 12-month period and (iii) $200,000 upon the Company generating $6,000,000 in any 12-month period. | |
Additionally, the Compensation Committee approved a four-year employment agreement for the Company's Executive Chairman. Prior to his employment agreement being terminated for cause, the Executive Chairman received a base salary of $200,000 per year and was granted 800,000 restricted stock units vesting on identical terms as the SARs (which have been cancelled). All of the five senior executives receive (or were to receive prior to the terminations of their employment) a monthly car allowance of $600 per month. The Compensation Committee has the discretion to award each of the employed executives a bonus based upon job performance, revenue growth or any other factors determined by the Compensation Committee. | |
In August 2011, the Company entered into a settlement agreement with a former shareholder of Dyn-O-Mat, the Company's predecessor. At the time of the Company's formation, the Company was unable to contact the investor in order to offer the investor shares of GelTech in exchange for the investor's shares of Dyn-O-Mat. The investor came forward in May 2011 seeking to receive the same offer made to Dyn-O-Mat shareholders in 2007. Under the settlement agreement, the Company paid the investor $50,000, which has been recorded as a loss on settlement as of June 30, 2011. In addition, the Company's Chief Technology Officer and his father agreed to pay the investor an additional $125,000 prior to December 31, 2011. As of June 30, 2013, this amount has not yet been paid. | |
The Company was sued by a former employee on June 23, 2008, alleging breach of a consulting agreement and an employment agreement entered into in May and June 2007, respectively. In addition, the plaintiff seeks to recover certain of his personal property, which was used or stored in the Company's offices, and alleges the Company invaded his privacy by looking at his personal computer (which was used in the Company's business) in the Company's offices. A jury trial was held for the lawsuit in July 2012. At the conclusion of the trial, the plaintiff was awarded $200,000 under his invasion of privacy and fraudulent misrepresentation claim, $5,000 on the trespass claim,$841,000 on the breach of consulting agreement claim and $200,000 against the Company's CEO on a claim of civil theft, which by law results in an award of $600,000 for the plaintiff. The Company's board of directors approved the indemnification of the Company's CEO for the $600,000. The Company filed a post-trial motion for Judgment Notwithstanding Verdict, New Trial and Remittitur, requesting that the judge set aside or reduce the amounts of the jury verdict. | |
Based upon the verdicts, the Company recorded a litigation accrual of $1,646,000 as of June 30, 2012. In November 2012, the insurance carrier paid the plaintiff $200,000 in settlement of the invasion of privacy and fraudulent misrepresentation awards. As a result, the Company reduced the amounts accrued for these awards resulting in other income of $200,000 for the period ended December 31, 2012. | |
In January 2013, the court ruled on the Company's post-trial motions in this litigation dismissing the $200,000 civil theft verdict (which was subject to triple damages) against the CEO and reducing the $841,000 breach of the consulting agreement award to $500,000. The Company then filed a motion seeking a new trial on damages. The Company received a favorable ruling on this motion and received a new trial on the damages. As a result of the reduction in the award for breach of the consulting agreement from $841,000 to $500,000 and the vacating of the award for civil theft which the Company had previously accrued $600,000, the Company recorded other income of $941,000 for the year ended June 30, 2013. The Company expects the trial to determine damages took place in September 2014. Each side has until October 14, 2014 to file briefs and proposed orders to the court, after which the judge will review the briefs and consider the trial testimony in rendering a decision. |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Jun. 30, 2014 | |
CONCENTRATIONS [Abstract] | ' |
CONCENTRATIONS | ' |
11 | |
CONCENTRATIONS | |
The Company maintains its cash in bank and financial institution deposits that at times may exceed federally insured limits. The Company has not experienced any losses in such accounts through June 30, 2013. As of June 30, 2014, the Company had no cash equivalent balances that were not insured. | |
At June 30, 2014, there were accounts receivable from three customers that each exceeded 10% of the total gross accounts receivable at 24.4%, 16.1% and 10.4%. At June 30, 2013, there were accounts receivable from three customers that each exceeded 10% of the total gross accounts receivable at 39.2%, 13.9% and 11.6%. | |
During fiscal 2014, one customer accounted for 60.7% of sales. No other customer had sales in excess of 10% of revenues. During fiscal 2013, two customers accounted for 36.3% and 32.4% of sales. No other customer had sales in excess of 10% of revenues. | |
During fiscal 2014, sales resulted from three products, EMFIDS, FireIce and Soil₂O® and from paid for research and development which made up 52.2%, 27.4%, 19.2% and 1.27% of total sales, respectively. During fiscal 2013, sales resulted from two products, FireIce and Soil₂O® and from paid for research and development which made up 38.8%, 43.5% and 17.7% of total sales, respectively. | |
During the year ended June 30, 2014, the Company's made inventory purchases from three vendors amounting to approximately $226,000, $81,000 and $64,000 representing 35.3%, 12.6% and 10.0%, respectively, of inventory purchases for the fiscal year. During the year ended June 30, 2013, the Company purchased approximately $142,000 of raw material from one vendor and approximately $32,000 from another vendor which amounted to 50.8% and 11.5%, respectively, of the inventory purchases in fiscal 2013. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2014 | |
SUBSEQUENT EVENTS [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
12 | |
SUBSEQUENT EVENTS | |
In July 2014, the Company issued 107,143 shares of common stock to its chief operating officer and principal stockholder in payment of accrued interest in the amount of $75,000 related to a convertible note. | |
In accordance with the 2007 Equity Incentive Plan, on July 1, 2014, the Company issued options to purchase 470,000 shares of common stock to directors. The options have an exercise price of $0.70 per share, vest on June 30, 2015¸ subject to continuing service as a director and bear a ten year term. The options were valued using the Black-Scholes model using a volatility of 88.55% (derived using the historical market price for the Company's common stock since it began trading in June 2008), an expected term of 5.5 years (using the simplified method) and a discount rate of 1.79%. The value of these options will be recognized as expense over the requisite service period. | |
Since July 1, 2014, the Company has issued 1,855,188 shares of common stock and two year warrants to purchase 906,586 shares of common stock at an exercise price of $2.00 per share in exchange for $1,025,000 in connection with private placements with accredited investors, including 1,603,087 shares and 801,544 warrants to our chief operating officer and principal stockholder in exchange for $850,000. |
NATURE_OF_OPERATIONS_BASIS_OF_1
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended |
Jun. 30, 2014 | |
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The accompanying consolidated financial statements include the accounts of the Company and its three wholly-owned subsidiaries: FireIce Gel, Inc., GelTech International, Inc. and Weather Tech Innovations, Inc. There has been no activity in Weather Tech Innovations, Inc. and GelTech International, Inc. All intercompany balances and transactions have been eliminated in consolidation. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
For the purposes of the statements of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. The Company's cash equivalents consist of a brokerage money market account. | |
Investments in Marketable Securities | ' |
Investments in Marketable Securities | |
The Company may invest in various marketable securities and accounts for such investments in accordance with ASC 320-10. | |
Certain securities that the Company may invest in may be determined to be non-marketable. Non-marketable securities where the Company owns less than 20% of the investee are accounted for at cost pursuant to ASC 323-10. | |
Management determines the appropriate classification of its investments at the time of acquisition and reevaluates such determination at each balance sheet date. Trading securities that the Company may hold are treated in accordance with ASC 320-10 with any unrealized gains and losses included in earnings. Available-for-sale securities are carried at fair value, with unrealized gains and losses, net of tax, reported as a separate component of stockholders' equity. Investments classified as held-to-maturity are carried at amortized cost. In determining realized gains and losses, the cost of the securities sold is based on the specific identification method. | |
The Company periodically reviews its investments in marketable and non-marketable securities and records a reserve for impairment for any securities whose value is considered non-recoverable. The Company's determination of whether a security is other than temporarily impaired incorporates both quantitative and qualitative information. GAAP requires the exercise of judgment in making this assessment for qualitative information, rather than the application of fixed mathematical criteria. The Company considers a number of factors including, but not limited to, the length of time and the extent to which the fair value has been less than cost, the financial condition and near term prospects of the issuer, the reason for the decline in fair value, changes in fair value subsequent to the balance sheet date, and other factors specific to the individual investment. The Company's assessment involves a high degree of judgment and accordingly, actual results may differ materially from the Company's estimates and judgments. | |
Accounts Receivable | ' |
Accounts Receivable | |
Accounts receivable are customer obligations due under normal trade terms. Senior management reviews accounts receivable on a monthly basis to determine if any receivables will potentially be uncollectible. The Company includes any accounts receivable balances that are determined to be uncollectible, along with a general reserve, in its overall allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. | |
Inventories | ' |
Inventories | |
Inventories are stated at the lower of cost or market, with cost determined using a first-in, first-out method. | |
Property and Equipment and Depreciation | ' |
Property and Equipment and Depreciation | |
Property and equipment is recorded at cost. Depreciation is computed using the straight-line method based on the estimated useful lives of the related assets of 3 to 7 years. Leasehold improvements are amortized over the lesser of the lease term or the useful life of the improvements. Expenditures for maintenance and repairs are expensed as incurred. | |
Impairment of Long-Lived Assets | ' |
Impairment of Long-Lived Assets | |
The Company accounts for long-lived assets in accordance with the provisions of ASC 360-10. This statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. | |
Fair Value of Financial Instruments and Fair Value Measurements | ' |
Fair Value of Financial Instruments and Fair Value Measurements | |
We measure our financial assets and liabilities in accordance with ASC 820 "Fair Value Measurements and Disclosures". For certain of our financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued expenses, the carrying amounts approximate fair value due to their short maturities. The carrying amount of our convertible and other debt approximates the fair value because the interest rate on those debts do not vary materially from the market rate for similar debt instruments. | |
We adopted accounting guidance for fair value measurements of financial assets and liabilities and adopted the same guidance for non-financial assets and liabilities effective July 1, 2009. The adoption did not have a material impact on our results of operations, financial position or liquidity. The standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: | |
Level 1: | |
Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. | |
Level 2: | |
Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. | |
Level 3: | |
Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use. | |
The Company had no financial or non-financial assets or liabilities measured at fair value and subject to this accounting standard as of June 30, 2014 or 2013. | |
Revenue Recognition | ' |
Revenue Recognition | |
Revenue from sales of products is recognized when persuasive evidence of an arrangement exists, products have been shipped to the customer, economic risk of loss has passed to the customer, the price is fixed or determinable, collection is reasonably assured, and any future obligations of the Company are insignificant. Revenue is shown net of returns and allowances. The Company does provide certain customers with the right of return for unsold product. Sales to these customers are recorded as the customer sells the product, thus removing the right of return. | |
Products shipped from either our third-party fulfillment companies or our Jupiter, Florida or Irwindale, California locations are shipped FOB shipping point. Normal payment terms are net 30 or net 60 days depending on the arrangement we have with the customer. As such, revenue is recognized when product has been shipped from either the third-party fulfillment company or from the Jupiter, Florida or Irwindale, California locations. | |
The Company follows the guidance of ASC 605-50-25, "Revenue Recognition, Customer Payments". Accordingly, any incentives received from vendors are recognized as a reduction of the cost of products. Promotional products or samples given to customers or potential customers are recognized as a cost of goods sold. However, products we utilize to perform demonstrations for potential customers are recorded as a marketing expense in operations. During the fiscal years ended June 30, 2014 and 2013, these demonstration costs amounted to $4,195 and $10,889, respectively. Cash incentives provided to our customers are recognized as a reduction of the related sale price, and, therefore, are a reduction in sales. | |
Shipping and Handling Costs | ' |
Shipping and Handling Costs | |
Amounts invoiced to customers for shipping and handling are included in revenues. Shipping and handling costs related to sales of products are included in selling, general and administrative expenses and were $52,594 and $51,943 in 2014 and 2013, respectively. | |
Research and Development | ' |
Research and Development | |
In accordance with ASC 730-10 expenditures for research and development of the Company's products are expensed when incurred, and are included in operating expenses. The Company recognized research and development costs of $274,005 and $179,158 for the fiscal years ended June 30, 2014 and 2013, respectively. | |
Advertising | ' |
Advertising | |
The Company conducts advertising for the promotion of its products and services. In accordance with ASC 720-35, advertising costs are charged to operations when incurred; such amounts aggregated $42,575 in fiscal 2014 and $26,931 in fiscal 2013. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that the estimates utilized in preparing its consolidated financial statements are reasonable; however, actual results could differ materially from these estimates. Significant estimates in fiscal 2014 and fiscal 2013 include the allowance for doubtful accounts, depreciation and amortization, valuation of inventories, valuation of the beneficial conversion features associated with convertible notes, valuation of options and warrants granted for services or settlements, valuation of common stock granted for services or for debt conversion, accruals for litigation losses and the valuation of deferred tax assets. | |
Net Earnings (Loss) per Share | ' |
Net Earnings (Loss) per Share | |
The Company computes net earnings (loss) per share in accordance with ASC 260-10. ASC 260-10 requires presentation of both basic and diluted earnings per share ("EPS") on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period. Diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive. For the years ended June 30, 2014 and 2013, there was no separate computation of dilutive net loss per share since the common stock equivalents outstanding were anti-dilutive due to the net losses. At June 30, 2014 there were options to purchase 9,742,840 shares and warrants to purchase 3,387,121 shares of common stock outstanding which may dilute future earnings per share. In addition, there are 6,707,094 shares reserved for issuance related to convertible note agreements. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
The Company accounts for stock-based compensation in accordance with ASC 718-10 "Compensation - Stock Compensation" which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options, restricted stock units, and stock appreciation rights are based on estimated fair values. Stock option compensation expense recognized under ASC 718-10 for the years ended June 30, 2014 and 2013 was $1,680,358 and $1,480,377, respectively, related to employee, director and advisory board stock options, and is included in selling, general and administrative expenses in the consolidated statements of operations. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. At June 30, 2014, the total compensation cost for stock options not yet recognized was $836,656. This cost will be amortized on a straight-line basis over the remaining vesting period of the options. | |
The Company accounts for non-employee stock based awards at fair value in accordance with the measurement and recognition criteria of ASC 505-50 "Equity Based payments to Non-Employees. Stock based compensation to non-employees recognized for the years ended June 30, 2014 and 2013 was $2,475 and $17,157, respectively. | |
2007 Equity Incentive Plan | |
In January 2007, the Company established the 2007 Equity Incentive Plan under which provided for the issuance of up to 1,500,000 stock options, stock appreciation rights, restricted stock or restricted stock units to our directors, employees and consultants. In September 2008, the Board of Directors approved an amendment to the Company's 2007 Equity Incentive Plan to increase the number of shares authorized by the plan from 1,500,000 to 3,500,000. In fiscal 2012, Board of Directors increased the number of share authorized under the Plan to 4,500,000. In June 2013, the Board of Directors approved an amendment to increase the number of shares authorized by the plan to 15,000,000. | |
Under the Equity Incentive Plan, all directors who are not employees or own 10% or more of the Company's outstanding stock at the time of grant shall automatically receive a grant of stock options as follows: | |
Initial Grants | |
A - Chairman of the Board | |
- 50,000 options | |
B - Director | |
- 30,000 options | |
C - Chair of a Committee | |
- 10,000 options | |
D - Member of a Committee | |
- 5,000 options | |
In June 2013, the Board of Directors increased the annual grants to the following amounts: | |
Annual Grants | |
A - Chairman of the Board | |
- 70,000 options | |
B - Director | |
- 100,000 options | |
C - Chair of a Committee | |
- 20,000 options | |
D - Member of a Committee | |
- 10,000 options | |
All initial grants of options to new non-employee directors and committee members vest annually over a three year period on the anniversary date of the grant, subject to continuing service as a director, Committee member, Chairman of the Board or Chairman of a Committee on the applicable vesting date. Options automatically granted annually under the 2007 Equity Incentive Plan vest the following June 30th, subject to continuing service as a director. The exercise price of options or stock appreciation rights granted under the 2007 Equity Incentive Plan shall not be less than the fair market value of the underlying common stock at the time of grant. In the case of incentive stock options, the exercise price may not be less than 110% of the fair market value in the case of 10% shareholders. Options and stock appreciation rights granted under the 2007 Equity Incentive Plan shall expire no later than ten years after the date of grant. The option price may be paid in United States dollars by check or wire transfer or, at the discretion of the Board of Directors or Compensation Committee, by delivery of shares of our common stock having fair market value equal as of the date of exercise to the cash exercise price, or a combination thereof. | |
The identification of individuals entitled to receive awards, the terms of the awards, and the number of shares subject to individual awards, are determined by the Board of Directors or the Compensation Committee, in their sole discretion. The purchase price per share, if applicable, shall be adjusted for any increase or decrease in the number of issued shares resulting from a recapitalization, reorganization, merger, consolidation, exchange of shares, stock dividend, stock split, reverse stock split, or other subdivision or consolidation of shares. | |
The Board of Directors or the Compensation Committee may from time to time alter, amend, suspend, or discontinue the Equity Incentive Plan with respect to any shares as to which awards of stock rights have not been granted. However no rights granted with respect to any awards under this Equity Incentive Plan before the amendment or alteration shall be impaired by any such amendment, except with the written consent of the grantee. Under the terms of the Equity Incentive Plan, the Board of Directors or the Compensation Committee may also grant awards which will be subject to vesting under certain conditions. The vesting may be time-based or based upon meeting performance standards, or both. | |
In April 2010, the Company amended the 2007 Equity Incentive Plan to increase the number of stock options granted annually to directors from 20,000 to 50,000. In June 2013, the Company amended the 2007 Equity Incentive Plan to increase the number of stock options granted annually to directors to 100,000. | |
All of our Stock Option Agreements provide for "clawback" provisions, which enable our Board of Directors to cancel stock awards and recover past profits if the person is dismissed for cause or commits certain acts which harm us. | |
Determining Fair Value under ASC 718-10 | |
The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing formula. This fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. The Company's determination of fair value using an option-pricing model is affected by the stock price as well as assumptions regarding the number of highly subjective variables. | |
Income Taxes | ' |
Income Taxes | |
The Company accounts for income taxes pursuant to the provisions of ASC 740-10, "Accounting for Income Taxes," which requires, among other things, an asset and liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized. | |
The Company follows the provisions of the ASC 740 -10 related to, Accounting for Uncertain Income Tax Positions. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits. | |
Effective July 1, 2007, the Company adopted ASC 740-10-25 Definition of Settlement, which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion of an examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open. As of June 30, 2014, the fiscal tax years ended June 30, 2011, 2012 and 2013 are still subject to audit. | |
Legal Costs and Contingencies | ' |
Legal Costs and Contingencies | |
In the normal course of business, the Company incurs costs to hire and retain external legal counsel to advise it on regulatory, litigation and other matters. The Company expenses these costs as the related services are received. | |
If a loss is considered probable and the amount can be reasonably estimated, the Company recognizes an expense for the estimated loss. If the Company has the potential to recover a portion of the estimated loss from a third party, the Company makes a separate assessment of recoverability and reduces the estimated loss, if recovery is also deemed probable. | |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
Accounting Standards Updates (ASUs) which were not effective until after June 30, 2014 are not expected to have a significant effect on the Company's consolidated financial position or results of operations. |
ACCOUNTS_RECEIVABLE_Tables
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
ACCOUNTS RECEIVABLE [Abstract] | ' | |||||||
Schedule of Accounts Receivable | ' | |||||||
Accounts receivable at June 30, 2014 and 2013 was as follows: | ||||||||
2014 | 2013 | |||||||
Accounts receivable | $ | 95,869 | $ | 77,802 | ||||
Allowance for doubtful accounts | (60,593 | ) | (40,525 | ) | ||||
$ | 35,276 | $ | 37,277 |
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
INVENTORIES [Abstract] | ' | |||||||
Schedule of Inventories | ' | |||||||
Inventories consisted of the following at June 30, 2014 and 2013: | ||||||||
2014 | 2013 | |||||||
Finished goods | $ | 491,409 | $ | 333,987 | ||||
Raw materials | 352,455 | 254,716 | ||||||
$ | 843,864 | $ | 588,703 |
FURNITURE_FIXTURES_AND_EQUIPME1
FURNITURE, FIXTURES AND EQUIPMENT (Tables) | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
FURNITURE, FIXTURES AND EQUIPMENT [Abstract] | ' | |||||||||
Schedule of Property and Equipment | ' | |||||||||
Furniture, fixtures and equipment consisted of the following as of June 30, 2014 and 2013: | ||||||||||
Estimated | June 30, | |||||||||
Useful Life | 2014 | 2013 | ||||||||
Equipment | 3 - 5 years | $ | 111,488 | $ | 88,875 | |||||
Storage facilities | 3 years | 20,802 | 20,802 | |||||||
Vehicles | 5 - 7 years | 214,470 | 164,232 | |||||||
Furniture and fixtures | 5 years | 20,420 | 20,420 | |||||||
367,180 | 294,329 | |||||||||
Accumulated depreciation | (191,429 | ) | (136,145 | ) | ||||||
$ | 175,751 | $ | 158,184 |
CONVERTIBLE_AND_NONCONVERTIBLE1
CONVERTIBLE AND NON-CONVERTIBLE NOTE AGREEMENTS (Tables) | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
CONVERTIBLE AND NON-CONVERTIBLE NOTE AGREEMENTS [Abstract] | ' | ||||||||||||
Schedule of Notes Payable and Related Discounts | ' | ||||||||||||
A summary of notes payable and related discounts as of June 30, 2014 is as follows: | |||||||||||||
Principal | Unamortized | Debt, | |||||||||||
Discount | Net of Discount | ||||||||||||
Related parties | |||||||||||||
Convertible notes payable | $ | 2,997,483 | $ | (795,659 | ) | $ | 2,201,824 | ||||||
Less current portion | - | - | - | ||||||||||
Convertible notes payable, net of current portion | $ | 2,997,483 | $ | (795,659 | ) | $ | 2,201,824 | ||||||
A summary of notes payable and related discounts as of June 30, 2013 is as follows: | |||||||||||||
Principal | Unamortized | Debt, | |||||||||||
Discount | Net of Discount | ||||||||||||
Third parties | |||||||||||||
Convertible notes payable | $ | 206,640 | $ | (14,477 | ) | $ | 192,163 | ||||||
Less current portion | 206,640 | (14,477 | ) | 192,163 | |||||||||
Convertible notes payable, net of current portion | $ | - | $ | - | $ | - | |||||||
Related parties | |||||||||||||
Convertible notes payable | $ | 2,083,583 | $ | (105,006 | ) | $ | 1,978,577 | ||||||
Less current portion | 86,100 | (6,839 | ) | 79,261 | |||||||||
Convertible and non-convertible note payable, net of current portion | $ | 1,997,483 | $ | (98,167 | ) | $ | 1,899,316 |
STOCKHOLDERS_EQUITY_DEFICIT_Ta
STOCKHOLDERS' EQUITY (DEFICIT) (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Schedule of Fair Value Assumptions for Stock Options | ' | ||||||||||||||||
The fair value of stock option grants for the fiscal year ended June 30, 2014 and 2013 were estimated using the following weighted- average assumptions: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Risk free interest rate | 0.45% - 2.61% | 0.53% - 2.49% | |||||||||||||||
Expected term in years | 2.5 - 6.5 | 2.5 - 10.0 | |||||||||||||||
Dividend yield | - | - | |||||||||||||||
Volatility of common stock | 89.98% - 91.94% | 89.67% - 93.11% | |||||||||||||||
Estimated annual forfeitures | - | - | |||||||||||||||
Employee Options and Stock Appreciation Rights [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Schedule of Options Activity | ' | ||||||||||||||||
A summary of stock option transactions issued to employees under the 2007 Plan for the fiscal years ended June 30, 2014 and 2013 is as follows: | |||||||||||||||||
Employee Options and Stock Appreciation Rights | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life | |||||||||||||||||
Balance at June 30, 2012 | 4,589,507 | $ | 1.04 | 5.95 | |||||||||||||
Granted | 4,622,500 | $ | 0.55 | 9.64 | |||||||||||||
Exercised | - | $ | - | - | |||||||||||||
Forfeited | (2,875,000 | ) | $ | 0.92 | - | ||||||||||||
Expired | - | $ | - | - | |||||||||||||
Outstanding at June 30, 2013 | 6,337,007 | $ | 0.75 | 6.62 | $ | 2,505,808 | |||||||||||
Exercisable at June 30, 2013 | 3,696,174 | $ | 0.9 | 5.7 | $ | 1,056,738 | |||||||||||
Weighted average fair value of options granted during the year ended June 30, 2013 | $ | 0.41 | |||||||||||||||
Balance at June 30, 2013 | 6,337,007 | $ | 0.75 | 6.62 | |||||||||||||
Granted | 1,425,500 | $ | 1.34 | 7.81 | |||||||||||||
Exercised | - | $ | - | - | |||||||||||||
Forfeited | - | $ | - | - | |||||||||||||
Expired | - | $ | - | - | |||||||||||||
Outstanding at June 30, 2014 | 7,762,007 | $ | 0.87 | 5.98 | $ | 792,305 | |||||||||||
Exercisable at June 30, 2014 | 4,352,674 | $ | 0.93 | 4.55 | $ | 265,364 | |||||||||||
Weighted average fair value of options granted during the year ended June 30, 2014 | $ | 0.69 | |||||||||||||||
Director [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Schedule of Options Activity | ' | ||||||||||||||||
A summary of options issued to directors under the 2007 Plan and changes during the period from June 30, 2012 to June 30, 2013 and from June 30, 2013 to June 30, 2014 is as follows: | |||||||||||||||||
Options Issued to Directors | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life | |||||||||||||||||
Balance at June 30, 2012 | 857,500 | $ | 1.36 | 7.96 | |||||||||||||
Granted | 610,000 | $ | 0.95 | 10 | |||||||||||||
Exercised | (11,667 | ) | $ | 0.56 | - | ||||||||||||
Forfeited | (255,000 | ) | $ | 1.38 | - | ||||||||||||
Expired | - | $ | - | - | |||||||||||||
Outstanding at June 30, 2013 | 1,200,833 | $ | 1.16 | 8.04 | $ | 165,386 | |||||||||||
Exercisable at June 30, 2013 | 795,168 | $ | 1.24 | 7.25 | $ | 98,654 | |||||||||||
Weighted average fair value of options granted during the year ended June 30, 2013 | $ | 0.72 | |||||||||||||||
Balance at June 30, 2013 | 1,200,833 | $ | 1.16 | 8.04 | |||||||||||||
Granted | 495,000 | $ | 1.19 | 10 | |||||||||||||
Exercised | (20,000 | ) | $ | 0.91 | 10 | ||||||||||||
Forfeited | - | $ | - | - | |||||||||||||
Expired | - | $ | - | - | |||||||||||||
Outstanding at June 30, 2014 | 1,675,833 | $ | 1.12 | 7.62 | $ | 8,337 | |||||||||||
Exercisable at June 30, 2014 | 1,389,168 | $ | 1.14 | 7.36 | $ | 8,404 | |||||||||||
Weighted average fair value of options granted during the year ended June 30, 2014 | $ | 0.76 | |||||||||||||||
Non-Employee, Non-Director Options [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Schedule of Options Activity | ' | ||||||||||||||||
A summary of options issued to non-employees, non-directors under the 2007 Plan and changes during the fiscal years ended June 30, 2014 and 2013 is as follows: | |||||||||||||||||
Non-Employee, Non-Director Options | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life | |||||||||||||||||
Balance at June 30, 2012 | 540,000 | $ | 1.16 | 3.14 | |||||||||||||
Granted | 275,000 | $ | 1.23 | 10 | |||||||||||||
Exercised | (100,000 | ) | $ | 0.5 | - | ||||||||||||
Forfeited | - | $ | - | - | |||||||||||||
Expired | (155,000 | ) | $ | 1 | - | ||||||||||||
Outstanding at June 30, 2013 | 560,000 | $ | 1.22 | 5.96 | $ | 6,250 | |||||||||||
Exercisable at June 30, 2013 | 285,000 | $ | 1.21 | 2.22 | $ | - | |||||||||||
Weighted average fair value of options granted during the year ended June 30, 2013 | $ | 1 | |||||||||||||||
Balance at June 30, 2013 | 560,000 | $ | 1.22 | 5.96 | |||||||||||||
Granted | 25,000 | $ | 1.11 | 5 | |||||||||||||
Exercised | - | $ | - | - | |||||||||||||
Forfeited | (275,000 | ) | $ | 1.23 | - | ||||||||||||
Expired | (35,000 | ) | $ | 1.15 | - | ||||||||||||
Outstanding at June 30, 2014 | 275,000 | $ | 1.21 | 1.7 | $ | - | |||||||||||
Exercisable at June 30, 2014 | 275,000 | $ | 1.21 | 1.7 | $ | - | |||||||||||
Weighted average fair value of options granted during the year ended June 30, 2014 | $ | 0.79 | |||||||||||||||
Warrants Issued for Cash or Services [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Schedule of Warrant Activity | ' | ||||||||||||||||
Warrants issued for cash or services | |||||||||||||||||
Number of | Weighted | Remaining | |||||||||||||||
Warrants | Average | Contractual | |||||||||||||||
Exercise | Life | ||||||||||||||||
Price | |||||||||||||||||
Balance at June 30, 2012 | 4,461,200 | $ | 1.46 | 2.46 | |||||||||||||
Granted | 362,500 | $ | 1.16 | 10 | |||||||||||||
Exercised | (1,865,000 | ) | $ | 0.5 | - | ||||||||||||
Forfeited | - | $ | - | - | |||||||||||||
Expired | (1,425,000 | ) | $ | 1.6 | - | ||||||||||||
Outstanding at June 30, 2013 | 1,533,700 | $ | 1.25 | 2.06 | |||||||||||||
Exercisable at June 30, 2013 | 1,533,700 | $ | 1.25 | 2.06 | |||||||||||||
Weighted average fair value of warrants granted during the year ended June 30, 2013 | $ | 0.44 | |||||||||||||||
Balance at June 30, 2013 | 1,533,700 | $ | 1.25 | 2.06 | |||||||||||||
Granted | 1,863,421 | $ | 1.58 | 3.53 | |||||||||||||
Exercised | (20,000 | ) | $ | 1.25 | - | ||||||||||||
Forfeited | - | $ | - | - | |||||||||||||
Expired | (340,000 | ) | $ | 1.6 | - | ||||||||||||
Outstanding at June 30, 2014 | 3,037,121 | $ | 1.45 | 2.73 | |||||||||||||
Exercisable at June 30, 2014 | 3,037,121 | $ | 1.45 | 2.73 | |||||||||||||
Weighted average fair value of warrants granted during the year ended June 30, 2014 | N/A | ||||||||||||||||
Warrants Issued as Settlements [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Schedule of Warrant Activity | ' | ||||||||||||||||
Warrants Issued as Settlements | |||||||||||||||||
Number of | Weighted | Remaining | |||||||||||||||
Warrants | Average | Contractual | |||||||||||||||
Exercise | Life | ||||||||||||||||
Price | |||||||||||||||||
Balance at June 30, 2012 | 344,508 | $ | 1.05 | 0.92 | |||||||||||||
Granted | 350,000 | $ | 0.63 | 5 | |||||||||||||
Exercised | - | $ | - | - | |||||||||||||
Forfeited | - | $ | - | - | |||||||||||||
Expired | (344,508 | ) | $ | 1.05 | - | ||||||||||||
Outstanding at June 30, 2013 | 350,000 | $ | 0.63 | 4.22 | |||||||||||||
Exercisable at June 30, 2013 | 350,000 | $ | 0.63 | 4.22 | |||||||||||||
Weighted average fair value of warrants granted during the year ended June 30, 2013 | $ | 0.33 | |||||||||||||||
Balance at June 30, 2013 | 350,000 | $ | 0.63 | 4.22 | |||||||||||||
Granted | - | $ | - | - | |||||||||||||
Exercised | - | $ | - | - | |||||||||||||
Forfeited | - | $ | - | - | |||||||||||||
Expired | - | $ | - | - | |||||||||||||
Outstanding at June 30, 2014 | 350,000 | $ | 0.63 | 3.22 | |||||||||||||
Exercisable at June 30, 2014 | 350,000 | $ | 0.63 | 3.22 | |||||||||||||
Weighted average fair value of warrants granted during the year ended June 30, 2014 | N/A |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
INCOME TAXES [Abstract] | ' | ||||||||||||||||
Schedule of Deferred Income Tax Assets and Liabilities | ' | ||||||||||||||||
Deferred tax assets and liabilities as of June 30, 2014 and 2013, were as follows: | |||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net operating loss carryforward | $ | 10,754,202 | $ | 8,817,486 | |||||||||||||
Allowance for bad debt | 38,051 | 15,250 | |||||||||||||||
Stock-based compensation | 1,493,004 | 1,304,426 | |||||||||||||||
Less: Deferred tax liability - depreciation | (2,627 | ) | (9,557 | ) | |||||||||||||
Net deferred tax assets | 12,282,630 | 10,127,605 | |||||||||||||||
Less valuation allowance | (12,282,630 | ) | (10,127,605 | ) | |||||||||||||
Net deferred tax asset | $ | - | $ | - | |||||||||||||
Schedule of Reconciliation of Provision (Benefit) for Income Taxes | ' | ||||||||||||||||
Reconciliation of the differences between income tax benefit computed at the federal and state statutory tax rates and the provision for income tax benefit for the fiscal years ended June 30, 2014 and 2013 was as follows: | |||||||||||||||||
For the Fiscal Year Ended | |||||||||||||||||
June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Amount | % | Amount | % | ||||||||||||||
Tax at U.S. statutory rate | $ | (2,401,741 | ) | -34 | % | $ | (1,775,395 | ) | -34 | % | |||||||
State taxes, net of federal benefit | (255,305 | ) | -3.61 | % | (188,025 | ) | -3.6 | % | |||||||||
Other | 502,021 | 7.1 | % | (66,830 | ) | -1.28 | % | ||||||||||
Change in valuation allowance | 2,155,025 | 30.51 | % | 2,030,250 | 38.88 | % | |||||||||||
$ | - | 0 | % | $ | - | 0 | % |
NATURE_OF_OPERATIONS_BASIS_OF_2
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Demonstration costs | $4,195 | $10,889 |
Shipping and handling costs related to sales of products | 52,594 | 51,943 |
Research and development | 274,005 | 179,158 |
Advertising costs | $42,575 | $26,931 |
Stock Options [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Shares considered antidilutive | 9,742,840 | ' |
Warrants [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Shares considered antidilutive | 3,387,121 | ' |
Stock Options For Convertible Notes Reserved [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Shares considered antidilutive | 6,707,094 | ' |
Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful life | '3 years | ' |
Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful life | '7 years | ' |
NATURE_OF_OPERATIONS_BASIS_OF_3
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Stock-Based Compensation) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2008 | Jan. 31, 2007 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Apr. 30, 2010 | Mar. 31, 2010 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Jul. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | |
Maximum [Member] | Chairman of the Board [Member] | Chairman of the Board [Member] | Director [Member] | Director [Member] | Director [Member] | Director [Member] | Director [Member] | Chair of a Committee [Member] | Chair of a Committee [Member] | Member of a Committee [Member] | Member of a Committee [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Non-Employee, Non-Director Options [Member] | Non-Employee, Non-Director Options [Member] | ||||||
Initial Grants [Member] | Annual Grants [Member] | Initial Grants [Member] | Annual Grants [Member] | Annual Grants [Member] | Annual Grants [Member] | Annual Grants [Member] | Initial Grants [Member] | Annual Grants [Member] | Initial Grants [Member] | Annual Grants [Member] | Director [Member] | Director [Member] | Director [Member] | Director [Member] | Director [Member] | Director [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | $1,682,833 | $1,497,534 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,680,358 | $1,480,377 | ' | ' | ' | ' | ' | ' | $2,475 | $17,157 |
Unrecognized compensation expense | $836,656 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,702 | ' | $287,405 | $1,360 | ' | ' | ' |
Shares authorized | ' | 15,000,000 | 4,500,000 | 3,500,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted | ' | ' | ' | ' | ' | ' | 50,000 | 70,000 | 30,000 | 100,000 | 50,000 | 20,000 | 100,000 | 10,000 | 20,000 | 5,000 | 10,000 | 1,425,500 | 4,622,500 | 60,000 | 15,000 | 50,000 | 125,000 | 5,000 | 230,000 | 25,000 | 275,000 |
Vesting period | ' | ' | ' | ' | ' | ' | '3 years | ' | '3 years | ' | ' | ' | ' | '3 years | ' | '3 years | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' | ' | ' |
Minimum percentage of fair market price for an exercise price, exceeding benchmark ownership percentage | 110.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership of outstanding stock, benchmark | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '10 years | '10 years | '10 years | '10 years | '10 years | ' | ' |
GOING_CONCERN_Details
GOING CONCERN (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
GOING CONCERN [Abstract] | ' | ' | ' |
Net cash used in operating activities | $5,132,019 | $4,195,655 | ' |
Loss from operations | 7,111,945 | 5,221,747 | ' |
Accumulated deficit | 35,133,578 | 28,021,633 | ' |
Stockholders' deficit | 1,898,315 | 2,270,386 | 2,965,902 |
Proceeds from issuance of common stock | 2,131,527 | 1,658,000 | ' |
Proceeds from the sale of stock and warrants through private placements | 1,705,000 | 300,000 | ' |
Proceeds from exercise of options and warrants | 43,200 | ' | ' |
Proceeds from convertible notes with related parties | 1,000,000 | 500,000 | ' |
Proceeds from sale of stock under stock purchase agreement | $570,000 | $810,003 | ' |
ACCOUNTS_RECEIVABLE_Details
ACCOUNTS RECEIVABLE (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
ACCOUNTS RECEIVABLE [Abstract] | ' | ' |
Accounts receivable | $95,869 | $77,802 |
Allowance for doubtful accounts | -60,593 | -40,525 |
Accounts receivable, net | 35,276 | 37,277 |
Bad debt expense | $20,068 | ' |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
INVENTORIES [Abstract] | ' | ' |
Finished goods | $491,409 | $333,987 |
Raw materials | 352,455 | 254,716 |
Total inventory | $843,864 | $588,703 |
FURNITURE_FIXTURES_AND_EQUIPME2
FURNITURE, FIXTURES AND EQUIPMENT (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Furniture, fixtures, and equipment | $367,180 | $294,329 |
Accumulated depreciation | -191,429 | -136,145 |
Total furniture, fixtures, and equipment, net | 175,751 | 158,184 |
Depreciation | 55,284 | 49,269 |
Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful life | '3 years | ' |
Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful life | '7 years | ' |
Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Furniture, fixtures, and equipment | 111,488 | 88,875 |
Equipment [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful life | '3 years | '3 years |
Equipment [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful life | '5 years | '5 years |
Storage Facilities [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Furniture, fixtures, and equipment | 20,802 | 20,802 |
Estimated useful life | '3 years | '3 years |
Vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Furniture, fixtures, and equipment | 214,470 | 164,232 |
Vehicles [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful life | '5 years | '5 years |
Vehicles [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful life | '7 years | '7 years |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Furniture, fixtures, and equipment | $20,420 | $20,420 |
Estimated useful life | '5 years | '5 years |
CONVERTIBLE_AND_NONCONVERTIBLE2
CONVERTIBLE AND NON-CONVERTIBLE NOTE AGREEMENTS (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||||||||||
Oct. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | 31-May-09 | 29-May-09 | Feb. 28, 2013 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Aug. 31, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Aug. 31, 2013 | Mar. 31, 2012 | Sep. 30, 2012 | Aug. 31, 2013 | Feb. 28, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | Feb. 28, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Feb. 28, 2011 | Feb. 28, 2013 | Feb. 28, 2014 | Jul. 31, 2013 | Jun. 30, 2014 | Feb. 28, 2011 | |
Principal Stockholder [Member] | Principal Stockholder [Member] | Former President [Member] | Short Term Advances [Member] | Short Term Advances [Member] | Short Term Advances [Member] | Convertible Original Discount Note From Third Parties Dated March 2012 [Member] | Convertible Original Discount Note From Third Parties Dated March 2012 [Member] | Convertible Original Discount Note From Third Parties Dated March 2012 [Member] | Convertible Original Discount Note From Third Parties Dated September 2012 [Member] | Convertible Original Discount Note From Director Dated March 2012 [Member] | Convertible Original Discount Note From Director Dated September 2012 [Member] | Convertible Original Discount Note From Accredited Investor Dated August 2012 [Member] | Convertible Original Discount Note From Accredited Investor Dated August 2012 [Member] | Convertible Original Discount Note From Accredited Investor Dated August 2012 [Member] | Convertible Original Discount Note From Accredited Investor Dated February 2013 [Member] | Convertible Original Discount Note From Accredited Investor Dated February 2013 [Member] | Convertible Original Discount Note From Principal Stockholder Dated December 2012 [Member] | 2011 Convertible Note [Member] | 2011 Convertible Note [Member] | Convertible Note Payable Dated February 2013 [Member] | Convertible Note Payable Dated July 2013 [Member] | Convertible Note Payable Dated July 2013 [Member] | Convertible Note Payable Dated July 2013 [Member] | Reduction In Principal Amount Of Line Of Credit [Member] | ||||
Line of Credit [Member] | Line of Credit [Member] | Chief Executive Officer [Member] | Former President [Member] | Chief Financial Officer [Member] | Third Party [Member] | Third Party [Member] | Third Party [Member] | Third Party [Member] | Director [Member] | Director [Member] | Accredited Investor [Member] | Accredited Investor [Member] | Accredited Investor [Member] | Accredited Investor [Member] | Accredited Investor [Member] | Principal Stockholder [Member] | Principal Stockholder [Member] | Principal Stockholder [Member] | Chief Operating Officer and Principal Stockholder [Member] | Chief Operating Officer and Principal Stockholder [Member] | Principal Stockholder [Member] | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $105,000 | ' | $75,000 | ' | ' | ' | $175,000 | ' | ' | $250,000 | ' | ' | ' | ' | $1,000,000 | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | 10,000 | 29,380 | 50,000 | ' | 120,540 | 107,625 | ' | 76,875 | 86,100 | ' | ' | 179,375 | ' | 86,100 | 275,000 | ' | 1,497,483 | 1,997,483 | ' | 1,000,000 | ' | ' |
Debt instrument, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '9 months | ' | '9 months | '1 year | ' | ' | '6 months | ' | '1 year | '1 year | ' | '5 years | ' | ' | '5 years | ' | ' |
Debt instrument, interest rate | ' | ' | ' | ' | ' | ' | 0.70% | 5.00% | 5.00% | ' | 12.00% | 5.00% | ' | 5.00% | 12.00% | ' | ' | 5.00% | ' | ' | 10.00% | ' | 5.00% | 7.50% | ' | 7.50% | ' | ' |
Debt instrument, maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-16 | ' | ' | ' | ' |
Convertible note, conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.50 | $0.50 | ' | $0.50 | $0.50 | ' | ' | $0.50 | ' | $0.35 | $0.35 | ' | $1.12 | $0.35 | ' | $1 | ' | ' |
Unamortized beneficial conversion feature | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 84,562 | ' | ' | ' | ' | ' | 106,600 | ' | 4,920 | 23,571 | ' | ' | 114,142 | ' | 601,949 | ' | ' |
Unamortized discount on notes payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,138 | ' | ' | ' | 24,971 | ' | ' | 4,375 | ' | 9,225 | 25,000 | ' | ' | ' | ' | ' | ' | ' |
Amortization of beneficial conversion feature of convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 63,038 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,110 | ' | ' | ' | ' |
Accrued interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,579 | 149,811 | ' | 75,000 | ' |
Interest expense | ' | 462,760 | 473,605 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,920 | 7,552 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 177,271 | ' |
Convertible note payable | ' | ' | 79,261 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of convertible note with third party | ' | 115,822 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85,822 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, commencement date | ' | ' | ' | 20-Jul-09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, annual interest rate | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, borrowing capacity | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued from conversion of convertible debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,880 | ' | ' | ' | ' | ' | ' | ' | ' | 234,663 | ' | ' | ' | ' | ' | 428,032 | ' | ' | ' |
Number of shares callable by warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | 500,000 | ' | 1,000,000 |
Exercise price of shares called by warrants | $0.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.50 | $1.75 | ' | ' | $1.30 | ' | $1.25 |
Proceeds from exercise of warrants | 40,000 | 25,000 | 910,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000 | ' | ' | ' | ' | ' | ' |
Debt conversion, cash payment amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of convertible original issue discount note | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,440 | ' | ' | ' | ' | ' | 82,132 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 |
Loss on extinguishment of debt | ' | ' | 25,515 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on conversion of interest | ' | 201,175 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,204 | ' | ' | ' | ' |
Additional stock compensation expense to be recognized due to repricing of stock options | ' | ' | ' | ' | ' | ' | 15,067 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted | ' | ' | ' | ' | ' | 112,500 | 150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted, exercise price | ' | ' | ' | ' | ' | ' | $1.95 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 210,226 | ' | ' | ' | 892,857 |
Granted shares, reduced exercise price | ' | ' | ' | ' | ' | ' | $0.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $311,949 | ' | ' |
Volatility rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 91.46% | ' | ' |
Expected term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' |
Risk free interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.40% | ' | ' |
CONVERTIBLE_AND_NONCONVERTIBLE3
CONVERTIBLE AND NON-CONVERTIBLE NOTE AGREEMENTS (Schedule of Debt) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Third Party | ' | ' |
Convertible notes payable, principal | ' | $206,640 |
Convertible notes payable, unamortized discount | ' | -14,477 |
Convertible notes payable, net | ' | 192,163 |
Less current portion, principal | ' | 206,640 |
Less current portion, unamortized discount | ' | -14,477 |
Less current portion, net | ' | 192,163 |
Convertible notes payable, net of current portion, principal | ' | ' |
Convertible notes payable, net of current portion, unamortized discount | ' | ' |
Convertible notes payable, net of current portion, net | ' | ' |
Related Party | ' | ' |
Convertible notes payable, related, principal | 2,997,483 | 2,083,583 |
Convertible notes payable, related, unamortized discount | -795,659 | -105,006 |
Convertible notes payable, related, net | 2,201,824 | 1,978,577 |
Less current portion, related, principal | ' | 86,100 |
Less current portion, related, unamortized portion | ' | -6,839 |
Less current portion, related, net | ' | 79,261 |
Convertible and nonconvertible note payable, net of current portion, principal | 2,997,483 | 1,997,483 |
Convertible and nonconvertible note payable, net of current portion, unamortized discount | -795,659 | -98,167 |
Convertible and nonconvertible note payable, net of current portion, net | $2,201,824 | $1,899,316 |
STOCKHOLDERS_EQUITY_DEFICIT_Pr
STOCKHOLDERS' EQUITY (DEFICIT) (Preferred Stock) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
STOCKHOLDERS' EQUITY (DEFICIT) [Abstract] | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, par value per share | $0.00 | $0.00 |
STOCKHOLDERS_EQUITY_DEFICIT_Co
STOCKHOLDERS' EQUITY (DEFICIT) (Common Stock) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||||||||||
Oct. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 31, 2013 | Feb. 28, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Aug. 31, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Jun. 30, 2013 | Jul. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jan. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jan. 31, 2012 | Jun. 30, 2014 | 31-May-13 | Sep. 30, 2012 | Feb. 28, 2013 | Apr. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | |
Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Convertible Note [Member] | Convertible Note [Member] | Minimum [Member] | Maximum [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | Lincoln Park Capital Fund, LLC ("LPC") [Member] | Lincoln Park Capital Fund, LLC ("LPC") [Member] | Lincoln Park Capital Fund, LLC ("LPC") [Member] | Lincoln Park Capital Fund, LLC ("LPC") [Member] | Lincoln Park Capital Fund, LLC ("LPC") [Member] | Lincoln Park Capital Fund, LLC ("LPC") [Member] | COO and Principal Shareholder [Member] | COO and Principal Shareholder [Member] | COO and Principal Shareholder [Member] | COO and Principal Shareholder [Member] | COO and Principal Shareholder [Member] | COO and Principal Shareholder [Member] | COO and Principal Shareholder [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Director [Member] | Director [Member] | Director [Member] | ||||||
Warrant [Member] | Convertible Note [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock Purchase Agreement [Member] | Common Stock Purchase Agreement [Member] | Common Stock Purchase Agreement [Member] | Common Stock Purchase Agreement [Member] | Common Stock Purchase Agreement [Member] | Common Stock Purchase Agreement [Member] | Warrant [Member] | Convertible Note [Member] | Common Stock [Member] | Common Stock [Member] | Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | Warrant [Member] | |||||||||||||||||||||
Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Scenario, Plan [Member] | Scenario, Plan [Member] | Convertible Note [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock per agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued in connection with stock purchase agreement | ' | ' | ' | 570,000 | 810,003 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 570,000 | 810,003 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued in connection with stock purchase agreement, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 316,667 | 577,428 | 1,333,820 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares registered | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum proceeds from issuance of common stock per sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock | ' | ' | ' | 2,131,527 | 1,658,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,131,527 | 1,958,000 | ' | ' | ' | ' | 4,900,000 | ' | ' | ' | ' | ' | ' | 925,000 | 950,000 | ' | 280,000 | ' | ' | ' |
Shares of stock issued as a commitment fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pro-rata shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 320,810 | ' | ' | ' | ' | 450,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,352,726 | 3,914,321 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,434,060 | 1,910,714 | ' | 241,379 | ' | ' | ' |
Number of accredited investors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | 15 | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock and warrants issued for cash, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,575,579 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,817,932 | ' | ' | 200,000 | ' | ' | ' | ' |
Number of shares callable by warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000 | ' | ' | 1,258,378 | ' | ' | ' | ' | ' | ' | ' | ' | 312,500 | ' | ' | ' | 908,966 | ' | ' | 100,000 | ' | ' | ' | 350,000 |
Proceeds from the sale of stock and warrants through private placements | ' | ' | ' | 1,705,000 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,705,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,125,000 | ' | ' | 150,000 | ' | ' | ' | ' |
Common stock issued for interest, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,880 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 210,226 | 428,032 | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,440 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,579 | 149,811 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28-Sep-12 | ' | 1-Feb-14 | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on conversion of interest | ' | ' | ' | 201,175 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,204 | -201,175 | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.35 | $0.35 | ' | ' | ' | ' | ' | ' | ' | ' |
Fair market value, price per share | ' | ' | ' | ' | ' | ' | $1.57 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.57 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.37 | $0.82 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued upon exercise of warrants and options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,740,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from exercise of warrants and stock options | ' | 870,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised warrants | ' | ' | ' | ' | ' | ' | 45,000 | 1,640,000 | 20,000 | 1,865,000 | ' | ' | ' | ' | ' | ' | ' | 1,820,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of stock options, shares | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000 | 11,667 | ' |
Reduced exercise price of warrants and options | ' | $0.50 | $0.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original exercise price of warrants and options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.25 | $1.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of repricing warrants to induce exercise | ' | ' | 70,491 | ' | 70,491 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued upon exercise of warrants, shares | 80,000 | ' | ' | ' | ' | 20,000 | 9,171 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from exercise of warrants | 40,000 | ' | ' | 25,000 | 910,000 | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of shares called by warrants | $0.50 | ' | ' | ' | ' | $1.25 | $1.25 | ' | ' | ' | ' | ' | ' | ' | $1.25 | ' | $1.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.63 |
Proceeds from exercise of stock options | ' | ' | ' | 18,200 | 6,534 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,200 | 6,534 | ' |
Exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.91 | ' | ' |
Convertible notes payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $82,132 | $102,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $322,996 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible note conversions, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 234,663 | 205,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 665,992 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCKHOLDERS_EQUITY_DEFICIT_Re
STOCKHOLDERS' EQUITY (DEFICIT) (Restricted Stock Units) (Details) (Restricted Stock Units (RSUs) [Member], Former Executive Chairman [Member], USD $) | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2013 | Nov. 30, 2012 | Jun. 30, 2013 | |
Restricted Stock Units (RSUs) [Member] | Former Executive Chairman [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Equity instruments granted | ' | 800,000 | ' |
Immediately vested shares | ' | 200,000 | ' |
Vested shares upon generating $3,000,000 in revenue in any 12-month period | ' | 200,000 | ' |
Vested shares upon generating $5,000,000 in revenue in any 12-month period | ' | 200,000 | ' |
Vested shares upon generating $6,000,000 in revenue in any 12-month period | ' | 200,000 | ' |
Fair market value, price per share | $0.45 | ' | $0.45 |
Vesting of restricted stock units | ' | ' | $90,000 |
Cancelled shares | 200,000 | ' | ' |
Cancelled shares, grant date fair value | $196,000 | $90,000 | $196,000 |
STOCKHOLDERS_EQUITY_DEFICIT_Sc
STOCKHOLDERS' EQUITY (DEFICIT) (Schedule of Assumptions) (Details) (Stock Options [Member]) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk-free interest rate, minimum | 0.45% | 0.53% |
Risk-free interest rate, maximum | 2.61% | 2.49% |
Dividend yield | ' | ' |
Expected volatility, minimum | 89.98% | 89.67% |
Expected volatility, maximum | 91.94% | 93.11% |
Estimated annual forfeitures | ' | ' |
Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected term | '2 years 6 months | '2 years 6 months |
Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected term | '6 years 6 months | '10 years |
STOCKHOLDERS_EQUITY_DEFICIT_Sc1
STOCKHOLDERS' EQUITY (DEFICIT) (Schedule of Stock Options Activity) (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2012 | Feb. 28, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Employee Options and Stock Appreciation Rights [Member] | Employee Options and Stock Appreciation Rights [Member] | Employee Options and Stock Appreciation Rights [Member] | Employee Options and Stock Appreciation Rights [Member] | Options Issued to Directors [Member] | Options Issued to Directors [Member] | Options Issued to Directors [Member] | Non-Employee, Non-Director Options [Member] | Non-Employee, Non-Director Options [Member] | Non-Employee, Non-Director Options [Member] | ||
Number of Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance | ' | ' | 6,337,007 | 4,589,507 | ' | 1,200,833 | 857,500 | ' | 560,000 | 540,000 | ' |
Granted | ' | ' | 1,425,500 | 4,622,500 | ' | 495,000 | 610,000 | ' | 25,000 | 275,000 | ' |
Exercised | -100,000 | ' | ' | ' | ' | -20,000 | -11,667 | ' | ' | -100,000 | ' |
Forfeited | ' | -1,325,000 | ' | -2,875,000 | ' | ' | -255,000 | ' | -275,000 | ' | ' |
Expired | ' | ' | ' | ' | ' | ' | ' | ' | -35,000 | -155,000 | ' |
Outstanding | ' | ' | 7,762,007 | 6,337,007 | 4,589,507 | 1,675,833 | 1,200,833 | 857,500 | 275,000 | 560,000 | 540,000 |
Exercisable | ' | ' | 4,352,674 | 3,696,174 | ' | 1,389,168 | 795,168 | ' | 275,000 | 285,000 | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance | ' | ' | $0.75 | $1.04 | ' | $1.16 | $1.36 | ' | $1.22 | $1.16 | ' |
Granted | ' | ' | $1.34 | $0.55 | ' | $1.19 | $0.95 | ' | $1.11 | $1.23 | ' |
Exercised | ' | ' | ' | ' | ' | $0.91 | $0.56 | ' | ' | $0.50 | ' |
Forfeited | ' | ' | ' | $0.92 | ' | ' | $1.38 | ' | $1.23 | ' | ' |
Expired | ' | ' | ' | ' | ' | ' | ' | ' | $1.15 | $1 | ' |
Outstanding | ' | ' | $0.87 | $0.75 | $1.04 | $1.12 | $1.16 | $1.36 | $1.21 | $1.22 | $1.16 |
Exercisable | ' | ' | $0.93 | $0.90 | ' | $1.14 | $1.24 | ' | $1.21 | $1.21 | ' |
Weighted average fair value of options granted | ' | ' | $0.69 | $0.41 | ' | $0.76 | $0.72 | ' | $0.79 | $1 | ' |
Weighted Average Remaining Contractual Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted | ' | ' | '7 years 9 months 22 days | '9 years 7 months 21 days | ' | '10 years | '10 years | ' | '5 years | '10 years | ' |
Exercised | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' |
Outstanding | ' | ' | '5 years 11 months 23 days | '6 years 7 months 13 days | '5 years 11 months 12 days | '7 years 7 months 13 days | '8 years 15 days | '7 years 11 months 16 days | '1 year 8 months 12 days | '5 years 11 months 16 days | '3 years 1 month 21 days |
Exercisable | ' | ' | '4 years 6 months 18 days | '5 years 8 months 12 days | ' | '7 years 4 months 10 days | '7 years 3 months | ' | '1 year 8 months 12 days | '2 years 2 months 19 days | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding | ' | ' | $792,305 | $2,505,808 | ' | $8,337 | $165,386 | ' | ' | $6,250 | ' |
Exercisable | ' | ' | $265,364 | $1,056,738 | ' | $8,404 | $98,654 | ' | ' | ' | ' |
STOCKHOLDERS_EQUITY_DEFICIT_Na
STOCKHOLDERS' EQUITY (DEFICIT) (Narrative) (Options) (Details) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2008 | Jan. 31, 2007 | Jun. 30, 2014 | Sep. 30, 2012 | Feb. 28, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | Feb. 28, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Feb. 28, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Feb. 28, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2012 | Jul. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Jul. 31, 2013 | Jun. 30, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | Feb. 28, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Feb. 28, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jul. 31, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Jul. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2014 | Oct. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Feb. 28, 2013 | Nov. 30, 2012 | Nov. 30, 2012 | Nov. 30, 2012 | Nov. 30, 2012 | Nov. 30, 2012 | Aug. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | |
Maximum [Member] | Father of CEO and CTO [Member] | Former President [Member] | Director [Member] | Director [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | |||||||
Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Common Stock [Member] | Father of CEO and CTO [Member] | Father of CEO and CTO [Member] | Non-executive Employees [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Financial Officer [Member] | Chief Financial Officer [Member] | Chief Technology Officer [Member] | Chief Technology Officer [Member] | Former President [Member] | New Employee [Member] | New Employee [Member] | New Employee [Member] | New Employee [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Director [Member] | Director [Member] | Director [Member] | Director [Member] | Director [Member] | Director [Member] | Former Executive Chairman [Member] | Former Executive Chairman [Member] | Former Executive Chairman [Member] | Consultant [Member] | Consultant [Member] | Consultant [Member] | Consultant [Member] | Chief Executive Officer [Member] | Chief Financial Officer [Member] | Chief Technology Officer [Member] | Former President [Member] | Chief Executive Officer, Chief Technology Officer, Chief Financial Officer and Former President [Member] | New Employee [Member] | Former Executive Chairman [Member] | Former Executive Chairman [Member] | ||||||||||||||||
Equity Transaction One [Member] | Equity Transaction Two [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted | ' | ' | ' | ' | ' | ' | ' | 70,000 | 112,500 | ' | ' | ' | 1,425,500 | 4,622,500 | ' | ' | ' | ' | ' | ' | ' | 25,000 | 70,000 | 265,000 | 250,000 | 125,000 | 250,000 | 125,000 | 250,000 | 125,000 | 112,500 | 100,000 | ' | 50,000 | 50,000 | 5,000 | 90,500 | 100,000 | ' | 60,000 | 15,000 | 50,000 | 125,000 | 5,000 | 230,000 | ' | ' | ' | 5,000 | 20,000 | 125,000 | 150,000 | ' | 800,000 | 800,000 | 800,000 | 800,000 | 3,200,000 | 150,000 | ' | ' |
Options granted, exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.34 | $0.55 | ' | ' | ' | ' | ' | ' | ' | $1.30 | $0.63 | $0.60 | $1.30 | $1.10 | $1.30 | $1.10 | $1.30 | $1.10 | $0.39 | ' | ' | $1.25 | $1.75 | $0.77 | $0.72 | $1.30 | ' | $1.17 | $1.01 | $1.30 | $0.99 | $0.36 | $0.91 | ' | ' | ' | $0.85 | $1.18 | $1.10 | $1.33 | ' | $0.45 | $0.45 | $0.45 | $0.45 | ' | $1.52 | ' | ' |
Immediately vested shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 200,000 | 200,000 | 200,000 | 800,000 | 50,000 | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | '3 years | ' | '3 years | ' | '3 years | ' | '3 years | ' | ' | ' | '3 years | '3 years | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25,272 | $28,358 | $101,029 | ' | $317,963 | ' | $317,963 | ' | $317,963 | $43,875 | ' | ' | ' | ' | $2,044 | $34,610 | $69,452 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,962 | $16,670 | $119,618 | ' | ' | ' | ' | ' | ' | $1,086,560 | ' | ' | ' |
Volatility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 91.72% | 90.09% | 89.93% | 93.11% | 91.60% | 93.11% | 91.60% | 93.11% | 91.60% | 89.67% | ' | ' | 91.61% | 91.61% | ' | 90.96% | 91.72% | ' | 91.94% | 91.60% | 93.11% | 93.11% | 89.86% | 91.04% | ' | ' | ' | 89.96% | 91.94% | 91.60% | 93.11% | ' | ' | ' | ' | ' | 89.67% | 91.91% | ' | ' |
Expected term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 6 months | '2 years 6 months | ' | '6 years 6 months | '10 years | ' | '1 year 6 months | '4 years | '4 years | '6 years 6 months | '6 years 6 months | '6 years 6 months | '6 years 6 months | '6 years 6 months | '6 years 6 months | '9 years 5 months 1 day | ' | ' | '4 years | '4 years | '2 years 6 months | '2 years 6 months | '2 years 6 months | ' | '6 years 6 months | '5 years | '6 years 6 months | '6 years 6 months | '6 years 6 months | '5 years 6 months | ' | ' | ' | '5 years | '5 years | '10 years | '6 years 6 months | ' | ' | ' | ' | ' | '6 years 6 months | '4 years | ' | ' |
Discount rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.61% | 0.53% | 0.53% | 2.62% | 1.78% | 2.62% | 1.78% | 2.62% | 1.78% | 0.93% | ' | ' | 1.14% | 1.14% | 0.55% | 0.55% | 0.45% | ' | 1.89% | 1.62% | 2.67% | 1.25% | 0.90% | 0.82% | ' | ' | ' | 1.76% | 1.38% | 2.49% | 1.23% | ' | ' | ' | ' | ' | 0.93% | 1.97% | ' | ' |
Term | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | '5 years | '10 years | '10 years | '10 years | '10 years | '10 years | '10 years | '10 years | ' | ' | '5 years | '5 years | ' | '5 years | '5 years | ' | '10 years | '10 years | '10 years | '10 years | '10 years | '10 years | ' | ' | ' | '5 years | '5 years | '10 years | '10 years | ' | '10 years | '10 years | '10 years | '10 years | ' | '5 years | ' | ' |
Percentage of shares immediately vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage expensed immediately | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested shares upon generating $3,000,000 in revenue in any 12-month period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 200,000 | 200,000 | 200,000 | 170,000 | 33,334 | ' | ' |
Vested shares upon generating $5,000,000 in revenue in any 12-month period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 200,000 | 200,000 | 200,000 | 190,000 | 33,333 | ' | ' |
Vested shares upon generating $6,000,000 in revenue in any 12-month period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 33,333 | ' | ' |
Equity compensation expense | ' | 1,682,833 | 1,497,534 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,680,358 | 1,480,377 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 63,180 | ' | 63,180 | ' | 63,180 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 271,640 | ' | ' | ' |
Unrecognized compensation expense, period for recognition | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | '3 years | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | '18 months | '2 years | ' | ' |
Unrecognized compensation expense | ' | 836,656 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,413 | ' | ' | ' | ' | ' | ' | ' | 10,702 | ' | 287,405 | 1,360 | ' | ' | ' | ' | ' | ' | ' | 154,415 | ' | ' | ' | ' | ' | 814,920 | 176,413 | ' | ' |
Cancelled options | ' | ' | ' | ' | ' | ' | ' | ' | 2,125,000 | ' | ' | 1,325,000 | ' | 2,875,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 255,000 | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | 250,000 | 250,000 | 250,000 | ' | ' | ' |
Cancelled options, exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.92 | $0.67 | ' | ' | $1.22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.91 | $1.95 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancellation of stock appreciation rights grant under clawback provision, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | ' | ' | ' | ' | ' | ' | 800,000 | ' |
Other income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67,920 | ' | ' | ' | ' | ' | ' | ' | ' |
Terms of Award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'vest 50% upon the market value of the Company's common stock trading at or greater than $2.00 per share for any 10 day period out of a 30 day trading period and the other 50% vesting upon the market value of the Company's common stock trading at or greater than $3.00 per share for any 10 day period out of a 30 day trading period | ' | 'vest 50% upon the market value of the Company's common stock trading at or greater than $2.00 per share for any 10 day period out of a 30 day trading period and the other 50% vesting upon the market value of the Company's common stock trading at or greater than $3.00 per share for any 10 day period out of a 30 day trading period | ' | 'vest 50% upon the market value of the Company's common stock trading at or greater than $2.00 per share for any 10 day period out of a 30 day trading period and the other 50% vesting upon the market value of the Company's common stock trading at or greater than $3.00 per share for any 10 day period out of a 30 day trading period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized | ' | ' | 15,000,000 | 4,500,000 | 3,500,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Volatility, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 89.98% | 89.67% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.97% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Volatility, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 91.94% | 93.11% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.96% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' |
Exercised options | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | 20,000 | 11,667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from stock options exercised | ' | 18,200 | 6,534 | ' | ' | ' | ' | ' | ' | 18,200 | 6,534 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.91 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable, exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.93 | $0.90 | ' | ' | ' | ' | ' | ' | $1.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.45 |
Loss on stock option repricing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $391 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCKHOLDERS_EQUITY_DEFICIT_Sc2
STOCKHOLDERS' EQUITY (DEFICIT) (Schedule of Warrant Activity) (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Warrants Issued as Settlements [Member] | ' | ' | ' | ' | ' |
Number of Warrants | ' | ' | ' | ' | ' |
Balance | ' | ' | 350,000 | 344,508 | ' |
Granted | ' | ' | ' | 350,000 | ' |
Exercised | ' | ' | ' | ' | ' |
Forfeited | ' | ' | ' | ' | ' |
Expired | ' | ' | ' | -344,508 | ' |
Outstanding | ' | ' | 350,000 | 350,000 | 344,508 |
Exercisable | ' | ' | 350,000 | 350,000 | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' |
Balance | ' | ' | $0.63 | $1.05 | ' |
Granted | ' | ' | ' | $0.63 | ' |
Exercised | ' | ' | ' | ' | ' |
Forfeited | ' | ' | ' | ' | ' |
Expired | ' | ' | ' | $1.05 | ' |
Outstanding | ' | ' | $0.63 | $0.63 | $1.05 |
Exercisable | ' | ' | $0.63 | $0.63 | ' |
Weighted average fair value of warrants granted | ' | ' | ' | $0.33 | ' |
Remaining Contractual Life | ' | ' | ' | ' | ' |
Granted | ' | ' | ' | '5 years | ' |
Outstanding | ' | ' | '3 years 2 months 19 days | '4 years 2 months 19 days | '11 months 1 day |
Exercisable | ' | ' | '3 years 2 months 19 days | '4 years 2 months 19 days | ' |
Warrants Issued for Cash or Services [Member] | ' | ' | ' | ' | ' |
Number of Warrants | ' | ' | ' | ' | ' |
Balance | ' | ' | 1,533,700 | 4,461,200 | ' |
Granted | ' | ' | 1,863,421 | 362,500 | ' |
Exercised | -45,000 | -1,640,000 | -20,000 | -1,865,000 | ' |
Forfeited | ' | ' | ' | ' | ' |
Expired | ' | ' | -340,000 | -1,425,000 | ' |
Outstanding | ' | ' | 3,037,121 | 1,533,700 | 4,461,200 |
Exercisable | ' | ' | 3,037,121 | 1,533,700 | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' |
Balance | ' | ' | $1.25 | $1.46 | ' |
Granted | ' | ' | $1.58 | $1.16 | ' |
Exercised | ' | ' | $1.25 | $0.50 | ' |
Forfeited | ' | ' | ' | ' | ' |
Expired | ' | ' | $1.60 | $1.60 | ' |
Outstanding | ' | ' | $1.45 | $1.25 | $1.46 |
Exercisable | ' | ' | $1.45 | $1.25 | ' |
Weighted average fair value of warrants granted | ' | ' | ' | $0.44 | ' |
Remaining Contractual Life | ' | ' | ' | ' | ' |
Granted | ' | ' | '3 years 6 months 11 days | '10 years | ' |
Outstanding | ' | ' | '2 years 8 months 23 days | '2 years 22 days | '2 years 5 months 16 days |
Exercisable | ' | ' | '2 years 8 months 23 days | '2 years 22 days | ' |
STOCKHOLDERS_EQUITY_DEFICIT_Na1
STOCKHOLDERS' EQUITY (DEFICIT) (Narrative) (Warrant) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||||||||
Oct. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Feb. 28, 2013 | Aug. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | 31-May-13 | Sep. 30, 2012 | 31-May-13 | Oct. 31, 2013 | Jul. 31, 2013 | Oct. 31, 2013 | Jul. 31, 2013 | Oct. 31, 2013 | |
Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Maximum [Member] | Chief Operating Officer [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | |||||
Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Minimum [Member] | Maximum [Member] | Director [Member] | Director [Member] | Investor Relations Firm [Member] | Chief Operating Officer [Member] | Investor [Member] | Investor [Member] | Principal Stockholder [Member] | Principal Stockholder [Member] | Director and his wife [Member] | ||||||||||||||
Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | |||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | '5 years | '5 years | '5 years | '5 years | '5 years | '5 years | '5 years |
Number of shares callable by warrants | ' | ' | ' | ' | ' | 45,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000 | ' | 50,000 | 312,500 | 120,000 | 29,412 | 100,000 | 500,000 | 200,000 |
Exercise price of shares called by warrants | $0.50 | ' | ' | ' | $1.25 | $1.25 | ' | ' | ' | $1.25 | $1.25 | ' | ' | ' | ' | ' | ' | ' | $0.63 | ' | $0.63 | $1.25 | $1 | $1.30 | $1 | $1.30 | $1 |
Fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $115,883 | ' | $21,787 | ' | ' | ' | ' | ' | ' |
Volatility rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.09% | ' | 90.09% | ' | ' | ' | ' | ' | ' |
Expected term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 6 months | ' | '5 years | ' | ' | ' | ' | ' | ' |
Discount rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.32% | ' | 0.70% | ' | ' | ' | ' | ' | ' |
Warrants expired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 340,000 | 1,425,000 | 360,000 | 1,425,000 | ' | ' | ' | 344,058 | ' | ' | ' | ' | ' | ' | ' |
Warrants expired, exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.60 | $1.60 | $1.25 | $1.60 | ' | ' | ' | $1.05 | ' | ' | ' | ' | ' | ' | ' |
Warrants exercised, shares issued | ' | ' | ' | ' | 20,000 | 9,171 | 1,820,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from exercise of warrants | 40,000 | ' | 25,000 | 910,000 | 25,000 | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000 | 1,640,000 | 20,000 | 1,865,000 | ' | 1,820,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants exercised, exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.25 | $0.50 | ' | $0.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants exercisable, exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.45 | $1.25 | ' | ' | $1.25 | $1.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of repricing warrants to induce exercise | ' | 70,491 | ' | 70,491 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair market value, price per share | ' | ' | ' | ' | ' | $1.57 | ' | ' | $0.37 | ' | $1.57 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible note, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000,000 | ' |
STOCKHOLDERS_EQUITY_DEFICIT_Op
STOCKHOLDERS' EQUITY (DEFICIT) (Options to Purchase Common Stock and Stock Appreciation Rights) (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
STOCKHOLDERS' EQUITY (DEFICIT) [Abstract] | ' | ' |
Share-based compensation expense | $1,682,833 | $1,497,534 |
Unrecognized compensation expense | $836,656 | ' |
Unrecognized compensation cost, period for recognition | '5 years | ' |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Operating Loss Carryforwards [Line Items] | ' |
Net operating loss carryforwards | $28,578,798 |
Increase in valuation allowance | $2,155,025 |
Maximum [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Operating loss carry-forward expiration date | 30-Jun-34 |
INCOME_TAXES_Schedule_of_Defer
INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
INCOME TAXES [Abstract] | ' | ' |
Net operating loss carryforward | $10,754,202 | $8,817,486 |
Allowance for bad debt | 38,051 | 15,250 |
Stock-based compensation | 1,493,004 | 1,304,426 |
Less: Deferred tax liability - depreciation | -2,627 | -9,557 |
Net deferred tax assets | 12,282,630 | 10,127,605 |
Less valuation allowance | -12,282,630 | -10,127,605 |
Net deferred tax assets | ' | ' |
INCOME_TAXES_Schedule_of_Recon
INCOME TAXES (Schedule of Reconciliation of Provision (Benefit) for Income Taxes) (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Amount | ' | ' |
Tax at U.S. statutory rate | ($2,401,741) | ($1,775,395) |
State taxes, net of federal benefit | -255,305 | -188,025 |
Other | 502,021 | -66,830 |
Change in valuation allowance | 2,155,025 | 2,030,250 |
Total income tax expense (benefit) | ' | ' |
Percentage | ' | ' |
Tax at U.S. statutory rate | -34.00% | -34.00% |
State taxes, net of federal benefit | -3.61% | -3.60% |
Other | 7.10% | -1.28% |
Change in valuation allowance | 30.51% | 38.88% |
Total effective income tax rate | 0.00% | 0.00% |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2012 | Feb. 28, 2013 | Jun. 30, 2013 | Feb. 28, 2013 | Feb. 28, 2013 |
Warrant [Member] | Warrant [Member] | CEO and CTO's Father [Member] | CEO and CTO's Father [Member] | CEO's sister-in-law [Member] | CEO and CTO's Mother [Member] | Director [Member] | President [Member] | President [Member] | President [Member] | President [Member] | |||
Warrant [Member] | Minimum [Member] | Maximum [Member] | |||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weekly salary amount | ' | ' | ' | ' | ' | $2,123 | $1,092 | $600 | ' | ' | ' | ' | ' |
Severance expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000 | 168,920 | ' | ' |
Exercise price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.39 | ' | $0.45 | $1.22 |
Options granted | ' | ' | ' | ' | 70,000 | ' | ' | ' | ' | 112,500 | ' | ' | ' |
Granted, number of warrants | ' | ' | 1,863,421 | 362,500 | ' | ' | ' | ' | 350,000 | ' | ' | ' | ' |
Forfeited, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,125,000 | ' | ' | ' |
Accrual for severance agreement | ' | $102,056 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares callable by warrants | ' | ' | ' | ' | ' | ' | ' | ' | 350,000 | ' | ' | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||
Jun. 30, 2013 | Jun. 30, 2012 | Nov. 30, 2012 | Nov. 14, 2012 | Nov. 30, 2012 | Nov. 30, 2012 | Nov. 30, 2012 | Jul. 31, 2012 | Jun. 30, 2012 | Jan. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2012 | Jan. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2012 | Aug. 31, 2011 | Feb. 28, 2014 | Feb. 28, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Executive Chairman [Member] | Executive Chairman [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Restricted Stock Units (RSUs) [Member] | Loss Contingency Invasion Of Privacy And Misrepresentation [Member] | Loss Contingency Invasion Of Privacy And Misrepresentation [Member] | Loss Contingency Breach Of Agreement [Member] | Loss Contingency Breach Of Agreement [Member] | Loss Contingency Trespass Claim [Member] | Loss Contingency Civil Theft [Member] | Loss Contingency Civil Theft [Member] | Loss Contingency Civil Theft Law Enforced Settlement [Member] | Settlement Agreement With Former Shareholder [Member] | Juniper, Florida Office and Warehouse [Member] | Juniper, Florida Office and Warehouse [Member] | Juniper, Florida Office and Warehouse [Member] | Juniper, Florida Office and Warehouse [Member] | |||
Chief Executive Officer, Chief Technology Officer, Chief Financial Officer and Former President [Member] | Chief Financial Officer [Member] | Executive Chairman [Member] | ||||||||||||||||||
Operating Leased Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $169,547 | $143,614 |
Monthly rent payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 | 3,600 | ' | ' |
Lease terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
Lease expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Aug-14 | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation accrual | ' | 1,646,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation, damages awarded | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | 500,000 | 841,000 | 5,000 | ' | 200,000 | 600,000 | ' | ' | ' | ' | ' |
Litigation, provision | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000 | ' | ' | ' | ' |
Damages paid to plaintiff by insurance carrier | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of litigation expense that was dismissed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' |
Loss contingency accrual, period increase (decrease) | ' | ' | ' | ' | ' | ' | ' | ' | -200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income | 941,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Loss in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Immediately vested shares | ' | ' | ' | ' | 800,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested shares upon generating $3,000,000 in revenue in any 12-month period | ' | ' | ' | ' | 170,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested shares upon generating $6,000,000 in revenue in any 12-month period | ' | ' | ' | ' | 200,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested shares upon generating $5,000,000 in revenue in any 12-month period | ' | ' | ' | ' | 190,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted | ' | ' | ' | ' | 3,200,000 | 800,000 | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancelled options | ' | ' | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Monthly car allowance | ' | ' | 600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual base salary per executive | ' | ' | ' | $200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employment agreement term | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted, exercise price | ' | ' | ' | ' | ' | $0.45 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONCENTRATIONS_Details
CONCENTRATIONS (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Concentration Risk [Line Items] | ' | ' |
Cash balance not insured by the FDIC | ' | ' |
Accounts Receivable [Member] | Customer One Concentration Risk [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage | 24.40% | 39.20% |
Accounts Receivable [Member] | Customer Two Concentration Risk [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage | 16.10% | 13.90% |
Accounts Receivable [Member] | Customer Three Concentration Risk [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage | 10.40% | 11.60% |
Sales Revenue [Member] | Emergency Manhole Fire Ice Delivery System [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage | 52.20% | ' |
Sales Revenue [Member] | Fire Ice Products [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage | 27.40% | 38.80% |
Sales Revenue [Member] | Soil Twoo Dust Control Products [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage | 19.20% | 43.50% |
Sales Revenue [Member] | Paid For Research And Development [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage | 1.27% | 17.70% |
Sales Revenue [Member] | Customer One Concentration Risk [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage | 60.70% | 36.30% |
Sales Revenue [Member] | Customer Two Concentration Risk [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage | ' | 32.40% |
Inventory purchases [Member] | Supplier One Concentration Risk [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage | 35.30% | 50.80% |
Total EMFIDS parts, raw material and packaging purchases made during the period | 226,000 | 142,000 |
Inventory purchases [Member] | Supplier Two Concentration Risk [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage | 12.60% | 11.50% |
Total EMFIDS parts, raw material and packaging purchases made during the period | 81,000 | 32,000 |
Inventory purchases [Member] | Supplier Three Concentration Risk [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage | 10.00% | ' |
Total EMFIDS parts, raw material and packaging purchases made during the period | 64,000 | ' |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Oct. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | 31-May-13 | Oct. 31, 2013 | Sep. 30, 2013 | Jul. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2012 | Sep. 30, 2012 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | |
Private Placement [Member] | Stock Options [Member] | Stock Options [Member] | Warrants [Member] | Warrants [Member] | COO and Principal Shareholder [Member] | COO and Principal Shareholder [Member] | Director [Member] | Director [Member] | Director [Member] | Director [Member] | Director [Member] | Director [Member] | Director [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||
Private Placement [Member] | Warrants [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Warrants [Member] | Private Placement [Member] | Warrants [Member] | COO and Principal Shareholder [Member] | COO and Principal Shareholder [Member] | Director [Member] | |||||||||
Private Placement [Member] | Private Placement [Member] | Convertible Note [Member] | Stock Options [Member] | |||||||||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued for interest, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 107,143 | ' |
Accrued interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $75,000 | ' |
Options granted | ' | ' | ' | ' | 1,425,500 | 4,622,500 | ' | ' | ' | ' | 60,000 | 15,000 | 50,000 | 125,000 | 5,000 | 230,000 | ' | ' | ' | ' | ' | 470,000 |
Options granted, exercise price | ' | ' | ' | ' | $1.34 | $0.55 | ' | ' | ' | ' | $1.17 | $1.01 | $1.30 | $0.99 | $0.36 | $0.91 | ' | ' | ' | ' | ' | $0.70 |
Vesting date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Jun-15 |
Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '10 years | '10 years | '10 years | '10 years | '10 years | '10 years | '5 years | ' | '2 years | ' | ' | '10 years |
Volatility rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 91.94% | 91.60% | 93.11% | 93.11% | 89.86% | 91.04% | 90.09% | ' | ' | ' | ' | 88.55% |
Expected term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years 6 months | '5 years | '6 years 6 months | '6 years 6 months | '6 years 6 months | '5 years 6 months | '2 years 6 months | ' | ' | ' | ' | '5 years 6 months |
Discount rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.89% | 1.62% | 2.67% | 1.25% | 0.90% | 0.82% | 0.32% | ' | ' | ' | ' | 1.79% |
Common stock and warrants issued for cash, shares | ' | ' | ' | 2,575,579 | ' | ' | ' | ' | 1,817,932 | ' | ' | ' | ' | ' | ' | ' | ' | 1,855,188 | ' | 1,603,087 | ' | ' |
Number of shares callable by warrants | ' | ' | ' | 1,258,378 | ' | ' | ' | ' | 908,966 | 312,500 | ' | ' | ' | ' | ' | ' | 350,000 | 906,586 | ' | 801,544 | ' | ' |
Exercise price of shares called by warrants | ' | ' | $0.50 | ' | ' | ' | $1.25 | $1.25 | ' | $1.25 | ' | ' | ' | ' | ' | ' | $0.63 | $2 | ' | ' | ' | ' |
Proceeds from the sale of stock and warrants through private placements | $1,705,000 | $300,000 | ' | $1,705,000 | ' | ' | ' | ' | $1,125,000 | ' | ' | ' | ' | ' | ' | ' | ' | $1,025,000 | ' | $850,000 | ' | ' |