Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Mar. 31, 2015 | 8-May-15 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Entity Registrant Name | GelTech Solutions, Inc. | |
Entity Central Index Key | 1403676 | |
Current Fiscal Year End Date | -24 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2015 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 47,585,843 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
Current assets | ||
Cash and cash equivalents | $77,146 | $66,266 |
Trade accounts receivable, net | 77,237 | 35,276 |
Inventories | 1,056,740 | 843,864 |
Prepaid expenses and other current assets | 98,443 | 88,836 |
Total current assets | 1,309,566 | 1,034,242 |
Furniture, fixtures and equipment, net | 145,428 | 175,751 |
Deposits | 16,086 | 30,086 |
Total assets | 1,471,080 | 1,240,079 |
Current liabilities | ||
Accounts payable | 173,171 | 228,063 |
Accrued expenses | 136,395 | 189,933 |
Litigation accrual | 56,956 | 505,000 |
Insurance premium finance contract | 35,295 | 13,574 |
Total current liabilities | 401,817 | 936,570 |
Convertible secured notes - related party, net of discounts | 2,938,386 | 2,201,824 |
Convertible secured line of credit - related party, net of discounts | 591,907 | |
Total liabilities | 3,932,110 | 3,138,394 |
Commitments and contingencies (Note 5) | ||
Stockholders' equity (deficit) | ||
Preferred stock: $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding | ||
Common stock: $0.001 par value; 100,000,000 shares authorized; 47,329,925 and 40,301,979 shares issued and outstanding as of March 31, 2015 and June 30, 2014, respectively. | 47,330 | 40,302 |
Additional paid in capital | 36,443,477 | 33,194,961 |
Accumulated deficit | -38,951,837 | -35,133,578 |
Total stockholders' equity (deficit) | -2,461,030 | -1,898,315 |
Total liabilities and stockholders' equity (deficit) | $1,471,080 | $1,240,079 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
CONDENSED 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 | 100,000,000 | 100,000,000 |
Common stock, shares issued | 47,329,925 | 40,301,979 |
Common stock, shares outstanding | 47,329,925 | 40,301,979 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||||
Sales | $100,357 | $122,038 | $367,119 | $717,884 |
Cost of goods sold | 34,812 | 44,661 | 127,228 | 306,734 |
Gross profit | 65,545 | 77,377 | 239,891 | 411,150 |
Operating expenses: | ||||
Selling, general and administrative expenses | 1,072,676 | 1,296,995 | 3,501,373 | 5,223,267 |
Research and development | 10,982 | 96,861 | 106,787 | 234,692 |
Total operating expenses | 1,083,658 | 1,393,856 | 3,608,160 | 5,457,959 |
Loss from operations | -1,018,113 | -1,316,479 | -3,368,269 | -5,046,809 |
Other income (expense) | ||||
Other income | 200 | 448,622 | 17,000 | |
Interest income | 2 | 14 | 18 | 274 |
Gain (loss) on conversion of interest | 12,841 | -201,175 | 12,841 | -201,175 |
Loss on extinguishment of debt | -596,648 | -596,648 | ||
Loss on settlement | -11,413 | |||
Interest expense | -88,216 | -111,795 | -314,823 | -351,559 |
Total other income (expense) | -671,821 | -312,956 | -449,990 | -546,873 |
Net loss | ($1,689,934) | ($1,629,435) | ($3,818,259) | ($5,593,682) |
Net loss per common share - basic and diluted | ($0.04) | ($0.04) | ($0.09) | ($0.16) |
Weighted average shares outstanding - basic and diluted | 46,982,084 | 37,539,224 | 44,419,146 | 35,403,321 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities | ||
Net loss | ($3,818,259) | ($5,593,682) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 40,703 | 41,391 |
Amortization of debt discounts | 140,363 | 173,490 |
Bad debt expense | 4,719 | 5,801 |
Employee stock option compensation expense | 658,527 | 1,438,050 |
Loss on extinguishment of debt | 596,648 | |
Loss on disposal of assets | 11,413 | |
(Gain) loss on stock issued for interest | -12,841 | 201,175 |
Changes in assets and liabilities: | ||
Accounts receivable | -46,680 | -52,355 |
Inventories | -212,876 | -259,781 |
Prepaid expenses and other current assets | 80,318 | -15,687 |
Other assets | 14,000 | |
Accounts payable | -54,892 | -64,280 |
Accrued expenses | 171,273 | 133,315 |
Litigation accrual | -448,044 | |
Accrual for severance agreement | -98,537 | |
Deferred revenue | -7,019 | |
Net cash used in operating activities | -2,887,041 | -4,086,706 |
Cash flows from Investing Activities | ||
Purchases of equipment | -10,380 | -72,851 |
Net cash used in investing activities | -10,380 | -72,851 |
Cash flows from Financing Activities | ||
Proceeds from sale of stock through private placements | 46,505 | 2,038,538 |
Proceeds from sale of stock under stock purchase agreement | 570,000 | |
Proceeds from sale of stock and warrants | 2,305,000 | 730,000 |
Proceeds from exercise of warrants | 25,000 | |
Proceeds from exercise of stock options | 18,200 | |
Proceeds from advances on secured convertible line of credit - related party | 625,000 | |
Repayments of convertible notes with related parties | -85,880 | |
Repayments of convertible notes with third parties | -115,822 | |
Proceeds from convertible notes with related parties | 1,000,000 | |
Payments on insurance finance contract | -68,204 | -39,705 |
Net cash provided by financing activities | 2,908,301 | 4,140,331 |
Net increase (decrease) in cash and cash equivalents | 10,880 | -19,226 |
Cash and cash equivalents - beginning | 66,266 | 90,275 |
Cash and cash equivalents - ending | 77,146 | 71,049 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for interest | 2,353 | 2,911 |
Cash paid for income taxes | ||
Supplementary Disclosure of Non-cash Investing and Financing Activities: | ||
Financing of prepaid insurance contracts | 89,925 | 92,846 |
Beneficial conversion feature of convertible notes | 16,771 | 311,949 |
Loan discount from warrants | 601,949 | |
Stock issued for interest payable | 224,811 | 149,811 |
Conversion of notes for common stock | $82,132 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 9 Months Ended | |||||
Mar. 31, 2015 | ||||||
Organization and Basis of Presentation [Abstract] | ||||||
Organization and Basis of Presentation | NOTE 1 – Organization and Basis of Presentation | |||||
Organization | ||||||
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. In addition to the sale of FireIce® and Soil2O® “Dust Control” product, the Company also sells equipment such as eductors and extinguishers which are used to dispense our products. 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 amount of water needed for irrigation 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. | ||||||
Basis of Presentation | ||||||
The accompanying unaudited condensed 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. These unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (”SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by "GAAP" for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The information included in these unaudited condensed consolidated interim financial statements should be read in conjunction with Management's Discussion and Analysis of Financial Conditions and Results of Operations contained in this report and the audited consolidated financial statements and accompanying notes included in the Company's Annual Report on Form 10-K for the year ended June 30, 2014 filed on September 29, 2014. | ||||||
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. During the nine months ended March 31, 2015, the Company increased the provision for bad debt in the amount of $4,019 and then wrote-off accounts receivable in the amount of $34,803 against the allowance for bad debt. | ||||||
Inventories | ||||||
Inventories as of March 31, 2015 consisted of raw materials and finished goods in the amounts of $584,247 and $472,493, respectively. | ||||||
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 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 for the three and nine months ended March 31, 2015 include the allowance for doubtful accounts, depreciation and amortization, valuation of inventories, valuation of options and warrants granted for services or settlements, valuation of common stock granted for services or debt conversion, valuation of debt discount related to the beneficial conversion feature of convertible notes, 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, “Earnings per Share.” 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 stockholders 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. The Company's diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive. At March 31, 2015, there were options to purchase 10,245,340 shares of the Company's common stock, warrants to purchase 7,665,271 shares of the Company's common stock and 10,969,864 shares of the Company's common stock are reserved for convertible notes which may dilute future earnings per share. | ||||||
Stock-Based Compensation | ||||||
The Company accounts for employee stock-based compensation in accordance with ASC 718-10, “Share-Based Payment,” 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 employee stock purchases based on estimated fair values. | ||||||
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. | ||||||
The Company estimates volatility based upon the historical stock price of the Company and estimates the expected term for employee stock options using the simplified method for employees and directors and the contractual term for non-employees. The risk free rate is determined based upon the prevailing rate of United States Treasury securities with similar maturities. | ||||||
The fair values of stock option and warrant grants for the period from July 1, 2014 to March 31, 2015 were estimated using the following assumptions: | ||||||
Risk free interest rate | 0.58% - 1.79% | |||||
Expected term (in years) | 2.0 - 5.5 | |||||
Dividend yield | –– | |||||
Volatility of common stock | 80.5% - 88.55% | |||||
Estimated annual forfeitures | –– | |||||
New Accounting Pronouncements | ||||||
Accounting Standards Updates which were not effective until after March 31, 2015 are not expected to have a significant effect on the Company's consolidated financial position or results of operations. | ||||||
Going_Concern
Going Concern | 9 Months Ended |
Mar. 31, 2015 | |
Going Concern [Abstract] | |
Going Concern | NOTE 2 – Going Concern |
These unaudited condensed consolidated financial statements have been prepared on a going concern basis, which assumes the Company will continue to realize it assets and discharge its liabilities in the normal course of business. As of March 31, 2015, the Company had an accumulated deficit and stockholders' deficit of $38,951,837 and $2,461,030, respectively, and incurred losses from operations of $3,368,269 for the nine months ended March 31, 2015 and used cash in operations of $2,887,041 during the nine months ended March 31, 2015. 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. | |
Management believes that the actions presently being taken which consist of cost cutting measures, improved marketing focus and a strategy to raise capital primarily from insiders on an as needed basis, provide the opportunity for the Company to continue as a going concern. Ultimately, the continuation of the Company as a going concern is dependent upon the ability of the Company to generate sufficient revenue to attain profitable operations. These unaudited condensed 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. | |
Convertible_Note_Agreements
Convertible Note Agreements | 9 Months Ended |
Mar. 31, 2015 | |
Convertible Note Agreements [Abstract] | |
Convertible Note Agreements | NOTE 3 – Convertible Note Agreements |
The Company currently has three debt facilities outstanding, all of them held by its President and principal shareholder. | |
One convertible note in the amount of $1,997,483, dated February 1, 2013 was a consolidation of prior debt instruments. The note bore annual interest of 7.5%, was convertible at $0.35 per share and due December 31, 2016. On February 12, 2015, this note was modified by securing the note with all the assets of the Company and by extending the due date of the note from December 31, 2016 to December 31, 2020. The modification was accounted for as a debt extinguishment in accordance with ASC 470. As a result of the modification the Company recorded a loss on extinguishment of debt of $34,586. During the nine months ended March 31, 2015, the Company recognized interest expense of $23,052 related to the amortization of the discount resulting from the beneficial conversion feature of the note. In February 2015, the Company issued 428,032 shares of common stock to its President and principal shareholder in payment of accrued interest of $149,811. The stock was valued at $0.32 per share or $136,970. As such, the Company recorded a gain on settlement of $12,841 which was included in other income. As of March 31, 2015, the principal balance of the note is $1,997,483 and accrued interest amounted to $18,880. | |
A second convertible note in the amount of $1,000,000 dated July 11, 2013 related to a new funding on that date. The note bore annual interest of 7.5%, was convertible at $1.00 per share and was due July 10, 2018. In connection with the note, the Company issued five–year warrants to purchase 500,000 shares of common stock at an exercise price of $1.30 per share. On February 12, 2015, this note was modified by securing the note with all the assets of the Company, by extending the due date of the note from July 10, 2018 to December 31, 2020 and by reducing the conversion rate of the note from $1.00 to $0.35 per share. The modification was accounted for as a debt extinguishment in accordance with ASC 470. As a result of the modification, the Company recorded a loss on extinguishment of debt of $562,062. Also, in connection with the modification the Company recorded a note discount of $60,390, related to the relative fair value of the warrants attached to the note. This discount will be amortized over the remaining term of the note. For the nine months ended March 31, 2015 the Company recorded interest expense of $70,915 and $36,750 related to the amortization of the discounts related to the beneficial conversion feature and the warrants, respectively, of the note originated in July 2013. Since the modification of the note, the Company has recorded interest expense of $1,238 related to the amortization of the discount on the modified note. As of March 31, 2015, the balance of the unamortized discount related to the warrants was $59,097. In July 2014, the Company issued 107,143 shares of common stock to its President and principal shareholder in payment of accrued interest of $75,000 on this convertible note (see Note 4). As of March 31, 2015, the principal balance on this note is $1,000,000 and accrued interest amounted to $54,247. | |
In connection with the debt modifications described above, the Company entered into a secured convertible line of credit agreement for up to $4 million with its President and principal shareholder. Under the agreement, the Company may, with the prior approval of its President and principal shareholder, receive advances under the secured convertible line of credit. Each advance bears an annual interest rate of 7.5%, is due December 31, 2020 and is convertible at the rate equal to the closing price of the Company's common stock on the day prior to the date the parties agree to the advance. In addition, the Company will issue the Company's President and principal shareholder two year warrants to purchase shares of common stock at an exercise price of $2.00 per share. The number of warrants issued equals 50% of the number of shares issuable upon the conversion of the related advance. | |
From February 13, 2015 through March 31, 2015, the Company received four advances totaling $625,000 with conversion rates between $0.24 and $0.27 per share, and issued two warrants to purchase 1,202,814 shares of common stock at an exercise price of $2.00 per share. In connection with these advances, the Company has recorded loan discounts related to the warrants and the beneficial conversion features of the advances amounting to $16,771 and $16,771, respectively. During the nine months ended March 31, 2015, the Company has recognized interest expense of $449 related to the amortization of these loan discounts. As of March 31, the principal balance of the advances is $625,000 and the balance of the unamortized discounts related to the warrants and the beneficial conversion feature was $16,547 and $16,546, respectively. | |
The calculated loan discounts was based on the relative fair value of the warrants which was calculated by the Company using the Black Scholes option pricing model loan discount, using volatilities of between 80.5% and 87.3%, based on the Company's historical stock price, discount rates from 0.58% to 0.70%, and expected terms of 2 years, the term of the warrants. | |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended |
Mar. 31, 2015 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | NOTE 4 – Stockholders' Equity |
Preferred Stock | |
The Company has authorized 5,000,000 shares of preferred stock, par value $0.001 per share with such rights, preferences and limitation 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 General Corporation Law. | |
Common Stock | |
During the three months ended March 31, 2015, the Company issued 652,174 shares of common stock and two year warrants to purchase 326,087 shares of common stock at an exercise price of $2.00 per share in exchange for $150,000 in connection with private placements with our President and principal stockholder. | |
On February 2, 2015, the Company issued 428,032 shares of common stock to its president and principal shareholder as payment for annual accrued interest of $149, 811 related to convertible note agreement dated February 1, 2013. In accordance with the convertible note, the conversion rate for the accrued interest was $0.35 per shares. The fair market value of the Company's common stock was $0.32 on the date of conversion. As such the Company recorded other income of $12,841 for the three months ended March 31, 2015 in connection with the interest conversion. | |
During the three months ended December 31, 2014 the Company issued 3,525,269 shares of common stock and two year warrants to purchase 1,762,635 shares of common stock at an exercise price of $2.00 per share in exchange for $1,055,000 in connection with private placements with three accredited investors, including the issuance of 915,968 shares and 457,984 warrants to its President and principal shareholder in exchange for $250,000. | |
In December 2014, the Company issued 110,000 shares of common stock to two directors in exchange for $21,505. | |
During the three months ended September 30, 2014, the Company issued 2,205,328 shares of common stock and two year warrants to purchase 1,081,656 shares of common stock at an exercise price of $2.00 per shares in exchange for $1,125,000 in connection with private placements with three accredited investors, including the issuance of 1,953,227 shares and 976,614 warrants to its President and principal shareholder in exchange for $975,000. | |
In July 2014, the Company issued 107,143 shares of common stock to its President and principal shareholder in payment of accrued interest of $75,000 on a $1 million convertible note (see Note 3). | |
Options to Purchase Common Stock | |
Stock-based compensation expense recognized under ASC 718-10 for the period July 1, 2014 to March 31, 2015, was $642,209 for stock options granted to employees and directors. This expense is included in selling, general and administrative expenses in the unaudited condensed 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 March 31, 2015, the total compensation cost for stock options not yet recognized was approximately $445,236. This cost will be recognized over the remaining vesting term of the options of approximately two years. | |
Employee Options and Stock Appreciation Rights | |
In December 2014, the Company granted employees five year options to purchase a total of 215,000 shares of common stock at an exercise price of $0.23 per share. The options vested 25% immediately, with the remainder vesting in equal increments of 25% each year on the grant date over three years. The Company valued the options at $31,145 using the Black-Scholes option pricing model using a volatility of 87.78%, based upon the historical price of the Company's common stock, an estimated term of 4.0 years, using the Simplified Method and a discount rate of 1.31%. | |
In August 2014, the Company granted two summer employees five year options allowing each employee to purchase 1,000 shares of common stock at an exercise price of $0.66 per share. The options all vested immediately. The Company valued the options at $682 using the Black-Scholes option pricing model using a volatility of 87.99%, based upon the historical price of the Company's common stock, an estimated term of 2.5 years, using the Simplified Method and a discount rate of 0.63%. | |
Options Issued to Directors | |
As prescribed by the Company's 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 $0.73 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, an expected term of 5.5 years (using the simplified method) and a discount rate of 1.79%. The value of these options of $245,441 will be recognized as expense over the one year vesting period. | |
On January 23, 2015, the Company issued 10 year options to purchase 10,000 shares of the Company's common stock at an exercise price of $0.27 per share to a director in connection with his appointment as audit committee chairman. The options vest annually over a three year period on the anniversary of the grant, subject to continued service as the audit committee chairman. The Company valued the options at $1,974 using the Black-Scholes option pricing model using a volatility of 84.16%, based upon the historical price of the Company's common stock, an estimated term of 6.5 years, using the Simplified Method, and a discount rate of 1.61%. The fair value will be recognized in expense over the vesting period of the options. | |
Non-Employee, Non-Director Options | |
During the nine months ended March 31, 2015, there were no options granted to non-employees or non-directors. | |
Warrants to Purchase Common Stock | |
Warrants Issued as Settlements | |
During the nine months ended March 31, 2015, there were no warrants granted for settlements. | |
Warrants Issued for Cash or Services | |
During the three months ended March 31, 2015, the Company issued two year warrants to purchase 1,202,814 shares of common stock at an exercise price at $2.00 per share in connection with advances from its President and principal shareholder pursuant to a secured convertible line of credit agreement. | |
On March 17, 2015, the Company issued five year warrants to purchase 10,000 shares of common stock at an exercise price of $0.25 per share to a consultant in connection with services provided to our wildland firefighting efforts. The Company valued the warrants at $1,667 using the Black-Scholes option pricing model using a volatility of 84.08%, based upon the historical price of the Company's common stock, an estimated term of 5 years, the term of the warrants, and a discount rate of 1.61%. The warrants vested immediately and therefore the fair value was recognized in expense during the three months ending March 31, 2015. | |
During the three months ended March 31, 2015, the Company issued two year warrants to purchase 326,087 shares of common stock at an exercise price of $2.00 per share in connection with a private placement with its President and principal shareholder. | |
On January 23, 2015, the Company granted 5 year warrants to purchase 100,000 shares of the Company's common stock in exchange for legal services. The warrants vest immediately and are exercisable at $0.27 per share. The Company valued the warrants at $17,611 using the Black-Scholes option pricing model using a volatility of 81.85%, based upon the historical price of the Company's common stock, an estimated term of 5 years, the term of the warrants, and a discount rate of 1.39%. The warrants vested immediately and therefore the fair value was recognized in expense during the three months ending March 31, 2015. | |
During the three months ended December 31, 2014, the Company issued two year warrants to purchase 1,762,635 shares of common stock at an exercise price of $2.00 per share in connection with private placements with three accredited investors, including the issuance of 457,984 warrants to its President and principal shareholder. | |
During the three months ended September 30, 2014, the Company issued two year warrants to purchase 1,081,656 shares of common stock at an exercise price of $2.00 per share in connection with private placements with three accredited investors, including the issuance of 976,614 warrants to its President and principal shareholder. | |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | NOTE 5 – Commitments and Contingencies |
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. | |
On October 28, 2014 the Court issued a Final Judgment in this case. The Court awarded Mr. Hopkins $51,956 for the breach of consulting agreement. As such the total liability related to this matter is $56,956. In accordance with ASC 855-10-55-1, the Company recorded other income of $448,044 in the unaudited condensed consolidated statement of operations for the nine months ended March 31, 2015 resulting from the reduction of the accrual for litigation. Mr. Hopkins has filed an appeal. | |
On January 23, 2015, the Court approved the Company's motion seeking reimbursement of attorneys' fees and costs from Mr. Hopkins. An evidentiary hearing is scheduled for June 2015 to determine the amount of fees and costs to which the Company is entitled and a judgment will be entered for that amount. | |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 6 – Related Party Transactions |
During the nine months ended March 31, 2015, the Company issued common stock and warrants to its President and principal shareholder in exchange for cash as more fully described in Note 4. | |
In November 2014, William Cordani, the father of the Company's CEO, passed away unexpectedly. Prior to his passing, Mr. Cordani and the Company were negotiating a separation payment to Mr. Cordani in connection with his contemplated retirement. The Company's Board of Directors recognized that without Mr. Cordani's contributions and efforts on behalf of the Company and the Company's predecessor (over 20 years), the Company would not have been successful developing its portfolio of products. Subsequent to his passing, the Company and Mr. Cordani's wife agreed to 12 monthly payments of $5,000 in lieu of the contemplated separation payments to Mr. Cordani. These payments began in December 2014. | |
On January 23, 2015, the Company approved an amendment to the Employment Agreement of Mr. Peter Cordani, the Company's Founder, acting Chief Executive Officer and Chief Technology Officer. In addition to his current salary, Mr. Cordani will receive 5% of the first $2 million of revenue generated by the Company in 2015. The amendment is effective as of January 1, 2015. | |
Concentrations
Concentrations | 9 Months Ended |
Mar. 31, 2015 | |
Concentrations [Abstract] | |
Concentrations | NOTE 7 – 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 March 31, 2015. As of March 31, 2015, there were no cash equivalent balances held in depository accounts that are not insured. | |
At March 31 2015, two customers accounted for 40.1% and 27.6% of accounts receivable. | |
For the nine months ended March 31, 2015, two customers accounted for 18.2% and 14.9% of sales. | |
During the nine months ended March 31, 2015, sales primarily resulted from two products, FireIce® and Soil2O® which made up 64.4% and 34.0%, respectively, of total sales. Of the FireIce® sales, 65.4% related to the sale of FireIce® products and 34.6% related to sales of the FireIce Home Defense units and extinguishers. Of the Soil2O® sales, 7.5% related to traditional sales of Soil2O® and 92.5% related to sales of Soil2O® Dust Control, including 25.0% of our new Soil2O Soil Cap product. | |
One vendor accounted for 48.9% of the Company's approximately $344,000 in purchases of raw material and packaging during the nine months ended March 31, 2015. | |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 8 – Subsequent Events |
In April 2015, the Company was awarded $65,000 for attorney's fees related to the appeal of a binding arbitration ruling by a former distributor. The Company is pursuing collection of this award. | |
Since April 1, 2015, the Company has received 2 advances under the secured convertible line of credit agreement totaling $350,000 at conversion rates between $0.24 and $0.29 per share and has issued two year warrants to purchase 643,237 shares of common stock at an exercise price of $2.00 per share to its president and principal shareholder. | |
In April 2015, the Company issued 6,230 shares of common stock to a consultant in exchange for services valued at $1,089. | |
In April 2015, the Company issued 249,688 shares of common stock in exchange for $100,000 in a private placement with an accredited investor. | |
In April 2015, the Company issued ten year warrants to purchase 100,000 shares of common stock at an exercise price of $0.50 per share in connection with a marketing consulting agreement. The options vest 25% immediately, with remainder vesting equally at the end of each calendar quarter over the remainder of 2015, subject to the consultant remaining employed as a consultant. | |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Policy) | 9 Months Ended | |||||
Mar. 31, 2015 | ||||||
Organization and Basis of Presentation [Abstract] | ||||||
Organization | Organization | |||||
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. In addition to the sale of FireIce® and Soil2O® “Dust Control” product, the Company also sells equipment such as eductors and extinguishers which are used to dispense our products. 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 amount of water needed for irrigation 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. | ||||||
Basis of Presentation | Basis of Presentation | |||||
The accompanying unaudited condensed 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. These unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (”SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by "GAAP" for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The information included in these unaudited condensed consolidated interim financial statements should be read in conjunction with Management's Discussion and Analysis of Financial Conditions and Results of Operations contained in this report and the audited consolidated financial statements and accompanying notes included in the Company's Annual Report on Form 10-K for the year ended June 30, 2014 filed on September 29, 2014. | ||||||
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. During the nine months ended March 31, 2015, the Company increased the provision for bad debt in the amount of $4,019 and then wrote-off accounts receivable in the amount of $34,803 against the allowance for bad debt. | ||||||
Inventories | Inventories | |||||
Inventories as of March 31, 2015 consisted of raw materials and finished goods in the amounts of $584,247 and $472,493, respectively. | ||||||
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 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 for the three and nine months ended March 31, 2015 include the allowance for doubtful accounts, depreciation and amortization, valuation of inventories, valuation of options and warrants granted for services or settlements, valuation of common stock granted for services or debt conversion, valuation of debt discount related to the beneficial conversion feature of convertible notes, 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, “Earnings per Share.” 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 stockholders 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. The Company's diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive. At March 31, 2015, there were options to purchase 10,245,340 shares of the Company's common stock, warrants to purchase 7,665,271 shares of the Company's common stock and 10,969,864 shares of the Company's common stock are reserved for convertible notes which may dilute future earnings per share. | ||||||
Stock-Based Compensation | Stock-Based Compensation | |||||
The Company accounts for employee stock-based compensation in accordance with ASC 718-10, “Share-Based Payment,” 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 employee stock purchases based on estimated fair values. | ||||||
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. | ||||||
The Company estimates volatility based upon the historical stock price of the Company and estimates the expected term for employee stock options using the simplified method for employees and directors and the contractual term for non-employees. The risk free rate is determined based upon the prevailing rate of United States Treasury securities with similar maturities. | ||||||
The fair values of stock option and warrant grants for the period from July 1, 2014 to March 31, 2015 were estimated using the following assumptions: | ||||||
Risk free interest rate | 0.58% - 1.79% | |||||
Expected term (in years) | 2.0 - 5.5 | |||||
Dividend yield | –– | |||||
Volatility of common stock | 80.5% - 88.55% | |||||
Estimated annual forfeitures | –– | |||||
New Accounting Pronouncements | New Accounting Pronouncements | |||||
Accounting Standards Updates which were not effective until after March 31, 2015 are not expected to have a significant effect on the Company's consolidated financial position or results of operations. | ||||||
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation (Tables) | 9 Months Ended | |||||
Mar. 31, 2015 | ||||||
Organization and Basis of Presentation [Abstract] | ||||||
Schedule of Fair Value Assumptions for Stock Options and Warrant | Risk free interest rate | 0.58% - 1.79% | ||||
Expected term (in years) | 2.0 - 5.5 | |||||
Dividend yield | –– | |||||
Volatility of common stock | 80.5% - 88.55% | |||||
Estimated annual forfeitures | –– |
Organization_and_Basis_of_Pres3
Organization and Basis of Presentation (Details) (USD $) | 9 Months Ended |
Mar. 31, 2015 | |
Accounts Receivable | |
Increase in provision for bad debt | $4,019 |
Write-off of accounts receivable against allowance for bad debt | 34,803 |
Inventories | |
Raw materials | 584,247 |
Finished goods | $472,493 |
Stock Options [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Shares considered antidilutive | 10,245,340 |
Warrants [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Shares considered antidilutive | 7,665,271 |
Stock Options For Convertible Notes Reserved [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Shares considered antidilutive | 10,969,864 |
Organization_and_Basis_of_Pres4
Organization and Basis of Presentation (Schedule of Fair Value Assumptions) (Details) (Stock option and warrant [Member]) | 9 Months Ended |
Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate, minimum | 0.58% |
Risk-free interest rate, maximum | 1.79% |
Dividend yield | |
Volatility of common stock, minimum | 80.50% |
Volatility of common stock, maximum | 88.55% |
Estimated annual forfeitures | |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 2 years |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 5 years 6 months |
Going_Concern_Details
Going Concern (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | |
Going Concern [Abstract] | |||||
Accumulated deficit | $38,951,837 | $38,951,837 | $35,133,578 | ||
Stockholders' deficit | 2,461,030 | 2,461,030 | 1,898,315 | ||
Loss from operations | 1,018,113 | 1,316,479 | 3,368,269 | 5,046,809 | |
Net cash used in operating activities | $2,887,041 | $4,086,706 |
Convertible_Note_Agreements_De
Convertible Note Agreements (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 2 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Jul. 31, 2014 | Feb. 12, 2015 | Feb. 01, 2013 | Feb. 28, 2015 | Jul. 11, 2013 | Mar. 31, 2015 | |
item | ||||||||||
Debt Conversion [Line Items] | ||||||||||
Loss on extinguishment of debt | $596,648 | $596,648 | ||||||||
Gain on interest conversion | 12,841 | -201,175 | 12,841 | -201,175 | ||||||
Note discount | 140,363 | 173,490 | ||||||||
Interest expense | 88,216 | 111,795 | 314,823 | 351,559 | ||||||
Convertible OID Note [Member] | ||||||||||
Debt Conversion [Line Items] | ||||||||||
Debt issued | 1,000,000 | |||||||||
Shares issued upon conversion of convertible note | 107,143 | |||||||||
Accrued interest | 75,000 | |||||||||
President and principal shareholder [Member] | Convertible Note Payable Dated February 2013 [Member] | ||||||||||
Debt Conversion [Line Items] | ||||||||||
Debt issued | 1,997,483 | 1,997,483 | 1,997,483 | 1,997,483 | ||||||
Debt, interest rate | 7.50% | |||||||||
Convertible note, conversion price | $0.35 | $0.35 | ||||||||
Maturity date | 31-Dec-20 | 31-Dec-16 | ||||||||
Loss on extinguishment of debt | 34,586 | |||||||||
Shares issued upon conversion of convertible note | 428,032 | |||||||||
Accrued interest | 18,880 | 18,880 | 149,811 | 18,880 | ||||||
Common stock, price per share | $0.32 | |||||||||
Value of convertible original issue discount note | 136,970 | |||||||||
Gain on interest conversion | 12,841 | |||||||||
Interest expense | 23,052 | |||||||||
President and principal shareholder [Member] | Convertible Note Payable Dated July 2013 [Member] | ||||||||||
Debt Conversion [Line Items] | ||||||||||
Debt issued | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||||
Debt, interest rate | 7.50% | |||||||||
Convertible note, conversion price | 0.35 | $1 | ||||||||
Maturity date | 31-Dec-20 | 10-Jul-18 | ||||||||
Loss on extinguishment of debt | 562,062 | |||||||||
Term | 5 years | |||||||||
Number of shares callable by warrants | 500,000 | |||||||||
Shares issued upon conversion of convertible note | 107,143 | |||||||||
Accrued interest | 54,247 | 54,247 | 75,000 | 54,247 | ||||||
Note discount | 60,390 | |||||||||
Interest expense | 70,915 | |||||||||
Amortization of beneficial conversion feature of convertible notes | 36,750 | |||||||||
Additional interest expense | 1,238 | |||||||||
Unamortized discount | 59,097 | 59,097 | 59,097 | |||||||
Exercise price of shares called by warrants | $1.30 | |||||||||
President and principal shareholder [Member] | Secured convertible line of credit agreement [Member] | ||||||||||
Debt Conversion [Line Items] | ||||||||||
Maximum borrowing capacity | 4,000,000 | |||||||||
Debt issued | 625,000 | 625,000 | 625,000 | |||||||
Debt, interest rate | 7.50% | |||||||||
Maturity date | 31-Dec-20 | |||||||||
Term | 2 years | |||||||||
Number of shares callable by warrants | 1,202,814 | 1,202,814 | 1,202,814 | |||||||
Interest expense | 449 | |||||||||
Unamortized discount | 16,547 | 16,547 | 16,547 | |||||||
Exercise price of shares called by warrants | $2 | $2 | 2 | $2 | ||||||
Unamortized beneficial conversion feature | 16,546 | 16,546 | 16,546 | |||||||
Term | 2 years | |||||||||
Percentage of warrants issued equals of number of shares issuable upon the conversion | 50.00% | |||||||||
Number of advances received | 4 | |||||||||
Convertible amount | 625,000 | |||||||||
Warrant issued | 2 | 2 | 2 | |||||||
Loan discounts related to warrants | 16,771 | |||||||||
Loan discounts related to beneficial conversion features of advances amounting | $16,771 | |||||||||
Expected term | 2 years | |||||||||
President and principal shareholder [Member] | Minimum [Member] | Secured convertible line of credit agreement [Member] | ||||||||||
Debt Conversion [Line Items] | ||||||||||
Convertible note, conversion price | $0.24 | $0.24 | $0.24 | |||||||
Volatility rate | 80.50% | |||||||||
Discount rate | 0.58% | |||||||||
President and principal shareholder [Member] | Maximum [Member] | Secured convertible line of credit agreement [Member] | ||||||||||
Debt Conversion [Line Items] | ||||||||||
Convertible note, conversion price | $0.27 | $0.27 | $0.27 | |||||||
Volatility rate | 87.30% | |||||||||
Discount rate | 0.70% |
Stockholders_Equity_Preferred_
Stockholders' Equity (Preferred Stock) (Details) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
Stockholders' Equity [Abstract] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, par value per share | $0.00 | $0.00 |
Stockholders_Equity_Common_Sto
Stockholders' Equity (Common Stock) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | ||||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Jul. 31, 2014 | Dec. 31, 2014 | Feb. 28, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Feb. 01, 2013 | |
Stockholders Equity Note [Line Items] | ||||||||||
Gain on interest conversion | $12,841 | ($201,175) | $12,841 | ($201,175) | ||||||
Convertible Debt Securities [Member] | ||||||||||
Stockholders Equity Note [Line Items] | ||||||||||
Shares issued upon conversion of convertible note | 107,143 | |||||||||
Accrued interest | 75,000 | |||||||||
Convertible note, amount | 1,000,000 | |||||||||
Directors [Member] | ||||||||||
Stockholders Equity Note [Line Items] | ||||||||||
Common stock issued | 110,000 | |||||||||
Proceeds from private placement | 21,505 | |||||||||
President and principal shareholder [Member] | Convertible Note Payable Dated February 2013 [Member] | ||||||||||
Stockholders Equity Note [Line Items] | ||||||||||
Shares issued upon conversion of convertible note | 428,032 | |||||||||
Accrued interest | 18,880 | 18,880 | 149,811 | |||||||
Convertible note, conversion price | $0.35 | $0.35 | ||||||||
Common stock, price per share | $0.32 | |||||||||
Gain on interest conversion | 12,841 | |||||||||
Convertible note, amount | 1,997,483 | 1,997,483 | 1,997,483 | |||||||
President and principal shareholder [Member] | Private Placement [Member] | ||||||||||
Stockholders Equity Note [Line Items] | ||||||||||
Common stock issued | 652,174 | 915,968 | 1,953,227 | |||||||
Expiration period | 2 years | |||||||||
Number of shares callable by warrants | 326,087 | 326,087 | 457,984 | 457,984 | 976,614 | |||||
Exercise price of shares called by warrants | $2 | $2 | ||||||||
Proceeds from private placement | 150,000 | 250,000 | 975,000 | |||||||
Accredited Investors [Member] | Private Placement [Member] | ||||||||||
Stockholders Equity Note [Line Items] | ||||||||||
Common stock issued | 3,525,269 | 2,205,328 | ||||||||
Expiration period | 2 years | 2 years | ||||||||
Number of shares callable by warrants | 1,762,635 | 1,762,635 | 1,081,656 | |||||||
Exercise price of shares called by warrants | $2 | $2 | $2 | |||||||
Proceeds from private placement | $1,055,000 | $1,125,000 |
Stockholders_Equity_Options_to
Stockholders' Equity (Options to Purchase Common Stock) (Details) (USD $) | 9 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $658,527 | $1,438,050 |
Employee Options and Stock Appreciation Rights [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 642,209 | |
Share-based compensaion expense not yet recognized | $445,236 | |
Unrecognized compensation cost, period for recognition | 2 years |
Stockholders_Equity_Narrative_
Stockholders' Equity (Narrative) (Options) (Details) (Stock Options [Member], USD $) | 1 Months Ended | 0 Months Ended | 9 Months Ended | ||
Dec. 31, 2014 | Aug. 31, 2014 | Jan. 23, 2015 | Jul. 02, 2014 | Mar. 31, 2015 | |
Employees | |||||
Employees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of summer employees to whom options are granted | 2 | ||||
Expiration period | 5 years | 5 years | |||
Granted | 215,000 | 1,000 | |||
Granted shares, exercise price | $0.23 | $0.66 | |||
Vesting percentage | 25.00% | ||||
Vesting period | 3 years | ||||
Fair value | $31,145 | $682 | |||
Volatility rate | 87.78% | 87.99% | |||
Expected term, simplified method | 4 years | 2.5 years | |||
Discount rate | 1.31% | 0.63% | |||
Audit Committee Chairman [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period | 10 years | ||||
Granted | 10,000 | ||||
Granted shares, exercise price | $0.27 | ||||
Vesting period | 3 years | ||||
Fair value | 1,974 | ||||
Volatility rate | 84.16% | ||||
Expected term, simplified method | 6.5 years | ||||
Discount rate | 1.61% | ||||
Directors [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period | 10 years | ||||
Granted | 470,000 | ||||
Granted shares, exercise price | $0.73 | ||||
Vesting period | 1 year | ||||
Fair value | $245,441 | ||||
Volatility rate | 88.55% | ||||
Expected term, simplified method | 5.5 years | ||||
Discount rate | 1.79% | ||||
Non-Employee, Non-Director Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted |
Stockholders_Equity_Narrative_1
Stockholders' Equity (Narrative) (Warrant) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2015 | Mar. 17, 2015 | Jan. 23, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Feb. 12, 2015 | |
President and principal shareholder [Member] | Secured convertible line of credit agreement [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term | 2 years | ||||||
Number of shares callable by warrants | 1,202,814 | 1,202,814 | |||||
Warrant exercise price | $2 | $2 | $2 | ||||
Expected term, simplified method | 2 years | ||||||
President and principal shareholder [Member] | Minimum [Member] | Secured convertible line of credit agreement [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Volatility rate | 80.50% | ||||||
Discount rate | 0.58% | ||||||
President and principal shareholder [Member] | Maximum [Member] | Secured convertible line of credit agreement [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Volatility rate | 87.30% | ||||||
Discount rate | 0.70% | ||||||
Consultant services [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term | 5 years | ||||||
Number of shares callable by warrants | 10,000 | ||||||
Warrant exercise price | $0.25 | ||||||
Fair value | $1,667 | ||||||
Volatility rate | 84.08% | ||||||
Expected term, simplified method | 5 years | ||||||
Discount rate | 1.61% | ||||||
Legal Services [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term | 5 years | ||||||
Number of shares callable by warrants | 100,000 | ||||||
Warrant exercise price | $0.27 | ||||||
Fair value | $17,611 | ||||||
Volatility rate | 81.85% | ||||||
Expected term, simplified method | 5 years | ||||||
Discount rate | 1.39% | ||||||
Private Placement [Member] | President and principal shareholder [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term | 2 years | ||||||
Number of shares callable by warrants | 326,087 | 326,087 | 457,984 | 976,614 | |||
Warrant exercise price | $2 | $2 | |||||
Private Placement [Member] | Accredited Investors [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term | 2 years | 2 years | |||||
Number of shares callable by warrants | 1,762,635 | 1,081,656 | |||||
Warrant exercise price | $2 | $2 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2012 | Mar. 31, 2015 | Mar. 31, 2014 | Nov. 30, 2012 | Jul. 31, 2012 | Oct. 28, 2014 | Jan. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | |
Loss Contingencies [Line Items] | |||||||||||
Other income | $200 | $200,000 | $448,622 | $17,000 | |||||||
Loss Contingency Invasion Of Privacy And Misrepresentation [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Litigation accrual | 1,646,000 | ||||||||||
Litigation, provision | 200,000 | ||||||||||
Damages paid to plaintiff by insurance carrier | 200,000 | ||||||||||
Loss Contingency Breach Of Agreement [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Litigation accrual | 56,956 | ||||||||||
Litigation, provision | 841,000 | 500,000 | |||||||||
Other income | 448,044 | ||||||||||
Damages awarded | 51,956 | ||||||||||
Loss Contingency Trespass Claim [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Litigation, provision | 5,000 | ||||||||||
Loss Contingency Civil Theft [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Litigation, provision | 200,000 | ||||||||||
Loss Contingency Civil Theft Law Enforced Settlement [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Litigation, provision | 600,000 | ||||||||||
Portion of litigation expense that was dismissed | 200,000 | ||||||||||
Other income | $941,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 1 Months Ended | 0 Months Ended |
Dec. 31, 2014 | Jan. 23, 2015 | |
CEO's Mother [Member] | ||
Related Party Transaction [Line Items] | ||
Monthly separation payment | $5,000 | |
Mr. Peter Cordani [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage to be received of first $2 million of revenue | 5.00% | |
First revenue amount which 5% to be received | $2,000,000 |
Concentrations_Details
Concentrations (Details) (USD $) | 9 Months Ended |
Mar. 31, 2015 | |
Customers | |
Concentration Risk [Line Items] | |
Total EMFIDS parts, raw material and packaging purchases made during the period | 344,000 |
Accounts Receivable [Member] | |
Concentration Risk [Line Items] | |
Number of customers in concentration | 2 |
Accounts Receivable [Member] | Customer One Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 40.10% |
Accounts Receivable [Member] | Customer Two Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 27.60% |
Sales Revenue [Member] | |
Concentration Risk [Line Items] | |
Number of customers in concentration | 2 |
Number of products in concentration | 2 |
Sales Revenue [Member] | Customer One Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 18.20% |
Sales Revenue [Member] | Customer Two Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 14.90% |
Sales Revenue [Member] | Fire Ice [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 64.40% |
Sales Revenue [Member] | Soil 2 O [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 34.00% |
Sales Revenue [Member] | Fire Ice Products [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 65.40% |
Sales Revenue [Member] | Fire Ice Home Defense Product [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 34.60% |
Sales Revenue [Member] | Soil 2 O Traditional Sales [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 7.50% |
Sales Revenue [Member] | Soil 2 O Dust Control Products [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 92.50% |
Sales Revenue [Member] | Soil 2 O Soil Cap product [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 25.00% |
Inventory purchases [Member] | |
Concentration Risk [Line Items] | |
Number of customers in concentration | 1 |
Inventory purchases [Member] | Vendor One Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 48.90% |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 2 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Mar. 17, 2015 | Apr. 30, 2015 | Feb. 12, 2015 | |
item | |||||||
President and principal shareholder [Member] | Secured convertible line of credit agreement [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Number of advances received | 4 | ||||||
Convertible amount | $625,000 | ||||||
Term | 2 years | ||||||
Number of shares callable by warrants | 1,202,814 | 1,202,814 | |||||
Warrant exercise price | $2 | $2 | $2 | ||||
President and principal shareholder [Member] | Secured convertible line of credit agreement [Member] | Minimum [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Conversion rates (in dollars per share) | $0.24 | $0.24 | |||||
President and principal shareholder [Member] | Secured convertible line of credit agreement [Member] | Maximum [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Conversion rates (in dollars per share) | $0.27 | $0.27 | |||||
President and principal shareholder [Member] | Private Placement [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Term | 2 years | ||||||
Number of shares callable by warrants | 326,087 | 326,087 | 457,984 | 976,614 | |||
Warrant exercise price | $2 | $2 | |||||
Number of shares issued | 652,174 | 915,968 | 1,953,227 | ||||
Consultant Service [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Term | 5 years | ||||||
Number of shares callable by warrants | 10,000 | ||||||
Warrant exercise price | $0.25 | ||||||
Accredited Investors [Member] | Private Placement [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Term | 2 years | 2 years | |||||
Number of shares callable by warrants | 1,762,635 | 1,081,656 | |||||
Warrant exercise price | 2 | 2 | |||||
Number of shares issued | 3,525,269 | 2,205,328 | |||||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Awarded value for attorney's fees | 65,000 | ||||||
Subsequent Event [Member] | Secured convertible line of credit agreement [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Number of advances received | 2 | ||||||
Convertible amount | 350,000 | ||||||
Subsequent Event [Member] | Secured convertible line of credit agreement [Member] | Minimum [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Conversion rates (in dollars per share) | $0.24 | ||||||
Subsequent Event [Member] | Secured convertible line of credit agreement [Member] | Maximum [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Conversion rates (in dollars per share) | $0.29 | ||||||
Subsequent Event [Member] | Marketing consulting agreement [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Term | 10 years | ||||||
Number of shares callable by warrants | 100,000 | ||||||
Warrant exercise price | $0.50 | ||||||
Vesting (as a percentage) | 25.00% | ||||||
Subsequent Event [Member] | President and principal shareholder [Member] | Secured convertible line of credit agreement [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Term | 2 years | ||||||
Number of shares callable by warrants | 643,237 | ||||||
Warrant exercise price | $2 | ||||||
Subsequent Event [Member] | Consultant Service [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares issued in exchange for services | 6,230 | ||||||
Value of shares issued in exchange for services | 1,089 | ||||||
Subsequent Event [Member] | Accredited Investors [Member] | Private Placement [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares issued | 249,688 | ||||||
Value of shares issued | $100,000 |