Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |
Document Type | S1 |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2015 |
Entity Registrant Name | GelTech Solutions, Inc. |
Entity Central Index Key | 1,403,676 |
Entity Filer Category | Smaller Reporting Company |
Trading Symbol | gltc |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 127,123 | $ 66,266 |
Accounts receivable trade, net | 236,640 | 35,276 |
Inventories | 1,107,177 | 843,864 |
Prepaid expenses and other current assets | 48,248 | 88,836 |
Total current assets | 1,519,188 | 1,034,242 |
Furniture, fixtures and equipment, net | 158,502 | 175,751 |
Deposits | 16,086 | 30,086 |
Total assets | 1,693,776 | 1,240,079 |
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||
Accounts payable | 349,812 | 228,063 |
Accrued expenses | 210,449 | 189,933 |
Litigation accrual | 56,956 | $ 505,000 |
Accrual for settlement | 451,000 | |
Insurance premium finance contract | 8,117 | $ 13,574 |
Total current liabilities | 1,076,334 | 936,570 |
Convertible notes - related party, net of discounts | 2,940,944 | $ 2,201,824 |
Convertible Line of Credit - related party, net of discounts | 1,227,026 | |
Total liabilities | $ 5,244,304 | $ 3,138,394 |
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; 100,000,000 shares authorized; 47,613,501 and 40,301,979 shares issued and outstanding as of June 30, 2015 and 2014, respectively. | $ 47,614 | $ 40,302 |
Additional paid in capital | 37,049,161 | 33,194,961 |
Accumulated deficit | (40,647,303) | (35,133,578) |
Total stockholders' deficit | (3,550,528) | (1,898,315) |
Total liabilities and stockholders' deficit | $ 1,693,776 | $ 1,240,079 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2015 | Jun. 30, 2014 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Preferred stock, par value per share | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 47,613,501 | 40,301,979 |
Common stock, shares outstanding | 47,613,501 | 40,301,979 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||
Sales | $ 800,365 | $ 814,587 |
Cost of goods sold | 346,787 | 393,102 |
Gross profit | 453,578 | 421,485 |
Operating expenses: | ||
Selling, general and administrative expenses | 4,891,525 | 6,601,353 |
Research and development | 134,544 | 274,005 |
Total operating expenses | 5,026,069 | 6,875,358 |
Loss from operations | (4,572,491) | (6,453,873) |
Other income (expense) | ||
Interest income | 21 | $ 276 |
Gain from reversal of litigation accrual | 448,044 | |
Gain (loss) on conversion of interest | 12,841 | $ (201,175) |
Other income | 2,278 | $ 17,000 |
Loss on settlement | $ (412,867) | |
Loss on sale of assets | $ (11,413) | |
Loss on extinguishment of debt | $ (596,648) | |
Interest expense | (394,903) | $ (462,760) |
Total other income (expense) | (941,234) | (658,072) |
Net loss | $ (5,513,725) | $ (7,111,945) |
Net loss per common share - basic and diluted | $ (0.12) | $ (0.20) |
Weighted average shares outstanding - basic and diluted | 45,190,119 | 36,410,142 |
CONSOLIDATED STATEMENTS OF CHAN
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, 2013 | $ (2,270,386) | $ 33,084 | $ 25,718,163 | $ (28,021,633) |
Balance, shares at Jun. 30, 2013 | 33,084,671 | |||
Common stock issued for cash | 2,131,527 | $ 3,353 | 2,128,174 | |
Common stock issued for cash, shares | 3,352,726 | |||
Common stock issued for cash in connection with stock purchase agreement | 570,000 | $ 577 | 569,423 | |
Common stock issued for cash 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 issued upon in exchange for fixed assets | ||||
Common stock issued for services | ||||
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 | ||
Loan discount from beneficial conversion feature and warrants | 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 | ||
Common stock issued for cash | $ 150,755 | $ 408 | 150,347 | |
Common stock issued for cash, shares | 407,445 | |||
Common stock and warrants issued for cash | 2,305,000 | $ 6,341 | 2,298,659 | |
Common stock and warrants issued for cash, shares | 6,340,754 | |||
Common stock issued upon in exchange for fixed assets | 16,000 | $ 22 | 15,978 | |
Common stock issued upon in exchange for fixed assets, shares | 21,918 | |||
Common stock issued for services | 1,674 | $ 6 | 1,668 | |
Common stock issued for services, shares | 6,230 | |||
Common stock issued for interest | 211,970 | $ 535 | 211,435 | |
Common stock issued for interest, shares | 535,175 | |||
Options and stock appreciation rights vested | 1,024,895 | 1,024,895 | ||
Loan discount from beneficial conversion feature and warrants | 151,218 | $ 151,218 | ||
Net loss | (5,513,725) | $ (5,513,725) | ||
Balance at Jun. 30, 2015 | $ (3,550,528) | $ 47,614 | $ 37,049,161 | $ (40,647,303) |
Balance, shares at Jun. 30, 2015 | 47,613,501 | 47,613,501 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities | ||
Net loss | $ (5,513,725) | $ (7,111,945) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 54,992 | 55,284 |
Bad debt expense | 6,221 | 20,068 |
Amortization of beneficial conversion feature of convertible notes | $ 145,716 | 223,025 |
Amortization of original issue discounts related to convertible notes | 5,791 | |
Equity compensation expense | $ 1,024,895 | $ 1,682,833 |
Loss on extinguishment of debt | $ 596,648 | |
Loss on sale of assets | $ 11,413 | |
(Gain) Loss on stock issued for interest | $ (12,841) | $ 201,175 |
Loss on settlement of litigation | 412,867 | |
Reversal of litigation accrual | (448,044) | |
Changes in assets and liabilities: | ||
Accounts receivable | (207,585) | $ (18,067) |
Inventories | (263,313) | (266,574) |
Prepaid expenses and other current assets | 123,513 | 46,862 |
Other assets | 14,000 | (3,200) |
Accounts payable | $ 123,423 | (37,059) |
Accrual for severance agreement | (102,056) | |
Deferred revenue | (7,019) | |
Accrued expenses | $ 283,460 | 167,450 |
Net cash used in operating activities | (3,659,773) | (5,132,019) |
Cash flows from Investing Activities | ||
Purchases of equipment | (21,743) | (72,851) |
Net cash used in investing activities | (21,743) | (72,851) |
Cash flows from Financing Activities | ||
Proceeds from sale of stock through private placements | 150,755 | 2,131,527 |
Proceeds from the sale of stock and warrants through private placements | $ 2,305,000 | 1,705,000 |
Proceeds from sale of stock under stock purchase agreement | 570,000 | |
Proceeds from exercise of warrants | 25,000 | |
Proceeds from convertible note - related party | 1,000,000 | |
Proceeds from exercise of stock options | $ 18,200 | |
Proceeds from advances on convertible line of credit - related party | $ 1,375,000 | |
Repayments of convertible notes from third parties | $ (115,822) | |
Payments on notes with related parties | (85,880) | |
Payments on insurance finance contract | $ (88,382) | (67,164) |
Net cash provided by financing activities | 3,742,373 | 5,180,861 |
Net increase (decrease) in cash and cash equivalents | 60,857 | (24,009) |
Cash and cash equivalents - beginning | 66,266 | 90,275 |
Cash and cash equivalents - ending | 127,123 | 66,266 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for interest | $ 2,894 | $ 2,736 |
Cash paid for income taxes | ||
Supplementary Disclosure of Non-cash Investing and Financing Activities: | ||
Financing of prepaid insurance contracts | $ 82,925 | $ 68,942 |
Beneficial conversion feature of convertible notes | 75,609 | $ 913,898 |
Loan discount from issuance of warrants | $ 75,609 | |
Conversion of notes for common stock | $ 82,132 | |
Stock issued for services | $ 1,674 | |
Stock issued for vehicle purchase | 16,000 | |
Common stock issued for accrued interest | $ 224,811 | $ 154,251 |
NATURE OF OPERATIONS, BASIS OF
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2015 | |
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 products based around the following three product categories (1) FireIce®, a water enhancing powder that can be utilized both as a fire suppressant in urban firefighting, including fires in underground utility structures, and in wildland firefighting and as a medium-term fire retardant to protect wildlands, structures and firefighters; (2) Soil 2 2 2 2 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 the subsidiaries during fiscal 2015 and fiscal 2014. 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. 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 7 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, 2015 or 2014. 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 provides 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 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, 2015 (fiscal 2015) and 2014 (fiscal 2014), these demonstration costs amounted to $ 11,521 4,195 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 cost of sales in the amount of $ 25,185 52,594 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 $ 134,544 274,005 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 $ 33,277 42,575 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 2015 and fiscal 2014 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 fiscal 2015 and fiscal 2014, 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, 2015 there were options to purchase 10,302,840 8,841,247 12,774,211 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 fiscal years ended June 30, 2015 and 2014 was $ 891,515 1,680,358 239,796 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 fiscal 2015 and fiscal 2014 was $ 133,380 2,475 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 3,500,000 4,500,000 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 B Director - 30,000 C Chair of a Committee - 10,000 D Member of a Committee - 5,000 In June 2013, the Board of Directors increased the annual grants to the following amounts: Annual Grants A Chairman of the Board - 70,000 B Director - 100,000 C Chair of a Committee - 20,000 D Member of a Committee - 10,000 All initial grants of options to new non-employee directors and committee members vest annually over a three 110 10 ten 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 50,000 100,000 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. Effective July 1, 2007, the Company adopted ASC 740-10-25 Definition of Settlement, 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 In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory No other Accounting Standards Updates (ASUs) which were not effective until after June 30, 2015 are 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, 2015 | |
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 2015 of $ 5,513,725 3,659,773 40,647,303 3,550,528 During the year ended June 30, 2015 the Company received $ 150,755 2,305,000 1,375,000 10.0 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, 2015 | |
ACCOUNTS RECEIVABLE [Abstract] | |
ACCOUNTS RECEIVABLE | 3. ACCOUNTS RECEIVABLE Accounts receivable at June 30, 2015 and 2014 was as follows: 2015 2014 Accounts receivable $ 266,449 $ 95,869 Allowance for doubtful accounts (29,809 ) (60,593 ) $ 236,640 $ 35,276 Bad debt expense on trade accounts receivable for fiscal 2015 and fiscal 2014 was $ 6,221 20,068 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2015 | |
INVENTORIES [Abstract] | |
INVENTORIES | 4. INVENTORIES Inventories consisted of the following at June 30, 2015 and 2014: 2015 2014 Finished goods $ 564,826 $ 491,409 Raw materials 542,351 352,455 $ 1,107,177 $ 843,864 As of June 30, 2015, the Company had approximately $ 47,000 67,439 |
FURNITURE, FIXTURES AND EQUIPME
FURNITURE, FIXTURES AND EQUIPMENT | 12 Months Ended |
Jun. 30, 2015 | |
FURNITURE, FIXTURES AND EQUIPMENT [Abstract] | |
FURNITURE, FIXTURES AND EQUIPMENT | 5. FURNITURE, FIXTURES AND EQUIPMENT Furniture, fixtures and Estimated June 30, Useful Life 2015 2014 Equipment 3 5 $ 122,379 $ 111,488 Storage facilities 3 34,277 20,802 Vehicles 5 7 221,730 214,470 Furniture and fixtures 5 20,420 20,420 398,806 367,180 Accumulated depreciation (240,304 ) (191,429 ) $ 158,502 $ 175,751 Depreciation expense in fiscal 2015 and fiscal 2014 was $ 54,992 55,284 |
SECURED CONVERTIBLE NOTE AGREEM
SECURED CONVERTIBLE NOTE AGREEMENTS | 12 Months Ended |
Jun. 30, 2015 | |
CONVERTIBLE AND NON-CONVERTIBLE NOTE AGREEMENTS [Abstract] | |
CONVERTIBLE AND NON-CONVERTIBLE NOTE AGREEMENTS | 6. SECURED 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 7.5 0.35 December 31, 2016 December 31, 2020 34,586 23,052 428,032 149,811 0.32 136,970 12,841 1,997,483 61,566 A second convertible note in the amount of $ 1,000,000 7.5 1.00 five 500,000 1.30 July 10, 2018 December 31, 2020 1.00 0.35 562,062 60,390 70,915 36,750 3,852 56,539 1,000,000 75,000 101,352 75,000 In connection with the debt modifications described above, the Company entered into a secured convertible line of credit agreement for up to $ 4 7.5 December 31, 2020 two 2.00 50 From February 13, 2015 through June 30, 2015, the Company received eight advances totaling $ 1,375,000 0.24 0.82 two 2,104,990 2.00 75,609 75,609 3,244 73,987 73,987 21,482 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 79.66 98.15 0.54 0.70 2 A summary of notes payable and related discounts as of June 30, 2015 is as follows: Principal Unamortized Discount Debt, Net of Discount Related parties Secured Convertible notes payable $ 2,997,483 $ (56,539 ) $ 2,940,944 Secured Convertible Line of Credit 1,375,000 (147,974 ) 1,227,026 Less current portion Secured convertible notes payable and line of credit, net of current portion $ 4,372,483 $ (204,513 ) $ 4,167,970 A summary of notes payable and related discounts as of June 30, 2014 is as follows: Principal Unamortized Discount Debt, 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 |
STOCKHOLDERS' DEFICIT
STOCKHOLDERS' DEFICIT | 12 Months Ended |
Jun. 30, 2015 | |
STOCKHOLDERS' DEFICIT [Abstract] | |
STOCKHOLDERS' DEFICIT | 7. STOCKHOLDERS' DEFICIT Preferred Stock The Company has authorized 5,000,000 0.001 Issuances of Common Stock Common Stock Issued for Cash On January 5, 2012, the Company signed a $ 5 100,000 316,667 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 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 4.9 1,333,820 810,003 577,428 570,000 In consideration for entering into the purchase agreement, the Company issued to LPC 150,000 450,000 320,810 Private Placements During the year ended June 30, 2014, the Company issued 3,352,726 2,131,527 15 1,434,060 925,000 During the year ended June 30, 2015, the Company issued 407,445 150,755 5 110,000 21,505 Issuances of Common Stock and Warrants for Cash During the year ended June 30, 2014, the Company issued 2,575,579 1,258,378 1,705,000 6 1,817,932 908,966 1,125,000 200,000 100,000 150,000 During the year ended June 30, 2015 the Company issued 6,340,754 two 3,170,378 2,305,000 four 3,521,369 two 1,760,685 1,375,000 C ommon Stock Issued for Interest In July 2013, the Company issued 8,880 4,440 In April 2014, the Company issued 428,032 149,811 February 1, 2014 201,175 0.35 0.82 In July 2014, the Company issued 107,143 75,000 1 3 In February 2015, the Company issued 428,032 149,811 0.35 0.32 136,970 12,841 Common Stock Issued for Exercise of Options and Warrants In July 2013, the Company issued 20,000 18,200 0.91 In August 2013, the Company issued 20,000 25,000 1.25 Other Issuances of Common Stock During the year ended June 30, 2015, the Company issued 6,230 1,674 In June 2015, the Company issued 21,918 16,000 Options and Warrants to Purchase Common Stock The fair value of stock option grants for the fiscal year ended June 30, 2015 and 2014 were estimated using the following weighted- average assumptions: 2015 2014 Risk free interest rate 0.54 2.28 0.45 2.61 Expected term in years 2.0 10.0 2.5 6.5 Dividend yield Volatility of common stock 79.66 98.15 89.98 91.94 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 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, 2015 and 2014 is as follows: Employee Options and Stock Appreciation Rights Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Balance at June 30, 2013 6,337,007 $ 0.75 6.0 Granted 1,425,000 $ 1.34 10.0 Exercised $ Forfeited $ Expired $ Outstanding at June 30, 2014 7,762,507 $ 0.87 6.0 $ 792,305 Exercisable at June 30, 2014 4,352,674 $ 0.93 4.6 $ 265,364 Weighted average fair value of options granted during the year ended June 30, 2014 $ 0.69 Balance at June 30, 2014 7,762,507 $ 0.87 6.0 Granted 84,500 $ 0.59 5.00 Exercised $ Forfeited $ Expired $ Outstanding at June 30, 2015 7,847,007 $ 0.87 4.9 $ 1,059,111 Exercisable at June 30, 2015 4,801,673 $ 0.94 3.6 $ 405,361 Weighted average fair value of options granted during the year ended June 30, 2015 $ 0.59 In July 2013, the Company issued ten 250,000 1.30 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 93.11 6.5 2.62 63,180 In July 2013, the Company granted 100,000 50,000 1.25 50,000 1.75 five 25 75 three 91.61 4.0 1.14 80,413 In July 2013, the Company granted ten 25,000 1.30 three 25,272 91.72 1.5 2.61 In July 2013, the Board of Directors approved a pool of 400,000 100,000 five 1.30 69,452 91.72 2.5 0.45 90,500 five 0.72 34,610 90.96 2.5 0.55 5,000 0.77 2,044 90.968 90.96 2.5 0.55 No In August 2013, the Company granted 150,000 1.52 five 50,000 33,334 3 twelve 33,333 5 twelve 33,333 6 twelve 91.91 4.0 1.97 176,413 two In August 2014, the Company granted two five 1,000 0.66 682 87.99 2.5 0.63 In December 2014, the Company granted employees five 20,000 0.23 25 25 three 31,145 87.78 4.0 1.31 In May 2015, the Company granted three five 62,500 0.70 24,590 97.15 2.5 0.82 A summary of options issued to directors under the 2007 Options Issued to Directors Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Balance at June 30, 2013 1,200,833 $ 1.16 8.0 Granted 495,000 $ 1.19 10.00 Exercised (20,000 ) $ 0.91 Forfeited $ Expired $ Outstanding at June 30, 2014 1,675,833 $ 1.12 7.6 $ 8,337 Exercisable at June 30, 2014 1,377,501 $ 1.15 7.4 $ 6,421 Weighted average fair value of options granted during the year ended June 30, 2014 $ 0.76 Balance at June 30, 2014 1,675,833 $ 1.12 7.6 Granted 510,000 $ 0.72 10.00 Exercised $ Forfeited $ Expired $ Outstanding at June 30, 2015 2,185,833 $ 1.03 7.2 $ 75,320 Exercisable at June 30, 2015 2,000,003 $ 1.04 7.1 $ 45,655 Weighted average fair value of options granted during the year ended June 30, 2015 $ 0.52 As prescribed by the Company's 2007 Equity Incentive Plan, on July 1, 2013, the Company issued options to purchase 370,000 0.99 ten 91.6 5.5 1.52 266,985 one In July 2013, the Company issued ten 50,000 1.30 93.11 6.5 2.67 In September 2013, the Company issued ten 15,000 1.01 91.6 5.0 1.62 10,702 In October 2013, the Company issued ten 60,000 1.17 three 91.94 6.5 1.89 54,285 As prescribed by the Company's 2007 470,000 0.73 ten 88.55 5.5 1.79 245,441 one On January 23, 2015, the Company issued 10 10,000 0.27 three 1,974 84.16 6.5 1.61 In June 2015, the Company issued ten 30,000 0.76 three 97.97 6.5 2.03 18,283 Non-Employee, Non-Director Options A summary of options issued to non-employees, non-directors under the 2007 Plan and changes during the fiscal years ended June 30, 2015 and 2014 is as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Balance at June 30, 2013 560,000 $ 1.12 6.0 Granted 25,000 $ 1.11 5.0 Exercised $ Forfeited (275,000 ) $ 1.23 Expired (40,000 ) $ 1.15 Outstanding at June 30, 2014 270,000 $ 1.22 1.7 $ Exercisable at June 30, 2014 270,000 $ 1.22 1.7 $ Weighted average fair value of options granted during the year ended June 30, 2014 $ 0.79 Balance at June 30, 2014 270,000 $ 1.22 1.7 Granted $ Exercised $ Forfeited $ Expired $ Outstanding at June 30, 2015 270,000 $ 1.22 0.7 $ Exercisable at June 30, 2015 270,000 $ 1.22 0.7 $ Weighted average fair value of options granted during the year ended June 30, 2015 N/A In October 2013, the Company granted five 20,000 1.18 two 16,670 91.94 5.0 1.38 In March 2014, the Company granted five 5,000 0.85 2,962 89.96 5.0 1.76 During the year ended June 30, 2015, no Warrants Issued for Settlement Number of Warrants Weighted Average Exercise Price Remaining Contractual Life Balance at June 30, 2013 350,000 $ 0.63 4.2 Granted $ Exercised $ Forfeited $ Expired $ Outstanding at June 30, 2014 350,000 $ 0.63 3.2 Exercisable at June 30, 2014 350,000 $ 0.63 3.2 Weighted average fair value of warrants granted during the year ended June 30, 2014 N/A Balance at June 30, 2014 350,000 $ 0.63 3.2 Granted $ Exercised $ Forfeited $ Expired $ Outstanding at June 30, 2015 350,000 $ 0.63 2.2 Exercisable at June 30, 2015 350,000 $ 0.63 2.2 Weighted average fair value of warrants granted during the year ended June 30, 2015 N/A During the years ended June 30, 2015 and 2014, no Warrants issued for cash or services A summary of warrants issued for cash or services and changes during the periods June 30, 2013 to June 30, 2014 and from June 30, 2014 to June 30, 2015 is as follows: Number of Warrants Weighted Average Exercise Price Remaining Contractual Life Balance at June 30, 2013 1,533,700 $ 1.25 2.1 Granted 1,863,421 $ 1.58 3.5 Exercised (20,000 ) $ 1.25 Forfeited $ Expired (340,000 ) $ 1.60 Outstanding at June 30, 2014 3,037,121 $ 1.45 2.7 Exercisable at June 30, 2014 3,037,121 $ 1.45 2.7 Weighted average fair value of warrants granted during the year ended June 30, 2014 N/A Balance at June 30, 2014 3,037,121 $ 1.45 2.7 Granted 5,750,326 $ 1.85 2.5 Exercised $ Forfeited $ Expired (296,200 ) $ 1.60 Outstanding at June 30, 2015 8,491,247 $ 1.72 3.2 Exercisable at June 30, 2015 8,366,247 $ 1.74 3.2 Weighted average fair value of warrants granted during the year ended June 30, 2015 $ 0.44 In July 2013, the Company issued five 29,412 1.30 In July 2013, the Company issued five 500,000 1.30 1.0 In August 2013, the Company issued 20,000 25,000 1.25 In October 2013, the Company issued five 100,000 1.00 In October 2013, the Company issued five 200,000 1.00 In October 2013, the Company issued five 120,000 1.00 three During the year ended June 30, 2014, warrants to purchase 360,000 1.25 During the year ended June 30, 2015, the Company issued two 2,104,990 2.00 On March 17, 2015, the Company issued five 10,000 0.25 1,667 84.08 5 1.61 three During the year ended June 30, 2015, the Company issued two 1,760,685 2.00 On January 23, 2015, the Company granted 5 100,000 0.27 17,611 81.85 5 1.39 During the year ended June 30, 2015 the Company issued two 1,304,651 2.00 three During the year ended June 30, 2015, the Company issued warrants to purchase 470,000 four one 0.50 0.76 5 10 199,319 81.85 97.15 5 ten 1.51 2.28 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2015 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 8. INCOME TAXES Due to the net losses incurred, there was no June 30, 2015 June 30, 2014 Deferred Tax Assets: Net operating loss carryforward $ 12,451,818 $ 10,754,202 Allowance for bad debt 43,774 38,051 Stock-based compensation 1,878,672 1,493,004 Depreciation 2,548 Gross deferred tax asset 14,376,812 12,285,257 Less: deferred tax asset valuation allowance (14,376,812 ) (12,282,630 ) Total net deferred tax asset 2,627 Less: Deferred tax liability - depreciation (2,627 ) Net deferred taxes $ $ The Company had available at June 30, 2015, net operating loss carryforwards for federal and state tax purposes of approximately $ 33,090,136 June 30, 2035 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 $ 2,094,182 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, 2015 and 2014 was as follows: For the Fiscal Year Ended June 30, 2015 2014 Amount % Amount % Tax at U.S. statutory rate $ (1,874,667 ) -34.00 % $ (2,401,741 ) -34.00 % State taxes, net of federal benefit (198,796 ) -3.61 % (255,305 ) -3.61 % Other (20,719 ) -0.37 % 502,021 7.10 % Change in valuation allowance 2,094,182 37.98 % 2,155,025 30.51 % $ 0.00 % $ 0.00 % |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2015 | |
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 sisterin-law is our Controller and her compensation is $ 1,154 The CEO's mother is a receptionist and her compensation is $ 600 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. During the year ended June 30, 2015, the Company issued common stock and warrants to its President and principal shareholder in exchange for cash as more fully described in Note 7. 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 12 5,000 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 2 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2015 | |
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 3,600 4,000 132,756 169,547 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 800,000 200,000 200,000 200,000 200,000 0.45 10 250,000 170,000 190,000 200,000 In January 2015, GelTech approved an amendment to the Employment Agreement of our Chief Technology Officer. In addition to his base salary, he will receive 5 2 17,344 four Additionally, the Compensation Committee approved a four 200,000 800,000 600 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 5,000 841,000 200,000 600,000 600,000 Based upon the verdicts, the Company recorded a litigation accrual of $ 1,646,000 200,000 200,000 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 $ 500,000 941,000 The trial to determine damages took place in September 2014. On October 28, 2014 the Court issued a Final Judgment in this case. The Court awarded the plaintiff $ 51,956 56,956 448,044 On January 23, 2015, the Court approved the Company's motion seeking reimbursement of attorneys' fees and costs from the plaintiff. An evidentiary hearing took place in 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. As yet, no final order has been issued by the court. In April 2015, the Company was awarded $ 65,000 In June 2013, GelTech filed a lawsuit against its director and former Executive Chairman, for inducing GelTech to enter into an Employment Agreement based on representations that he would facilitate a $ 25 |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015. As of June 30, 2015 the Company had no cash equivalent balances that were not insured. At June 30, 2015, one customer accounted 89.3 24.4 16.1 10.4 During fiscal 2015 two customers accounted for 27.1 26.4 60.7 During fiscal 2015, sales resulted from two products, FireIce® and Soil₂O®, which made 85.3 13.9 52.2 27.4 19.2 1.27 During the fiscal 2015, the Company purchased approximately $ 280,000 86,000 44.7 13.9 226,000 81,000 64,000 35.3 12.6 10.0 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2015 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 12. SUBSEQUENT EVENTS In July 2015, the Company issued 101,352 75,000 In accordance with the 2007 Equity Incentive Plan, on July 1, 2015, the Company issued options to purchase 580,000 0.80 ten 98.15 5.5 1.74 Since July 1, 2015, the Company has issued two 890,249 2.00 1,265,000 0.63 0.78 Effective August 12, 2015, the Company entered into a settlement agreement and release of claims (the Settlement Agreement) with its former executive chairman and director related to a lawsuit and countersuit brought by the parties related to the former executive chairman's employment agreement. Under the employment agreement, the executive chairman was entitled to $800,000 of salary, up to 800,000 restricted stock units and $28,800 in auto allowance. Under the Settlement Agreement, the Company issued the former executive chairman 200,000 shares of restricted common stock and made two cash payments totaling $315,000. 412,867 On August 12, 2015, the Company signed a $ 10 Under the terms and subject to the conditions of the Purchase Agreement, the Company has the right to sell, and Lincoln Park is obligated to purchase, up to $ 10.0 30 The Company may direct Lincoln Park, at its sole discretion and subject to certain conditions, to purchase up to 50,000 shares of Common Stock on any business day, provided that at least one business day has passed since the most recent purchase, increasing to up to 150,000 shares, depending upon the closing sale price of the Common Stock (such purchases, Regular Purchases). However, in no event shall a Regular Purchase be more than $500,000. The purchase price of shares of Common Stock related to the future funding will be based on the prevailing market prices of such shares at the time of sales, but in no event will shares be sold to Lincoln Park on a day the Common Stock closing price is less than the floor price as set forth in the Purchase Agreement. In addition, the Company may direct Lincoln Park to purchase additional amounts as accelerated purchases if on the date of a Regular Purchase the closing sale price of the Common Stock is not below the threshold price as set forth in the Purchase Agreement. The Company's sales of shares of Common Stock to Lincoln Park under the Purchase Agreement are limited to no more than the number of shares that would result in the beneficial ownership by Lincoln Park and its affiliates, at any single point in time, of more than 9.99% of the then outstanding shares of the Common Stock. In consideration for entering into the $ 10 291,097 391,645 In a separate transaction, the Company extended the expiration date of a previously issued warrant, held by Lincoln Park, from September 1, 2015 to a new expiration date of September 1, 2020 (the Warrant Amendment). |
NATURE OF OPERATIONS, BASIS O19
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended |
Jun. 30, 2015 | |
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 the subsidiaries during fiscal 2015 and fiscal 2014. 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. |
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 7 |
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, 2015 or 2014. |
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 provides 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 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, 2015 (fiscal 2015) and 2014 (fiscal 2014), these demonstration costs amounted to $ 11,521 4,195 |
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 cost of sales in the amount of $ 25,185 52,594 |
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 $ 134,544 274,005 |
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 $ 33,277 42,575 |
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 2015 and fiscal 2014 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 fiscal 2015 and fiscal 2014, 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, 2015 there were options to purchase 10,302,840 8,841,247 12,774,211 |
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 fiscal years ended June 30, 2015 and 2014 was $ 891,515 1,680,358 239,796 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 fiscal 2015 and fiscal 2014 was $ 133,380 2,475 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 3,500,000 4,500,000 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 B Director - 30,000 C Chair of a Committee - 10,000 D Member of a Committee - 5,000 In June 2013, the Board of Directors increased the annual grants to the following amounts: Annual Grants A Chairman of the Board - 70,000 B Director - 100,000 C Chair of a Committee - 20,000 D Member of a Committee - 10,000 All initial grants of options to new non-employee directors and committee members vest annually over a three 110 10 ten 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 50,000 100,000 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. Effective July 1, 2007, the Company adopted ASC 740-10-25 Definition of Settlement, |
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 In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory No other Accounting Standards Updates (ASUs) which were not effective until after June 30, 2015 are 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, 2015 | |
ACCOUNTS RECEIVABLE [Abstract] | |
Schedule of Accounts Receivable | 2015 2014 Accounts receivable $ 266,449 $ 95,869 Allowance for doubtful accounts (29,809 ) (60,593 ) $ 236,640 $ 35,276 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
INVENTORIES [Abstract] | |
Schedule of Inventories | 2015 2014 Finished goods $ 564,826 $ 491,409 Raw materials 542,351 352,455 $ 1,107,177 $ 843,864 |
FURNITURE, FIXTURES AND EQUIP22
FURNITURE, FIXTURES AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
FURNITURE, FIXTURES AND EQUIPMENT [Abstract] | |
Schedule of Property and Equipment | Estimated June 30, Useful Life 2015 2014 Equipment 3 5 $ 122,379 $ 111,488 Storage facilities 3 34,277 20,802 Vehicles 5 7 221,730 214,470 Furniture and fixtures 5 20,420 20,420 398,806 367,180 Accumulated depreciation (240,304 ) (191,429 ) $ 158,502 $ 175,751 |
SECURED CONVERTIBLE NOTE AGRE23
SECURED CONVERTIBLE NOTE AGREEMENTS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 is as follows: Principal Unamortized Discount Debt, Net of Discount Related parties Secured Convertible notes payable $ 2,997,483 $ (56,539 ) $ 2,940,944 Secured Convertible Line of Credit 1,375,000 (147,974 ) 1,227,026 Less current portion Secured convertible notes payable and line of credit, net of current portion $ 4,372,483 $ (204,513 ) $ 4,167,970 A summary of notes payable and related discounts as of June 30, 2014 is as follows: Principal Unamortized Discount Debt, 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 |
STOCKHOLDERS' DEFICIT (Tables)
STOCKHOLDERS' DEFICIT (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Fair Value Assumptions for Stock Options | 2015 2014 Risk free interest rate 0.54 2.28 0.45 2.61 Expected term in years 2.0 10.0 2.5 6.5 Dividend yield Volatility of common stock 79.66 98.15 89.98 91.94 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 | Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Balance at June 30, 2013 6,337,007 $ 0.75 6.0 Granted 1,425,000 $ 1.34 10.0 Exercised $ Forfeited $ Expired $ Outstanding at June 30, 2014 7,762,507 $ 0.87 6.0 $ 792,305 Exercisable at June 30, 2014 4,352,674 $ 0.93 4.6 $ 265,364 Weighted average fair value of options granted during the year ended June 30, 2014 $ 0.69 Balance at June 30, 2014 7,762,507 $ 0.87 6.0 Granted 84,500 $ 0.59 5.00 Exercised $ Forfeited $ Expired $ Outstanding at June 30, 2015 7,847,007 $ 0.87 4.9 $ 1,059,111 Exercisable at June 30, 2015 4,801,673 $ 0.94 3.6 $ 405,361 Weighted average fair value of options granted during the year ended June 30, 2015 $ 0.59 |
Director [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Options Activity | Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Balance at June 30, 2013 1,200,833 $ 1.16 8.0 Granted 495,000 $ 1.19 10.00 Exercised (20,000 ) $ 0.91 Forfeited $ Expired $ Outstanding at June 30, 2014 1,675,833 $ 1.12 7.6 $ 8,337 Exercisable at June 30, 2014 1,377,501 $ 1.15 7.4 $ 6,421 Weighted average fair value of options granted during the year ended June 30, 2014 $ 0.76 Balance at June 30, 2014 1,675,833 $ 1.12 7.6 Granted 510,000 $ 0.72 10.00 Exercised $ Forfeited $ Expired $ Outstanding at June 30, 2015 2,185,833 $ 1.03 7.2 $ 75,320 Exercisable at June 30, 2015 2,000,003 $ 1.04 7.1 $ 45,655 Weighted average fair value of options granted during the year ended June 30, 2015 $ 0.52 |
Non-Employee, Non-Director Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Options Activity | Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Balance at June 30, 2013 560,000 $ 1.12 6.0 Granted 25,000 $ 1.11 5.0 Exercised $ Forfeited (275,000 ) $ 1.23 Expired (40,000 ) $ 1.15 Outstanding at June 30, 2014 270,000 $ 1.22 1.7 $ Exercisable at June 30, 2014 270,000 $ 1.22 1.7 $ Weighted average fair value of options granted during the year ended June 30, 2014 $ 0.79 Balance at June 30, 2014 270,000 $ 1.22 1.7 Granted $ Exercised $ Forfeited $ Expired $ Outstanding at June 30, 2015 270,000 $ 1.22 0.7 $ Exercisable at June 30, 2015 270,000 $ 1.22 0.7 $ Weighted average fair value of options granted during the year ended June 30, 2015 N/A |
Warrants Issued for Cash or Services [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Warrant Activity | Number of Warrants Weighted Average Exercise Price Remaining Contractual Life Balance at June 30, 2013 1,533,700 $ 1.25 2.1 Granted 1,863,421 $ 1.58 3.5 Exercised (20,000 ) $ 1.25 Forfeited $ Expired (340,000 ) $ 1.60 Outstanding at June 30, 2014 3,037,121 $ 1.45 2.7 Exercisable at June 30, 2014 3,037,121 $ 1.45 2.7 Weighted average fair value of warrants granted during the year ended June 30, 2014 N/A Balance at June 30, 2014 3,037,121 $ 1.45 2.7 Granted 5,750,326 $ 1.85 2.5 Exercised $ Forfeited $ Expired (296,200 ) $ 1.60 Outstanding at June 30, 2015 8,491,247 $ 1.72 3.2 Exercisable at June 30, 2015 8,366,247 $ 1.74 3.2 Weighted average fair value of warrants granted during the year ended June 30, 2015 $ 0.44 |
Warrants Issued as Settlements [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Warrant Activity | Number of Warrants Weighted Average Exercise Price Remaining Contractual Life Balance at June 30, 2013 350,000 $ 0.63 4.2 Granted $ Exercised $ Forfeited $ Expired $ Outstanding at June 30, 2014 350,000 $ 0.63 3.2 Exercisable at June 30, 2014 350,000 $ 0.63 3.2 Weighted average fair value of warrants granted during the year ended June 30, 2014 N/A Balance at June 30, 2014 350,000 $ 0.63 3.2 Granted $ Exercised $ Forfeited $ Expired $ Outstanding at June 30, 2015 350,000 $ 0.63 2.2 Exercisable at June 30, 2015 350,000 $ 0.63 2.2 Weighted average fair value of warrants granted during the year ended June 30, 2015 N/A |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
INCOME TAXES [Abstract] | |
Schedule of Deferred Income Tax Assets and Liabilities | June 30, 2015 June 30, 2014 Deferred Tax Assets: Net operating loss carryforward $ 12,451,818 $ 10,754,202 Allowance for bad debt 43,774 38,051 Stock-based compensation 1,878,672 1,493,004 Depreciation 2,548 Gross deferred tax asset 14,376,812 12,285,257 Less: deferred tax asset valuation allowance (14,376,812 ) (12,282,630 ) Total net deferred tax asset 2,627 Less: Deferred tax liability - depreciation (2,627 ) Net deferred taxes $ $ |
Schedule of Reconciliation of Provision (Benefit) for Income Taxes | For the Fiscal Year Ended June 30, 2015 2014 Amount % Amount % Tax at U.S. statutory rate $ (1,874,667 ) -34.00 % $ (2,401,741 ) -34.00 % State taxes, net of federal benefit (198,796 ) -3.61 % (255,305 ) -3.61 % Other (20,719 ) -0.37 % 502,021 7.10 % Change in valuation allowance 2,094,182 37.98 % 2,155,025 30.51 % $ 0.00 % $ 0.00 % |
NATURE OF OPERATIONS, BASIS O26
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Demonstration costs | $ 11,521 | $ 4,195 |
Shipping and handling costs related to sales of products | 25,185 | 52,594 |
Research and development | 134,544 | 274,005 |
Advertising costs | $ 33,277 | $ 42,575 |
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 | |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares considered antidilutive | 10,302,840 | |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares considered antidilutive | 8,841,247 | |
Stock Options For Convertible Notes Reserved [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares considered antidilutive | 12,774,211 |
NATURE OF OPERATIONS, BASIS O27
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Stock-Based Compensation) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | Apr. 30, 2010 | Mar. 31, 2010 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2012 | Sep. 30, 2008 | Jan. 31, 2007 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | $ 1,024,895 | $ 1,682,833 | ||||||||
Unrecognized compensation expense | $ 239,796 | |||||||||
Shares authorized | 400,000 | 15,000,000 | 4,500,000 | 3,500,000 | 1,500,000 | |||||
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% | |||||||||
Maximum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Term | 10 years | |||||||||
Chairman of the Board [Member] | Initial Grants [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options granted | 50,000 | |||||||||
Vesting period | 3 years | |||||||||
Chairman of the Board [Member] | Annual Grants [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options granted | 70,000 | |||||||||
Director [Member] | Initial Grants [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options granted | 30,000 | |||||||||
Vesting period | 3 years | |||||||||
Director [Member] | Annual Grants [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options granted | 100,000 | 50,000 | 20,000 | 100,000 | ||||||
Chair of a Committee [Member] | Initial Grants [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options granted | 10,000 | |||||||||
Vesting period | 3 years | |||||||||
Chair of a Committee [Member] | Annual Grants [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options granted | 20,000 | |||||||||
Member of a Committee [Member] | Initial Grants [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options granted | 5,000 | |||||||||
Vesting period | 3 years | |||||||||
Member of a Committee [Member] | Annual Grants [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options granted | 10,000 | |||||||||
Stock Options [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | $ 891,515 | $ 1,680,358 | ||||||||
Options granted | 84,500 | 1,425,000 | ||||||||
Stock Options [Member] | Director [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Unrecognized compensation expense | $ 10,702 | |||||||||
Options granted | 15,000 | 50,000 | ||||||||
Term | 10 years | 10 years | ||||||||
Non-Employee, Non-Director Options [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | $ 133,380 | $ 2,475 | ||||||||
Options granted | 25,000 |
GOING CONCERN (Details)
GOING CONCERN (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Aug. 12, 2015 | Jun. 30, 2013 | |
GOING CONCERN [Abstract] | ||||
Net cash used in operating activities | $ 3,659,773 | $ 5,132,019 | ||
Loss from operations | 5,513,725 | 7,111,945 | ||
Accumulated deficit | 40,647,303 | 35,133,578 | ||
Stockholders' deficit | 3,550,528 | 1,898,315 | $ 2,270,386 | |
Proceeds from issuance of common stock | 150,755 | 2,131,527 | ||
Proceeds from the sale of stock and warrants through private placements | $ 2,305,000 | 1,705,000 | ||
Proceeds from sale of stock under stock purchase agreement | $ 570,000 | |||
Debt instrument, face amount | $ 1,375,000 | |||
Purchase agreement amount | $ 10,000,000 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
ACCOUNTS RECEIVABLE [Abstract] | ||
Accounts receivable | $ 266,449 | $ 95,869 |
Allowance for doubtful accounts | (29,809) | (60,593) |
Accounts receivable, net | 236,640 | 35,276 |
Bad debt expense | $ 6,221 | $ 20,068 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
INVENTORIES [Abstract] | ||
Finished goods | $ 564,826 | $ 491,409 |
Raw materials | 542,351 | 352,455 |
Total inventory | 1,107,177 | $ 843,864 |
Consignment inventory | 47,000 | |
Inventory written off for obsolescence | $ 67,439 |
FURNITURE, FIXTURES AND EQUIP31
FURNITURE, FIXTURES AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Furniture, fixtures, and equipment | $ 398,806 | $ 367,180 |
Accumulated depreciation | (240,304) | (191,429) |
Total furniture, fixtures, and equipment, net | 158,502 | 175,751 |
Depreciation expense | $ 54,992 | 55,284 |
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 | $ 122,379 | $ 111,488 |
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 | $ 34,277 | $ 20,802 |
Estimated useful life | 3 years | 3 years |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, fixtures, and equipment | $ 221,730 | $ 214,470 |
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 |
SECURED CONVERTIBLE NOTE AGRE32
SECURED CONVERTIBLE NOTE AGREEMENTS (Narrative) (Details) - USD ($) | Feb. 12, 2015 | Jul. 11, 2013 | Feb. 01, 2013 | Jul. 31, 2015 | Feb. 28, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 1,375,000 | ||||||
Interest expense | $ 394,903 | $ 462,760 | |||||
Repayment of convertible note with third party | 115,822 | ||||||
Proceeds from exercise of warrants | $ 25,000 | ||||||
Loss on extinguishment of debt | $ 596,648 | ||||||
Loss on conversion of interest | $ (12,841) | $ 201,175 | |||||
Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Term | 10 years | ||||||
Principal Stockholder [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Term | 2 years | ||||||
Number of shares callable by warrants | 1,760,685 | ||||||
Exercise price of shares called by warrants | $ 2 | ||||||
Director [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Number of shares callable by warrants | 100,000 | ||||||
Chief Executive Officer [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Common shares issued | 1,434,060 | ||||||
President and principal shareholder [Member] | Line of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of warrants issued of the number of shares issued upon the conversion | 50.00% | ||||||
Secured Convertible Line Of Credit Agreement [Member] | President and principal shareholder [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 1,375,000 | ||||||
Debt instrument, interest rate | 7.50% | ||||||
Debt instrument, maturity date | Dec. 31, 2020 | ||||||
Term | 2 years | ||||||
Unamortized discount on notes payable | $ 73,987 | ||||||
Accrued interest | 21,482 | ||||||
Interest expense | 3,244 | ||||||
Amortization of original issue discounts related to convertible notes | 73,987 | ||||||
Line of credit, borrowing capacity | $ 4,000,000 | ||||||
Number of shares callable by warrants | 2,104,990 | ||||||
Exercise price of shares called by warrants | $ 2 | ||||||
Loan discounts related to warrants | $ 75,609 | ||||||
Loan discounts related to beneficial conversion features of advances | $ 75,609 | ||||||
Expected term | 2 years | ||||||
Secured Convertible Line Of Credit Agreement [Member] | President and principal shareholder [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Convertible note, conversion price | $ 0.24 | ||||||
Volatility rate | 79.66% | ||||||
Discount rate | 0.54% | ||||||
Secured Convertible Line Of Credit Agreement [Member] | President and principal shareholder [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Convertible note, conversion price | $ 0.82 | ||||||
Volatility rate | 98.15% | ||||||
Discount rate | 0.70% | ||||||
Convertible Note Payable Dated February 2013 [Member] | President and principal shareholder [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 1,997,483 | $ 1,997,483 | |||||
Debt instrument, interest rate | 7.50% | ||||||
Debt instrument, maturity date | Dec. 31, 2020 | Dec. 31, 2016 | |||||
Convertible note, conversion price | $ 0.35 | ||||||
Common stock, price per share | $ 0.32 | ||||||
Accrued interest | $ 149,811 | 61,566 | |||||
Gain on interest conversion | 12,841 | ||||||
Interest expense | 23,052 | ||||||
Shares issued from conversion of convertible debt | 428,032 | ||||||
Value of convertible original issue discount note | $ 136,970 | ||||||
Loss on extinguishment of debt | 34,586 | ||||||
Convertible Note Payable Dated July 2013 [Member] | President and principal shareholder [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of debt | $ 1,000,000 | ||||||
Debt instrument, face amount | 1,000,000 | ||||||
Debt instrument, term | 5 years | ||||||
Debt instrument, interest rate | 7.50% | ||||||
Debt instrument, maturity date | Dec. 31, 2020 | Jul. 10, 2018 | |||||
Convertible note, conversion price | $ 0.35 | $ 1 | |||||
Unamortized discount on notes payable | 56,539 | ||||||
Amortization of beneficial conversion feature of convertible notes | 36,750 | ||||||
Additional interest expense | 3,852 | ||||||
Accrued interest | 75,000 | ||||||
Interest expense | 70,915 | ||||||
Amortization of original issue discounts related to convertible notes | 60,390 | ||||||
Number of shares callable by warrants | 500,000 | ||||||
Exercise price of shares called by warrants | $ 1.30 | ||||||
Loss on extinguishment of debt | $ 562,062 | ||||||
Subsequent Event [Member] | Convertible Note Payable Dated July 2013 [Member] | President and principal shareholder [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Accrued interest | $ 75,000 | ||||||
Shares issued from conversion of convertible debt | 101,352 |
SECURED CONVERTIBLE NOTE AGRE33
SECURED CONVERTIBLE NOTE AGREEMENTS (Schedule of Debt) (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Related Party | ||
Convertible notes payable, related, principal | $ 2,997,483 | $ 2,997,483 |
Convertible notes payable, related, unamortized discount | (56,539) | (795,659) |
Convertible notes payable, related, net | 2,940,944 | $ 2,201,824 |
Convertible line of credit, related, principal | 1,375,000 | |
Convertible line of credit, related, unamortized discount | (147,974) | |
Convertible line of credit, related, net | $ 1,227,026 | |
Less current portion, related, principal | ||
Less current portion, related, unamortized portion | ||
Less current portion, related, net | ||
Convertible and nonconvertible note payable, net of current portion, principal | $ 4,372,483 | $ 2,997,483 |
Convertible and nonconvertible note payable, net of current portion, unamortized discount | (204,513) | (795,659) |
Convertible and nonconvertible note payable, net of current portion, net | $ 4,167,970 | $ 2,201,824 |
STOCKHOLDERS' DEFICIT (Preferre
STOCKHOLDERS' DEFICIT (Preferred Stock) (Details) - $ / shares | Jun. 30, 2015 | Jun. 30, 2014 |
STOCKHOLDERS' DEFICIT [Abstract] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, par value per share | $ 0.001 | $ 0.001 |
STOCKHOLDERS' DEFICIT (Common S
STOCKHOLDERS' DEFICIT (Common Stock) (Details) | 1 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015USD ($)shares | Feb. 28, 2015USD ($)$ / sharesshares | Jul. 31, 2014USD ($)shares | Apr. 30, 2014USD ($)$ / sharesshares | Aug. 31, 2013USD ($)$ / sharesshares | Jul. 31, 2013USD ($)$ / sharesshares | Jan. 31, 2012USD ($)shares | Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($)shares | Mar. 31, 2015$ / sharesshares | Jan. 23, 2015$ / sharesshares | |
Class of Stock [Line Items] | |||||||||||
Common stock issued for cash in connection with stock purchase agreement | $ 570,000 | ||||||||||
Proceeds from issuance of common stock | $ 150,755 | 2,131,527 | |||||||||
Proceeds from the sale of stock and warrants through private placements | 2,305,000 | 1,705,000 | |||||||||
Loss on conversion of interest | $ (12,841) | 201,175 | |||||||||
Proceeds from exercise of warrants | 25,000 | ||||||||||
Proceeds from exercise of stock options | 18,200 | ||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 82,132 | ||||||||||
Gain (loss) on conversion of interest | $ 12,841 | $ (201,175) | |||||||||
Common stock issued for services | 1,674 | ||||||||||
Common stock issued upon in exchange for fixed assets | $ 16,000 | ||||||||||
Warrant [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Number of shares callable by warrants | shares | 100,000 | ||||||||||
Exercised warrants | shares | 20,000 | ||||||||||
Common stock issued upon exercise of warrants, shares | shares | 20,000 | ||||||||||
Proceeds from exercise of warrants | $ 25,000 | ||||||||||
Exercise price of shares called by warrants | $ / shares | $ 1.25 | $ 0.27 | |||||||||
Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Proceeds from exercise of warrants | $ 25,000 | ||||||||||
Exercise price of shares called by warrants | $ / shares | $ 1.25 | ||||||||||
Common Stock [Member] | Convertible Note [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock issued for interest, shares | shares | 8,880 | ||||||||||
Accrued interest | $ 4,440 | ||||||||||
Private Placement [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Number of accredited investors | 4 | 6 | |||||||||
Common stock and warrants issued for cash, shares | shares | 6,340,754 | 2,575,579 | |||||||||
Class of Warrant or Right, Expiration Period | 2 years | ||||||||||
Number of shares callable by warrants | shares | 3,170,378 | 3,170,378 | 1,258,378 | ||||||||
Proceeds from the sale of stock and warrants through private placements | $ 2,305,000 | $ 1,705,000 | |||||||||
Private Placement [Member] | Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Proceeds from issuance of common stock | $ 150,755 | $ 2,131,527 | |||||||||
Common stock issued for cash, shares | shares | 407,445 | 3,352,726 | |||||||||
Number of accredited investors | 5 | 15 | |||||||||
Lincoln Park Capital Fund, LLC ("LPC") [Member] | Common Stock Purchase Agreement [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Pro-rata shares issued | shares | 320,810 | 320,810 | |||||||||
Lincoln Park Capital Fund, LLC ("LPC") [Member] | Common Stock Purchase Agreement [Member] | Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock issued for cash in connection with stock purchase agreement | $ 100,000 | $ 810,003 | $ 570,000 | ||||||||
Common stock issued for cash in connection with stock purchase agreement, shares | shares | 316,667 | 1,333,820 | 577,428 | ||||||||
Number of shares registered | shares | 4,400,000 | ||||||||||
Shares of stock issued as a commitment fee | shares | 150,000 | ||||||||||
Lincoln Park Capital Fund, LLC ("LPC") [Member] | Common Stock Purchase Agreement [Member] | Scenario, Plan [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Proceeds from issuance of common stock per agreement | $ 5,000,000 | ||||||||||
Maximum proceeds from issuance of common stock per sale | 500,000 | ||||||||||
Proceeds from issuance of common stock | $ 4,900,000 | ||||||||||
Pro-rata shares issued | shares | 450,000 | 450,000 | |||||||||
COO and Principal Shareholder [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Class of Warrant or Right, Expiration Period | 2 years | ||||||||||
Common stock issued upon in exchange for fixed assets, shares | shares | 21,918 | ||||||||||
Common stock issued upon in exchange for fixed assets | $ 16,000 | ||||||||||
COO and Principal Shareholder [Member] | Common Stock [Member] | Convertible Note [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock issued for interest, shares | shares | 428,032 | 107,143 | 428,032 | ||||||||
Accrued interest | $ 149,811 | $ 75,000 | $ 149,811 | ||||||||
Debt instrument, maturity date | Feb. 1, 2014 | ||||||||||
Loss on conversion of interest | $ (12,841) | $ 201,175 | |||||||||
Conversion price | $ / shares | $ 0.35 | $ 0.35 | |||||||||
Fair market value, price per share | $ / shares | $ 0.32 | $ 0.82 | |||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 136,970 | ||||||||||
Gain (loss) on conversion of interest | $ 12,841 | $ (201,175) | |||||||||
COO and Principal Shareholder [Member] | Private Placement [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock and warrants issued for cash, shares | shares | 3,521,369 | 1,817,932 | |||||||||
Number of shares callable by warrants | shares | 1,760,685 | 1,760,685 | 908,966 | ||||||||
Proceeds from the sale of stock and warrants through private placements | $ 1,375,000 | $ 1,125,000 | |||||||||
Chief Executive Officer [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Proceeds from issuance of common stock | $ 925,000 | ||||||||||
Common stock issued for cash, shares | shares | 1,434,060 | ||||||||||
Director [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Number of shares callable by warrants | shares | 100,000 | ||||||||||
Proceeds from the sale of stock and warrants through private placements | $ 150,000 | ||||||||||
Exercise of stock options, shares | shares | 20,000 | ||||||||||
Proceeds from exercise of stock options | $ 18,200 | ||||||||||
Exercise price | $ / shares | $ 0.91 | ||||||||||
Director [Member] | Private Placement [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock and warrants issued for cash, shares | shares | 200,000 | ||||||||||
Director [Member] | Private Placement [Member] | Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Proceeds from issuance of common stock | $ 21,505 | ||||||||||
Common stock issued for cash, shares | shares | 110,000 | ||||||||||
Consultant [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock issued for services, shares | shares | 6,230 | ||||||||||
Common stock issued for services | $ 1,674 | ||||||||||
Consultant [Member] | Warrant [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Number of shares callable by warrants | shares | 470,000 | 470,000 | 10,000 | ||||||||
Exercise price of shares called by warrants | $ / shares | $ 0.25 |
STOCKHOLDERS' DEFICIT (Schedule
STOCKHOLDERS' DEFICIT (Schedule of Assumptions) (Details) - Stock Options [Member] | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate, minimum | 0.54% | 0.45% |
Risk-free interest rate, maximum | 2.28% | 2.61% |
Dividend yield | ||
Expected volatility, minimum | 79.66% | 89.98% |
Expected volatility, maximum | 98.15% | 91.94% |
Estimated annual forfeitures | ||
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 2 years | 2 years 6 months |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 10 years | 6 years 6 months |
STOCKHOLDERS' DEFICIT (Schedu37
STOCKHOLDERS' DEFICIT (Schedule of Stock Options Activity) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Weighted Average Remaining Contractual Life | |||
Exercised | |||
Employee Options and Stock Appreciation Rights [Member] | |||
Number of Options | |||
Balance | 7,762,507 | 6,337,007 | |
Granted | 84,500 | 1,425,000 | |
Exercised | |||
Forfeited | |||
Expired | |||
Outstanding | 7,847,007 | 7,762,507 | 6,337,007 |
Exercisable | 4,801,673 | 4,352,674 | |
Weighted Average Exercise Price | |||
Balance | $ 0.87 | $ 0.75 | |
Granted | $ 0.59 | $ 1.34 | |
Exercised | |||
Forfeited | |||
Expired | |||
Outstanding | $ 0.87 | $ 0.87 | $ 0.75 |
Exercisable | 0.94 | 0.93 | |
Weighted average fair value of options granted | $ 0.59 | $ 0.69 | |
Weighted Average Remaining Contractual Life | |||
Granted | 5 years | 10 years | |
Outstanding | 4 years 10 months 24 days | 6 years | 6 years |
Exercisable | 3 years 7 months 6 days | 4 years 7 months 6 days | |
Aggregate Intrinsic Value | |||
Outstanding | $ 1,059,111 | $ 792,305 | |
Exercisable | $ 405,361 | $ 265,364 | |
Options Issued to Directors [Member] | |||
Number of Options | |||
Balance | 1,675,833 | 1,200,833 | |
Granted | 510,000 | 495,000 | |
Exercised | (20,000) | ||
Outstanding | 2,185,833 | 1,675,833 | 1,200,833 |
Exercisable | 2,000,003 | 1,377,501 | |
Weighted Average Exercise Price | |||
Balance | $ 1.12 | $ 1.16 | |
Granted | 0.72 | 1.19 | |
Exercised | 0.91 | ||
Outstanding | 1.03 | 1.12 | $ 1.16 |
Exercisable | 1.04 | 1.15 | |
Weighted average fair value of options granted | $ 0.52 | $ 0.76 | |
Weighted Average Remaining Contractual Life | |||
Granted | 10 years | 10 years | |
Exercised | |||
Outstanding | 7 years 2 months 12 days | 7 years 7 months 6 days | 8 years |
Exercisable | 7 years 1 month 6 days | 7 years 4 months 24 days | |
Aggregate Intrinsic Value | |||
Outstanding | $ 75,320 | $ 8,337 | |
Exercisable | $ 45,655 | $ 6,421 | |
Non-Employee, Non-Director Options [Member] | |||
Number of Options | |||
Balance | 270,000 | 560,000 | |
Granted | 25,000 | ||
Exercised | |||
Forfeited | (275,000) | ||
Expired | (40,000) | ||
Outstanding | 270,000 | 270,000 | 560,000 |
Exercisable | 270,000 | 270,000 | |
Weighted Average Exercise Price | |||
Balance | $ 1.22 | $ 1.12 | |
Granted | $ 1.11 | ||
Exercised | |||
Forfeited | $ 1.23 | ||
Expired | 1.15 | ||
Outstanding | $ 1.22 | 1.22 | $ 1.12 |
Exercisable | $ 1.22 | 1.22 | |
Weighted average fair value of options granted | $ 0.79 | ||
Weighted Average Remaining Contractual Life | |||
Granted | 5 years | ||
Exercised | |||
Outstanding | 8 months 12 days | 1 year 8 months 12 days | 6 years |
Exercisable | 8 months 12 days | 1 year 8 months 12 days | |
Aggregate Intrinsic Value | |||
Outstanding | |||
Exercisable |
STOCKHOLDERS' DEFICIT (Narrativ
STOCKHOLDERS' DEFICIT (Narrative) (Options) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2015 | May. 30, 2015 | Jan. 23, 2015 | Dec. 31, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Aug. 31, 2013 | Jul. 31, 2013 | Nov. 30, 2012 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2008 | Jan. 31, 2007 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Equity compensation expense | $ 1,024,895 | $ 1,682,833 | ||||||||||||||||||
Unrecognized compensation expense | $ 239,796 | $ 239,796 | ||||||||||||||||||
Shares authorized | 400,000 | 15,000,000 | 4,500,000 | 3,500,000 | 1,500,000 | |||||||||||||||
Cash received from stock options exercised | $ 18,200 | |||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Term | 10 years | |||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Unrecognized compensation expense | $ 54,285 | |||||||||||||||||||
Director [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Exercised options | 20,000 | |||||||||||||||||||
Cash received from stock options exercised | $ 18,200 | |||||||||||||||||||
Exercise price | $ 0.91 | |||||||||||||||||||
Stock Options [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Options granted | 84,500 | 1,425,000 | ||||||||||||||||||
Options granted, exercise price | $ 0.59 | $ 1.34 | ||||||||||||||||||
Equity compensation expense | $ 891,515 | $ 1,680,358 | ||||||||||||||||||
Cancelled options | ||||||||||||||||||||
Cancelled options, exercise price | ||||||||||||||||||||
Volatility, minimum | 79.66% | 89.98% | ||||||||||||||||||
Volatility, maximum | 98.15% | 91.94% | ||||||||||||||||||
Exercised options | ||||||||||||||||||||
Exercise price | ||||||||||||||||||||
Options exercisable, exercise price | $ 0.94 | $ 0.94 | $ 0.93 | |||||||||||||||||
Stock Options [Member] | Minimum [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Expected term | 2 years | 2 years 6 months | ||||||||||||||||||
Stock Options [Member] | Maximum [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Expected term | 10 years | 6 years 6 months | ||||||||||||||||||
Stock Options [Member] | Father of CEO and CTO [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Options granted | 25,000 | |||||||||||||||||||
Options granted, exercise price | $ 1.30 | |||||||||||||||||||
Vesting period | 3 years | |||||||||||||||||||
Fair value of options | $ 25,272 | |||||||||||||||||||
Volatility | 91.72% | |||||||||||||||||||
Expected term | 1 year 6 months | |||||||||||||||||||
Discount rate | 2.61% | |||||||||||||||||||
Term | 10 years | |||||||||||||||||||
Stock Options [Member] | Chief Executive Officer [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Options granted | 250,000 | |||||||||||||||||||
Options granted, exercise price | $ 1.30 | |||||||||||||||||||
Volatility | 93.11% | |||||||||||||||||||
Expected term | 6 years 6 months | |||||||||||||||||||
Discount rate | 2.62% | |||||||||||||||||||
Term | 10 years | |||||||||||||||||||
Equity compensation expense | $ 63,180 | |||||||||||||||||||
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 | |||||||||||||||||||
Stock Options [Member] | Chief Financial Officer [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Options granted | 250,000 | |||||||||||||||||||
Options granted, exercise price | $ 1.30 | |||||||||||||||||||
Volatility | 93.11% | |||||||||||||||||||
Expected term | 6 years 6 months | |||||||||||||||||||
Discount rate | 2.62% | |||||||||||||||||||
Term | 10 years | |||||||||||||||||||
Equity compensation expense | $ 63,180 | |||||||||||||||||||
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 | |||||||||||||||||||
Stock Options [Member] | Chief Technology Officer [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Options granted | 250,000 | |||||||||||||||||||
Options granted, exercise price | $ 1.30 | |||||||||||||||||||
Volatility | 93.11% | |||||||||||||||||||
Expected term | 6 years 6 months | |||||||||||||||||||
Discount rate | 2.62% | |||||||||||||||||||
Term | 10 years | |||||||||||||||||||
Equity compensation expense | $ 63,180 | |||||||||||||||||||
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 | |||||||||||||||||||
Stock Options [Member] | New Employee [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Options granted | 100,000 | |||||||||||||||||||
Unrecognized compensation expense | $ 80,413 | |||||||||||||||||||
Stock Options [Member] | New Employee [Member] | Equity Transaction One [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Options granted | 50,000 | |||||||||||||||||||
Options granted, exercise price | $ 1.25 | |||||||||||||||||||
Vesting period | 3 years | |||||||||||||||||||
Volatility | 91.61% | |||||||||||||||||||
Expected term | 4 years | |||||||||||||||||||
Discount rate | 1.14% | |||||||||||||||||||
Term | 5 years | |||||||||||||||||||
Percentage of shares immediately vested | 25.00% | |||||||||||||||||||
Stock Options [Member] | New Employee [Member] | Equity Transaction Two [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Options granted | 50,000 | |||||||||||||||||||
Options granted, exercise price | $ 1.75 | |||||||||||||||||||
Vesting period | 3 years | |||||||||||||||||||
Volatility | 91.61% | |||||||||||||||||||
Expected term | 4 years | |||||||||||||||||||
Discount rate | 1.14% | |||||||||||||||||||
Term | 5 years | |||||||||||||||||||
Percentage of shares immediately vested | 25.00% | |||||||||||||||||||
Stock Options [Member] | Employees [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Options granted | 62,500 | 20,000 | 5,000 | 90,500 | 100,000 | |||||||||||||||
Options granted, exercise price | $ 0.70 | $ 0.23 | $ 0.77 | $ 0.72 | $ 1.30 | |||||||||||||||
Fair value of options | $ 24,590 | $ 31,145 | $ 2,044 | $ 34,610 | $ 69,452 | |||||||||||||||
Volatility | 97.15% | 87.78% | 90.96% | 91.72% | ||||||||||||||||
Expected term | 2 years 6 months | 2 years 6 months | 2 years 6 months | 2 years 6 months | ||||||||||||||||
Discount rate | 0.82% | 1.31% | 0.55% | 0.55% | 0.45% | |||||||||||||||
Term | 5 years | 5 years | 5 years | 5 years | ||||||||||||||||
Percentage of shares immediately vested | 25.00% | |||||||||||||||||||
Terms of Award | P | |||||||||||||||||||
Volatility, minimum | 90.968% | |||||||||||||||||||
Volatility, maximum | 90.96% | |||||||||||||||||||
Stock Options [Member] | Director [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Options granted | 15,000 | 50,000 | ||||||||||||||||||
Options granted, exercise price | $ 1.01 | $ 1.30 | ||||||||||||||||||
Volatility | 91.60% | 93.11% | ||||||||||||||||||
Expected term | 5 years | 6 years 6 months | ||||||||||||||||||
Discount rate | 1.62% | 2.67% | ||||||||||||||||||
Term | 10 years | 10 years | ||||||||||||||||||
Unrecognized compensation expense | $ 10,702 | |||||||||||||||||||
Stock Options [Member] | Director [Member] | Common Stock [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Options granted | 30,000 | 60,000 | ||||||||||||||||||
Options granted, exercise price | $ 0.76 | $ 1.17 | ||||||||||||||||||
Vesting period | 3 years | 3 years | ||||||||||||||||||
Volatility | 97.97% | 91.94% | ||||||||||||||||||
Expected term | 6 years 6 months | 6 years 6 months | ||||||||||||||||||
Discount rate | 2.03% | 1.89% | ||||||||||||||||||
Term | 10 years | 10 years | ||||||||||||||||||
Unrecognized compensation expense | $ 18,283 | $ 18,283 | ||||||||||||||||||
Stock Options [Member] | Directors [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Options granted | 370,000 | |||||||||||||||||||
Options granted, exercise price | $ 0.99 | |||||||||||||||||||
Vesting period | 1 year | |||||||||||||||||||
Volatility | 91.60% | |||||||||||||||||||
Expected term | 5 years 6 months | |||||||||||||||||||
Discount rate | 1.52% | |||||||||||||||||||
Term | 10 years | |||||||||||||||||||
Unrecognized compensation expense | $ 266,985 | |||||||||||||||||||
Stock Options [Member] | Directors [Member] | Common Stock [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Options granted | 470,000 | |||||||||||||||||||
Options granted, exercise price | $ 0.73 | |||||||||||||||||||
Vesting period | 1 year | |||||||||||||||||||
Volatility | 88.55% | |||||||||||||||||||
Expected term | 5 years 6 months | |||||||||||||||||||
Discount rate | 1.79% | |||||||||||||||||||
Term | 10 years | |||||||||||||||||||
Unrecognized compensation expense | $ 245,441 | |||||||||||||||||||
Stock Options [Member] | Consultant [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Options granted | 5,000 | 20,000 | ||||||||||||||||||
Options granted, exercise price | $ 0.85 | $ 1.18 | ||||||||||||||||||
Fair value of options | $ 2,962 | $ 16,670 | ||||||||||||||||||
Volatility | 89.96% | 91.94% | ||||||||||||||||||
Expected term | 5 years | 5 years | ||||||||||||||||||
Discount rate | 1.76% | 1.38% | ||||||||||||||||||
Term | 5 years | 5 years | ||||||||||||||||||
Stock Options [Member] | Two Summer Employees [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Options granted | 1,000 | |||||||||||||||||||
Options granted, exercise price | $ 0.66 | |||||||||||||||||||
Fair value of options | $ 682 | |||||||||||||||||||
Volatility | 87.99% | |||||||||||||||||||
Expected term | 2 years 6 months | |||||||||||||||||||
Discount rate | 0.63% | |||||||||||||||||||
Term | 5 years | |||||||||||||||||||
Stock Options [Member] | Audit Committee Chairman [Member] | Common Stock [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Options granted | 10,000 | |||||||||||||||||||
Options granted, exercise price | $ 0.27 | |||||||||||||||||||
Vesting period | 3 years | |||||||||||||||||||
Fair value of options | $ 1,974 | |||||||||||||||||||
Volatility | 84.16% | |||||||||||||||||||
Expected term | 6 years 6 months | |||||||||||||||||||
Discount rate | 1.61% | |||||||||||||||||||
Term | 10 years | |||||||||||||||||||
Stock Appreciation Rights (SARs) [Member] | Chief Financial Officer [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Options granted, exercise price | $ 0.45 | |||||||||||||||||||
Immediately vested shares | 200,000 | |||||||||||||||||||
Term | 10 years | |||||||||||||||||||
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 | |||||||||||||||||||
Stock Appreciation Rights (SARs) [Member] | Chief Executive Officer, Chief Technology Officer, Chief Financial Officer and Former President [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Immediately vested shares | 800,000 | |||||||||||||||||||
Vested shares upon generating $3,000,000 in revenue in any 12-month period | 170,000 | |||||||||||||||||||
Vested shares upon generating $5,000,000 in revenue in any 12-month period | 190,000 | |||||||||||||||||||
Vested shares upon generating $6,000,000 in revenue in any 12-month period | 200,000 | |||||||||||||||||||
Cancelled options | 250,000 | |||||||||||||||||||
Stock Appreciation Rights (SARs) [Member] | New Employee [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Options granted | 150,000 | |||||||||||||||||||
Options granted, exercise price | $ 1.52 | |||||||||||||||||||
Immediately vested shares | 50,000 | |||||||||||||||||||
Volatility | 91.91% | |||||||||||||||||||
Expected term | 4 years | |||||||||||||||||||
Discount rate | 1.97% | |||||||||||||||||||
Term | 5 years | |||||||||||||||||||
Vested shares upon generating $3,000,000 in revenue in any 12-month period | 33,334 | |||||||||||||||||||
Vested shares upon generating $5,000,000 in revenue in any 12-month period | 33,333 | |||||||||||||||||||
Vested shares upon generating $6,000,000 in revenue in any 12-month period | 33,333 | |||||||||||||||||||
Unrecognized compensation expense, period for recognition | 2 years | |||||||||||||||||||
Unrecognized compensation expense | $ 176,413 |
STOCKHOLDERS' DEFICIT (Schedu39
STOCKHOLDERS' DEFICIT (Schedule of Warrant Activity) (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Number of Warrants | ||
Balance | 3,037,121 | |
Outstanding | 3,037,121 | |
Weighted Average Exercise Price | ||
Balance | $ 1.45 | |
Outstanding | $ 1.45 | |
Warrants Issued as Settlements [Member] | ||
Number of Warrants | ||
Balance | 350,000 | 350,000 |
Granted | ||
Exercised | ||
Forfeited | ||
Expired | ||
Outstanding | 350,000 | 350,000 |
Exercisable | 350,000 | 350,000 |
Weighted Average Exercise Price | ||
Balance | $ 0.63 | $ 0.63 |
Granted | ||
Exercised | ||
Forfeited | ||
Expired | ||
Outstanding | $ 0.63 | $ 0.63 |
Exercisable | $ 0.63 | $ 0.63 |
Remaining Contractual Life | ||
Granted | ||
Exercised | ||
Forfeited | ||
Expired | ||
Outstanding | 2 years 2 months 12 days | 3 years 2 months 12 days |
Exercisable | 2 years 2 months 12 days | 3 years 2 months 12 days |
Warrants Issued for Cash or Services [Member] | ||
Number of Warrants | ||
Balance | 3,037,121 | 1,533,700 |
Granted | 5,750,326 | 1,863,421 |
Exercised | (20,000) | |
Forfeited | ||
Expired | (296,200) | (340,000) |
Outstanding | 8,491,247 | 3,037,121 |
Exercisable | 8,366,247 | 3,037,121 |
Weighted Average Exercise Price | ||
Balance | $ 1.45 | $ 1.25 |
Granted | $ 1.85 | 1.58 |
Exercised | $ 1.25 | |
Forfeited | ||
Expired | $ 1.60 | $ 1.60 |
Outstanding | 1.72 | 1.45 |
Exercisable | 1.74 | $ 1.45 |
Weighted average fair value of warrants granted | $ 0.44 | |
Remaining Contractual Life | ||
Granted | 2 years 6 months | 3 years 6 months |
Exercised | ||
Forfeited | ||
Expired | ||
Outstanding | 3 years 2 months 12 days | 2 years 8 months 12 days |
Exercisable | 3 years 2 months 12 days | 2 years 8 months 12 days |
STOCKHOLDERS' DEFICIT (Narrat40
STOCKHOLDERS' DEFICIT (Narrative) (Warrant) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2015 | Jan. 23, 2015 | Oct. 31, 2013 | Aug. 31, 2013 | Jul. 31, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Proceeds from exercise of warrants | $ 25,000 | ||||||
Convertible note, amount | $ 1,375,000 | ||||||
Common Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise price of shares called by warrants | $ 1.25 | ||||||
Warrants exercised, shares issued | 20,000 | ||||||
Proceeds from exercise of warrants | $ 25,000 | ||||||
Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term | 10 years | ||||||
Director [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares callable by warrants | 100,000 | ||||||
Investor [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term | 2 years | ||||||
Number of shares callable by warrants | 1,304,651 | ||||||
Exercise price of shares called by warrants | $ 2 | ||||||
Principal Stockholder [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term | 2 years | ||||||
Number of shares callable by warrants | 1,760,685 | ||||||
Exercise price of shares called by warrants | $ 2 | ||||||
Warrant [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term | 5 years | ||||||
Number of shares callable by warrants | 100,000 | ||||||
Exercise price of shares called by warrants | $ 0.27 | $ 1.25 | |||||
Fair value | $ 17,611 | ||||||
Volatility rate | 81.85% | ||||||
Expected term | 5 years | ||||||
Discount rate | 1.39% | ||||||
Warrants expired | 296,200 | 340,000 | |||||
Warrants expired, exercise price | $ 1.60 | $ 1.60 | |||||
Proceeds from exercise of warrants | $ 25,000 | ||||||
Warrants exercised | 20,000 | ||||||
Warrants exercised, exercise price | $ 1.25 | ||||||
Warrants exercisable, exercise price | $ 1.74 | $ 1.45 | |||||
Warrant [Member] | Common Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Warrants expired | 360,000 | ||||||
Warrants expired, exercise price | $ 1.25 | ||||||
Warrant [Member] | Investor [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term | 5 years | 5 years | |||||
Number of shares callable by warrants | 120,000 | 29,412 | |||||
Exercise price of shares called by warrants | $ 1 | $ 1.30 | |||||
Warrant [Member] | Principal Stockholder [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term | 5 years | 5 years | 2 years | ||||
Number of shares callable by warrants | 100,000 | 500,000 | 2,104,990 | ||||
Exercise price of shares called by warrants | $ 1 | $ 1.30 | $ 2 | ||||
Convertible note, amount | $ 1 | ||||||
Warrant [Member] | Director and his wife [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term | 5 years | ||||||
Number of shares callable by warrants | 200,000 | ||||||
Exercise price of shares called by warrants | $ 1 | ||||||
Warrant [Member] | Consultant [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term | 5 years | ||||||
Number of shares callable by warrants | 10,000 | 470,000 | |||||
Exercise price of shares called by warrants | $ 0.25 | ||||||
Fair value | $ 1,667 | $ 199,319 | |||||
Volatility rate | 84.08% | ||||||
Expected term | 5 years | ||||||
Discount rate | 1.61% | ||||||
Warrant [Member] | Consultant [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term | 5 years | ||||||
Volatility rate | 81.85% | ||||||
Expected term | 5 years | ||||||
Discount rate | 1.51% | ||||||
Warrants exercisable, exercise price | $ 0.50 | ||||||
Warrant [Member] | Consultant [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term | 10 years | ||||||
Volatility rate | 97.15% | ||||||
Expected term | 10 years | ||||||
Discount rate | 2.28% | ||||||
Warrants exercisable, exercise price | $ 0.76 |
STOCKHOLDERS' DEFICIT (Options
STOCKHOLDERS' DEFICIT (Options to Purchase Common Stock and Stock Appreciation Rights) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
STOCKHOLDERS' DEFICIT [Abstract] | ||
Share-based compensation expense | $ 1,024,895 | $ 1,682,833 |
Unrecognized compensation expense | $ 239,796 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2015USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 33,090,136 |
Increase in valuation allowance | $ 2,094,182 |
Maximum [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carry-forward expiration date | Jun. 30, 2035 |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
INCOME TAXES [Abstract] | ||
Net operating loss carryforward | $ 12,451,818 | $ 10,754,202 |
Allowance for bad debt | 43,774 | 38,051 |
Stock-based compensation | 1,878,672 | $ 1,493,004 |
Depreciation | 2,548 | |
Gross deferred tax asset | 14,376,812 | $ 12,285,257 |
Less: deferred tax asset valuation allowance | $ (14,376,812) | (12,282,630) |
Total net deferred tax asset | 2,627 | |
Less: Deferred tax liability - depreciation | $ (2,627) | |
Net deferred taxes |
INCOME TAXES (Schedule of Recon
INCOME TAXES (Schedule of Reconciliation of Provision (Benefit) for Income Taxes) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Amount | ||
Tax at U.S. statutory rate | $ (1,874,667) | $ (2,401,741) |
State taxes, net of federal benefit | (198,796) | (255,305) |
Other | (20,719) | 502,021 |
Change in valuation allowance | $ 2,094,182 | $ 2,155,025 |
Total income tax expense (benefit) | ||
Percentage | ||
Tax at U.S. statutory rate | (34.00%) | (34.00%) |
State taxes, net of federal benefit | (3.61%) | (3.61%) |
Other | (0.37%) | 7.10% |
Change in valuation allowance | 37.98% | 30.51% |
Total effective income tax rate | 0.00% | 0.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Oct. 28, 2014 | Dec. 31, 2014 | Jan. 31, 2013 | Jul. 31, 2012 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jan. 23, 2015 |
Related Party Transaction [Line Items] | ||||||||
Other income | $ 941,000 | |||||||
Warrant [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Granted, number of warrants | 5,750,326 | 1,863,421 | ||||||
Number of shares callable by warrants | 100,000 | |||||||
Loss Contingency Breach Of Agreement [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Litigation, damages awarded | $ 51,956 | $ 500,000 | $ 841,000 | |||||
Other income | $ 448,044 | |||||||
CEO's sister-in-law [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Weekly salary amount | 1,154 | |||||||
CEO and CTO's Mother [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Weekly salary amount | $ 600 | |||||||
Monthly separation payment | $ 5,000 | |||||||
Director [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares callable by warrants | 100,000 | |||||||
Chief Executive Officer [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage to be received of first $2 million of revenue | 5.00% | |||||||
First revenue amount on which 5% is to be received | $ 2 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Oct. 28, 2014 | Apr. 30, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | Jan. 31, 2013 | Nov. 30, 2012 | Jul. 31, 2012 | Jun. 30, 2012 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 12, 2015 |
Loss Contingencies [Line Items] | ||||||||||||
Litigation accrual | $ 56,956 | $ 1,646,000 | ||||||||||
Other income | $ 941,000 | |||||||||||
Award for legal and attorney fees | $ 65,000 | $ (412,867) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Annual base salary per executive | $ 200,000 | |||||||||||
Amount of Financing Agreement | $ 25,000,000 | |||||||||||
Executive Chairman [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Monthly car allowance | $ 600 | |||||||||||
Employment agreement term | 4 years | |||||||||||
Chief Executive Officer [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage to be received of first $2 million of revenue | 5.00% | |||||||||||
First revenue amount on which 5% is to be received | $ 2 | |||||||||||
Additional payments made under the amendment | $ 17,344 | |||||||||||
Term extension of compensation agreement | 4 years | |||||||||||
Juniper, Florida Office and Warehouse [Member] | ||||||||||||
Operating Leased Assets [Line Items] | ||||||||||||
Rent expense | $ 132,756 | $ 169,547 | ||||||||||
Monthly rent payment | $ 4,000 | $ 3,600 | ||||||||||
Lease terms | 1 year | |||||||||||
Loss Contingency Invasion Of Privacy And Misrepresentation [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Litigation, damages awarded | $ 200,000 | |||||||||||
Damages paid to plaintiff by insurance carrier | 200,000 | |||||||||||
Loss contingency accrual, period increase (decrease) | $ (200,000) | |||||||||||
Loss Contingency Breach Of Agreement [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Litigation, damages awarded | $ 51,956 | $ 500,000 | 841,000 | |||||||||
Other income | $ 448,044 | |||||||||||
Loss Contingency Trespass Claim [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Litigation, damages awarded | 5,000 | |||||||||||
Loss Contingency Civil Theft [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Litigation, damages awarded | 200,000 | |||||||||||
Loss Contingency Civil Theft Law Enforced Settlement [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Litigation, damages awarded | $ 600,000 | |||||||||||
Stock Appreciation Rights (SARs) [Member] | Chief Executive Officer, Chief Technology Officer, Chief Financial Officer and Former President [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Immediately vested shares | 800,000 | |||||||||||
Vested shares upon generating $3,000,000 in revenue in any 12-month period | 170,000 | |||||||||||
Vested shares upon generating $5,000,000 in revenue in any 12-month period | 190,000 | |||||||||||
Vested shares upon generating $6,000,000 in revenue in any 12-month period | 200,000 | |||||||||||
Cancelled options | 250,000 | |||||||||||
Stock Appreciation Rights (SARs) [Member] | Chief Financial Officer [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
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 | |||||||||||
Options granted, exercise price | $ 0.45 | |||||||||||
Term | 10 years | |||||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted | 800,000 |
CONCENTRATIONS (Details)
CONCENTRATIONS (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Accounts Receivable [Member] | Customer One Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 89.30% | 24.40% |
Accounts Receivable [Member] | Customer Two Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 16.10% | |
Accounts Receivable [Member] | Customer Three Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.40% | |
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 | 85.30% | 27.40% |
Sales Revenue [Member] | Soil Twoo Dust Control Products [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 13.90% | 19.20% |
Sales Revenue [Member] | Paid For Research And Development [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 1.27% | |
Sales Revenue [Member] | Customer One Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 27.10% | 60.70% |
Sales Revenue [Member] | Customer Two Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 26.40% | |
Inventory purchases [Member] | Supplier One Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 44.70% | 35.30% |
Total EMFIDS parts, raw material and packaging purchases made during the period | $ 280,000 | $ 226,000 |
Inventory purchases [Member] | Supplier Two Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 13.90% | 12.60% |
Total EMFIDS parts, raw material and packaging purchases made during the period | $ 86,000 | $ 81,000 |
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 ($) | Aug. 12, 2015 | Jul. 31, 2015 | Jan. 23, 2015 | Sep. 30, 2013 | Jul. 31, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Aug. 31, 2013 |
Subsequent Event [Line Items] | ||||||||
Common stock issued for interest | $ 211,970 | $ 355,426 | ||||||
Convertible Line of Credit - related party, net of discounts | 1,227,026 | |||||||
Proceeds from the sale of stock and warrants through private placements | 2,305,000 | $ 1,705,000 | ||||||
Loss on settlement | $ (412,867) | |||||||
Purchase agreement amount | $ 10,000,000 | |||||||
Stock Options [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Options granted | 84,500 | 1,425,000 | ||||||
Options granted, exercise price | $ 0.59 | $ 1.34 | ||||||
Warrants [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Term | 5 years | |||||||
Volatility rate | 81.85% | |||||||
Expected term | 5 years | |||||||
Discount rate | 1.39% | |||||||
Number of shares callable by warrants | 100,000 | |||||||
Exercise price of shares called by warrants | $ 0.27 | $ 1.25 | ||||||
Director [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of shares callable by warrants | 100,000 | |||||||
Proceeds from the sale of stock and warrants through private placements | $ 150,000 | |||||||
Director [Member] | Stock Options [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Options granted | 15,000 | 50,000 | ||||||
Options granted, exercise price | $ 1.01 | $ 1.30 | ||||||
Term | 10 years | 10 years | ||||||
Volatility rate | 91.60% | 93.11% | ||||||
Expected term | 5 years | 6 years 6 months | ||||||
Discount rate | 1.62% | 2.67% | ||||||
Minimum [Member] | Stock Options [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Expected term | 2 years | 2 years 6 months | ||||||
Maximum [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Term | 10 years | |||||||
Maximum [Member] | Stock Options [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Expected term | 10 years | 6 years 6 months | ||||||
Subsequent Event [Member] | Director [Member] | Stock Options [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Options granted | 580,000 | |||||||
Options granted, exercise price | $ 0.80 | |||||||
Vesting date | Jun. 30, 2016 | |||||||
Term | 10 years | |||||||
Volatility rate | 98.15% | |||||||
Expected term | 5 years 6 months | |||||||
Discount rate | 1.74% | |||||||
Subsequent Event [Member] | President [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Common stock issued for interest, shares | 101,352 | |||||||
Common stock issued for interest | $ 75,000 | |||||||
Subsequent Event [Member] | President [Member] | Warrants [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Term | 2 years | |||||||
Number of shares callable by warrants | 890,249 | |||||||
Exercise price of shares called by warrants | $ 2 | |||||||
Convertible Line of Credit - related party, net of discounts | $ 1,265,000 | |||||||
Subsequent Event [Member] | Executive Chairman [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Description of settlement agreement terms | Under the employment agreement, the executive chairman was entitled to $800,000 of salary, up to 800,000 restricted stock units and $28,800 in auto allowance. Under the Settlement Agreement, the Company issued the former executive chairman 200,000 shares of restricted common stock and made two cash payments totaling $315,000. | |||||||
Subsequent Event [Member] | Lincoln Park Capital Fund, LLC ("LPC") [Member] | Common Stock Purchase Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Purchase agreement amount | $ 10 | |||||||
Description of purchase agreement terms | The Company may direct Lincoln Park, at its sole discretion and subject to certain conditions, to purchase up to 50,000 shares of Common Stock on any business day, provided that at least one business day has passed since the most recent purchase, increasing to up to 150,000 shares, depending upon the closing sale price of the Common Stock (such purchases, Regular Purchases). However, in no event shall a Regular Purchase be more than $500,000. The purchase price of shares of Common Stock related to the future funding will be based on the prevailing market prices of such shares at the time of sales, but in no event will shares be sold to Lincoln Park on a day the Common Stock closing price is less than the floor price as set forth in the Purchase Agreement. In addition, the Company may direct Lincoln Park to purchase additional amounts as accelerated purchases if on the date of a Regular Purchase the closing sale price of the Common Stock is not below the threshold price as set forth in the Purchase Agreement. The Company's sales of shares of Common Stock to Lincoln Park under the Purchase Agreement are limited to no more than the number of shares that would result in the beneficial ownership by Lincoln Park and its affiliates, at any single point in time, of more than 9.99% of the then outstanding shares of the Common Stock. | |||||||
Common stock issued for cash in connection with stock purchase agreement, shares | 291,097 | |||||||
Subsequent Event [Member] | Minimum [Member] | President [Member] | Warrants [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Convertible note, conversion price | $ 0.63 | |||||||
Subsequent Event [Member] | Maximum [Member] | President [Member] | Warrants [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Convertible note, conversion price | $ 0.78 | |||||||
Subsequent Event [Member] | Maximum [Member] | Lincoln Park Capital Fund, LLC ("LPC") [Member] | Common Stock Purchase Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Common stock issued for cash in connection with stock purchase agreement, shares | 391,645 |