Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2015 | Feb. 15, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | GelTech Solutions, Inc. | |
Entity Central Index Key | 1,403,676 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 49,511,505 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Jun. 30, 2015 |
Current assets | ||
Cash | $ 135,266 | $ 127,123 |
Accounts receivable trade, net | 156,733 | 236,640 |
Inventories | 1,428,157 | 1,107,177 |
Prepaid expenses and other current assets | 89,808 | 48,248 |
Total current assets | 1,809,964 | 1,519,188 |
Furniture, fixtures and equipment, net | 134,259 | 158,502 |
Deposits | 16,086 | 16,086 |
Total assets | 1,960,309 | 1,693,776 |
Current liabilities | ||
Accounts payable | 271,566 | 349,812 |
Accrued expenses | $ 344,094 | 210,449 |
Litigation accrual | 56,956 | |
Settlement accrual | $ 80,000 | 451,000 |
Insurance premium finance contracts | 54,611 | 8,117 |
Total current liabilities | 750,271 | 1,076,334 |
Convertible notes - related party, net of discounts | 2,946,118 | 2,940,944 |
Convertible line of credit - related party, net of discounts | 2,746,336 | 1,227,026 |
Total liabilities | $ 6,442,725 | $ 5,244,304 |
Commitments and contingencies (Note 5) | ||
Stockholders' deficit | ||
Preferred stock: $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding | ||
Common stock: $0.001 par value; 150,000,000 shares authorized; 48,972,496 and 47,613,501 shares issued and outstanding as of December 31, 2015 and June 30, 2015, respectively. | $ 48,972 | $ 47,614 |
Additional paid in capital | 38,754,495 | 37,049,161 |
Accumulated deficit | (43,285,883) | (40,647,303) |
Total stockholders' deficit | (4,482,416) | (3,550,528) |
Total liabilities and stockholders' deficit | $ 1,960,309 | $ 1,693,776 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Jun. 30, 2015 |
Statement of Financial Position [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 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 48,972,496 | 47,613,501 |
Common stock, shares outstanding | 48,972,496 | 47,613,501 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||||
Sales | $ 240,151 | $ 155,895 | $ 776,607 | $ 266,762 |
Cost of goods sold | 83,563 | 52,070 | 261,663 | 92,416 |
Gross profit | 156,588 | 103,825 | 514,944 | 174,346 |
Operating expenses: | ||||
Selling, general and administrative expenses | 1,568,502 | 1,132,519 | 2,721,934 | 2,428,697 |
Research and development | 115,966 | 36,119 | 153,760 | 95,805 |
Total operating expenses | 1,684,468 | 1,168,638 | 2,875,694 | 2,524,502 |
Loss from operations | $ (1,527,880) | (1,064,813) | (2,360,750) | (2,350,156) |
Other income (expense) | ||||
Other income | 378 | 56,956 | 448,422 | |
Interest income | $ 8 | $ 16 | 8 | $ 16 |
Loss on settlement | (80,000) | (80,000) | ||
Interest expense | (141,100) | $ (113,813) | (254,794) | $ (226,607) |
Total other income (expense) | (221,092) | (113,419) | (277,830) | 221,831 |
Net loss | $ (1,748,972) | $ (1,178,232) | $ (2,638,580) | $ (2,128,325) |
Net loss per common share - basic and diluted | $ (0.04) | $ (0.03) | $ (0.05) | $ (0.05) |
Weighted average shares outstanding - basic and diluted | 48,769,496 | 44,885,854 | 48,368,086 | 44,165,535 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | ||
Net loss | $ (2,638,580) | $ (2,128,325) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 31,214 | 26,546 |
Amortization of debt discounts | 42,944 | 111,869 |
Bad debt expense | 21,876 | 4,197 |
Employee stock option compensation expense | 768,159 | 436,768 |
Changes in assets and liabilities: | ||
Accounts receivable | 58,031 | (33,162) |
Inventories | (320,980) | (125,321) |
Prepaid expenses and other current assets | $ 42,439 | 73,667 |
Other assets | 14,000 | |
Accounts payable | $ (78,246) | (78,355) |
Accrued expenses | 218,598 | $ 117,496 |
Settlement accrual | (235,000) | |
Litigation accrual | (56,956) | $ (448,044) |
Net cash used in operating activities | (2,146,501) | (2,028,664) |
Cash flows from Investing Activities | ||
Purchases of equipment | (6,971) | (9,850) |
Net cash used in investing activities | (6,971) | (9,850) |
Cash flows from Financing Activities | ||
Proceeds from sale of stock through private placements | 110,000 | $ 46,505 |
Proceeds from sale of stock under stock purchase agreement | $ 199,120 | |
Proceeds from sale of stock and warrants | $ 2,155,000 | |
Proceeds from convertible notes with related parties | $ 1,890,000 | |
Payments on insurance finance contract | (37,505) | $ (33,642) |
Net cash provided by financing activities | 2,161,615 | 2,167,863 |
Net increase in cash and cash equivalents | 8,143 | 129,349 |
Cash and cash equivalents - beginning | 127,123 | 66,266 |
Cash and cash equivalents - ending | 135,266 | 195,615 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for interest | $ 1,706 | $ 1,408 |
Cash paid for income taxes | ||
Supplementary Disclosure of Non-cash Investing and Financing Activities: | ||
Financing of prepaid insurance contracts | $ 83,999 | $ 82,925 |
Beneficial conversion feature of convertible notes | 204,230 | |
Loan discount from warrants | 204,230 | |
Stock issued for interest | 75,000 | $ 75,000 |
Stock issued for settlement | 136,000 | |
Stock issued for services | $ 9,953 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | NOTE 1 Organization and Basis of Presentation Organization GelTech Solutions, Inc., or GelTech or the Company, generates revenue primarily from marketing products based around the following four 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) FireIce Shield®, a line of products used by industry, police departments and first responders to protect assets from fire; (3) Soil 2 2 2 2 . Our unaudited condensed consolidated financial statements have been prepared on a going concern basis, and we need to generate sufficient material revenues to support the ongoing business of GelTech. The corporate office is located in Jupiter, Florida. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its three wholly-owned subsidiaries: FireIce Gel, Inc., GelTech International, Inc. and Weather Tech Innovations, Inc. There has been no activity in FireIce Gel, Inc., Weather Tech Innovations, Inc. and GelTech International, Inc. These unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (SEC) for interim financial information. Accordingly, they do not include all of the information and footnotes required by "GAAP" for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The information included in these unaudited condensed consolidated interim financial statements should be read in conjunction with Managements Discussion and Analysis of Financial Conditions and Results of Operations contained in this report and the audited consolidated financial statements and accompanying notes included in the Companys Annual Report on Form 10-K for the year ended June 30, 2015 filed on September 21, 2015. Inventories Inventories as of December 31, 2015 consisted of raw materials and finished goods in the amounts of $489,024 and $939,133, respectively. There were no inventory obsolescence writes-offs during the six months ended December 31, 2015. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management believes that the estimates utilized in preparing its consolidated financial statements are reasonable; however, actual results could differ materially from these estimates. Significant estimates for the three and six months ended December 31, 2015 include the allowance for doubtful accounts, depreciation and amortization, valuation of inventories, valuation of options and warrants granted for services or settlements, valuation of common stock granted for services or debt conversion, valuation of debt discount related to the beneficial conversion feature of convertible notes, accruals for litigation losses and the valuation of deferred tax assets. Net Earnings (Loss) per Share The Company computes net earnings (loss) per share in accordance with ASC 260-10, Earnings per Share Stock-Based Compensation The Company accounts for employee stock-based compensation in accordance with ASC 718-10, Share-Based Payment 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 Companys determination of fair value using an option-pricing model is affected by the stock price as well as assumptions regarding the number of highly subjective variables. The Company estimates volatility based upon the historical stock price of the Company and estimates the expected term for employee stock options using the simplified method for employees and directors and the contractual term for non-employees. The risk free rate is determined based upon the prevailing rate of United States Treasury securities with similar maturities. The fair values of stock option grants for the period from July 1, 2015 to December 31, 2015 were estimated using the following assumptions: Risk free interest rate 0.88% - 1.74% Expected term (in years) 2.5 - 5.5 Dividend yield Volatility of common stock 95.65% - 99.31% Estimated annual forfeitures New Accounting Pronouncements No Accounting Standards Updates (ASUs) which were not effective until after December 31, 2015 are expected to have a significant effect on the Company's consolidated financial position or results of operations. |
Going Concern
Going Concern | 6 Months Ended |
Dec. 31, 2015 | |
Going Concern [Abstract] | |
Going Concern | NOTE 2 Going Concern These unaudited condensed consolidated financial statements have been prepared on a going concern basis, which assumes the Company will continue to realize it assets and discharge its liabilities in the normal course of business. As of December 31, 2015, the Company had an accumulated deficit and stockholders deficit of $43,285,883 and $4,482,416, respectively, and incurred losses from operations of $2,360,750 for the six months ended December 31, 2015 and used cash in operations of $2,146,501 during the six months ended December 31, 2015. In addition, the Company has not yet generated revenue sufficient to support ongoing operations. These factors raise substantial doubt regarding the Companys ability to continue as a going concern. These unaudited condensed consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. During the six months ended December 31, 2015, the Company received $1,890,000 in advances from its convertible line of credit with its president and principal shareholder. The Company also received $199,120 from Lincoln Park Capital Fund LLC in connection with a $10 million stock purchase agreement entered into in August 2015. See Note 4. Management believes that the Lincoln Park Equity Line, additional fundings from its president and principal shareholder and the revenue prospects from the Wildland industry provide the opportunity for the Company to continue as a going concern. Ultimately, the continuation of the Company as a going concern is dependent upon the ability of the Company to generate sufficient revenue to attain profitable operations. |
Convertible Note Agreements - R
Convertible Note Agreements - Related Party | 6 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Convertible Note Agreements - Related Party | NOTE 3 Convertible Note Agreements Related Party The Company currently has three debt facilities outstanding, all of them held by its President and principal shareholder. One convertible note in the amount of $1,997,483, dated February 1, 2013 was a consolidation of prior debt instruments. The note bore annual interest of 7.5%, was convertible at $0.35 per share and due December 31, 2016. On February 12, 2015, this note was modified by securing the note with all the assets of the Company and by extending the due date of the note from December 31, 2016 to December 31, 2020. The modification was accounted for as a debt extinguishment in accordance with ASC 470. As a result of the modification the Company recorded a loss on extinguishment of debt of $34,586. During the six months ended December 31, 2015, the Company recognized interest expense of $75,521. As of December 31, 2015, the principal balance of the note is $1,997,483 and accrued interest amounted to $137,087. A second convertible note in the amount of $1,000,000 dated July 11, 2013 related to a new funding on that date. The note bore annual interest of 7.5%, was convertible at $1.00 per share and was due July 10, 2018. In connection with the note, the Company issued fiveyear warrants to purchase 500,000 shares of common stock at an exercise price of $1.30 per share. On February 12, 2015, this note was modified by securing the note with all the assets of the Company, by extending the due date of the note from July 10, 2018 to December 31, 2020 and by reducing the conversion rate of the note from $1.00 to $0.35 per share. The modification was accounted for as a debt extinguishment in accordance with ASC 470. As a result of the modification, the Company recorded a loss on extinguishment of debt of $562,062. Also, in connection with the modification the Company recorded a note discount of $60,390, related to the relative fair value of the warrants attached to the note. For the six months ended December 31, 2015 the Company recorded interest expense of $5,174 related to the amortization of the discounts related to the warrants of the note originated in July 2013. As of December 31, 2015, the balance of the unamortized discount related to the warrants was $51,365. In July 2015, the Company issued 101,352 shares of common stock to its President and principal shareholder in payment of accrued interest of $75,000 on this convertible note (see Note 4). As of December 31, 2015, the principal balance on this note is $1,000,000 and accrued interest amounted to $37,808. In connection with the debt modifications described above, the Company entered into a secured convertible line of credit agreement for up to $4 million with its president and principal shareholder. Under the agreement, the Company may, with the prior approval of its president and principal shareholder, receive advances under the secured convertible line of credit. Each advance bears an annual interest rate of 7.5%, is due December 31, 2020 and is convertible at the rate equal to the closing price of the Companys common stock on the day prior to the date the parties agree to the advance. In addition, the Company will issue the Companys president and principal shareholder two year warrants to purchase shares of common stock at an exercise price of $2.00 per share. The number of warrants issued equals 50% of the number of shares issuable upon the conversion of the related advance. For the six months ended December 31, 2015, the Company received nine advances totaling $1,890,000 with conversion rates between $0.47and $0.78 per share, and issued two year warrants to purchase 1,531,057 shares of common stock at an exercise price of $2.00 per share. In connection with these advances, the Company has recorded loan discounts related to the warrants and the beneficial conversion features of the advances amounting to $204,230 and $204,230, respectively. During the six months ended December 31, 2015, the Company has recognized interest expense of $42,944 related to the amortization of these loan discounts. As of December 31, 2015, the principal balance of the advances was $3,265,000 and the balance of the unamortized discounts related to the warrants and the beneficial conversion feature was $259,332 and $259,332, respectively. The calculated loan discounts were based on the relative fair value of the warrants which were calculated by the Company using the Black Scholes option pricing model, using volatilities of between 95.8% and 99.31%, based on the Companys historical stock price, discount rates from 0.67% to 1.00%, and expected terms of 2 years, the term of the warrants. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | NOTE 4 Stockholders Equity Preferred Stock The Company has authorized 5,000,000 shares of preferred stock, par value $0.001 per share with such rights, preferences and limitation as may be set from time to time by resolution of the board of directors and the filing of a certificate of designation as required by Delaware General Corporation Law. Common Stock In July 2015, the Company issued 101,352 shares of common stock valued at $75,000 based upon the closing price of the Companys common stock on the date of grant, to its president and principal shareholder in payment of accrued interest of $75,000 on a $1 million convertible note. (See Note 3) In July 2015, the Company issued 12,659 shares of common stock in exchange for $10,000 in a private placement with an accredited investor. In August 2015, the Company issued 2,014 shares of common stock valued at $1,208 based upon the average closing price of the Companys common stock during the period of service, to a consultant in exchange for services in the amount of $1,208. On August 12, 2015, GelTech signed a $10 million Purchase Agreement with Lincoln Park. The Company also entered into a Registration Rights Agreement with Lincoln Park whereby we agreed to file a registration statement related to the transaction with the SEC covering the shares that may be issued to Lincoln Park under the Purchase Agreement. Under the terms and subject to the conditions of the Purchase Agreement, GelTech has the right to sell, and Lincoln Park is obligated to purchase, up to $10 million in shares of the Companys common stock, subject to certain limitations, from time to time, over the 30-month period commencing on the date that a registration statement, which the Company agreed to file with the SEC pursuant to the Registration Rights Agreement, is declared effective by the SEC. The Company filed the registration statement with the SEC on October 5, 2015 and it was declared effective by the SEC on October 16, 2015. In consideration for entering into the $10 million Purchase Agreement, in August 2015 the Company issued 291,097 shares of common stock to Lincoln Park as a commitment fee. The shares were valued at $189,213, based upon the closing price of the common stock on the day preceding the execution of the agreement and were recorded as a reduction of the offering proceeds. During the six months ended December 31, 2015, the Company issued 457,797 shares of common stock, including 7,797 commitment shares, to Lincoln Park in exchange for $199,120. In August 2015, the Company issued 200,000 shares of common stock in connection with a settlement with a former executive chairman and director of the Company. The shares were valued at $0.68 per share, the closing price of the Companys common stock on the date of the settlement. The value of the shares issued was recorded as a reduction of the settlement accrual. During the three months ended December 31, 2015, the Company issued 277,778 shares of common stock in exchange for $100,000 in connection with a private placement with an accredited investor. In October 2015, the Company issued 4,063 shares of common stock valued at $2,745 based upon the average closing price of the Companys common stock during the period of service, to a consultant in exchange for services in the amount of $2,745. During the six months ended December 31, 2015, the Company issued 12,235 shares of common stock valued at between $0.35 and $0.60 per share in exchange for investor relations services valued at $6,000. Stock-Based Compensation Stock-based compensation expense recognized under ASC 718-10 for the period July 1, 2015 to December 31, 2015, was $595,100 for stock options granted to employees and directors. This expense is included in selling, general and administrative expenses in the unaudited condensed consolidated statements of operations. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. At December 31, 2015 the total compensation cost for stock options not yet recognized was approximately $323,977. This cost will be recognized over the remaining vesting term of the options of approximately two years. Stock-based awards granted to non-employees are valued at fair value in accordance with the measurement and recognition criteria of ASC 505-50 "Equity Based payments to Non-Employees. Stock based compensation to non-employees recognized for the six months ended December 31, 2015 was $173,059. Options to Purchase Common Stock Employee Options and Stock Appreciation Rights In September 2015, the Company granted a new employee five year options to purchase 5,000 shares of common stock at an exercise price of $0.64 per share. The options vest one year from the date of the grant. The Company valued the options at $1,913 using the Black-Scholes option pricing model using a volatility of 95.65%, based upon the historical price of the Companys common stock, an estimated term of 3.0 years, using the Simplified Method and a discount rate of 0.88%. In December 2015, the Company extended the expiration date on two grants of options for an additional five years, Each of the grants allowed the purchase of 750,000 shares of common stock, were issued to our CEO and our former CEOs wife, and are exercisable at $1.22 per share. The options were valued using the Black-Scholes model using a volatility of 98.68%, derived using the historical market price for the Companys common stock, an expected term of 2.5 years (using the simplified method) and a discount rate of 1.10%. The value of these options, $271,118, was recognized as expense during the six months ended December 31, 2015. In December 2015, the Company issued five year options to purchase 300,000 shares of common stock at an exercise price of $0.34 per share to employees. The options vest 25% immediately with 25% vesting annually over three years from the date of the grant, subject to continued employment. The options were valued using the Black-Scholes model using a volatility of 99.26%, derived using the historical market price for the Companys common stock, an expected term of 4.0 years (using the simplified method) and a discount rate of 1.53%. The value of these options, $70,258, will be recognized as expense over the three year vesting period. Options Issued to Directors As prescribed by the Company's 2007 Equity Incentive Plan, on July 1, 2015, the Company issued options to purchase 580,000 shares of common stock to directors. The options have an exercise price of $0.80 per share, vest on June 30, 2016¸ subject to continuing service as a director and bear a ten year term. The options were valued using the Black-Scholes model using a volatility of 98.15%, derived using the historical market price for the Companys common stock, an expected term of 5.5 years (using the simplified method) and a discount rate of 1.74%. The value of these options, $353,553, will be recognized as expense over the one year vesting period. Non-Employee, Non-Director Options During the six months ended December 31, 2015, there were no options granted to non-employees or non-directors. Warrants to Purchase Common Stock Warrants Issued as Settlements During the six months ended December 31, 2015, there were no warrants granted for settlements. Warrants Issued for Cash or Services In connection with executing the Stock Purchase Agreement with Lincoln Park, in August 2015, the Company extended the expiration date of warrants to purchase 200,000 shares of common stock at an exercise price of $1.25 per share from September 1, 2015 to August 11, 2020. The difference in the value of the warrants resulting from the change in the term, $86,448, was recorded as a reduction of the proceeds of the offering. During the six months ended December 31, 2015, the Company issued two year warrants to purchase 1,531,057 shares of common stock at an exercise price of $2.00 per shares in connection with advances of $1,890,000 from its president and principal shareholder related to the convertible line of credit agreement. During the six months ended December 31, 2015, the Company issued five year fully vested warrants to purchase 310,000 shares of common stock at exercise prices between $0.34 and $0.58 per share to four consultants. The warrants were valued using the Black-Scholes model using a volatility from 99.26% to 99.31%, derived using the historical market price for the Companys common stock, an expected term of 5 years (the term of the warrants) and a discount rate of 1.74%. The value of these options, $113,617 was recognized as non-cash compensation expense during the six months ended December 31, 2015. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 5 Commitments and Contingencies The Company was sued by a former employee on June 23, 2008, alleging breach of a consulting agreement and an employment agreement entered into in May and June 2007, respectively. In addition, the plaintiff sought to recover certain of his personal property, which was used or stored in the Companys offices and alleges the Company invaded his privacy by looking at his personal computer (which was used in the Companys business) in the Companys offices. On October 14, 2015, the Court issued an order on Defendant GelTechs Motion for Attorneys Fees and Costs granting GelTech attorney fees and costs in excess of the amount of its litigation accrual for the case. As such, the Company reversed the litigation accrual resulting in other income of $56,956 which was included in the Companys unaudited condensed statement of operations for the six months ended December 31, 2015. In November 2015, the Court issued a Final Judgement against the former employee in the amount of $510,499. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 6 Related Party Transactions During the six months ended December 31, 2015, the Company issued warrants to its president and principal shareholder in exchange for cash as more fully described in Note 3. |
Concentrations
Concentrations | 6 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentrations | NOTE 7 Concentrations The Company maintains its cash in bank and financial institution deposits that at times may exceed federally insured limits. The Company has not experienced any losses in such accounts through December 31, 2015. As of December 31, 2015, there were no cash equivalent balances held in depository accounts that are not insured. At December 31, 2015, four customers accounted for 29.5%, 29.3%, 13.1% and 12.2% of accounts receivable. For the six months ended December 31, 2015, four customers accounted for 24.5%, 19.6%, 13.9% and 13.5% of sales. During the six months ended December 31, 2015, sales primarily resulted from four sources, sales of FireIce®, Soil 2 2 2 2 Three vendors accounted for 20.1%, 16.1% and 14.4% of the Companys approximately $570,000 in purchases of raw material and packaging during the six months ended December 31, 2015. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 8 Subsequent Events Since January 1, 2016, the Company has issued two year warrants to purchase 620,920 shares of common stock at an exercise price of $2.00 per share in exchange for advances in the amount of $530,000 from the Companys president and principal shareholder in connection with the secured convertible line of credit agreement. The conversion rates of these advances were between $0.37 and $0.55 per share. On January 22, 2016, the Company granted 5 year warrants to purchase 150,000 shares of the Companys common stock in exchange for legal services. The warrants vest immediately and are exercisable at $0.39 per share. The Company valued the warrants at $44,447 using the Black-Scholes option pricing model using a volatility of 103.14%, based upon the historical price of the Companys common stock, an estimated term of 5 years, the term of the warrants, and a discount rate of 1.49%. The fair value will be recognized in expense during the three months ending March 31, 2016. In January 2016, the Company issued 5,556 shares of common stock in exchange for investor relations services valued at $2,000. In January 2016, the Company issued 3,581 shares of common stock to a consultant for services valued at $1,656. In January 2016, the Company entered into a settlement with a former shareholder of the Companys predecessor company under which the Company paid $80,000 in exchange for a general release. In January 2016, the Company granted a one year extension for warrants to purchase 3,968,258 shares of common stock which were set to expire at various dates in 2016. Of the warrants extended, 2,443,565 were held by our president and principal shareholder and a director. In connection with the extension, the Company will record other expense of approximately $207,000 for the three months ended March 31, 2016 representing the difference between the fair value of the old warrants and the extended warrants. At the Companys annual shareholders meeting on January 22, 2016, shareholders approved increasing the number of authorized shares of common stock from 100 million to 150 million. On January 26, 2016, the Company filed a Certificate of Amendment to its Certificate of Incorporation to effectuate the increase of its authorized shares of common stock from 100 million to 150 million. On January 25, 2016, the Companys Board of Directors approved changing its fiscal year end from June 30 th st In February 2016, the Company issued 428,032 shares of common stock to its president and principal shareholder in payment of accrued interest of $149, 811. In February 2016, the Company issued 101,840 shares of common stock in exchange for $47,000 in connection with the Purchase Agreement with Lincoln Park. |
Organization and Basis of Pre14
Organization and Basis of Presentation (Policy) | 6 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization GelTech Solutions, Inc., or GelTech or the Company, generates revenue primarily from marketing products based around the following four 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) FireIce Shield®, a line of products used by industry, police departments and first responders to protect assets from fire; (3) Soil 2 2 2 2 . Our unaudited condensed consolidated financial statements have been prepared on a going concern basis, and we need to generate sufficient material revenues to support the ongoing business of GelTech. The corporate office is located in Jupiter, Florida. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its three wholly-owned subsidiaries: FireIce Gel, Inc., GelTech International, Inc. and Weather Tech Innovations, Inc. There has been no activity in FireIce Gel, Inc., Weather Tech Innovations, Inc. and GelTech International, Inc. These unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (SEC) for interim financial information. Accordingly, they do not include all of the information and footnotes required by "GAAP" for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The information included in these unaudited condensed consolidated interim financial statements should be read in conjunction with Managements Discussion and Analysis of Financial Conditions and Results of Operations contained in this report and the audited consolidated financial statements and accompanying notes included in the Companys Annual Report on Form 10-K for the year ended June 30, 2015 filed on September 21, 2015. |
Inventories | Inventories Inventories as of December 31, 2015 consisted of raw materials and finished goods in the amounts of $489,024 and $939,133, respectively. There were no inventory obsolescence writes-offs during the six months ended December 31, 2015. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management believes that the estimates utilized in preparing its consolidated financial statements are reasonable; however, actual results could differ materially from these estimates. Significant estimates for the three and six months ended December 31, 2015 include the allowance for doubtful accounts, depreciation and amortization, valuation of inventories, valuation of options and warrants granted for services or settlements, valuation of common stock granted for services or debt conversion, valuation of debt discount related to the beneficial conversion feature of convertible notes, accruals for litigation losses and the valuation of deferred tax assets. |
Net Earnings (Loss) per Share | Net Earnings (Loss) per Share The Company computes net earnings (loss) per share in accordance with ASC 260-10, Earnings per Share |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for employee stock-based compensation in accordance with ASC 718-10, Share-Based Payment 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 Companys determination of fair value using an option-pricing model is affected by the stock price as well as assumptions regarding the number of highly subjective variables. The Company estimates volatility based upon the historical stock price of the Company and estimates the expected term for employee stock options using the simplified method for employees and directors and the contractual term for non-employees. The risk free rate is determined based upon the prevailing rate of United States Treasury securities with similar maturities. The fair values of stock option grants for the period from July 1, 2015 to December 31, 2015 were estimated using the following assumptions: Risk free interest rate 0.88% - 1.74% Expected term (in years) 2.5 - 5.5 Dividend yield Volatility of common stock 95.65% - 99.31% Estimated annual forfeitures |
New Accounting Pronouncements | New Accounting Pronouncements No Accounting Standards Updates (ASUs) which were not effective until after December 31, 2015 are expected to have a significant effect on the Company's consolidated financial position or results of operations. |
Organization and Basis of Pre15
Organization and Basis of Presentation (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Fair Value Assumptions for Stock Options | The fair values of stock option grants for the period from July 1, 2015 to December 31, 2015 were estimated using the following assumptions: Risk free interest rate 0.88% - 1.74% Expected term (in years) 2.5 - 5.5 Dividend yield Volatility of common stock 95.65% - 99.31% Estimated annual forfeitures |
Organization and Basis of Pre16
Organization and Basis of Presentation (Inventories) (Details) | 6 Months Ended |
Dec. 31, 2015USD ($) | |
Inventory, Gross [Abstract] | |
Raw materials | $ 489,024 |
Finished goods | $ 939,133 |
Inventory obsolescence writes-offs |
Organization and Basis of Pre17
Organization and Basis of Presentation (Net Earnings (Loss) per Share) (Details) | 6 Months Ended |
Dec. 31, 2015shares | |
Stock Options [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Shares considered antidilutive | 11,187,840 |
Warrants [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Shares considered antidilutive | 10,268,804 |
Stock Options For Convertible Notes Reserved [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Shares considered antidilutive | 15,836,318 |
Organization and Basis of Pre18
Organization and Basis of Presentation (Schedule of Fair Value Assumptions) (Details) - Stock Options [Member] | 6 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate, minimum | 0.88% |
Risk-free interest rate, maximum | 1.74% |
Dividend yield | |
Volatility of common stock, minimum | 95.65% |
Volatility of common stock, maximum | 99.31% |
Estimated annual forfeitures | |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 2 years 6 months |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 5 years 6 months |
Going Concern (Details)
Going Concern (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 31, 2015 | Aug. 12, 2015 | Jun. 30, 2015 | |
Related Party Transaction [Line Items] | |||||||
Accumulated deficit | $ 43,285,883 | $ 43,285,883 | $ 40,647,303 | ||||
Stockholders' deficit | 4,482,416 | 4,482,416 | $ 3,550,528 | ||||
Loss from operations | $ 1,527,880 | $ 1,064,813 | 2,360,750 | $ 2,350,156 | |||
Net cash used in operating activities | 2,146,501 | $ 2,028,664 | |||||
Proceeds from sale of stock under stock purchase agreement | 199,120 | ||||||
President and principal shareholder [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Advances from convertible line of credit | 1,890,000 | ||||||
Lincoln Park Capital Fund, LLC. [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Common stock issued | $ 10,000,000 | $ 10,000,000 | |||||
Proceeds from sale of stock under stock purchase agreement | $ 199,120 |
Convertible Note Agreements -20
Convertible Note Agreements - Related Party (Details) - USD ($) | Feb. 12, 2015 | Jul. 11, 2013 | Feb. 01, 2013 | Jul. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Conversion [Line Items] | ||||||||
Interest expense | $ 141,100 | $ 113,813 | $ 254,794 | $ 226,607 | ||||
Note discount | 42,944 | $ 111,869 | ||||||
Convertible OID Note [Member] | ||||||||
Debt Conversion [Line Items] | ||||||||
Debt issued | $ 1,000,000 | |||||||
Shares issued upon conversion of convertible note | 101,352 | |||||||
Accrued interest | $ 75,000 | |||||||
President and principal shareholder [Member] | Convertible Note Payable Dated February 2013 [Member] | ||||||||
Debt Conversion [Line Items] | ||||||||
Debt issued | $ 1,997,483 | 1,997,483 | 1,997,483 | |||||
Debt, interest rate | 7.50% | |||||||
Convertible note, conversion price | $ 0.35 | |||||||
Maturity date | Dec. 31, 2020 | Dec. 31, 2016 | ||||||
Loss on extinguishment of debt | 34,586 | |||||||
Accrued interest | 137,087 | 137,087 | ||||||
Interest expense | 75,521 | |||||||
President and principal shareholder [Member] | Convertible Note Payable Dated July 2013 [Member] | ||||||||
Debt Conversion [Line Items] | ||||||||
Debt issued | $ 1,000,000 | 1,000,000 | 1,000,000 | |||||
Debt, interest rate | 7.50% | |||||||
Convertible note, conversion price | $ 0.35 | $ 1 | ||||||
Maturity date | Dec. 31, 2020 | Jul. 10, 2018 | ||||||
Loss on extinguishment of debt | 562,062 | |||||||
Term | 5 years | |||||||
Number of shares callable by warrants | 500,000 | |||||||
Shares issued upon conversion of convertible note | 101,352 | |||||||
Accrued interest | $ 75,000 | 37,808 | 37,808 | |||||
Interest expense | 5,174 | |||||||
Note discount | 60,390 | |||||||
Unamortized discount | 51,365 | 51,365 | ||||||
Exercise price of shares called by warrants | $ 1.30 | |||||||
President and principal shareholder [Member] | Secured Convertible Line of Credit Agreement [Member] | ||||||||
Debt Conversion [Line Items] | ||||||||
Maximum borrowing capacity | $ 4,000,000 | |||||||
Debt issued | $ 3,265,000 | $ 3,265,000 | ||||||
Debt, interest rate | 7.50% | |||||||
Maturity date | Dec. 31, 2020 | |||||||
Term | 2 years | |||||||
Number of shares callable by warrants | 1,531,057 | 1,531,057 | ||||||
Interest expense | $ 42,944 | |||||||
Unamortized discount | $ 259,332 | $ 259,332 | ||||||
Exercise price of shares called by warrants | $ 2 | $ 2 | $ 2 | |||||
Unamortized beneficial conversion feature | $ 259,332 | $ 259,332 | ||||||
Term | 2 years | |||||||
Percentage of warrants issued equals of number of shares issuable upon the conversion | 50.00% | |||||||
Convertible amount | $ 1,890,000 | |||||||
Loan discounts related to warrants | 204,230 | |||||||
Loan discounts related to beneficial conversion features of advances amounting | $ 204,230 | |||||||
Expected term, simplified method | 2 years | |||||||
President and principal shareholder [Member] | Secured Convertible Line of Credit Agreement [Member] | Maximum [Member] | ||||||||
Debt Conversion [Line Items] | ||||||||
Convertible note, conversion price | $ 0.78 | $ 0.78 | ||||||
Volatility rate (as a percent) | 99.31% | |||||||
Discount rate | 1.00% | |||||||
President and principal shareholder [Member] | Secured Convertible Line of Credit Agreement [Member] | Minimum [Member] | ||||||||
Debt Conversion [Line Items] | ||||||||
Convertible note, conversion price | $ 0.47 | $ 0.47 | ||||||
Volatility rate (as a percent) | 95.80% | |||||||
Discount rate | 0.67% |
Stockholders' Equity (Preferred
Stockholders' Equity (Preferred Stock) (Details) - $ / shares | Dec. 31, 2015 | Jun. 30, 2015 |
Stockholders' Equity Note [Abstract] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, par value per share | $ 0.001 | $ 0.001 |
Stockholders' Equity (Common St
Stockholders' Equity (Common Stock) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |||||
Dec. 31, 2015 | Oct. 31, 2015 | Aug. 31, 2015 | Jul. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 12, 2015 | |
Stockholders Equity Note [Line Items] | |||||||
Value of shares issued in exchange for services | $ 9,953 | ||||||
Proceeds from issuance of common stock | 110,000 | $ 46,505 | |||||
Proceeds from sale of stock under stock purchase agreement | 199,120 | ||||||
Convertible OID Note [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Shares issued upon conversion of convertible note | 101,352 | ||||||
Value of shares issued upon conversion of convertible note | $ 75,000 | ||||||
Accrued interest | 75,000 | ||||||
Convertible note, amount | $ 1,000,000 | ||||||
Consultant Service [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Value of shares issued in exchange for services | $ 2,745 | $ 1,208 | |||||
Number of shares issued in exchange for services | 4,063 | 2,014 | |||||
Investor Relation Services [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Value of shares issued in exchange for services | $ 6,000 | ||||||
Number of shares issued in exchange for services | 12,235 | ||||||
Investor Relation Services [Member] | Minimum [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Equity issuance, price per share | $ 0.35 | $ 0.35 | |||||
Investor Relation Services [Member] | Maximum [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Equity issuance, price per share | $ 0.60 | $ 0.60 | |||||
Lincoln Park Capital Fund, LLC. [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Number of shares issued | 457,797 | ||||||
Value of shares issued | $ 189,213 | ||||||
Common stock issued | 10,000,000 | $ 10,000,000 | |||||
Shares of stock issued as a commitment fee, shares | 7,797 | ||||||
Proceeds from sale of stock under stock purchase agreement | $ 199,120 | ||||||
Lincoln Park Capital Fund, LLC. [Member] | Common Stock Purchase Agreement [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Proceeds from issuance of common stock per agreement | 10,000,000 | ||||||
Proceeds from issuance of common stock | $ 10,000,000 | ||||||
Shares of stock issued as a commitment fee, shares | 291,097 | ||||||
Former Executive Chairman and Director [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Number of shares issued in exchange for services | 200,000 | ||||||
Equity issuance, price per share | $ 0.68 | ||||||
Accredited Investors [Member] | Private Placement [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Number of shares issued | 277,778 | 12,659 | |||||
Value of shares issued | $ 100,000 | $ 10,000 |
Stockholders' Equity (Stock-Bas
Stockholders' Equity (Stock-Based Compensation) (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 768,159 | $ 436,768 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 595,100 | |
Share-based compensaion expense not yet recognized | $ 323,977 | |
Unrecognized compensation cost, period for recognition | 2 years | |
Non Employee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 173,059 |
Stockholders' Equity (Options N
Stockholders' Equity (Options Narrative) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Sep. 30, 2015 | Jul. 31, 2015 | Dec. 31, 2015 | |
Employee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 5 years | 5 years | ||
Granted | 300,000 | 5,000 | ||
Granted shares, exercise price | $ 0.34 | $ 0.64 | ||
Vesting period | 1 year | |||
Vesting period | The options vest 25% immediately with 25% vesting annually over three years from the date of the grant, subject to continued employment. | |||
Fair value | $ 70,258 | $ 1,913 | ||
Volatility rate | 99.26% | 95.65% | ||
Expected term, simplified method | 4.0 years | 3.0 years | ||
Discount rate | 1.53% | 0.88% | ||
Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years | |||
Granted | 580,000 | |||
Granted shares, exercise price | $ 0.80 | |||
Vesting period | 1 year | |||
Fair value | $ 353,553 | |||
Volatility rate | 98.15% | |||
Expected term, simplified method | 5.5 years | |||
Discount rate | 1.74% | |||
Non-Employee, Non-Director Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 0 | |||
CEO [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 5 years | |||
Granted | 750,000 | |||
Granted shares, exercise price | $ 1.22 | |||
Volatility rate | 98.68% | |||
Expected term, simplified method | 2.5 years | |||
Discount rate | 1.10% | |||
CEO's Former Wife [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 5 years | |||
Granted | 750,000 | |||
Granted shares, exercise price | $ 1.22 | |||
Volatility rate | 98.68% | |||
Expected term, simplified method | 2.5 years | |||
Discount rate | 1.10% | |||
CEO and Former Wife [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value | $ 271,118 |
Stockholders' Equity (Warrant N
Stockholders' Equity (Warrant Narrative) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
Aug. 31, 2015 | Dec. 31, 2015 | Feb. 12, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Difference in value of warrants recorded as a reduction of the proceeds of the offering | $ 86,448 | ||
President and principal shareholder [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Advances from convertible line of credit | $ 1,890,000 | ||
President and principal shareholder [Member] | Secured Convertible Line of Credit Agreement [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares callable by warrants | 1,531,057 | ||
Warrant exercise price | $ 2 | $ 2 | |
Advances from convertible line of credit | $ 1,890,000 | ||
Expiration period | 2 years | ||
President and principal shareholder [Member] | Secured Convertible Line of Credit Agreement [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Discount rate | 0.67% | ||
President and principal shareholder [Member] | Secured Convertible Line of Credit Agreement [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Discount rate | 1.00% | ||
Five Year Warrants [Member] | Lincoln Park Capital Fund, LLC. [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares callable by warrants | 200,000 | ||
Warrant exercise price | $ 1.25 | ||
Warrants [Member] | Investors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares callable by warrants | 310,000 | ||
Expiration period | 5 years | ||
Volatility rate, minimum | 99.26% | ||
Volatility rate, maximum | 99.31% | ||
Discount rate | 1.74% | ||
Fair value | $ 113,617 | ||
Warrants [Member] | Investors [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Warrant exercise price | $ 0.34 | ||
Warrants [Member] | Investors [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Warrant exercise price | $ 0.58 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 6 Months Ended |
Dec. 31, 2015USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation accrual included in other income | $ 56,956 |
Final judgement against plaintiff issued by court | $ 510,499 |
Concentrations (Details)
Concentrations (Details) | 6 Months Ended |
Dec. 31, 2015USD ($)Customers | |
Concentration Risk [Line Items] | |
Cash balance not insured by the FDIC | $ | |
Total EMFIDS parts, raw material and packaging purchases made during the period | $ | $ 570,000 |
Accounts Receivable [Member] | |
Concentration Risk [Line Items] | |
Number of customers in concentration | 4 |
Accounts Receivable [Member] | Customer One Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 29.50% |
Accounts Receivable [Member] | Customer Two Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 29.30% |
Accounts Receivable [Member] | Customer Three Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 13.10% |
Accounts Receivable [Member] | Customer Four Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 12.20% |
Sales Revenue [Member] | |
Concentration Risk [Line Items] | |
Number of customers in concentration | 4 |
Number of products in concentration | 4 |
Sales Revenue [Member] | Customer One Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 24.50% |
Sales Revenue [Member] | Customer Two Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 19.60% |
Sales Revenue [Member] | Customer Three Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 13.90% |
Sales Revenue [Member] | Customer Four Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 13.50% |
Sales Revenue [Member] | Fire Ice [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 80.20% |
Sales Revenue [Member] | Soil 2 O [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 6.70% |
Sales Revenue [Member] | Fire Ice Shield [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 2.90% |
Sales Revenue [Member] | Paid for Research [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 10.10% |
Sales Revenue [Member] | Fire Ice Products [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 73.10% |
Sales Revenue [Member] | FireIce Eductors, EMFIDS and extinguishers [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 26.90% |
Sales Revenue [Member] | Soil 2 O Traditional Sales [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 36.00% |
Sales Revenue [Member] | Soil 2 O Dust Control Products [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 64.00% |
Sales Revenue [Member] | Soil 2 O Soil Cap Products [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 14.90% |
Inventory purchases [Member] | |
Concentration Risk [Line Items] | |
Number of customers in concentration | 3 |
Inventory purchases [Member] | Supplier One Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 20.10% |
Inventory purchases [Member] | Supplier Two Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 16.10% |
Inventory purchases [Member] | Supplier Three Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 14.40% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Feb. 12, 2016 | Jan. 31, 2016 | Aug. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 26, 2016 | Jun. 30, 2015 | Feb. 12, 2015 |
Subsequent Event [Line Items] | ||||||||
Value of shares issued in exchange for services | $ 9,953 | |||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | ||||||
Proceeds from issuance of common stock | $ 110,000 | $ 46,505 | ||||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Fair value | $ 207,000 | |||||||
Settlement paid to former shareholder for general release | $ 80,000 | |||||||
Number of common shares that can be purchased through warrants having been granted a one year extension | 3,968,258 | |||||||
Common stock, shares authorized | 150,000,000 | |||||||
Subsequent Event [Member] | Investor Relation Services [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Value of shares issued in exchange for services | $ 2,000 | |||||||
Number of shares issued in exchange for services | 5,556 | |||||||
Subsequent Event [Member] | Consultant Service [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Value of shares issued in exchange for services | $ 1,656 | |||||||
Number of shares issued in exchange for services | 3,581 | |||||||
Subsequent Event [Member] | Warrants [Member] | Legal Services [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of shares callable by warrants | 150,000 | |||||||
Warrant exercise price | $ 0.39 | |||||||
Expiration period | 5 years | |||||||
Fair value | $ 44,447 | |||||||
Volatility rate | 103.14% | |||||||
Discount rate | 1.49% | |||||||
President and principal shareholder [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Advances from convertible line of credit | $ 1,890,000 | |||||||
President and principal shareholder [Member] | Secured Convertible Line of Credit Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of shares callable by warrants | 1,531,057 | |||||||
Warrant exercise price | $ 2 | $ 2 | ||||||
Advances from convertible line of credit | $ 1,890,000 | |||||||
Expiration period | 2 years | |||||||
President and principal shareholder [Member] | Secured Convertible Line of Credit Agreement [Member] | Minimum [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Convertible note, conversion price | $ 0.47 | |||||||
Volatility rate | 95.80% | |||||||
Discount rate | 0.67% | |||||||
President and principal shareholder [Member] | Secured Convertible Line of Credit Agreement [Member] | Maximum [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Convertible note, conversion price | $ 0.78 | |||||||
Volatility rate | 99.31% | |||||||
Discount rate | 1.00% | |||||||
President and principal shareholder [Member] | Secured Convertible Line of Credit Agreement [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of shares callable by warrants | 620,920 | |||||||
Warrant exercise price | $ 2 | |||||||
Advances from convertible line of credit | $ 530,000 | |||||||
President and principal shareholder [Member] | Secured Convertible Line of Credit Agreement [Member] | Subsequent Event [Member] | Minimum [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Convertible note, conversion price | $ 0.37 | |||||||
President and principal shareholder [Member] | Secured Convertible Line of Credit Agreement [Member] | Subsequent Event [Member] | Maximum [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Convertible note, conversion price | $ 0.55 | |||||||
President and Director [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of common shares that can be purchased through warrants having been granted a one year extension | 2,443,565 | |||||||
President and Principal Shareholder [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Common shares issued for payment of accrued interest | 428,032 | |||||||
Accrued interest paid from issuance of common shares | $ 149,811 | |||||||
Lincoln Park Capital Fund, LLC. [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of shares issued | 457,797 | |||||||
Lincoln Park Capital Fund, LLC. [Member] | Common Stock Purchase Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Proceeds from issuance of common stock | $ 10,000,000 | |||||||
Lincoln Park Capital Fund, LLC. [Member] | Subsequent Event [Member] | Common Stock Purchase Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of shares issued | 101,840 | |||||||
Proceeds from issuance of common stock | $ 47,000 |