iCoreConnect 10-K 9 Dec 15 2014 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2014	Sep. 30, 2015	Jun. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	iMedicor
Document Type	10-K
Current Fiscal Year End Date	--06-30
Entity Common Stock, Shares Outstanding		1,422,580,409
Entity Public Float			$ 3,692,843
Amendment Flag	false
Entity Central Index Key	1,408,057
Entity Current Reporting Status	No
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2014
Document Fiscal Year Focus	2,014
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2014	Jun. 30, 2013
Current assets:
Cash and cash equivalents	$ 190,820	$ 513,272
Accounts receivable	18,897	8,186
Prepaid expenses	25,691	0
Total Current Assets	235,408	521,458
Property and equipment, net of accumulated depreciation of $3,729 and $255,483	13,051	0
Software development costs, net of accumulated amortization of $4,147 and $72,430	117,218	0
Deferred loan costs, net of accumulated amortization of $366,634 and $9,345	1,354,243	3,227
Security deposits	3,600	0
Total Assets	1,723,520	524,685
Current Liabilities:
Line of credit	499,000	0
Accounts payable and accrued expenses	442,407	1,149,320
Employee/contractor payables	200,000	703,531
Common stock payable	2,156,877	107,572
Related party payable	692,225	638,785
Share based compensation liability	0	880,700
Current portion of long term debt	793,064	4,820,361
Total current liabilities	4,783,573	8,300,269
Long-term debt	4,604,006	0
Embedded conversion liability	304,699	0
Accrued settlement	200,000	0
Warrants – derivative liability	1,452,677	5,999,435
Total Liabilities	11,344,955	14,299,704
Stockholders' Deficit
Common stock par value $.001 per share; Authorized: 2,000,000,000 shares; Issued and Outstanding: 1,151,410,590 and 997,299,590 shares at June 30, 2014 and 2013 respectively	1,151,411	997,299
Additional Paid in Capital	43,491,445	41,445,027
Accumulated deficit	(54,264,291)	(56,217,345)
Total Stockholders' Deficit	(9,621,435)	(13,775,019)
Total Liabilities and Stockholders' deficit	1,723,520	524,685
Series A Preferred Stock [Member]
Stockholders' Deficit
Preferred stock, value, Series A par value $.001; Authorized: 37.00 shares; Issued and Outstanding: 35.75 shares at June 30, 2014 and 2013 respectively, Series B par value $.001; Authorized 63.00 shares; Issued and Outstanding: 38.70 and 27.50 shares at June 30, 2014 and 2013 respectively	0	0
Series B Preferred Stock [Member]
Stockholders' Deficit
Preferred stock, value, Series A par value $.001; Authorized: 37.00 shares; Issued and Outstanding: 35.75 shares at June 30, 2014 and 2013 respectively, Series B par value $.001; Authorized 63.00 shares; Issued and Outstanding: 38.70 and 27.50 shares at June 30, 2014 and 2013 respectively	$ 0	$ 0

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2014	Jun. 30, 2013
Property plant and equipment accumulated depreciation	$ 3,729	$ 255,483
Software development cost accumulated amortization	4,147	72,430
Deferred loan costs accumulated amortization	$ 366,634	$ 9,345
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares issued	1,151,410,590	997,299,590
Series A Preferred Stock [Member]
Preferred stock , par value (in Dollars per share)	$ 0.001	$ 0.001
Series B Preferred Stock [Member]
Preferred stock , par value (in Dollars per share)	$ 0.001	$ 0.001

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]
Revenues	$ 366,447	$ 105,692
Cost of services	211,758	17,787
Gross profit	154,689	87,905
Operating Expenses:
General and administrative	3,463,790	8,170,616
Acquisition expense	0	400,016
Impairment of goodwill	0	59,400
Depreciation and amortization	7,875	14,179
Bad debt expense		94,832
Impairment of technology asset		1,257,058
Total operating expenses	3,471,665	9,996,101
Loss from operations	(3,316,976)	(9,908,196)
Other Income/(Expenses):
Gain (loss) on debt settlement	1,423,939	(49,672)
Change in fair value of derivatives	5,045,928	3,157,821
Other income	23,979	0
Interest expense	(1,223,816)	(1,430,419)
Total other income/(expenses)	5,270,030	1,677,730
Net income (loss)	$ 1,953,054	$ (8,230,466)
Net income (loss) per share, basic and diluted	$ 0	$ (0.01)
Weighted average number of shares, basic	1,054,800,072	711,666,399
Weighted average number of shares, diluted	2,056,852,895	711,666,399

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDER EQUITY (DEFICIT) - USD ($)	Series A Preferred Stock	Series B Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2012			$ 415,462	$ 39,651,044	$ (47,986,879)	$ (7,920,373)
Balance (in Shares) at Dec. 31, 2012	28	18.50	415,462,433
Warrants - derivative liability				(8,228,882)		(8,228,882)
Issuance of stock in exchange for access to the HIITS Consulting – independent agents			$ 6,000	53,400		59,400
Issuance of stock in exchange for access to the HIITS Consulting – independent agents (in Shares)			6,000,000
Issuance of stock in exchange for acquisition of JTJ Capital LLC technology assets			$ 34,834	1,025,182		1,060,016
Issuance of stock in exchange for acquisition of JTJ Capital LLC technology assets (in Shares)			34,834,156
Issuance of stock in exchange for acquisition for 100% of the stock of ClariDYS			$ 10,526	410,526		421,052
Issuance of stock in exchange for acquisition for 100% of the stock of ClariDYS (in Shares)			10,526,316
Issuance of stock in exchange for accrued salary			$ 20,401	166,809		187,210
Issuance of stock in exchange for accrued salary (in Shares)			20,401,250
Issuance of stock for accounts payable			$ 3,500	101,500		105,000
Issuance of stock for accounts payable (in Shares)			3,500,000
Issuance of stock in exchange for convertible debentures and accrued interest			$ 64,779	89,435		154,214
Issuance of stock in exchange for convertible debentures and accrued interest (in Shares)			64,778,710
Issuance of stock for fees/services			$ 288,047	6,295,388		6,583,435
Issuance of stock for fees/services (in Shares)			288,046,721
Issuance of preferred stock and common stock			$ 153,750	1,880,625		2,034,375
Issuance of preferred stock and common stock (in Shares)	7.75	7.63	153,750,000
Rounding shares		1.37	4
Net income (loss)					(8,230,466)	(8,230,466)
Balance at Dec. 31, 2013			$ 997,299	41,445,027	(56,217,345)	(13,775,019)
Balance (in Shares) at Dec. 31, 2013	35.75	27.50	997,299,590
Balance at Jun. 30, 2013						(13,775,019)
Warrants - derivative liability						0
Issuance of stock for fees/services						1,750
Net income (loss)						1,953,054
Balance at Jun. 30, 2014						(9,621,435)
Balance at Dec. 31, 2013			$ 997,299	41,445,027	(56,217,345)	(13,775,019)
Issuance of stock for fees/services			$ 250	1,500		1,750
Issuance of stock for fees/services (in Shares)			250,000
Stock issued for cash			$ 134,062	1,037,779		1,171,841
Stock issued for cash (in Shares)		6.20	134,061,000
Stock and warrants issued for stock offering costs			$ 19,800	(210,989)		(191,189)
Stock and warrants issued for stock offering costs (in Shares)			19,800,000
Amortization of options and restricted Series B preferred stock				1,218,128		1,218,128
Amortization of options and restricted Series B preferred stock (in Shares)		5
Net income (loss)					1,953,054	1,953,054
Balance at Dec. 31, 2014			$ 1,151,411	$ 43,491,445	$ (54,264,291)	$ (9,621,435)
Balance (in Shares) at Dec. 31, 2014	35.75	38.70	1,151,410,590

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flow from operating activities
Net income (loss)	$ 1,953,054	$ (8,230,466)
Adjustments to reconcile net loss to net cash used in operations
Depreciation of property and equipment	3,729	0
Amortization of software development costs	4,147	14,179
Amortization of loan financing costs	357,289	104,345
Issuance of stock for services	1,750	6,205,995
Impairment of technology asset and goodwill	0	1,316,458
Change in value of derivatives	(5,045,928)	(3,157,821)
Share-based compensation	1,218,128	880,700
Change in share-based compensation liability	(322,254)	49,672
(Gain) loss on debt settlement	(1,423,939)	94,832
Provision for loss on accounts receivable	0	0
Changes in operating assets and liabilities
Accounts Receivable	(10,711)	25,794
Prepaid expenses	(25,691)	0
Accounts payable and accrued expenses	1,192,168	1,049,816
Related party payable	53,440	0
Common stock payable	285,000	0
Employee/contractor payable	(703,531)	0
Net cash used in operating activities	(2,463,349)	(1,646,496)
Cash flow from investing activities
Purchase of property and equipment	(16,780)	0
Increase in capitalized software development costs	(121,365)	0
Security deposits	(3,600)	0
Net cash used in investing activities	(141,745)	0
Cash flow from financing activities
Proceeds from line of credit	649,000	275,326
Payments on line of credit	(150,000)	0
Proceeds from long term debt	622,898	0
Payments on long term debt	(121,331)	(150,000)
Increase in deferred loan costs	0	0
Proceeds from issuance of common stock, net of costs	1,282,075	2,034,375
Net cash provided by financing activities	2,282,642	2,159,701
Net increase (decrease) in cash and cash equivalents	(322,452)	513,205
Cash and cash equivalents at beginning of period	513,272	67
Cash and cash equivalents at end of period	190,820	513,272
Schedule of Noncash Investing and financing Transactions:
Derivative warrants	0	8,228,882
Exchanged stock for Technology Assets	0	1,060,016
Exchanged stock for Acquisition of stock	0	421,053
Exchanged stock for accounts payable and accrued expenses	0	292,210
Exchanged stock for note payable and accrued interest		154,214
Exchanged stock for access to independent agents	0	59,400
Common stock payable for loan and stock issuance costs	1,708,305	107,572
Warrants issued for stock issuance costs	245,423	0
Reclassify share based compensation liability	558,446	0
Supplemental disclosures:
Cash paid for interest	$ 21,833	$ 20,604

1. NATURE OF OPERATIONS

1. NATURE OF OPERATIONS	12 Months Ended
	Jun. 30, 2014
Nature Of Operations
Nature of operations	iMedicor Inc., a Nevada Corporation, builds cloud based software, healthcare records capture, storage, retrieval, transport and security related products. The Company’s focus presently is on three different revenue streams: (1) iMedicor’s cloud-based exchange, the iCoreExchange, which allows physicians, patients and other members of the healthcare community to exchange patient-specific healthcare information securely via the internet, while maintaining compliance with all current Health Insurance Portability and Accountability Act (“HIPAA”) regulations, (2) Customized EHR platform technology that is specifically tailored to provide specialized medical practices with a technology that conforms to workflows of that particular medical discipline such as ophthalmology, dentistry, orthopedic and other specialty practices, and (3) iMedicor has developed a Meaningful Use Consulting Division assisting both medical and dental healthcare providers becoming “Meaningful Use” compliant to ultimately qualify for federal incentive funds under the Federal Meaningful Use Incentive Funds Program. iMedicor’s integrated software and service offering is unique in the healthcare space as it enables doctors to meet the increasing regulatory burden associated with secure HIPAA-compliant medical records transport with no change in healthcare delivery workflows at a very reasonable cost.

2. GOING CONCERN

2. GOING CONCERN	12 Months Ended
	Jun. 30, 2014
Going Concern
Going concern	The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. For the year ended June 30, 2014, the Company generated net income of $1,953,054 but otherwise it has incurred operating losses to date and would have had a net loss of $3,092,874 for the year ended June 30, 2014 without the noncash gain from the change in fair value of derivatives of $5,045,928. The Company has an accumulated deficit, total stockholders’ deficit and net working capital deficit of $54,264,291, $9,621,435 and $4,548,165 at June 30, 2014, respectively. The Company’s activities have been primarily financed through convertible debentures, and private placements of equity securities. The Company intends to raise additional capital through the issuance of debt or equity securities to fund its operations. The financing may not be available on terms satisfactory to the Company, if at all . The Consolidated Financial Statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets or the amounts and classifications of liabilities that may be necessary should the Company be unable to continue as a going concern.

3. SUMMARY OF SIGNIFICANT ACCOU

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Jun. 30, 2014
Summary Of Significant Accounting Policies
Summary of significant accounting policies	Basis of Accounting The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States. Significant accounting principles followed by the Company and the methods of applying those principles, which materially affect the determination of financial position, results of operations and cash flows are summarized below. Principles of Consolidation The consolidated financial statements include the accounts of iMedicor, Inc. and its wholly-owned subsidiaries Nuscribe, Inc. and ClariDIS Corporation (together, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. Cash and Cash Equivalents The Company classifies highly liquid temporary investments with an original maturity of three months or less when purchased as cash equivalents. The Company maintains cash balances at various financial institutions. Balances at United States banks are insured by the Federal Deposit Insurance Corporation up to $250,000. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risk for cash on deposit. Concentrations of Credit Risk The Company has historically provided financial terms to customers in accordance with what management views as industry norms. Financial terms range from immediate payment for access to the Company’s software products to several months for Meaningful Use consulting. Management periodically and regularly reviews customer account activity in order to assess the adequacy of allowances for doubtful accounts, considering such factors as economic conditions and each customer’s payment history and creditworthiness. If the financial conditions of our customers were to deteriorate, or if they were otherwise unable to make payments in accordance with management’s expectations, we might have to increase our allowance for doubtful accounts, modify their financial terms and/or pursue alternative collection methods. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are customer obligations due under normal trade terms. We maintain an allowance for doubtful accounts for estimated losses resulting from the potential inability of certain customers to make required future payments on amounts due us. Management determines the adequacy of this allowance by periodically evaluating the aging and past due nature of individual customer accounts receivable balances and considering the customer’s current financial situation as well as the existing industry economic conditions and other relevant factors that would be useful in assessing the risk of collectability. If the future financial condition of our customers were to deteriorate, resulting in their inability to make specific required payments, additions to the allowance for doubtful accounts may be required. In addition, if the financial condition of our customers improves and collections of amounts outstanding commence or are reasonably assured, then we may reverse previously established allowances for doubtful accounts. The Company has deemed it unnecessary to record an allowance for doubtful accounts at June 30, 2014 and 2013. Property, Equipment and Depreciation Property, equipment, and leasehold improvements are recorded at their historical cost. Depreciation and amortization have been determined using the straight-line method over the estimated useful lives of the assets of three years. The cost of repairs and maintenance is charged to operations in the period incurred. Goodwill and Other Intangible Assets The Company accounts for goodwill and other intangible assets in accordance with accounting pronouncements, which require that goodwill and intangible assets with indefinite useful lives should not be amortized, but instead be tested for impairment at least annually at the reporting unit level. If impairment exists, a write-down to fair value (normally measured by discounting estimated future cash flows) is recorded. Intangible assets with finite lives are amortized primarily on a straight-line basis over their estimated useful lives and are reviewed for impairment. Software Development Costs We account for software development costs, including costs to develop software products or the software component of products to be marketed to external users, as well as software programs to be used solely to meet our internal needs. For internal use software, in accordance with ASC 350-40, Internal Use Software and ASC 985-730, Computer Software Research and Development, research phase costs should be expensed as incurred and development phase costs including direct materials and services, payroll and benefits and interest costs may be capitalized. Software development costs for internal use software are amortized on a straight-line basis over their estimated useful lives. We have determined that technological feasibility for our products to be marketed to external users was reached before the release of those products. As a result, the development costs and related acquisition costs after the establishment of technological feasibility were capitalized as incurred. Capitalized costs for software to be marketed to external users are amortized based on current and projected future revenue for each product with an annual minimum equal to the straight-line amortization over the remaining estimated economic life of the product. Impairment of Long-Lived Assets Long-lived assets are 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 estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount that the carrying amount of the asset exceeds the fair value of the asset. Loan Costs In conjunction with the issuance of certain debt, the Company incurred fees that were capitalized as loan costs and are being amortized over the term of the related debt using the effective interest method. Amortization of loan costs included in interest expense in the accompanying consolidated statements of operations was $609,834 and $9,345 for the years ended June 30, 2014 and 2013, respectively. Revenue Recognition During the years ended June 30, 2014 and June 30, 2013 the Company derived revenue primarily from Meaningful Use consulting services. In general, the Company recognizes revenue when all of the revenue recognition criteria are met, which is typically when: ● evidence of an arrangement exists; ● services have been provided or goods have been delivered; ● the price is fixed or determinable; and ● collection is reasonably assured. Meaningful Use consulting service revenue is recognized in the period that the services are completed and the approval of the customer’s underlying application for Federal Meaningful Use Incentive Funds is received from the relevant taxing authority. Revenue from NextEMR services is recognized ratably over the service period. Advertising Costs Advertising costs are reported in general and administrative expenses and include advertising, marketing and promotional programs and are charged as expenses in the period or year in which incurred. Advertising costs for the years ended June 30, 2014 and 2013 were $16,631 and $12,737, respectively. Accounting for Derivative Instruments The Company accounts for derivative instruments in accordance with ASC 815, which requires additional disclosures about the Company’s objectives and strategies for using derivative instruments, how the derivative instruments and related hedged items are accounted for, and how the derivative instruments and related hedging items affect the financial statements. The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risk. Terms of convertible debt and preferred stock instruments are reviewed to determine whether or not they contain embedded derivative instruments that are required under ASC 815 to be accounted for separately from the host contract, and recorded on the balance sheet at fair value. The fair value of derivative liabilities, if any, is required to be revalued at each reporting date, with corresponding changes in fair value recorded in current period operating results. Freestanding warrants issued by the Company in connection with the issuance or sale of debt and equity instruments are considered to be derivative instruments. Pursuant to ASC 815, an evaluation of specifically identified conditions is made to determine whether the fair value of warrants issued is required to be classified as equity or as a derivative liability. Fair Value of Financial Instruments Management believes that the carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate fair value due to the short-term nature of these instruments. The carrying amount of the Company’s debt also approximates fair value, based on market quote values (where applicable) or discounted cash flow analyses. (See discussion of Fair Value Measurements below). Fair Value Measurements The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets and liabilities are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies, lattice models or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The Company’s Level 3 financial liabilities consist of derivative financial instruments, including a warrant liability and compound embedded derivative liability, for which there is no current market for these securities such that the determination of fair value requires significant judgment or estimation. See Note 12 for a discussion of how fair value for these financial instruments was determined. Significant unobservable inputs used in the fair value measurement of the warrants include the estimated term. Significant increases in the estimated remaining period to exercise would result in a significantly higher fair value measurement. Conversely, decreases in the estimated remaining period to exercise would result in a significantly lower fair value measurement. Significant unobservable inputs used in the fair value measurement of the compound embedded derivatives include the variable linked number of common shares, the variable interest conversion factor and the conversion price factor. The compound embedded derivatives are linked to a variable number of common shares based upon the average of the Company's closing stock price for the ten days preceding conversion. In addition, the Company has the option of paying interest in common stock at 85% of the trailing ten day average stock price. The number of linked shares will increase (decrease) as the trading market price decreases (increases). While the debt is convertible into stock based on the trailing ten day average stock price, we assumed that a market participant would not exercise the right to convert debt into shares unless the option was significantly in the money. For purposes of applying this consideration, the fair value model assumes that debt will not convert unless the conversion rate is less than or equal to 25% of the trading value of the stock. Significant increases (decreases) in the trading market price in the future would result in a significantly lower (higher) fair value measurement. For a summary of the changes in the fair value of Level 3 financial liabilities See Note 12. Income Taxes The Company follows the asset and liability approach to accounting for income taxes. Under this method, deferred tax assets and liabilities are measured based on differences between the financial reporting and tax bases of assets and liabilities measured using enacted tax rates and laws that are expected to be in effect when differences are expected to reverse. Valuation allowances are established when it is necessary to reduce deferred income tax assets to the amount, if any, expected to be realized in future years. ASC 740, Accounting for Income taxes (‘ASC 740’), requires that deferred tax assets be evaluated for future realization and reduced by a valuation allowance to the extent we believe a portion more likely than not will not be realized. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including our recent cumulative loss experience and expectations of future taxable income by taxing jurisdictions, the carry-forwarding periods available to us for tax reporting purposes and other relevant factors. The Company has not recognized a liability for uncertain tax positions. A reconciliation of the beginning and ending amount of unrecognized tax benefits or penalties has not been provided since there has been no unrecognized benefit or penalty. If there were an unrecognized tax benefit or penalty, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company files U.S. Federal income tax returns and various returns in state jurisdictions. The Company's open tax years subject to examination by the Internal Revenue Service and the state Departments of Revenue generally remain open for three years from the date of filing. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Net Earnings (Loss) Per Share Basic net earnings (loss) per share is computed by dividing net earnings (loss) by the weighted average number of shares of Common Stock outstanding for the period. Diluted net earnings ( loss) per share reflects the potential dilution of securities by adding other Common Stock equivalents, including stock options, shares issuable on exercise of warrants, convertible preferred stock and convertible notes in the weighted-average number of common shares outstanding for a period, if dilutive. Common stock equivalents that are anti-dilutive were excluded from the computation of diluted earnings per share. Due to the significant number of common shares outstanding, there is no difference between basic and diluted earnings per share for the year ended June 30, 2014. As such, no reconciliation has been presented. Stock-Based Compensation The Company accounts for all stock-based payments and awards under the fair value based method. Stock-based payments to non-employees are measured at the fair value of the consideration received, or the fair value of the equity instruments issued, or liabilities incurred, whichever is more reliably measurable. The fair value of stock-based payments to non-employees is periodically re-measured until the counterparty performance is complete, and any change therein is recognized over the vesting period of the award and in the same manner as if the Company had paid cash instead of paying with or using equity based instruments on an accelerated basis. The cost of the stock-based payments to non-employees that are fully vested and non-forfeitable as at the grant date is measured and recognized at that date, unless there is a contractual term for services in which case such compensation would be amortized over the contractual term. The Company accounts for the granting of share purchase options to employees using the fair value method whereby all awards to employees are recorded at fair value on the date of the grant. Share based awards granted to employees with a performance condition are measured based on the probable outcome of that performance condition during the requisite service period. Such an award with a performance condition is accrued if it is probable that a performance condition will be achieved. Compensation costs for stock-based payments to employees that do not include performance conditions are recognized on a straight-line basis. The fair value of all share purchase options is expensed over their requisite service period with a corresponding increase to additional capital surplus. Upon exercise of share purchase options, the consideration paid by the option holder, together with the amount previously recognized in additional capital surplus, is recorded as an increase to share capital. The Company estimates the fair value of each option award on the date of grant using a Black-Scholes option pricing model that uses the assumptions noted in the table below. The Company estimates the fair value of its common stock using the closing stock price of its common stock on the date of the agreement. The Company estimates the volatility of its common stock at the date of grant based on its historical stock prices. The Company determines the expected life based on historical experience with similar awards, giving consideration to the contractual terms, vesting schedules and post-vesting forfeitures. The Company uses the risk-free interest rate on the implied yield currently available on U.S. Treasury issues with an equivalent remaining term approximately equal to the expected life of the award. The Company has never paid any cash dividends on its common stock and does not anticipate paying any cash dividends in the foreseeable future. The Company used the following assumptions for options granted during the twelve months ended June 30, 2014: Equity Incentive Plans Assumptions June 30, 2014 Expected term 3 - 4 years Weighted average volatility 287% - 305% Weighted average risk free interest rate 0.76% - 1.02% Expected dividends - The Company estimates forfeitures when recognizing compensation expense and this estimate of forfeitures is adjusted over the requisite service period based on the extent to which actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures are recognized through a cumulated catch-up adjustment, which is recognized in the period of change, and also impact the amount of unamortized compensation expense to be recognized in future periods. Based upon historical experience of forfeitures, the Company estimated forfeitures at 0% for the year ended June 30, 2014. There were no options issued for the year ended June 30, 2013. During the year ended June 30, 2013, and as further discussed at Note 4, the Company granted warrants to purchase Common Stock and preferred stock to a certain executive of the Company. For the reasons discussed at Note 12, the Company accounts for these stock-based compensation awards as liability awards. The Company measures liability awards based on the award's intrinsic value on the grant date and then re-measures at each reporting date until a date of settlement. Compensation expense is recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award. Compensation expense for each period until settlement is based on the change in value (or a portion of the change in value, depending on the percentage of the requisite service that has been rendered at the reporting date). Changes in the value of a liability that occur after the end of the requisite service period are considered compensation expense in the periods in which the changes occurs. Reclassifications Certain items have been reclassified in the 2013 financial statements to conform to the 2014 presentation. Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies that are adopted by us as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our consolidated financial position or results of operations upon adoption. In May 2014, the FASB issued Accounting Standards Update No.2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for the Company in the first quarter of the fiscal year ending June 30, 2019, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard.

4. COMMON STOCK AND PREFERRED S

4. COMMON STOCK AND PREFERRED STOCK	12 Months Ended
	Jun. 30, 2014
Common Stock And Preferred Stock
Common stock and preferred stock	Common Stock The Company, as of June 30, 2014 and 2013, had a total of 1,151,410,590 and 997,299,590 shares outstanding, respectively. On July 27, 2012, the Board of Directors approved an amendment of the Articles of Incorporation, and a majority of the shareholders approved the amendment, to increase the authorized number of common shares in the Company to 2 billion shares from 600 million. Preferred Stock Pursuant to an amendment of the Articles of Incorporation on December 19, 2012, the Company was authorized to issue up to 100,000,000 shares of blank check preferred stock. There were authorized 37 and 63 shares of Series A and B preferred stock, respectively, of which 35.75 shares of Series A and 38.70 shares of Series B shares, respectively, were issued and outstanding as of June 30, 2014 and 35.75 shares of Series A and 27.50 shares of Series B were issued and outstanding as of June 30, 2013. Each share of Preferred A or Preferred B stock is convertible into an amount of shares of Common Stock that is equal to one percent of the outstanding Common Share Equivalents of the Company, as defined, at the time of conversion, subject to readjustment without the payment of any additional consideration by the Holder thereof, as follows; at the option of the holder at any time or at the option of the Company on or after the date that is ten days subsequent to the date the Company gives written notice to the Holders that the Company has raised at least $10,000,000 in a single or coordinated series of transactions, which notice specifies the particulars of such capital raise transaction(s). In addition, so long as any shares of Preferred A or B are outstanding, the Company shall not, without the affirmative vote or written consent of the holders of at least two thirds of the aggregate number of shares at the time outstanding of Preferred A and Preferred B shares, respectively, alter or change any of the powers, preferences or special rights given to the Series A and B so as to affect the same adversely. Holders of the Series A and Series B preferred stock are entitled to receive, if declared by the Company’s board of directors, dividends declared on the Company’s Common Stock. Each share of Series A and Series B preferred stock will be entitled to receive 1% of the total dividend declared on Common Stock. No dividends have been issued or declared by the board of directors. Each of the Series A and Series B preferred stock has voting rights on all matters subject to a vote of the common stockholders equal to the number of common shares issuable upon conversion of the Series A and Series B preferred stock. With respect to rights upon liquidation of the Company, the Series A preferred stock ranks senior to the Series B preferred stock and to the Company’s Common Stock. Holders of Series A preferred stock have the right to receive, in cash and prior to the holders of any other class of stock, an amount equal to $125,000 per share, subject to adjustment, plus any accrued dividends on the Series A preferred stock. After distribution to the Series A stockholders, holders of the Series B preferred stock have the right to receive an amount equal to $156,250 per share, subject to adjustment, plus any accrued dividends on the Series B stock. Any remaining amounts are to be distributed to the holders of the Common Stock. Private Placements During the year ended June 30, 2014, the Company sold 134,061,000 shares of Common Stock and 6.2 shares of Series B preferred stock for cash proceeds of approximately $1,172,000. As part of the purchase of the Company’s stock, the investors received warrants to purchase 12,500,000 shares of the Company’s Common Stock at an exercise price of $0.01 per share, warrants to purchase 10,800,000 shares of Common Stock at an exercise price of $0.015 per share and warrants to purchase 500,000 shares of Common Stock at an exercise price of $0.02 per share. The warrants are immediately exercisable and expire at various dates through December 2015. As discussed in Note 12, the Company determined that the warrants issued in the private placements require liability classification, thus, they are reported at fair value and re-measured each reporting period, with the change in the fair value recognized in the consolidated statements of operations. The initial fair value of the warrants on their issuance dates totaled $233,910. Also during the year ended June 30, 2014, the Company awarded 26,800,000 shares of Common Stock to various individuals for assistance in procuring equity investors. The total value of the stock issued was $514,700. As of June 30, 2014, 19,800,000 shares of the Common Stock with a value of $458,700 had been issued and 7,000,000 shares with a value of $56,000 had not been issued and are included in common stock payable on the accompanying consolidated balance sheets. The $110,200 value of 5,800,000 shares of Common Stock related to a failed stock offering was recorded as an expense and is included in general and administrative expenses on the accompanying consolidated statements of operations. The Company also issued warrants to purchase 2,000,000 shares of Common Stock valued at $11,512 in connection with placements of its equity securities. As set forth in the consolidated statement of stockholders’ deficit, the Company issued common shares in 2013 including 64,778,710 shares for conversion of principal and accrued interest on debt of $154,214 and 288,046,721 shares in payment for fees and services of $6,583,435. In addition for 2013, the Company issued 6 million common shares in exchange for access to independent sales agent of HIITS Consulting valued at $59,400, issued 34,834,156 in common shares in exchange for the acquisition of the technology assets of JTJ Capital, LLC valued at $1,060,016, issued 10,526,316 common shares in exchange for 100% of the stock of ClariDYS, Inc. valued at $421,052, issued 20,401,250 common shares in exchange for accrued salary balance of $187,210, and issued 3,500,000 common shares in exchange for an accounts payable balance of $105,000. There were authorized 37 and 63 shares of Series A and B preferred stock, respectively, of which 35.75 Series A and 27.50 Series B shares, respectively, were issued and outstanding as of June 30, 2013. During the year ended June 30, 2013, there were 7.75 shares of Preferred Series A and 7.63 shares of Preferred Series B issued as part of the $2,034,375 raised in conjunction with 153,750,000 common shares issued. Stock Options The Company’s employee option plan was discontinued on June 6, 2012 with all outstanding options expired. However, certain executives have been granted options or warrants outside of the plan that are compensatory in nature. There were no options issued for the year ended June 30, 2013. A summary of option activity for the year ended June 30, 2014 is presented below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contracted Term in Years Aggregate Intrinsic Value Balance outstanding – June 30, 2013 - - - $ - Granted 200,000,000 $ 0.01 Exercised - - Forfeited/expired - - Balance outstanding – June 30, 2014 200,000,000 $ 0.01 2.8 $ - Exercisable – June 30, 2014 45,000,000 $ 0.01 2.7 $ - A summary of non-vested stock option activity for the year ended June 30, 2014 is presented below: Number of Options Weighted Average Grant Date Fair Value Weighted Average Remaining Years to Vest Non-vested – June 30, 2013 - - - Granted 200,000,000 $ 0.01 Vested (45,000,000 ) $ 0.01 Forfeited/expired - - Non-vested – June 30, 2014 155,000,000 $ 0.01 2.8 The compensation expense related to these grants that was recognized for the years ended June 30, 2014 was $951,000 and is included in general and administrative expenses in the accompanying Consolidated Statement of Operations. Future compensation related to non-vested awards expected to vest of $1,466,768 is estimated to be recognized over the weighted average vesting period of approximately 2.8 years. The Company’s former CEO, Mr. Zolla, received as part of his June 1, 2013 employment agreement, warrants from the Company for 100,000,000 common shares to be purchased at an exercise price of $0.017 per share and warrants for five Series B preferred shares to be purchased at an exercise price of $125,000 per share. The warrants have a term of five years and vest as follows: 1.67 shares of Series B preferred and 33.4 million shares of Common Stock upon signing of the June 1, 2013 employment agreement, 1.66 shares of preferred B and 33.3 million shares of Common Stock on June 1, 2014, and 1.66 shares of preferred B and 33.3 million shares of Common Stock on June 1, 2015. For the reasons discussed at Note 12, the Company determined that the warrants require liability classification. The warrants for the Common Stock had an aggregate value of $436,881 and $2,180,439 at June 30, 2014 and 2013, respectively. The value at June 30, 2014 was estimated using the Black-Scholes option pricing model with the following assumptions: exercise price of $0.017 per share, volatility of 229%, risk free interest rate of 0.47% and no expected dividends. The value at June 30, 2013 was estimated using the Black-Scholes option pricing model with the following assumptions: exercise price of $0.017 per share, volatility of 301%, risk free interest rate of 0.50% and no expected dividends. The Company recognized $726,813 of compensation expense for the year ended June 30, 2013. At June 30, 2014 (Mr. Zolla was no longer providing service to the Company), the value of the warrant had decreased and the Company recognized income of $289,932 which has been offset against stock-based compensation expense which is included in general and administrative expenses on the accompanying consolidated statements of operations. Total compensation expense recognized for the warrants to purchase Common Stock as of June 30, 2014 is $436,881. The warrants for the preferred shares had an aggregate value of $121,565 and $461,660 at June 30, 2014 and 2013, respectively. The value of the warrants for the preferred shares was estimated using a Binomial Option Valuation model. The Company recognized $ 153,887of compensation expense for the year ended June 30, 2013. At June 30, 2014, the fair value of the warrant had decreased and the Company recognized income of $32,322 which has been offset against stock-based compensation expense which is included in general and administrative expenses on the accompanying consolidated statements of operations. Total compensation expense recognized for the warrants to purchase preferred shares as of June 30, 2014 is $121,565. Restricted Stock Issued for Services Our current CEO, Mr. McDermott, was awarded five restricted shares of Series B preferred stock under the terms of his employment agreement. The shares vest as follows: one share on signing of the employment agreement at July 1, 2013 and one share for each yearly anniversary of the Employment Agreement. The 5 shares of Series B restricted stock were valued at a total of $667,820 by calculating the common stock equivalent value on a diluted basis. Compensation expense related to this grant for the year ended June 30, 2014 was $267,128. At June 30, 2014, future compensation expense related to the non-vested portion of this award is $400,692 which will vest over the next 3.0 years. Warrants The warrants were valued using the Black Scholes Model excepting variable strike price warrants which were valued using a Lattice Model (see Note 12). All common stock warrant issuances during fiscal year ending June 30, 2014 were issued in conjunction with stock purchases excepting 2,000,000 warrants which were issued in connection with services raising funds. June 30, 2014 June 30, 2013 Warrants Weighted Average Exercise Price Warrants Weighted Average Exercise Price Outstanding at beginning of the period 407,927,667 $ 0.1840 97,616,000 $ 0.2370 Issued 25,800,000 $ 0.0123 316,375,000 $ 0.0100 Exercised - - Forfeited - - Expired (13,730,667 ) $ 0.0504 (6,063,333 ) $ 0.0600 Outstanding at end of the period 419,997,000 $ 0.0736 407,927,667 $ 0.1840 During the years ended June 30, 2014 and 2013, no warrants were exercised. The Company issued warrants as follows for the year ended June 30, 2013: 1) 100,000,000 warrants issued due to lender extending loan maturity date. The warrants were valued at $348,482. 2) 71,500,000 warrants issued in addition to issuance of common stock or preferred stock resulting from raising funds from investors. The warrants were valued at $2,209,593. 3) 42,375,000 warrants issued as a fee for assisting in fund raising. The warrants were valued at $1,161,572. 4) 2,500,000 warrants issued as a result of note holder converting to common stock. The warrants were valued at $54,226. 5) 100,000,000 warrants to Mr. Zolla under his employment agreement. The warrants were valued at $1,119,626. The warrants issued during the year ended June 30, 2013, have a weighted average remaining life of between 0.07 years and 3.25 years and have a weighted average exercise price of between $0.01 and $0.40. The Company issued 1,766,667 warrants for the year ended June 30, 2012 in addition to the issuance of common shares. The warrants were valued at $52,380. The 1,766,667 warrants were issued as fees for services and had a weighted average exercise price of $0.237. The warrants issued during the year ended June 30, 2012 are exercisable in a range beginning at $0.01 through $0.24 and expire from 0.07 years to 3.25 years.

5. PROPERTY AND EQUIPMENT

5. PROPERTY AND EQUIPMENT	12 Months Ended
	Jun. 30, 2014
Property And Equipment
Property and equipment	Depreciation expense on property and equipment for the years ended June 30, 2014 and 2013 was $3,729 and $-0-, respectively. The cost and related accumulated depreciation of disposed assets are removed from the applicable accounts and any gain or loss is included in income in the period of disposal. Property and equipment are stated at cost and consist of the following: June 30, 2014 2013 Furniture and fixtures $ - $ 2,600 Leasehold improvements 16,780 0 Equipment - 252,883 16,780 255,483 Less Accumulated Depreciation and Amortization 3,729 255,483 $ 13,051 $ -0-

6. SOFTWARE DEVELOPMENT COSTS

6. SOFTWARE DEVELOPMENT COSTS	12 Months Ended
	Jun. 30, 2014
Software Development Costs
Software development costs	Software development costs consists of the following: June 30, 2014 2013 Developed Software Costs 121,365 72,430 Less Accumulated Amortization (4,147 ) (72,430 ) $ 117,218 $ - 0- Throughout fiscal 2014, the Company developed iCoreExchange and certain other new iCore software platforms including iCoreMD and iCoreDental. The Company capitalized approximately $121,000 of software development costs during fiscal 2014. The iCoreExchange software was placed into service in April 2014 and is being amortized over its estimated useful life of two years. The other software platforms have not been placed into service as of June 30, 2014.

7. TECHNOLOGY AND MEDICAL SOFTW

7. TECHNOLOGY AND MEDICAL SOFTWARE	12 Months Ended
	Jun. 30, 2014
Technology And Medical Software
Technology and medical software	The Company had capitalized all acquisition costs associated with the acquisition of NuScribe Inc. In addition, we elected to capitalize all related development costs associated with the completion of the iMedicor portal, which was included in the asset purchase of Nuscribe. The iMedicor Ô portal was launched in late October 2007 and we were amortizing its cost on a straight-line basis over 60 months. Total amortization expense (exclusive of impairment losses discussed below) was $14,179 for the year ended June 30, 2013. The Company accounts for impairment of technology assets in accordance with recently issued and adopted accounting pronouncements, which require that technology with finite useful lives should be amortized, but also be tested for impairment at least annually. If impairment exists, a write-down to fair value measured by discounting estimated future cash flows is recorded. The Company evaluated this technology and medical software for impairment as June 30, 2013 and determined that the asset was impaired by $1,084,057 at June 30, 2013. The technology related to the portal to which these assets relate changed considerably since their acquisition and development, resulting in a change in the estimate of remaining cash flows. Cumulative impairment losses at June 30, 2013 were $1,708,673.

8. CONSULTING AGREEMENT

8. CONSULTING AGREEMENT	12 Months Ended
	Jun. 30, 2014
Consulting Agreement
Constulting agreement	In November 2012, the Company arranged with HITS Consulting and its owner Henry Denis to acquire access to Mr. Denis’ independent agents to increase our ability to execute on the Careington Meaningful Use contract. Mr. Denis is the CEO of that company and agreed to serve as a special consultant to the CEO of iMedicor The consideration for the transaction was six millions shares of common stock and six million warrants to purchase Common Stock, exercisable at $0.02 per share for a three-year period. A 90 day contract was signed after which both parties could re-engage to negotiate, in good faith, an extension with terms to be determined by and agreed upon by both parties. The Company agreed to pay $10,000 in monthly salary for Henry Denis. On or about June 30, 2013, Henry Denis and his entity HITS Consulting were terminated and not required to provide any further services to the Company.

9. ACQUISITIONS

9. ACQUISITIONS	12 Months Ended
	Jun. 30, 2014
Acquisitions
Acquisitions	NextEMR/iPenMD – Software: On January 22, 2013, the Company purchased NextEMR (Electronic Medical Record) software with iPenMD software imbedded. The purpose of the software purchase was to acquire its unique electronic pen features allowing physicians to regain lost productivity during the transition from paper to electronic health records. In accordance with the January 22, 2013 asset purchase agreement, the Company was required to issue a total of 34,834,156 shares of Common Stock. The technology asset was valued at $660,000 based on the fair market value of the stock issued and $400,016 was expensed to acquisition costs. As of June 30, 2013, the technology asset was deemed fully impaired. ClariDIS Corporation On March 18, 2013, the Company acquired all of the outstanding 275,000 shares of ClariDIS Corporation (a data mining and data aggregation business) in exchange for 10,526,316 common shares of iMedicor Inc. The transaction was valued at $421,052 based upon the 10,526,316 shares exchanged having value to the stock price of $.04 on March 18, 2013 the date of closing. The acquisition value in shares was applied entirely to the technology software asset acquired. The purpose of ClariDIS was to strengthen the IT and security encryption capabilities of iMedicor's Social Health Information Exchange (HIE) Version 3.0, acquiring the upgraded version of the first healthcare industry information exchange platform to offer secure messaging services within a social/professional networking. As of June 30, 2013, the technology asset was deemed fully impaired. The results of operations of the acquired company ClariDIS Corporation are included in the Company’s consolidated statement of operations. Total revenues were $-0- and expenses totaled $960 for the year ending June 30, 2013. There were no associated revenues or expenses for the year ending June 30, 2014.

10. LINE OF CREDIT

10. LINE OF CREDIT	12 Months Ended
	Jun. 30, 2014
Line Of Credit
Line of credit	Effective October 29, 2013, the Company entered into a revolving line of credit agreement in the amount of $250,000, which was increased to $500,000 on March 12, 2014. The line of credit is collateralized by all assets of the Company plus a $250,000 certificate of deposit owned by a stockholder of the Company who is also the guarantor for the line of credit. The Company agreed to issue the stockholder 50 million shares of common stock as consideration for providing the guarantee. The stock, valued at $500,000, has not been issued as of June 30, 2014 and is included in common stock payable on the accompanying consolidated balance sheets. In addition, the Company granted its Chief Executive Officer 50 million shares of common stock valued at $285,000, as consideration to the Chief Executive Officer to provide a personal guarantee to the stockholder for 50% of any loss that might be incurred under his guarantee. stock payable on the accompanying consolidated balance sheets.

11. LONG-TERM DEBT

11. LONG-TERM DEBT	12 Months Ended
	Jun. 30, 2014
Long-term Debt
Long-term debt	Long-term debt at June 30, 2014 and 2013 consisted of the following: June 30, 2014 June 30, 2013 (1) Convertible note bearing interest at 17.98% per annum, as amended due on June 30, 2008 $ - $ 150,000 (2) Related party note payable bearing interest at 8.5% per annum due June 30, 2017 125,500 306,858 (3) Convertible note bearing interest at 10% per annum originally due July 26, 2010 - 66,384 (4) Secured convertible note bearing interest at 10%-12% per annum – maturity extended to August 31, 2015 2,322,712 1,513,964 (5) Secured convertible note bearing interest at 8%-18% per annum – maturity extended to August 31, 2015 1,988,899 1,836,473 (6) Note bearing interest at 8% per annum, originally due in November 2008 391,805 370,200 (7) Note bearing interest at 8% per annum, no maturity date 391,259 371,387 (8) Three non-interest bearing notes executed from September 22, 2009 through January 11, 2011 10,000 35,000 (9) Note bearing interest at 18%, maturity extended to August 2015 166,895 170,095 Total long-term debt $ 5,397,070 $ 4,820,361 Less current maturities (793,064) (4,820,361) Total long-term maturities $ 4,604,006 $ - Total future minimum payments due on long-term debt as of June 30, 2014 are as follows: Fiscal Year Ending 2015 $ 793,064 2016 4,478,506 2017 125,500 $ 5,397,070 (1) The Hospice convertible debenture was originally due on September 30, 2004. The note is convertible at $1.00 per share of common stock. The effective interest rate is 17.98%. The debenture was to begin to be paid in January 2007 over a period of 18 months at a monthly amount of $8,333. The note holder had agreed to no additional interest beyond September 30, 2004. The Company defaulted on the debentures as of January 2007. Since that time, the lender has not had contact with the Company and has made no demand for payment. The Company has determined that the related statute of limitations for demand of payment by the lender has expired and has determined that it will not pay the debt. Accordingly, the Company wrote-off the debt during the year ended June 30, 2014 and recognized a $150,000 gain on debt extinguishment. (2) The unsecured Schneller convertible notes payable, with interest at 20%, originated on December 23, 2008 with a loan of $100,000 and a maturity date of December 31, 2009. The notes were convertible as defined in the loan agreements. If the loan was not repaid by the designated date there was a loan redemption fee of $50,000 that was to be added to the principal of the note. Effective May 5, 2010, the loan was replaced with a new convertible promissory note with the same conversion terms in the amount of $187,687 bearing interest at a rate of 20%. The value of the conversion feature was determined to be de minimis. If the note was in default, then Schneller was to earn for every 90 days of default, 1,336,000 shares of common stock and warrants for 1,336,000 shares of common stock exercisable at $0.05 per share for five years. At June 30, 2013, 36,072,000 of common shares and warrants for 36,072,000 common shares with a value of $638,786 were owed to Schneller and are included in accrued expenses. During fiscal 2014, an additional $53,440 was accrued by the Company under the default provisions of the debt. At June 30, 2014, accrued expenses includes $692,225 related to amounts due to Schneller under the default provisions of the debt. On June 30, 2014, the Company entered into a settlement agreement whereby the Company agreed to issue 3 shares of Series B convertible preferred stock in settlement for all amounts due under this promissory note. In addition, a new promissory note dated June 30, 2014 was issued to Schneller in the principal amount of $100,000 bearing interest at a rate of 8.5% per annum with a maturity date of June 30, 2017. Interest payments in the amount of $2,125 are payable at the end of each calendar quarter starting September 30, 2014. Since the Company did not issue the 3 shares of Series B preferred stock until subsequent to June 30, 2014, the value of these equity instruments is not included as consideration in the debt restructuring. Accordingly, the principal and interest of the original Schneller note was replaced with the new note dated June 30, 2014 in a transaction that the Company determined meets the criteria for a troubled debt restructuring. The Company recorded a gain on the debt modification of $210,451, representing the difference between the carrying amount of the old debt and the future cash flows of the new debt, and reduced the carrying value of the Schneller debt to $125,500. Mr. Schneller was appointed to the Company’s board of directors subsequent to June 30, 2013. (3) The unsecured Koeting convertible note payable, with interest at 10%, originated on March 26, 2010 with a loan to the Company of $50,000 payable on July 26, 2010. The note is convertible at $0.05 per share. The Company defaulted on the note as of July 2010. Since that time, the lender has not had contact with the Company and has made no demand for payment. The Company has determined that the related statute of limitations for demand of payment by the lender has expired and has determined that it will not pay the debt. Accordingly, the Company wrote-off the debt during the year ended June 30, 2014 and recognized a $71,414 gain on debt extinguishment. (4) Effective October 2009, the Company entered into a convertible line of credit agreement with Sonoran Pacific Resources, a company affiliated with a shareholder of the Company, for a maximum amount of $1,600,000. The note is convertible into shares of the Company’s Series B preferred stock at $125,000 per share of Series B preferred stock. This agreement has been amended and modified several times. The note is secured by all assets of the Company. As modified, the loan bears interest at 10% per annum, payable monthly, and matured June 30, 2013 but includes an option for the Company to elect to extend the maturity date of the note to June 30, 2014. Upon exercise of this option by the Company, the interest rate on the note was increased to 12% per annum. However, the lender has allowed the interest rate to continue at the original rate of 10%. As consideration for certain of the modifications of the loan through June 30, 2012, the Company agreed to issue the lender 100,000,000 shares of Common Stock. As of June 30, 2014 and 2013, 50,000,000 shares valued at $95,000 had not yet been issued and are included in common stock payable. The note also includes certain restrictive loan covenants. During the year ended June 30, 2014, the Company defaulted under the payment terms and certain other covenants of the note. An Omnibus Agreement was executed February 28, 2014 regarding this and the second Sonoran note (5) wherein a waiver of default was provided and the note due date was extended to August 31, 2015. The non-default interest rate is 12% effective March 1, 2014, however, the lender has allowed the interest rate to continue at the original rate of 10%. The credit limit will automatically increase for any additional advance made by the Company or on behalf of the Company, including accrued interest. The Company is obligated to repay $352,000 on or before June 30, 2015. Failure to pay this amount will result in a default under the agreement and the interest rate will be adjusted to 18%. As of June 30, 2015, the Company had not made such payment and is considered in default. It is in the process of entering into a revised agreement with Sonoran Pacific Resources. Accrued interest on this note is $725,363 and $439,514, at June 30, 2014 and 2013, respectively, and is included in the loan balance at each year end. The Company also agreed to issue Sonoran Pacific Resources 150,000,000 share of Common Stock as a fee in consideration of the Omnibus extension and other financial accommodations related to this loan agreement. These shares were valued at $1,200,000 and have been recorded as loan costs and are being amortized over the related life of the loan extension. These shares have not been issued as of June 30, 2015 and the value of the shares is included in common stock payable at June 30, 2014. (5) In connection with note and security agreement mentioned at (4) above, this note was also provided by Sonoran Pacific Resources over the past several years at varying amounts to assist the Company for cash flow purposes. This note is convertible into shares of the Company’s Common Stock based on the average closing price of the stock for the ten trading days immediately preceding the conversion date. This agreement has been amended and modified several times. This note is secured by all assets of the Company. Principal is payable commencing the month following the month in which the Company begins to generate revenue. Payments will be equal to 10% of the Company’s gross revenue, less any partner/strategic alliance revenue share and will be paid by the 15th of each month for all cash receipts collected by the Company in the previous month. All such payments are to be applied first to unpaid interest and then to principal. Interest is at 8% on the outstanding principal amounts and due in quarterly installments. If any payment is not paid when due, the entire outstanding principal balance shall bear interest at 18%. Interest shall be paid in cash, or at the option of the Company, in shares of the Company’s Common Stock with such shares valued at 85% of the average closing price for shares of the Company’s Common Stock for the 10 trading days immediately preceding the interest payment date. Similar to note (4), if the note is not repaid by June 30, 2014, the interest will increase to 18% until such latter default is cured. An Omnibus agreement was executed February 28, 2014 regarding this and the first Sonoran note (4) wherein a waiver of default was provided and the note due date extended to August 31, 2015. The non-default interest rate is 8%. The default interest rate, if not paid, will be 18%. As of June 30, 2014, the Company is considered in default and in the process of entering into a revised agreement. Accrued interest on this note is $798,442 and $646,016 at June 30, 2014 and 2013, respectively, and is included in the loan balance at each year end. The conversion feature of this note, along with certain other embedded derivatives, require bifurcation and have been recorded as a liability at June 30, 2014. The value of the related liability is $304,699 at June 30, 2014 and was determined to be di minimis at June 30, 2013. The $304,699 change in the fair value of the liability is included in change in fair value of derivative liabilities on the accompanying consolidated statements of operations. (6) On October 20, 2005, the Company agreed to repurchase shares of several shareholders referred to as the Wellbrock Group. The shares were exchanged for a $300,000 three-year note to be amortized over ten years at 8%. The shares of stock are held in escrow until the notes are completely paid. If there are any late payments per the payment schedule, the shares are to be released from escrow and to revert back to the original shareholders. The first ten monthly payments of principal and interest were to be in installments of $1,000 and the remaining 26 payments were to be in installments of $3,640. The balloon payment of $272,076 was due on November 1, 2008. The balloon balance was subsequently paid down to $263,492, but no further payments were made. The Company continues to be in default on this note. The Company has sought an extension/modification and has not received a response. The Company continues to accrue interest at 8%. The accrued interest payable was $108,452 and $86,847 at June 30, 2014 and 2013, respectively, and is included in the loan balance at each year end. (7) One of the Company’s former directors lent funds in varying amounts beginning November 5, 2010. Outstanding principal and accrued interest was $391,259 and $371,387 at June 30, 2014 and June 30, 2013 respectively. There is no maturity date. (8) Various unsecured, non-interest bearing notes payable totaling $10,000 and $35,000 at June 30, 2014 and June 30, 2013, respectively. The Company has determined that the related statute of limitations for demand of payment by certain of the lenders has expired and has determined that it will not pay the related debt. Accordingly, the Company wrote-off the debt during the year ended June 30, 2014 and recognized a $25,000 gain on debt extinguishment. The remaining debt is in default as of June 30, 2014. (9) Genesis Finance Corporation (“Genesis”) loaned the Company $155,000 during fiscal 2012. The note accrues interest at 18%. The note was originally due February 2012 and was being paid in installments of $2,325 on the 25th of each month. The note has been extended several times and is due August 2015. In connection with the debt extensions, the Company agreed to issue an aggregate of 1,310,000 shares of Common Stock to Genesis, none of which have been issued as of June 30, 2015. The $20,877 value of the shares has been recorded as loan costs and is being amortized over the related lives of the extensions. This note is guaranteed by Sonoran Pacific Resources, a company affiliated with a shareholder of the Company, and is secured by an interest in certain property of the guarantor. Accrued interest was $11,895 and $20,150 at June 30, 2014 and June 30, 2013, respectively, and is included in the loan balance at each year end.

12. DERIVATIVE FINANCIAL INSTRU

12. DERIVATIVE FINANCIAL INSTRUMENTS	12 Months Ended
	Jun. 30, 2014
Derivative Financial Instruments
Derivative financial instruments	The Company evaluates its convertible debt, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with paragraph 810-10-05-4 of the FASB Accounting Standards Codification and paragraph 815-40-25 of the FASB Accounting Standards Codification. The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as a liability. The change in fair value is recorded in the Consolidated Statement of Operations as other income or expense. Upon conversion or exercise, as applicable, of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. Warrant Liability During the year ended June 30, 2013, the Company determined that it did not have sufficient authorized shares of common stock to settle its equity indexed instruments. Accordingly, the Company recorded a warrant liability in the amount of $8,228,882 as of March 31, 2013. The following table summarizes the Company’s activity and fair value calculations of its derivative warrants. Warrant Liability Balance, June 30, 2012 - Initial fair value of derivative warrants 8,228,882 Change in fair value of derivatives (2,229,447 ) Balance June 30, 2013 5,999,435 Issuance of warrants to investors and consultants 245,423 Change in fair value of derivatives (5,350,627 ) Reclassification of Zolla share-based compensation liability 558,446 Balance June 30, 2014 1,452,677 Certain of the Company’s warrants were valued using the Black-Scholes option pricing model with the following assumptions: Warrant Valuation Assumptions June 30, 2014 June 30, 2013 Expected term 0.11 to 2.00 years 0.07 to 3.25 years Weighted average volatility 85.05% to 323.90% 70.65% to 299.63% Weighted average risk free interest rate 0.30%- 0.49% 0.02% - 0.66% Expected dividends - - The derivatives at June 30, 2012 included embedded derivatives deriving from the Company’s Asher notes issued in 2010 which had variable conversion rates based on market prices and reset provisions to the exercise price and conversion price if the Company issued equity or other derivatives at a price less than the exercise price set forth in the notes. Since the Asher notes converted at a percent of market, there was an indeterminable number of shares that could be issued upon conversion. Warrants that have a sliding scale exercise price were valued using a binomial lattice option valuation technique using the following assumptions: Warrant Valuation Assumptions June 30, 2014 Expected term 0.25 -1.79 years Weighted average volatility 149% - 184% Weighted average risk free interest rate 0.04% - 0.27%% Expected dividends - Exercise price $0.05 - $1.00 The Company estimates expected term based on the contractual remaining term, allocated among twelve equal intervals for purposes of calculating other inputs such as volatility and risk-free rate. Volatility is based upon historical stock prices over ranges of dates consistent with the projected term of the warrant. The risk free rates represent yields on zero-coupon U.S. Treasury Securities, over the remaining term of the warrant. Exercise price is based upon the varying exercise price of the warrant over the remaining term. Compound Embedded Derivatives The Company’s Asher Notes issued in 2010 had variable conversion rates and reset provisions to the conversion price if the Company issued equity or other derivatives at a price less than the conversion price as set forth in such notes. These features resulted in a derivative liability in our financial statements. In addition, due to the indeterminate number of shares to be issued upon conversion of the Asher Notes, the outstanding warrants and preferred shares became tainted derivatives since they may not be equity settled. The Asher Notes were converted to equity during the year ending June 30, 2013. The Company determined that the compound embedded derivative in its secured convertible note with Sonoran Pacific Resources (see note 11 item (5)) requires bifurcation and liability classification as a derivative financial instrument because it was not considered clearly and closely related to the host debt instrument and was not considered indexed to the Company’s own stock. The value of the related liability is $304,699 at June 30, 2014 and was determined to be di minimis at June 30, 2013. The $304,699 change in the fair value of the liability is included in change in fair value of derivative liabilities on the accompanying consolidated statements of operations. The value of the embedded derivative was determined using a flexible Monte Carlo simulation. The variables in the model included; the future stock price, conversion factor, interest conversion factor, and market capitalization prior to and following conversion. Certain other of the Company’s convertible debt includes embedded conversion features or other embedded derivative instruments that were not determined to require bifurcation and liability classification or the value of which was immaterial to the consolidated financial statements. The following table summarizes the Company’s activity and fair value calculations of its compound embedded derivatives: Compound Embedded Derivatives Balance, June 30, 2012 $ 928,374 Change in fair value of derivative (878,702 ) Loss recognized from debt redemption (49,672 ) Balance, June 30, 2013 -0- Change in fair value of derivative 304,699 Balance, June 30, 2014 $ 304,699

13. INCOME TAXES

13. INCOME TAXES	12 Months Ended
	Jun. 30, 2014
Income Taxes
Income taxes	The Company has incurred net losses since inception. At June 30, 2014 and 2013, the Company had federal net operating loss carry-forwards of approximately $46,000,000 and $45,000,000, respectively, which at the latter date may be carried forward for tax years ending through June 30, 2034. Utilization of NOL carry-forwards may be limited under various sections of the Internal Revenue Code depending on the nature of the Company’s operations. The Company’s income tax returns are subject to examination by the Internal Revenue Service and applicable state taxing authorities, generally for a period of three years from the date of filing. Deferred tax assets comprise the following at June 30, 2014 and June 30, 2013, respectively: June 30, 2014 2013 Deferred Income Tax Assets $ 15,213,128 $ 15,879,453 Valuation Allowance (15,213,128) (15,879,453) Net Deferred Tax Asset $ -0- $ -0- Reconciliation of the effective income tax rate to the federal statutory rate: Federal income tax rate 34.0 % 34.0 % Change in valuation allowance on net operating loss carry- forwards (34.0 %) (34.0 %) Effective income tax rate 0.0 % 0.0 % The valuation allowance decreased by approximately $666,000 for the year ended June 30, 2014 and increased by approximately $3,600,000 for the year ended June 30, 2013.

14. CONCENTRATION OF CREDIT RIS

14. CONCENTRATION OF CREDIT RISK	12 Months Ended
	Jun. 30, 2014
Concentration Of Credit Risk
Concentration of credit risk	Revenue concentrations for the year ended June 30, 2014 and 2013 and the accounts receivables concentrations at June 30, 2014 and 2013 are as follows: Net Sales for the Year Ended Accounts receivable At June 30, 2014 June 30, 2013 June 30, 2014 June 30, 2013 Customer A 13.9% 52.5% 33.6% 0% Customer B 8.6% 18.1% 22.4% 0% Customer C 8.2% 0% 16.8% 0% Customer D 16.8% Customer E 10.5% 30.7% 70.6% 73.1% 0%

15. COMMITMENTS AND CONTINGENCI

15. COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Jun. 30, 2014
Commitments And Contingencies
Commitments and contingencies	(A) LEASE COMMITMENTS On November 15, 2013 the Company signed a two-year lease agreement with AAMD, LLC for approximately 3,060 square feet of office space located in Winter Garden, Florida in which the Company has its headquarters. The lease provides for a one-year renewal term at the option of the Company. Five year lease obligations for the office space are as follows: Year Ended Lease Amount June 30, 2015 $ 51,300 June 30, 2016 52,700 June 30, 2017 17,700 June 30, 2018 - June 30, 2019 - Total $ 121,700 Total rent expense for the year ended June 30, 2014 was approximately $33,000. (B) EMPLOYMENT AGREEMENTS WITH NAMED EXECUTIVE OFFICERS On July 1, 2013, Robert McDermott entered into an Employment Agreement (the "McDermott Agreement") with the Company. Pursuant to the terms of the McDermott Agreement; Mr. McDermott was appointed by the Board of Directors as the Chief Executive Officer of the Company. The McDermott Agreement is a two-year Employment Agreement wherein Mr. McDermott is to receive an annual base salary of $200,000 plus an annual bonus up to 100% of his base salary, which bonus is to be determined by the Board. At June 30, 2014, the Company has accrued $200,000 for amounts due to Mr. McDermott under his employment agreement which is included in Employee/contractor payables on the accompanying consolidated balance sheets. In addition, Mr. McDermott was awarded an option to acquire 100,000,000 shares of the Company’s Common Stock. Twenty percent of the option award (20,000,000 options) was vested on July 1, 2013. The remaining options are to be vested at the rate of 20,000,000 each on the subsequent anniversary dates of the date of the McDermott Agreement.. The Common Stock option has an exercise price equal to the average of the ten (10) trading day closing price of the Common Stock prior to the Effective Date (the effective date being June 1, 2013) and contains a provision for "cashless exercise" at the discretion of Mr. McDermott. Further, Mr. McDermott was awarded 5 shares of the Company’s Series B preferred stock. One share of the Series B stock was vested on July 1, 2013, with the remaining McDermott Series B shares to be vested at the rate of one each on each of the subsequent anniversary dates of July 1, 2013. In the event of termination of employment due to change in control, as defined, Mr. McDermott will continue to receive his base salary and annual bonus computed at 100% of base salary for 24 months following the date of termination. In addition, the stock options will become fully vested as of the date of termination and the restrictions on the Series B preferred stock will be lifted as of the date of termination. In the event of termination during the initial two year term of the agreement without cause, Mr. McDermott will receive his base salary for the 18 month period after date of termination. In the event of termination of employment due to death or disability, Mr. McDermott or his estate will continue to receive the base salary Mr. McDermott was receiving for six months following the date of termination and the stock options will become fully vested as of the date of termination and the restrictions on the Series B preferred stock will be lifted as of the date of termination. On January 1, 2014, Donald Douglas (the “Douglas Agreement”) entered into an Employment Agreement with the Company. Pursuant to the terms of the Agreement, Mr. Douglas was appointed by the Board of Directors as the Chief Operating Officer of the Company. The Douglas Agreement is a two-year Employment Agreement wherein Mr. Douglas is to receive an annual base salary of $120,000 and is eligible to receive annual incentive bonus compensation pursuant, which bonus is to be determined by the Board. The Board awarded Mr. Douglas a $25,000 bonus which is accrued on the June 30, 2014 Balance Sheet under Employee/Contractor Payable. In addition, Mr. Douglas was awarded an option to acquire 50,000,000 shares of the Company’s Common Stock. Twenty-five percent of the option award (12,500,000 options) which vested January 1, 2014. The remaining options are to vest at the rate of 12,500,000 shares on the subsequent anniversary dates of the date of the Douglas Agreement. The Common Stock option has an exercise price equal to the average of the ten (10) trading day closing price of the Common Stock prior to the Effective Date (the effective date being January 1, 2014). In the event of termination of employment due to change in control, as defined, Mr. Douglas will continue to receive his base salary and annual bonus computed at 100% of base salary for 24 months following the date of termination. In addition, the stock options will become fully vested as of the date of termination. In the event of termination during the initial two year term of the agreement without cause, Mr. Douglas will receive his base salary for the 18 month period after date of termination. In the event of termination of employment due to death or disability, Mr. Douglas or his estate will continue to receive the base salary Mr. Douglas was receiving for six months following the date of termination and the stock options will become fully vested as of the date of termination. On January 1, 2014, Srini Parthasarathy (the “Parthasarathy Agreement”) entered into an Employment Agreement with the Company. Pursuant to the terms of the Agreement, Mr. Parthasarathy was In addition, Mr. Parthasarathy was awarded an option to acquire 50,000,000 shares of the Company’s Common Stock. Twenty-five percent of the option award (12,500,000 options) vested on January 1, 2014. The remaining options vest at the rate of 12,500,000 shares each on the subsequent anniversary dates of the date of the Parthasarathy Agreement. The Common Stock option has an exercise price equal to the average of the ten (10) trading day closing price of the common stock prior to the Effective Date (the effective date being January 1, 2014). In the event of termination of employment due to change in control, as defined, Mr. Parthasarathy will continue to receive his base salary and annual bonus computed at 100% of base salary for 24 months following the date of termination. In addition, the stock options will become fully vested as of the date of termination. In the event of termination during the initial two year term of the agreement without cause, Mr. Parthasarathy will receive his base salary for the 18 month period after date of termination. In the event of termination of employment due to death or disability, Mr. Parthasarathy or his estate will continue to receive the base salary Mr. Parthasarathy was receiving for six months following the date of termination and the stock options will become fully vested as of the date of termination. On June 1, 2013, Fred Zolla (the Zolla Agreement) entered into an Employment Agreement with the Company. Pursuant to the terms of the Agreement, Mr. Zolla was In addition, Mr. Zolla was awarded an option to acquire 100,000,000 shares of the Company’s common stock at $0.017 per share and five shares of the Company’s preferred B stock at $125,000 per share. One-third of the option award was vested on June 1, 2013. The remaining shares were vested at the rate of one-third of both the common and preferred shares each on the subsequent anniversary dates of the date of the Zolla Agreement. On November 18, 2013 a Termination Agreement was entered into by Mr. Zolla and the Company. This agreement terminated, effective November 18, 2013, Mr. Zolla’s aforementioned Employment Agreement. In the Termination Agreement, Mr. Zolla resigned his position as a Director and as Executive Chairman of the Board of Directors of the Company. Simultaneous with the Termination Agreement, a Consulting Agreement between the Company and Mr. Zolla was executed wherein Mr. Zolla was to act as a consultant to the Company for a period of eighteen months commencing November 19, 2013. Compensation for such services was to be approximately $13,333 per month. In addition, all share-based awards granted by the Company to Zolla which had not fully vested as of the date of the Agreement shall not be forfeited and shall instead vest on such date, or dates that such award or awards would have vested if Zolla’s employment by the Company had not terminated and Zolla had not resigned as the Executive Chairman of the Board of Directors. The Termination and Consulting Agreements also contained a restrictive covenant whereby, for a period of three years after November 18, 2013, Zolla shall not, in any geographical location in which there is at that time business conducted by the Company which was conducted by the Company on or at any time during the five years prior to November 18, 2013, directly or indirectly, own, manage, operate, control, be employed by, participate in, consult with, render services for or in any manner engage in, or be connected with the ownership, management, operation or control of any business competitive with or substantially similar to such business conducted by the Company without the written consent of the Company. (C) LITIGATION From time to time, the Company may become involved in various lawsuits and legal proceedings that arise in the ordinary course of business. Litigation is, however, subjective to inherent uncertainties and an adverse result in these or other matters may harm the Company’s business. The Company is not aware of any legal proceedings or claims that it believes would or could have, individually or in the aggregate, a material adverse effect on its operations or financial position. In March 2014, former Chief Executive Officers, Mr. Zolla, brought an arbitration proceeding against the Company for fees he believed were due under the terms of his consulting agreement. On July 1, 2015, a settlement was reached between the parties. The agreement provides for payment of $200,000 to Mr. Zolla over time. $75,000 was paid on execution of the agreement along with $20,833 for six months from July through December 2015. As of November 17, 2015, the Company has paid the $75,000, and four of the six monthly payments. In addition, Mr. Zolla retains all stock and warrants with vesting schedules as described in his Employment Agreement dated June 1, 2013. The amount of $200,000 has been accrued for this settlement and is shown on the June 30, 2014 Consolidated Balance Sheet as Accrued Settlement.

16. CHANGE IN ACCOUNTING POLICY

16. CHANGE IN ACCOUNTING POLICY AND ACCOUNTING ESTIMATES, AND CORRECTION OF A PRIOR PERIOD ERROR	12 Months Ended
	Jun. 30, 2014
Change In Accounting Policy And Accounting Estimates And Correction Of Prior Period Error
Change in accounting policy and accounting estimates, and correction of a prior period error	BALANCE SHEET Actual Correction of Error Restated Actual Cash 513,272 - 513,272 Account Receivable 8,186 - 8,186 Total Current Assets $ 521,458 - $ 521,458 Deferred Loan Costs - 3,227 3,227 Total Assets $ 521,458 $ 3,227 $ 524,685 Accounts Payable 1,149,320 - 1,149,320 Employee/Contractor Payables 703,531 - 703,531 Common Stock Payable - 107,572 107,572 Related Party Payable 638,785 - 638,785 Share Based Compensation Liability - 880,700 880,700 Current Portion of Long Term Debt 4,820,361 - 4,820,361 Total Current Liabilities $ 7,311,997 $ 988,272 $ 8,300,269 Warrants 5,999,435 - 5,999,435 Total Liabilities $ 13,311,432 $ 988,272 $ 14,299,704 Common Stock 997,299 997,299 Additional Paid In Capital 41,445,027 41,445,027 Accumulated Deficit (55,232,300 ) (985,045 ) (56,217,345 ) Total Stock holders’ Deficit $ (12,789,974 ) $ (985,045 ) $ (13,775,019 ) Total Liabilities and Stockholders’ Deficit $ 521,458 $ 3,227 $ 524,685 STATEMENT OF OPERATIONS Revenues 105,692 - 105,692 Cost of Sales 17,787 - 17,787 Gross Profit $ 87,905 - $ 87,905 General and Administrative 7,289,916 880,700 8,170,616 Acquisition Expense 400,016 - 400,016 Impairment of Goodwill 59,400 - 59,400 Depreciation and Amortization 14,179 - 14,179 Bad Debt Expense 94,832 - 94,832 Impairment of Technology Asset 1,257,058 - 1,257,058 Total Operating Expenses $ 9,115,401 880,700 $ 9,996,101 Loss From Operations $ (9,027,496 ) $ (880,700 ) $ (9,908,196 ) Gain (Loss) on Debt Settlement (49,672 ) - (49,672 ) Change in Fair Value of Derivative Liabilities 3,157,821 - 3,157,821 Interest Expense (1,326,074 ) (104,345 ) (1,430,419 ) Total Other Income $ 1,782,075 $ (104,345 ) $ 1,677,730 Net Loss $ (7,245,421 ) $ (985,045 ) $ (8,230,466 ) For the Year Ending June 30, 2013, the Company did not consider items relating to common stock payable of 50 million shares to Sonoran Pacific for a July 1, 2012 line of credit modification or common stock due Genesis for a loan extension. The recognition creates a $107,572 common stock payable liability, a $3,227 loan cost asset, and $104,345 of loan cost amortization expense. Further the warrant awarded to former CEO, Zolla, to purchase 5 Preferred B shares was valued at the issue date of June 1, 2013 and again on June 30, 2013 and resulted in compensation expense and share based compensation liability of $153,887. Additional share based liability and compensation expense was a result of valuing a warrant for 100 million common shares amounting to $726,813 at June 1 and June 30, 2013. The Company has restated its financial statements for the year ended June 30, 2013 to reflect the proper accounting treatment.

17. RELATED PARTY TRANSACTIONS

17. RELATED PARTY TRANSACTIONS	12 Months Ended
	Jun. 30, 2014
Related Party Transactions
Related party transactions	During the fiscal 2014 year, Mrs. McDermott performed administrative duties for the Company. She is not under contract and was paid $20,000 during the year. Mrs. McDermott is the wife of the Company’s Chief Executive Officer.

18. FOURTH QUARTER ADJUSTMENT

18. FOURTH QUARTER ADJUSTMENT	12 Months Ended
	Jun. 30, 2014
Fourth Quarter Adjustment
Fourth quarter adjustment	In the fourth quarter of fiscal 2014, the Company adjusted revenue due to a combination of insufficiently complete submissions to the government and inadequate internal record-keeping. It also recorded various adjustments for derivative liabilities and debt and equity transactions accruals and other miscellaneous items. The net effect of these adjustments of $885,019 related to amounts recorded in prior quarters of 2014 as follows: Quarter Ended (Expense) Income September 30, 2013 $ (3,554,623 ) December 31, 2013 3,746,742 March 31, 2014 (1,077,138 ) Total $ (885,019 ) The effects of such adjustments on net loss for the prior quarters follows (unaudited): Quarter Ended September 30, 2013 December 31, 2013 March 31, 2014 Net income (loss): As previously reported $ 2,666,657 $ (542,687 ) $ (54,187 ) Adjustment (3,554,623 ) 3,746,742 (1,077,138 ) As adjusted $ (887,966 ) $ 3,204,055 $ (1,131,325 ) Basic and diluted income (loss) per share: As previously reported $ 0.00 $ 0.00 $ 0.00 Adjustment - - - As adjusted $ 0.00 $ 0.00 $ 0.00

19. SUBSEQUENT EVENTS

19. SUBSEQUENT EVENTS	12 Months Ended
	Jun. 30, 2014
Subsequent Events
Subsequent events	The Company launched the iCoreExchange, the iCoreMD, and the iCore Dental cloud-based software products during the first quarter of fiscal year 2015. The iCoreExchange has approximately 650 users at August 26, 2015. On December 12, 2014 John Schneller resigned as a Board Member and the Company’s Chief Financial Officer. On December 15, 2014 Don Sproat was hired as Chief Financial Officer. Mr. Warner resigned from the Board of Directors on December 19, 2014. In addition, the Company hired a Vice President of Sales on March 1, 2015 and a Director of Software Integration on April 6, 2015. On July 1, 2015, Chief Executive Officer, Robert McDermott executed a three year Employment Agreement with the Company. The Company increased its credit line facility from $500,000 to $750,000 on October 29, 2013 and that loan has been extended until January 30, 2016. Further, the Company initiated a Bridge Loan offering under Rule 506(b) during the second quarter of fiscal 2015. The total Bridge Loan offering is $3,000,000 of which $2,203,654 has been subscribed as of November 17, 2015. The Bridge Loan provides for an 18% annual interest rate with the loan maturing on June 30, 2016. The loan principal and accrued interest will convert into the Company’s Common Shares pursuant to the Amended and Restated Term Sheet of the Convertible Bridge Note Offering. In addition, Bridge Loan investors receive a warrant to purchase Common Shares in the amount of one share for each dollar of principal invested. In addition, 6,500,000 Common Shares were purchased for cash in August 2014, 4 Preferred B shares were issued to related parties as part of settlement agreements for amounts owed by the Company, and 9.125 Preferred B shares were awarded to Robert McDermott in July 2014 for services. No other material events have occurred subsequent to June 30, 2014 that require recognition or disclosure in these financial statements.

3. SUMMARY OF SIGNIFICANT ACC26

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]
Basis of Accounting	The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States. Significant accounting principles followed by the Company and the methods of applying those principles, which materially affect the determination of financial position, results of operations and cash flows are summarized below.
Principles of Consolidation	The consolidated financial statements include the accounts of iMedicor, Inc. and its wholly-owned subsidiaries Nuscribe, Inc. and ClariDIS Corporation (together, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation.
Cash and Cash Equivalents	The Company classifies highly liquid temporary investments with an original maturity of three months or less when purchased as cash equivalents. The Company maintains cash balances at various financial institutions. Balances at United States banks are insured by the Federal Deposit Insurance Corporation up to $250,000. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risk for cash on deposit.
Concentration Risk of Credit Risk	The Company has historically provided financial terms to customers in accordance with what management views as industry norms. Financial terms range from immediate payment for access to the Company’s software products to several months for Meaningful Use consulting. Management periodically and regularly reviews customer account activity in order to assess the adequacy of allowances for doubtful accounts, considering such factors as economic conditions and each customer’s payment history and creditworthiness. If the financial conditions of our customers were to deteriorate, or if they were otherwise unable to make payments in accordance with management’s expectations, we might have to increase our allowance for doubtful accounts, modify their financial terms and/or pursue alternative collection methods.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts receivable are customer obligations due under normal trade terms. We maintain an allowance for doubtful accounts for estimated losses resulting from the potential inability of certain customers to make required future payments on amounts due us. Management determines the adequacy of this allowance by periodically evaluating the aging and past due nature of individual customer accounts receivable balances and considering the customer’s current financial situation as well as the existing industry economic conditions and other relevant factors that would be useful in assessing the risk of collectability. If the future financial condition of our customers were to deteriorate, resulting in their inability to make specific required payments, additions to the allowance for doubtful accounts may be required. In addition, if the financial condition of our customers improves and collections of amounts outstanding commence or are reasonably assured, then we may reverse previously established allowances for doubtful accounts. The Company has deemed it unnecessary to record an allowance for doubtful accounts at June 30, 2014 and 2013.
Property, Equipment and Depreciation	Property, equipment, and leasehold improvements are recorded at their historical cost. Depreciation and amortization have been determined using the straight-line method over the estimated useful lives of the assets of three years. The cost of repairs and maintenance is charged to operations in the period incurred.
Goodwill and Other Intangible Assets	The Company accounts for goodwill and other intangible assets in accordance with accounting pronouncements, which require that goodwill and intangible assets with indefinite useful lives should not be amortized, but instead be tested for impairment at least annually at the reporting unit level. If impairment exists, a write-down to fair value (normally measured by discounting estimated future cash flows) is recorded. Intangible assets with finite lives are amortized primarily on a straight-line basis over their estimated useful lives and are reviewed for impairment.
Software Development Costs	We account for software development costs, including costs to develop software products or the software component of products to be marketed to external users, as well as software programs to be used solely to meet our internal needs. For internal use software, in accordance with ASC 350-40, Internal Use Software and ASC 985-730, Computer Software Research and Development, research phase costs should be expensed as incurred and development phase costs including direct materials and services, payroll and benefits and interest costs may be capitalized. Software development costs for internal use software are amortized on a straight-line basis over their estimated useful lives. We have determined that technological feasibility for our products to be marketed to external users was reached before the release of those products. As a result, the development costs and related acquisition costs after the establishment of technological feasibility were capitalized as incurred. Capitalized costs for software to be marketed to external users are amortized based on current and projected future revenue for each product with an annual minimum equal to the straight-line amortization over the remaining estimated economic life of the product.
Impairment of Long-Lived Assets	Long-lived assets are 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 estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount that the carrying amount of the asset exceeds the fair value of the asset.
Loan Costs	In conjunction with the issuance of certain debt, the Company incurred fees that were capitalized as loan costs and are being amortized over the term of the related debt using the effective interest method. Amortization of loan costs included in interest expense in the accompanying consolidated statements of operations was $609,834 and $9,345 for the years ended June 30, 2014 and 2013, respectively.
Revenue Recognition	During the years ended June 30, 2014 and June 30, 2013 the Company derived revenue primarily from Meaningful Use consulting services. In general, the Company recognizes revenue when all of the revenue recognition criteria are met, which is typically when: ● evidence of an arrangement exists; ● services have been provided or goods have been delivered; ● the price is fixed or determinable; and ● collection is reasonably assured. Meaningful Use consulting service revenue is recognized in the period that the services are completed and the approval of the customer’s underlying application for Federal Meaningful Use Incentive Funds is received from the relevant taxing authority. Revenue from NextEMR services is recognized ratably over the service period.
Advertising Costs	Advertising costs are reported in general and administrative expenses and include advertising, marketing and promotional programs and are charged as expenses in the period or year in which incurred. Advertising costs for the years ended June 30, 2014 and 2013 were $16,631 and $12,737, respectively.
Accounting for Derivative Instruments	The Company accounts for derivative instruments in accordance with ASC 815, which requires additional disclosures about the Company’s objectives and strategies for using derivative instruments, how the derivative instruments and related hedged items are accounted for, and how the derivative instruments and related hedging items affect the financial statements. The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risk. Terms of convertible debt and preferred stock instruments are reviewed to determine whether or not they contain embedded derivative instruments that are required under ASC 815 to be accounted for separately from the host contract, and recorded on the balance sheet at fair value. The fair value of derivative liabilities, if any, is required to be revalued at each reporting date, with corresponding changes in fair value recorded in current period operating results. Freestanding warrants issued by the Company in connection with the issuance or sale of debt and equity instruments are considered to be derivative instruments. Pursuant to ASC 815, an evaluation of specifically identified conditions is made to determine whether the fair value of warrants issued is required to be classified as equity or as a derivative liability.
Fair Value of Financial Instruments	Management believes that the carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate fair value due to the short-term nature of these instruments. The carrying amount of the Company’s debt also approximates fair value, based on market quote values (where applicable) or discounted cash flow analyses. (See discussion of Fair Value Measurements below).
Fair Value Measurements	The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets and liabilities are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies, lattice models or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The Company’s Level 3 financial liabilities consist of derivative financial instruments, including a warrant liability and compound embedded derivative liability, for which there is no current market for these securities such that the determination of fair value requires significant judgment or estimation. See Note 12 for a discussion of how fair value for these financial instruments was determined. Significant unobservable inputs used in the fair value measurement of the warrants include the estimated term. Significant increases in the estimated remaining period to exercise would result in a significantly higher fair value measurement. Conversely, decreases in the estimated remaining period to exercise would result in a significantly lower fair value measurement. Significant unobservable inputs used in the fair value measurement of the compound embedded derivatives include the variable linked number of common shares, the variable interest conversion factor and the conversion price factor. The compound embedded derivatives are linked to a variable number of common shares based upon the average of the Company's closing stock price for the ten days preceding conversion. In addition, the Company has the option of paying interest in common stock at 85% of the trailing ten day average stock price. The number of linked shares will increase (decrease) as the trading market price decreases (increases). While the debt is convertible into stock based on the trailing ten day average stock price, we assumed that a market participant would not exercise the right to convert debt into shares unless the option was significantly in the money. For purposes of applying this consideration, the fair value model assumes that debt will not convert unless the conversion rate is less than or equal to 25% of the trading value of the stock. Significant increases (decreases) in the trading market price in the future would result in a significantly lower (higher) fair value measurement. For a summary of the changes in the fair value of Level 3 financial liabilities See Note 12.
Income Taxes	The Company follows the asset and liability approach to accounting for income taxes. Under this method, deferred tax assets and liabilities are measured based on differences between the financial reporting and tax bases of assets and liabilities measured using enacted tax rates and laws that are expected to be in effect when differences are expected to reverse. Valuation allowances are established when it is necessary to reduce deferred income tax assets to the amount, if any, expected to be realized in future years. ASC 740, Accounting for Income taxes (‘ASC 740’), requires that deferred tax assets be evaluated for future realization and reduced by a valuation allowance to the extent we believe a portion more likely than not will not be realized. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including our recent cumulative loss experience and expectations of future taxable income by taxing jurisdictions, the carry-forwarding periods available to us for tax reporting purposes and other relevant factors. The Company has not recognized a liability for uncertain tax positions. A reconciliation of the beginning and ending amount of unrecognized tax benefits or penalties has not been provided since there has been no unrecognized benefit or penalty. If there were an unrecognized tax benefit or penalty, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company files U.S. Federal income tax returns and various returns in state jurisdictions. The Company's open tax years subject to examination by the Internal Revenue Service and the state Departments of Revenue generally remain open for three years from the date of filing.
Use of Estimates	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.
Net Earnings (Loss) Per Share	Basic net earnings (loss) per share is computed by dividing net earnings (loss) by the weighted average number of shares of Common Stock outstanding for the period. Diluted net earnings ( loss) per share reflects the potential dilution of securities by adding other Common Stock equivalents, including stock options, shares issuable on exercise of warrants, convertible preferred stock and convertible notes in the weighted-average number of common shares outstanding for a period, if dilutive. Common stock equivalents that are anti-dilutive were excluded from the computation of diluted earnings per share. Due to the significant number of common shares outstanding, there is no difference between basic and diluted earnings per share for the year ended June 30, 2014. As such, no reconciliation has been presented.
Stock-Based Compensation	The Company accounts for all stock-based payments and awards under the fair value based method. Stock-based payments to non-employees are measured at the fair value of the consideration received, or the fair value of the equity instruments issued, or liabilities incurred, whichever is more reliably measurable. The fair value of stock-based payments to non-employees is periodically re-measured until the counterparty performance is complete, and any change therein is recognized over the vesting period of the award and in the same manner as if the Company had paid cash instead of paying with or using equity based instruments on an accelerated basis. The cost of the stock-based payments to non-employees that are fully vested and non-forfeitable as at the grant date is measured and recognized at that date, unless there is a contractual term for services in which case such compensation would be amortized over the contractual term. The Company accounts for the granting of share purchase options to employees using the fair value method whereby all awards to employees are recorded at fair value on the date of the grant. Share based awards granted to employees with a performance condition are measured based on the probable outcome of that performance condition during the requisite service period. Such an award with a performance condition is accrued if it is probable that a performance condition will be achieved. Compensation costs for stock-based payments to employees that do not include performance conditions are recognized on a straight-line basis. The fair value of all share purchase options is expensed over their requisite service period with a corresponding increase to additional capital surplus. Upon exercise of share purchase options, the consideration paid by the option holder, together with the amount previously recognized in additional capital surplus, is recorded as an increase to share capital. The Company estimates the fair value of each option award on the date of grant using a Black-Scholes option pricing model that uses the assumptions noted in the table below. The Company estimates the fair value of its common stock using the closing stock price of its common stock on the date of the agreement. The Company estimates the volatility of its common stock at the date of grant based on its historical stock prices. The Company determines the expected life based on historical experience with similar awards, giving consideration to the contractual terms, vesting schedules and post-vesting forfeitures. The Company uses the risk-free interest rate on the implied yield currently available on U.S. Treasury issues with an equivalent remaining term approximately equal to the expected life of the award. The Company has never paid any cash dividends on its common stock and does not anticipate paying any cash dividends in the foreseeable future. The Company used the following assumptions for options granted during the twelve months ended June 30, 2014: Equity Incentive Plans Assumptions June 30, 2014 Expected term 3 - 4 years Weighted average volatility 287% - 305% Weighted average risk free interest rate 0.76% - 1.02% Expected dividends - The Company estimates forfeitures when recognizing compensation expense and this estimate of forfeitures is adjusted over the requisite service period based on the extent to which actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures are recognized through a cumulated catch-up adjustment, which is recognized in the period of change, and also impact the amount of unamortized compensation expense to be recognized in future periods. Based upon historical experience of forfeitures, the Company estimated forfeitures at 0% for the year ended June 30, 2014. There were no options issued for the year ended June 30, 2013. During the year ended June 30, 2013, and as further discussed at Note 4, the Company granted warrants to purchase Common Stock and preferred stock to a certain executive of the Company. For the reasons discussed at Note 12, the Company accounts for these stock-based compensation awards as liability awards. The Company measures liability awards based on the award's intrinsic value on the grant date and then re-measures at each reporting date until a date of settlement. Compensation expense is recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award. Compensation expense for each period until settlement is based on the change in value (or a portion of the change in value, depending on the percentage of the requisite service that has been rendered at the reporting date). Changes in the value of a liability that occur after the end of the requisite service period are considered compensation expense in the periods in which the changes occurs.
Reclassifications	Certain items have been reclassified in the 2013 financial statements to conform to the 2014 presentation.
Recently Issued Accounting Pronouncements	From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies that are adopted by us as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our consolidated financial position or results of operations upon adoption. In May 2014, the FASB issued Accounting Standards Update No.2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for the Company in the first quarter of the fiscal year ending June 30, 2019, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard.

3. SUMMARY OF SIGNIFICANT ACC27

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]
Fair Value Measurements Assumptions	Equity Incentive Plans Assumptions June 30, 2014 Expected term 3 - 4 years Weighted average volatility 287% - 305% Weighted average risk free interest rate 0.76% - 1.02% Expected dividends -

4. COMMON STOCK AND PREFERRED28

4. COMMON STOCK AND PREFERRED STOCK (Tables)	12 Months Ended
	Jun. 30, 2014
Stockholders' Equity Note [Abstract]
Summary of Option Activity	A summary of option activity for the year ended June 30, 2014 is presented below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contracted Term in Years Aggregate Intrinsic Value Balance outstanding – June 30, 2013 - - - $ - Granted 200,000,000 $ 0.01 Exercised - - Forfeited/expired - - Balance outstanding – June 30, 2014 200,000,000 $ 0.01 2.8 $ - Exercisable – June 30, 2014 45,000,000 $ 0.01 2.7 $ - A summary of non-vested stock option activity for the year ended June 30, 2014 is presented below: Number of Options Weighted Average Grant Date Fair Value Weighted Average Remaining Years to Vest Non-vested – June 30, 2013 - - - Granted 200,000,000 $ 0.01 Vested (45,000,000 ) $ 0.01 Forfeited/expired - - Non-vested – June 30, 2014 155,000,000 $ 0.01 2.8
Summary of Warrant Activity	June 30, 2014 June 30, 2013 Warrants Weighted Average Exercise Price Warrants Weighted Average Exercise Price Outstanding at beginning of the period 407,927,667 $ 0.1840 97,616,000 $ 0.2370 Issued 25,800,000 $ 0.0123 316,375,000 $ 0.0100 Exercised - - Forfeited - - Expired (13,730,667 ) $ 0.0504 (6,063,333 ) $ 0.0600 Outstanding at end of the period 419,997,000 $ 0.0736 407,927,667 $ 0.1840

5. PROPERTY AND EQUIPMENT (Tabl

5. PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Jun. 30, 2014
Property, Plant and Equipment [Abstract]
Property and Equipment	June 30, 2014 2013 Furniture and fixtures $ - $ 2,600 Leasehold improvements 16,780 0 Equipment - 252,883 16,780 255,483 Less Accumulated Depreciation and Amortization 3,729 255,483 $ 13,051 $ -0-

6. SOFTWARE DEVELOPMENT COSTS (

6. SOFTWARE DEVELOPMENT COSTS (Tables)	12 Months Ended
	Jun. 30, 2014
Software Development Costs Tables
Software Development Costs	June 30, 2014 2013 Developed Software Costs 121,365 72,430 Less Accumulated Amortization (4,147 ) (72,430 ) $ 117,218 $ - 0-

11. LONG-TERM DEBT (Tables)

11. LONG-TERM DEBT (Tables)	12 Months Ended
	Jun. 30, 2014
Debt Disclosure [Abstract]
Long-Term Debt	June 30, 2014 June 30, 2013 (1) Convertible note bearing interest at 17.98% per annum, as amended due on June 30, 2008 $ - $ 150,000 (2) Related party note payable bearing interest at 8.5% per annum due June 30, 2017 125,500 306,858 (3) Convertible note bearing interest at 10% per annum originally due July 26, 2010 - 66,384 (4) Secured convertible note bearing interest at 10%-12% per annum – maturity extended to August 31, 2015 2,322,712 1,513,964 (5) Secured convertible note bearing interest at 8%-18% per annum – maturity extended to August 31, 2015 1,988,899 1,836,473 (6) Note bearing interest at 8% per annum, originally due in November 2008 391,805 370,200 (7) Note bearing interest at 8% per annum, no maturity date 391,259 371,387 (8) Three non-interest bearing notes executed from September 22, 2009 through January 11, 2011 10,000 35,000 (9) Note bearing interest at 18%, maturity extended to August 2015 166,895 170,095 Total long-term debt $ 5,397,070 $ 4,820,361 Less current maturities (793,064) (4,820,361) Total long-term maturities $ 4,604,006 $ -
Future Minimum Lease Payments	Fiscal Year Ending 2015 $ 793,064 2016 4,478,506 2017 125,500 $ 5,397,070

12. DERIVATIVE FINANCIAL INST32

12. DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Jun. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Value of Derivative Warrants	Warrant Liability Balance, June 30, 2012 - Initial fair value of derivative warrants 8,228,882 Change in fair value of derivatives (2,229,447 ) Balance June 30, 2013 5,999,435 Issuance of warrants to investors and consultants 245,423 Change in fair value of derivatives (5,350,627 ) Reclassification of Zolla share-based compensation liability 558,446 Balance June 30, 2014 1,452,677
Warrant Fair Value Assumptions	Certain of the Company’s warrants were valued using the Black-Scholes option pricing model with the following assumptions: Warrant Valuation Assumptions June 30, 2014 June 30, 2013 Expected term 0.11 to 2.00 years 0.07 to 3.25 years Weighted average volatility 85.05% to 323.90% 70.65% to 299.63% Weighted average risk free interest rate 0.30%- 0.49% 0.02% - 0.66% Expected dividends - - Warrants that have a sliding scale exercise price were valued using a binomial lattice option valuation technique using the following assumptions: Warrant Valuation Assumptions June 30, 2014 Expected term 0.25 -1.79 years Weighted average volatility 149% - 184% Weighted average risk free interest rate 0.04% - 0.27%% Expected dividends - Exercise price $0.05 - $1.00
Fair Value of Compound Embedded Derivatives	Balance, June 30, 2012 $ 928,374 Change in fair value of derivative (878,702 ) Loss recognized from debt redemption (49,672 ) Balance, June 30, 2013 -0- Change in fair value of derivative 304,699 Balance, June 30, 2014 $ 304,699

13. INCOME TAXES (Tables)

13. INCOME TAXES (Tables)	12 Months Ended
	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Schedule of Deferred Tax Assets	June 30, 2014 2013 Deferred Income Tax Assets $ 15,213,128 $ 15,879,453 Valuation Allowance (15,213,128) (15,879,453) Net Deferred Tax Asset $ -0- $ -0-
Schedule of Effective Income Tax Rate Reconciliation	Reconciliation of the effective income tax rate to the federal statutory rate: Federal income tax rate 34.0 % 34.0 % Change in valuation allowance on net operating loss carry- forwards (34.0 %) (34.0 %) Effective income tax rate 0.0 % 0.0 %

14. CONCENTRATION OF CREDIT R34

14. CONCENTRATION OF CREDIT RISK (Tables)	12 Months Ended
	Jun. 30, 2014
Risks and Uncertainties [Abstract]
Schedules of Concentration of Risk	Net Sales for the Year Ended Accounts receivable At June 30, 2014 June 30, 2013 June 30, 2014 June 30, 2013 Customer A 13.9% 52.5% 33.6% 0% Customer B 8.6% 18.1% 22.4% 0% Customer C 8.2% 0% 16.8% 0% Customer D 16.8% Customer E 10.5% 30.7% 70.6% 73.1% 0%

15. COMMITMENTS AND CONTINGEN35

15. COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Jun. 30, 2014
Commitments And Contingencies Tables
Future Minimum Lease Payments	Year Ended Lease Amount June 30, 2015 $ 51,300 June 30, 2016 52,700 June 30, 2017 17,700 June 30, 2018 - June 30, 2019 - Total $ 121,700

16. CHANGE IN ACCOUNTING POLI36

16. CHANGE IN ACCOUNTING POLICY AND ACCOUNTING ESTIMATES, AND CORRECTION OF A PRIOR PERIOD ERROR (Tables)	12 Months Ended
	Jun. 30, 2014
Change In Accounting Policy And Accounting Estimates And Correction Of Prior Period Error Tables
Prior Year Adjustments	BALANCE SHEET Actual Correction of Error Restated Actual Cash 513,272 - 513,272 Account Receivable 8,186 - 8,186 Total Current Assets $ 521,458 - $ 521,458 Deferred Loan Costs - 3,227 3,227 Total Assets $ 521,458 $ 3,227 $ 524,685 Accounts Payable 1,149,320 - 1,149,320 Employee/Contractor Payables 703,531 - 703,531 Common Stock Payable - 107,572 107,572 Related Party Payable 638,785 - 638,785 Share Based Compensation Liability - 880,700 880,700 Current Portion of Long Term Debt 4,820,361 - 4,820,361 Total Current Liabilities $ 7,311,997 $ 988,272 $ 8,300,269 Warrants 5,999,435 - 5,999,435 Total Liabilities $ 13,311,432 $ 988,272 $ 14,299,704 Common Stock 997,299 997,299 Additional Paid In Capital 41,445,027 41,445,027 Accumulated Deficit (55,232,300 ) (985,045 ) (56,217,345 ) Total Stock holders’ Deficit $ (12,789,974 ) $ (985,045 ) $ (13,775,019 ) Total Liabilities and Stockholders’ Deficit $ 521,458 $ 3,227 $ 524,685 STATEMENT OF OPERATIONS Revenues 105,692 - 105,692 Cost of Sales 17,787 - 17,787 Gross Profit $ 87,905 - $ 87,905 General and Administrative 7,289,916 880,700 8,170,616 Acquisition Expense 400,016 - 400,016 Impairment of Goodwill 59,400 - 59,400 Depreciation and Amortization 14,179 - 14,179 Bad Debt Expense 94,832 - 94,832 Impairment of Technology Asset 1,257,058 - 1,257,058 Total Operating Expenses $ 9,115,401 880,700 $ 9,996,101 Loss From Operations $ (9,027,496 ) $ (880,700 ) $ (9,908,196 ) Gain (Loss) on Debt Settlement (49,672 ) - (49,672 ) Change in Fair Value of Derivative Liabilities 3,157,821 - 3,157,821 Interest Expense (1,326,074 ) (104,345 ) (1,430,419 ) Total Other Income $ 1,782,075 $ (104,345 ) $ 1,677,730 Net Loss $ (7,245,421 ) $ (985,045 ) $ (8,230,466 )

18. FOURTH QUARTER ADJUSTMENT (

18. FOURTH QUARTER ADJUSTMENT (Tables)	12 Months Ended
	Jun. 30, 2014
Fourth Quarter Adjustment Tables
Fourth Quarter Adjustments	Quarter Ended (Expense) Income September 30, 2013 $ (3,554,623 ) December 31, 2013 3,746,742 March 31, 2014 (1,077,138 ) Total $ (885,019 )
Previous Quarter Adjustments	Quarter Ended September 30, 2013 December 31, 2013 March 31, 2014 Net income (loss): As previously reported $ 2,666,657 $ (542,687 ) $ (54,187 ) Adjustment (3,554,623 ) 3,746,742 (1,077,138 ) As adjusted $ (887,966 ) $ 3,204,055 $ (1,131,325 ) Basic and diluted income (loss) per share: As previously reported $ 0.00 $ 0.00 $ 0.00 Adjustment - - - As adjusted $ 0.00 $ 0.00 $ 0.00

2. GOING CONCERN (Details)

2. GOING CONCERN (Details) - USD ($)	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2012
Going Concern Details
Retained Earnings (Accumulated Deficit)		$ (54,264,291)		$ (56,217,345)
Total Stockholders' Deficit	$ (9,621,435)	(9,621,435)	$ (13,775,019)	$ (13,775,019)	$ (7,920,373)
Working Capital (Deficit)		$ 4,548,165

3. SUMMARY OF SIGNIFICANT ACC39

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Jun. 30, 2014
Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Expected term	3 years
Weighted average volatility	287.00%
Weighted average risk free interest rate	0.76%
Expected dividends	0.00%
Minimum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Expected term	4 years
Weighted average volatility	305.00%
Weighted average risk free interest rate	1.02%
Expected dividends	0.00%

4. COMMON STOCK AND PREFERRED40

4. COMMON STOCK AND PREFERRED STOCK (Details) - USD ($)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Stock Option
Options outstanding, beginning	0
Options granted	200,000,000
Options exercised	0
Options forfeited	0
Options outstanding, ending	200,000,000	0
Options exercisable	45,000,000
Outstanding beginning, Weighted-Average Exercise Price	$ 0
Options granted, Weighted-Average Exercise Price	0.01
Options exercised, Weighted-Average Exercise Price	0
Options forfeited, Weighted-Average Exercise Price	0
Outstanding, ending, Weighted-Average Exercise Price	0.01	$ 0
Exercisable, Weighted-Average Exercise Price	$ 0.01
Average remaining contractual life (in years), beginning	0 years
Average remaining contractual life (in years), ending	2 years 9 months 18 days
Average remaining contractual life (in years), exercisable	2 years 8 months 12 days
Aggregate Intrinsic Value, Ending	$ 0
Aggregate Intrinsic Value, Exercisable	$ 0
Non-Vested Stock Option
Options outstanding, beginning	0
Options granted	200,000,000
Options vested	(45,000,000)
Options forfeited	0
Options outstanding, ending	155,000,000	0
Outstanding beginning, Weighted-Average Exercise Price	$ 0
Options granted, Weighted-Average Exercise Price	.01
Options vested, Weighted-Average Exercise Price	.01
Outstanding, ending, Weighted-Average Exercise Price	$ .01	$ 0
Average remaining contractual life (in years), beginning	0 years
Average remaining contractual life (in years), ending	2 years 9 months 18 days
Warrant
Options outstanding, beginning	407,927,667	97,616,000
Options granted	25,800,000	316,375,000
Options exercised	0	0
Options forfeited	0	0
Options expired	(13,730,667)	(6,063,333)
Options outstanding, ending	419,997,000	407,927,667
Outstanding beginning, Weighted-Average Exercise Price	$ .1840	$ .2370
Options granted, Weighted-Average Exercise Price	.0123	.0100
Options expired, Weighted-Average Exercise Price	.0504	.0600
Outstanding, ending, Weighted-Average Exercise Price	$ .0736	$ .1840

5. PROPERTY, EQUIPMENT AND PURC

5. PROPERTY, EQUIPMENT AND PURCHASED SOFTWARE (Details) - Schedule of Property, Plant and Equipment - USD ($)	Jun. 30, 2014	Jun. 30, 2013
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 16,780	$ 255,483
Less Accumulated Depreciation & Amortization	3,729	255,483
[us-gaap:PropertyPlantAndEquipmentNet]	13,051	0
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	0	2,600
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	16,780	0
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 0	$ 255,483

6. SOFTWARE DEVELOPMENT COSTS42

6. SOFTWARE DEVELOPMENT COSTS (Details) - USD ($)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Software Development Costs Details
Developed Software Costs	$ 121,365	$ 72,430
Less Accumulated Amortization	(4,147)	(72,430)
Total Developed Software Costs	$ 117,218	$ 0

11. LONG-TERM DEBT (Details)

11. LONG-TERM DEBT (Details) - USD ($)	Jun. 30, 2014	Jun. 30, 2013
Long-Term Debt	$ 5,397,070	$ 4,820,361
Less Current Maturities	(793,064)	(4,820,361)
Total Long-Term Maturities	4,604,006	0
Note 1
Long-Term Debt	0	150,000
Note 2
Long-Term Debt	125,500	306,858
Note 3
Long-Term Debt	0	66,384
Note 4
Long-Term Debt	2,322,712	1,513,964
Note 5
Long-Term Debt	1,988,899	1,836,473
Note 6
Long-Term Debt	391,805	370,200
Note 7
Long-Term Debt	391,259	371,387
Note 8
Long-Term Debt	10,000	35,000
Note 9
Long-Term Debt	$ 166,895	$ 170,095

11. LONG-TERM DEBT (Details 1)

11. LONG-TERM DEBT (Details 1)	Jun. 30, 2014USD ($)
Long-term Debt Details 1
2,015	$ 793,064
2,016	4,478,506
2,017	125,500
Total	$ 5,397,070

12. DERIVATIVE FINANCIAL INST45

12. DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Schedule of Derivative Instruments [Abstract]
Beginning Balance	$ 5,999,435	$ 0
Initial fair value of derivative warrants		8,228,882
Change in fair value of derivatives	(5,350,627)	(2,229,447)
Issuance of warrants to investors and consultants	245,423
Reclassification of Zolla share-based compensation liability	558,446
Ending Balance	$ 1,452,677	$ 5,999,435

12. DERIVATIVE FINANCIAL INST46

12. DERIVATIVE FINANCIAL INSTRUMENTS (Details 1) - $ / shares	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Minimum
Expected term	4 years
Weighted average volatility	305.00%
Weighted average risk free interest rate	1.02%
Expected dividends	0.00%
Maximum
Expected term	3 years
Weighted average volatility	287.00%
Weighted average risk free interest rate	0.76%
Expected dividends	0.00%
Black-Scholes | Minimum
Expected term	1 month 10 days	25 days
Weighted average volatility	85.05%	70.65%
Weighted average risk free interest rate	0.30%	0.02%
Expected dividends	0.00%	0.00%
Black-Scholes | Maximum
Expected term	27 days	3 years 3 months
Weighted average volatility	323.90%	299.63%
Weighted average risk free interest rate	0.49%	0.66%
Binomial Lattice | Minimum
Expected term	3 months
Weighted average volatility	149.00%
Weighted average risk free interest rate	0.04%
Expected dividends	0.00%
Exercise Price	$ .05
Binomial Lattice | Maximum
Expected term	1 year 9 months 15 days
Weighted average volatility	184.00%
Weighted average risk free interest rate	0.27%
Exercise Price	$ 1

12. DERIVATIVE FINANCIAL INST47

12. DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) - USD ($)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Beginning Balance	$ 5,999,435	$ 0
Change in fair value of derivatives	(5,350,627)	(2,229,447)
Ending Balance	1,452,677	5,999,435
Compound Embedded Derivatives
Beginning Balance	0	928,374
Change in fair value of derivatives	304,699	(878,702)
Loss recognized from debt redemption		(49,672)
Ending Balance	$ 304,699	$ 0

13. INCOME TAXES (Details)

13. INCOME TAXES (Details) - USD ($)	Jun. 30, 2014	Jun. 30, 2013
Schedule of Deferred Tax Assets and Liabilities [Abstract]
Deferred Income Tax Assets	$ 15,213,128	$ 15,879,453
Valuation Allowance	(15,213,128)	(15,879,453)
Net Deferred Tax Asset	$ 0	$ 0

13. INCOME TAXES (Details 1)

13. INCOME TAXES (Details 1)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Reconciliation of the effective income tax rate to the federal statutory rate:
Federal income tax rate	34.00%	34.00%
Change in valuation allowance on net operating loss carry-forwards	(34.00%)	(34.00%)
Effective income tax rate	0.00%	0.00%

14. CONCENTRATION OF CREDIT R50

14. CONCENTRATION OF CREDIT RISK (Details)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Concentration Risk [Line Items]
Net Sales	30.70%	70.60%
Accounts Receivable	73.10%	0.00%
Customer A
Concentration Risk [Line Items]
Net Sales	13.90%	52.50%
Accounts Receivable	33.60%	0.00%
Customer B
Concentration Risk [Line Items]
Net Sales	8.60%	18.10%
Accounts Receivable	22.40%	0.00%
Customer C
Concentration Risk [Line Items]
Net Sales	8.20%	0.00%
Accounts Receivable	16.80%	0.00%
Customer D
Concentration Risk [Line Items]
Accounts Receivable	16.80%
Customer E
Concentration Risk [Line Items]
Accounts Receivable	10.50%

15. COMMITMENTS AND CONTINGEN51

15. COMMITMENTS AND CONTINGENCIES (Details)	Jun. 30, 2014USD ($)
Commitments And Contingencies Details
2,015	$ 51,300
2,016	52,700
2,017	17,700
2,018	0
2,019	0
Total	$ 121,700

16. CHANGE IN ACCOUNTING POLI52

16. CHANGE IN ACCOUNTING POLICY AND ACCOUNTING ESTIMATES, AND CORRECTION OF A PRIOR PERIOD ERROR (Details) - USD ($)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2012
Balance Sheet
Cash	$ 190,820	$ 513,272				$ 67
Accounts receivable	18,897	8,186
Total Current Assets	235,408	521,458
Deferred loan costs	1,354,243	3,227
Total Assets	1,723,520	524,685
Accounts payable	442,407	1,149,320
Employee/contractor payables	200,000	703,531
Common stock payable	2,156,877	107,572
Related party payable	692,225	638,785
Share based compensation liability	0	880,700
Current portion of long term debt	793,064	4,820,361
Total current liabilities	4,783,573	8,300,269
Warrants	1,452,677	5,999,435
Total Liabilities	11,344,955	14,299,704
Common stock	1,151,411	997,299
Additional Paid in Capital	43,491,445	41,445,027
Accumulated deficit	(54,264,291)	(56,217,345)
Total Stockholders' Deficit	(9,621,435)	(13,775,019)	$ (9,621,435)	$ (13,775,019)	$ (7,920,373)
Total Liabilities and Stockholders' deficit	1,723,520	524,685
Statement of Operations
Revenues	366,447	105,692
Cost of services	211,758	17,787
Gross profit	154,689	87,905
General and administrative	3,463,790	8,170,616
Acquisition expense	0	400,016
Impairment of goodwill	0	59,400
Depreciation and amortization	7,875	14,179
Bad debt expense		94,832
Impairment of technology asset		1,257,058
Total operating expenses	3,471,665	9,996,101
Loss from operations	(3,316,976)	(9,908,196)
Gain (loss) on debt settlement	1,423,939	(49,672)
Change in fair value of derivatives	5,045,928	3,157,821
Interest expense	(1,223,816)	(1,430,419)
Total other income/(expenses)	5,270,030	1,677,730
Net income (loss)	1,953,054	$ (8,230,466)
Actual
Balance Sheet
Cash	513,272
Accounts receivable	8,186
Total Current Assets	521,458
Deferred loan costs	0
Total Assets	521,458
Accounts payable	1,149,320
Employee/contractor payables	703,531
Common stock payable	0
Related party payable	638,785
Share based compensation liability	0
Current portion of long term debt	4,820,361
Total current liabilities	7,311,997
Warrants	5,999,435
Total Liabilities	13,311,432
Common stock	997,299
Additional Paid in Capital	41,445,027
Accumulated deficit	(55,232,300)
Total Stockholders' Deficit	(12,789,974)
Total Liabilities and Stockholders' deficit	521,458
Statement of Operations
Revenues	105,692
Cost of services	17,787
Gross profit	87,905
General and administrative	7,289,916
Acquisition expense	400,016
Impairment of goodwill	59,400
Depreciation and amortization	14,179
Bad debt expense	94,832
Impairment of technology asset	1,257,058
Total operating expenses	9,115,401
Loss from operations	(9,027,496)
Gain (loss) on debt settlement	(49,672)
Change in fair value of derivatives	3,157,821
Interest expense	(1,326,074)
Total other income/(expenses)	1,782,075
Net income (loss)	(7,245,421)
Correction of Error
Balance Sheet
Cash	0
Accounts receivable	0
Total Current Assets	0
Deferred loan costs	3,227
Total Assets	3,227
Accounts payable	0
Employee/contractor payables	0
Common stock payable	107,572
Related party payable	0
Share based compensation liability	880,700
Current portion of long term debt	0
Total current liabilities	988,272
Warrants	0
Total Liabilities	988,272
Common stock	0
Additional Paid in Capital	0
Accumulated deficit	(985,045)
Total Stockholders' Deficit	(985,045)
Total Liabilities and Stockholders' deficit	3,227
Statement of Operations
Revenues	0
Cost of services	0
Gross profit	0
General and administrative	880,700
Acquisition expense	0
Impairment of goodwill	0
Depreciation and amortization	0
Bad debt expense	0
Impairment of technology asset	0
Total operating expenses	880,700
Loss from operations	(880,700)
Gain (loss) on debt settlement	0
Change in fair value of derivatives	0
Interest expense	(104,345)
Total other income/(expenses)	(104,345)
Net income (loss)	(985,045)
Restated Actual
Balance Sheet
Cash	513,272
Accounts receivable	8,186
Total Current Assets	521,458
Deferred loan costs	3,227
Total Assets	524,685
Accounts payable	1,149,320
Employee/contractor payables	703,531
Common stock payable	107,572
Related party payable	638,785
Share based compensation liability	880,700
Current portion of long term debt	4,820,361
Total current liabilities	8,300,269
Warrants	5,999,435
Total Liabilities	14,299,704
Common stock	997,299
Additional Paid in Capital	41,445,027
Accumulated deficit	(56,217,345)
Total Stockholders' Deficit	(13,775,019)
Total Liabilities and Stockholders' deficit	524,685
Statement of Operations
Revenues	105,692
Cost of services	17,787
Gross profit	87,905
General and administrative	8,170,616
Acquisition expense	400,016
Impairment of goodwill	59,400
Depreciation and amortization	14,179
Bad debt expense	94,832
Impairment of technology asset	1,257,058
Total operating expenses	9,996,101
Loss from operations	(9,908,196)
Gain (loss) on debt settlement	(49,672)
Change in fair value of derivatives	3,157,821
Interest expense	(1,430,419)
Total other income/(expenses)	1,677,730
Net income (loss)	$ (8,230,466)

18. FOURTH QUARTER ADJUSTMENT53

18. FOURTH QUARTER ADJUSTMENT (Details) - USD ($)	3 Months Ended			12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2014
Fourth Quarter Adjustment Details
Income (Expense)	$ (1,077,138)	$ 3,746,742	$ (3,554,623)	$ (885,019)

18. FOURTH QUARTER ADJUSTMENT54

18. FOURTH QUARTER ADJUSTMENT (Details 1) - USD ($)	3 Months Ended			12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013
Net income (loss)				$ 1,953,054	$ 1,953,054	$ (8,230,466)	$ (8,230,466)
Basic and diluted income (loss) per share:					$ 0		$ (0.01)
As Previously Reported
Net income (loss)	$ (54,187)	$ (542,687)	$ 2,666,657
Basic and diluted income (loss) per share:	$ 0	$ 0	$ 0
Adjustment
Net income (loss)	$ (1,077,138)	$ 3,746,742	$ (3,554,623)
Basic and diluted income (loss) per share:	$ 0	$ 0	$ 0
As Adjusted
Net income (loss)	$ (1,131,325)	$ 3,204,055	$ (887,966)
Basic and diluted income (loss) per share:	$ 0	$ 0	$ 0