iCoreConnect 10-Q 8 Sep 16 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Dec. 31, 2014	Sep. 02, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	iMedicor
Document Type	10-Q
Current Fiscal Year End Date	--06-30
Entity Common Stock, Shares Outstanding		1,416,080,409
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	Dec. 31, 2014
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2014	Jun. 30, 2014
ASSETS
Cash and cash equivalents	$ 59,608	$ 190,820
Accounts receivable, net of allowance for doubtful accounts of $9,563 and $0, respectively	68,280	18,897
Prepaid expenses	31,062	25,691
Total current assets	158,950	235,408
Property and equipment, net of accumulated depreciation of $6,621 and $3,729, respectively	11,759	13,051
Software development costs, net of accumulated amortization of $52,787 and $4,147, respectively	237,243	117,218
Deferred loan costs, net of accumulated amortization of $907,367 and $366,634, respectively	819,617	1,354,243
Security Deposit	3,600	3,600
Total long-term assets	1,072,219	1,488,112
Total Assets	1,231,169	1,723,520
LIABILITIES
Line of credit	748,000	499,000
Accounts payable and accrued expenses	361,119	442,407
Employee/contractor payables	270,000	200,000
Related party payable	0	692,225
Current portion of long-term debt	6,178,715	793,064
Total current liabilities	7,557,834	2,626,696
Long-term debt	102,125	4,604,006
Accrued severance settlement	200,000	200,000
Embedded conversion liability - convertible debt	362,406	304,699
Derivative liability – preferred stock, options, and warrants	1,324,709	1,452,677
Liability for unissued common stock - subsequently issued	1,807,572	2,156,877
Total long-term liabilities	3,796,812	8,718,259
Total Liabilities	11,354,646	11,344,955
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' DEFICIT
Common Stock par value $.001; Authorized: 2,000,000,000 shares; Issued and Outstanding: 1,216,220,590 and 1,151,410,590 shares as of December 31, 2014 and June 30, 2014, respectively	1,216,221	1,151,411
Additional Paid in Capital	45,826,349	43,491,445
Accumulated Deficit	(57,166,047)	(54,264,291)
TOTAL STOCKHOLDERS' DEFICIT	(10,123,477)	(9,621,435)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	1,231,169	1,723,520
Series A Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Preferred Stock, Convertible Series A par value $.001; Authorized: 37.00 shares; Issued and Outstanding: 35.75 shares as of December 31, 2014 and June 30, 2014, Convertible Series B par value $.001; Authorized: 63.00 shares; Issued and Outstanding: 51.83 and 38.70 shares as of December 31, 2014 and June 30, 2014, respectively	0	0
Series B Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Preferred Stock, Convertible Series A par value $.001; Authorized: 37.00 shares; Issued and Outstanding: 35.75 shares as of December 31, 2014 and June 30, 2014, Convertible Series B par value $.001; Authorized: 63.00 shares; Issued and Outstanding: 51.83 and 38.70 shares as of December 31, 2014 and June 30, 2014, respectively	$ 0	$ 0

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Accounts Receivable, allowance for doubtful accounts	$ 9,563	$ 0
Property and equipment, accumulated depreciation	6,621	3,729
Software development costs, accumulated amortization	52,787	4,147
Deferred loan costs, accumulated amortization	$ 907,367	$ 366,634
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	2,000,000,000	2,000,000,000
Common stock, shares issued	1,216,220,590	1,151,410,590
Common stock, shares outstanding	1,216,220,590	1,151,410,590
Series A Preferred Stock [Member]
Preferred stock , par value (in Dollars per share)	$ .001	$ .001
Preferred stock , shares authorized	37	37
Preferred stock, shares issued	35.75	35.75
Series B Preferred Stock [Member]
Preferred stock , par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock , shares authorized	63	63
Preferred stock, shares issued	51.83	38.70

CONSOLIDATED STATEMENT OF OPERA

CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
Revenues	$ 99,309	$ 38,610	$ 244,927	$ 107,430
Cost of Sales	41,004	11,396	70,851	67,621
Gross Profit	58,305	27,214	174,076	39,809
Expenses
General and administrative	780,164	1,008,800	2,270,182	1,881,599
Depreciation and amortization	37,879	0	51,533	0
Total operating expenses	818,043	1,008,800	2,321,715	1,881,599
Loss from operations	(759,738)	(981,586)	(2,147,639)	(1,841,790)
Other Income (Expenses)
Change in fair value of derivative liabilities	317,865	4,190,641	83,161	3,871,087
Forgiveness of debt	21,011	225,155	21,011	692,821
Interest expense	(433,657)	(107,902)	(842,835)	(269,442)
Failed offering costs	0	(110,200)	0	(110,200)
Other expense	0	(12,053)	(15,554)	(26,387)
Total other income (expense)	(94,781)	4,185,641	(754,217)	4,157,879
Net income (loss)	$ (854,519)	$ 3,204,055	$ (2,901,856)	$ 2,316,089
Net income (loss) per basic and diluted share	$ 0	$ 0	$ 0	$ 0
Weighted average number of shares, basic	1,197,041,776	1,027,516,981	1,175,356,618	1,015,253,394
Weighted average number of shares, diluted	1,197,041,776	2,055,139,012	1,175,356,618	1,956,778,557

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
OPERATING ACTIVITIES
Net income (loss)	$ (2,901,856)	$ 2,316,089
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	2,892	0
Amortization of software development costs	48,640	0
Amortization of deferred loan costs	540,733	7,110
Change in allowance for doubtful accounts	9,563	0
Stock-based compensation	1,222,456	667,017
Gain on change in value - derivative warrant	(140,868)	(4,023,437)
Change in embedded conversion liability	57,707	152,350
Gain on debt settlement	(21,011)	0
Decrease (increase) in:
Accounts receivable	(58,846)	6,807
Prepaid expenses	(5,371)	0
Accounts payable	38,608	(79,346)
Accrued expenses	(10,015)	(35,409)
Deferred loan costs	(3,100)	0
Related party payable	0	53,440
Accrued interest payable	269,460	188,515
Employee/contractor payable	70,000	(703,531)
NET CASH USED IN OPERATING ACTIVITIES	(881,008)	(1,450,395)
INVESTING ACTIVITIES
Purchase of property and equipment	(1,600)	(16,780)
Increase in security deposits	0	(3,600)
Increase in capitalized software development costs	(168,665)	0
NET CASH USED IN INVESTING ACTIVITIES	(170,265)	(20,380)
FINANCING ACTIVITIES
Proceeds from line of credit	299,000	250,000
Proceeds from short term debt	660,806	16,508
Payments on short term debt	(70,995)	(20,000)
Proceeds from issuance of common stock	31,250	767,575
NET CASH PROVIDED BY FINANCING ACTIVITIES	920,061	1,014,083
NET DECREASE IN CASH	(131,212)	(456,692)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD	190,820	513,272
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD	59,608	56,580
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest	59,101	3,870
Issuance of additional debt as payment of accrued interest	269,460	188,515
Unissued stock liability for deferred loan costs	3,007	0
Issuance of Series B preferred stock to satisfy debt	$ 806,596	$ 0

1. CONDENSED CONSOLIDATED FINAN

1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	6 Months Ended
	Dec. 31, 2014
Disclosure Text Block [Abstract]
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements prepared in accordance with the instructions for Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission, include all adjustments (consisting only of normal recurring accruals) which are necessary for a fair presentation of the results for the periods presented. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. It is suggested that these unaudited condensed consolidated financial statements be read in conjunction with the Company’s Annual Report for the year ended June 30, 2014. The balance sheet as of June 30, 2014 has been condensed from audited consolidated financial statements as of that date. The results of operations for the three and six months ended December 31, 2014 are not necessarily indicative of the results to be expected for the full year. The unaudited condensed consolidated financial statements include the accounts of iMedicor, Inc. and its wholly-owned subsidiaries Nuscribe, Inc. and ClariDIS Corporation (the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation.

2. RECENT ACCOUNTING PRONOUNCEM

2. RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	Refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K/A for the year ended June 30, 2014 for recent accounting pronouncements. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, or ASU 2015-03. ASU 2015-03 amends current presentation guidance by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as an asset in the balance sheet. The guidance in the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is allowed for financial statements that have not been previously issued. Entities would apply the new guidance retrospectively to all prior periods. The Company has not early adopted this standard for the December 31, 2014 financial statements. The Company does not believe that any other issued, but not yet effective accounting standards, if currently adopted, will have a material effect on the Company’s consolidated financial position, results of operations and cash flows.

3. GOING CONCERN

3. GOING CONCERN	6 Months Ended
	Dec. 31, 2014
Going Concern [Abstract]
GOING CONCERN	The accompanying unaudited condensed consolidated 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. The Company has incurred operating losses to date and has an accumulated deficit, total stockholders’ deficit and net working capital deficit of $57,166,047 , $10,123,477 and $7,398,884 respectively at December 31, 2014. The Company is delinquent on several of its debt and equity-related obligations. The Company’s activities have been primarily financed through bridge loans, convertible debentures, and private placements of equity securities. The Company seeks to raise additional capital through the issuance of debt or equity securities to fund its operations. Such financing may not be available on terms satisfactory to the Company, if at all. (See Notes 5 and 10). Currently, management intends to develop a vastly improved healthcare communications system and attract alliances with strategic partners to generate revenues that will sustain the Company. While management believes in the viability of its strategy to increase revenues and in its ability to raise additional funds, there can be no assurances to that effect. Management’s ability to continue as a going concern is ultimately dependent upon its ability to continually increase the Company’s customer base and realize increased revenues from signed contracts. The consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

4. LINE OF CREDIT

4. LINE OF CREDIT	6 Months Ended
	Dec. 31, 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 and $750,000 on September 9, 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 December 31, 2014 and is reported as liability for unissued common stock - subsequently issued on the accompanying condensed consolidated balance sheets as a long term liability. 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. The stock was issued on October 22, 2014.

5. LONG-TERM DEBT

5. LONG-TERM DEBT	6 Months Ended
	Dec. 31, 2014
Long-term Debt, Unclassified [Abstract]
LONG-TERM DEBT	Long-term debt at December 31, 2014 and June 30, 2014 consisted of the following: December 31, 2014 June 30, 2014 Schneller note payable bearing interest at 8.5% per annum, due June 30, 2017, in default $ 102,125 $ 125,500 Sonoran convertible note bearing interest at 10% - 12% per annum maturity extended to 2,457,728 2,322,712 Sonoran convertible note bearing interest at 8% - 18% per annum maturity extended to August 31, 2015, in default 2,070,469 1,988,899 Wellbrock note bearing interest at 8% per annum, due November 2008 - disputed 403,139 391,805 Coddington note bearing interest at 8% per annum - disputed 403,671 391,259 Shemen non-interest bearing note executed September 22, 2009 in default 10,000 10,000 Genesis note bearing interest at 18%, maturity extended to February 23, 2017 155,000 166,895 Bridge Loans bearing interest at 18% due December 31, 2016 678,708 - Total long-term debt 6,280,840 5,397,070 Less current maturities (6,178,715 ) (793,064 ) Total long-term maturities $ 102,125 $ 4,604,006 Total future minimum payments due on long-term debt as of December 31, 2014: 2015 $ 6,178,715 2016 0 2017 102,125 Subsequent to December 31, 2014 several of the above notes were modified and/or extended. (See Note 10). The Company disputes the existence of the Coddington note payable and any interest accrued on the note shown on the Balance Sheet as part of Current Portion of Long Term Debt in the aggregate amount of $397,465. No actual note has been produced by Mr. Coddington or is known by current management to exist. The Company’s records are incomplete with respect to this note payable transaction. The Company believes that any amounts previously owed Mr. Coddington or any entities associated with Mr. Coddington in connection with a guarantee by Mr. Coddington of a loan by Citibank made to the Company and no longer outstanding were satisfied by the issuance by the Company to Mr. Coddington of 24,918,130 shares of common stock of the Company on March 8, 2013. The Company has a record of the stock issuance but does not have the document in respect to their issuance for the cancellation of debt. The Company has no record of default being declared by the holder which would entail production of the actual note which has not occurred. The Company also questions the existence of the obligations the obligations to the Wellbrock Group shown on the Balance sheet as part of Current Portion of Long Term Debt in the aggregate amount of $397,472. Management of the Company has not been able to obtain a copy or verify the existence of such note. The Company has no record of default being declared by the holder which would entail production of the actual note which has not occurred.

6. NET EARNINGS (LOSS) PER SHAR

6. NET EARNINGS (LOSS) PER SHARE	6 Months Ended
	Dec. 31, 2014
Earnings Per Share Reconciliation [Abstract]
NET EARNINGS (LOSS) PER SHARE	Basic net earnings (loss) per share are computed by dividing net income or loss by the weighted average number of shares of common stock outstanding for the period. In gain periods, diluted net income per share reflects the potential dilution of securities by adding other common stock equivalents, including stock options, warrants and convertible notes to the weighted-average number of shares of Common Stock outstanding for a period, if dilutive. In loss periods, all anti-dilutive securities are excluded. The amount of excluded securities from vested options are 193,300,000 and from warrants are 357,655,000 at December 31, 2014. The amount of excluded securities from convertible debt and shares of Series A and Series B Preferred Stock are 1,065,165,993 shares of Common Stock, at December 31, 2014.

7. EMBEDDED CONVERSION LIABILIT

7. EMBEDDED CONVERSION LIABILITY – CONVERTIBLE DEBT	6 Months Ended
	Dec. 31, 2014
Embedded Conversion Liability Convertible Debt
EMBEDDED CONVERSION LIABILITY - CONVERTIBLE DEBT	The Company has outstanding convertible debt. Due to an insufficiency of authorized common shares, there is not enough Common Stock in the event that all convertible securities and convertible debt were to be converted or exercised. The derivative liability for the convertible debt is $362,406 and $304,699 at December 31, 2014 and June 30, 2014, respectively. (See Note 10).

8. WARRANTS AND OPTIONS

8. WARRANTS AND OPTIONS	6 Months Ended
	Dec. 31, 2014
Disclosure Text Block Supplement [Abstract]
WARRANTS AND OPTIONS	The following table shows warrant activity for the six-month periods ended December 31, 2014 and December 31, 2013. Summary of the outstanding warrants is as follows: December 31, 2014 December 31, 2013 Weighted Ave Exercise Warrants Exercise Price Warrants Price Range Outstanding at beginning of period 417,997,000 $ 0.0736 407,927,667 $ 0.01-$0.24 Issued 660,000 $ 1.3500 12,500,000 $ 0.01 Excercised - - - - Forfeited - - - - Expired (61,002,000 ) $ 0.0649 (14,251,666 ) $ 0.01-$0.105 Outstanding at end of period 357,655,000 $ 0.0953 406,176,001 $ 0.01-$0.24 Excersiable at end of period 357,655,000 $ 0.0953 406,176,001 $ 0.01-$0.24 The intrinsic value of the outstanding warrants at December 31, 2014 and December 31, 2013 is $-0-. Summary of Options: On July 1, 2013, the Company granted 100,000,000, options to Robert McDermott. The options vest as follows: 25,000,000 immediately, 25,000,000 on each of July 1, 2014, 2015, and 2016. On July 3, 2014, pursuant to the terms of his employment agreement, the Company granted 235,000,000, three-year options to Robert McDermott. The options vest as follows: 117,500,000 immediately, 58,750,000 on July 3, 2015 and 58,750,000 on July 3, 2016. Also on July 3, 2014, the Company granted 3,300,000 three year options to Donald Douglas. All of these options vested immediately. On January 1, 2014, the Company granted 50,000,000 options each to Donald Douglas and Srini Parthasarthy pursuant to their employment agreements of the same date. Options for each individual vest 12,500,000 immediately and 12,500,000 on each annual anniversary of the employment agreements. In addition, the Company granted 15,000,000 options to Don Sproat pursuant to his employment agreement of December 15, 2014. 7,500,000 options vested immediately and another 7,500,000 vests on December 15, 2015. For the six months ended December 31, 2014, the Company recorded $1,046,114 of stock compensation expense. The Company uses the Black Scholes option pricing model to value options. The significant assumptions relating to the valuation of the Company’s options for the period ended December 31, 2014 were as follows: Exercise Price $0.0038-$0.01492 Term 1-4 years Volatility 206%-305% Risk Free Rate of Return 0.11% - 1.02% As of December 31, 2014, the remaining unamortized stock compensation expense is $1,684,819 which will be recognized through June 30, 2017. The Company has various outstanding Common Stock purchase warrants, options, convertible debt, and Series A and B Preferred Stock. Due to an insufficiency of authorized common shares, there is not enough Common Stock in the event that all convertible securities and outstanding warrants and options were to be converted or exercised, respectively. The Company is reporting derivative liabilities for the warrants of $753,363 and $894,231 as well as for options and Preferred Stock of $571,346 and $558,446 for December 31, 2014 and June 30, 2014, respectively. As of December 31 and June 30, 2014, there were 35.75 shares of Series A convertible Preferred Stock and 51.83 and 38.70 shares of Series B convertible Preferred Stock outstanding, respectively. (See Note 10).

9. LIABILITY FOR UNISSUED COMMO

9. LIABILITY FOR UNISSUED COMMON STOCK SUBSEQUENTLY ISSUED	6 Months Ended
	Dec. 31, 2014
Stockholders' Equity Note [Abstract]
LIABILITY FOR UNISSUED COMMON STOCK SUBSEQUENTLY ISSUED	At December 31, 2014, the Company was obligated to issue 250,000,000 shares of Common Stock which arose from several agreements. A summary of the shares and subsequent issuances of Common Stock is as follows: Recipient Purpose # Shares Value Issue Date Sonoran Omnibus Loan Extension 150,000,000 $ 1,200,000 01/09/15 Smith Line of Credit Guarantee 50,000,000 $ 500,000 01/09/15 Sonoran Loan Extension 50,000,000 $ 107,572 Not issued 250,000,000 $ 1,807,572 Common Stock issued for guarantees and loan extension modifications are valued at the trading closing price of the Company’s Common Stock on the agreement date of the guarantee or loan extension (See Note 10).

10. SUBSEQUENT EVENTS

10. SUBSEQUENT EVENTS	6 Months Ended
	Dec. 31, 2014
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	For purposes of disclosure in the financial statements, the Company has evaluated subsequent events through the date the financial statements were issued. The Company launched the iCoreExchange, the iCoreMD, and the iCoreDental cloud-based software products during the first quarter of fiscal year 2015. The iCoreExchange has approximately 1000 users at June 30, 2016. 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. The Company’s former Chief Technical Officer, Mr. Srini Parthasarthy, mutually agreed to end his employment with the Company on December 31, 2015. The Vice President of Sales separated from the Company on December 23, 2015. On June 7, 2016, Board Members JD Smith, Jeff Stellinga, and Robert McDermott were elected by a majority of the voting power of the shareholders to serve until the next annual meeting of the shareholders of the Company. On July 1, 2015, Chief Executive Officer, Robert McDermott executed a three-year Employment Agreement with the Company. In addition, on January 1, 2016, Chief Financial Officer, Don Sproat executed a two-year Employment Agreement with the Company. (See Exhibits 10.1 and 10.2). Further, the Company initiated a Bridge Loan offering under Rule 506(b) during the second quarter of fiscal 2015. The total Bridge Loan offering was $4,000,000 (subsequently increased to $10,000,000) of which $3,584,654 had been subscribed as of August 31, 2016. The Bridge Loan provides for an 18% annual interest rate with the loan maturing on December 31, 2016, as extended by signed amendments from the original December 31, 2015 maturity date. The loan principal and accrued interest are convertible into the Company’s Common Stock pursuant to the Subscription Agreement executed by the Convertible Bridge Note investors. In addition, Bridge Loan investors received a warrant to purchase Common Shares in the amount of one share for each dollar of principal invested. At the same time, the associated warrant exercise period was extended from June 30, 2018 to December 31, 2019. (See Exhibit 10.3). The Company’s Line of Credit with Western State Bank had been in default since January 30, 2016. However, on May 16, 2016, the bank renewed the Company’s Line of Credit for an amount of $500,000 with the same interest terms of a floor rate of 6.5% or Wall Street Journal Prime + 1.0% whichever is higher. Interest is payable monthly and the maturity date is September 30, 2016. The Line of Credit is guaranteed by an investor in the Company. The Bank did apply a $250,000 certificate of deposit that was partial security against the principal owed shortly after the default. In addition, as of February 23, 2016, the Company was in default on its note payable to Genesis Financial Corporation in the principal amount of $155,000 plus accrued interest of $23,250. Genesis has agreed to extend the maturity of the note to February 23, 2017 for an extension fee of 2% of the principal which amounts to $3,100. The loan is secured by a security interest in an iMedicor investor’s assets. On June 30, 2016, the Company paid Genesis the accrued interest, extension fee, and prepayment of interest through the maturity date of the note in the amount of $47,275. The Company has secured additional non-Bridge Loan related loans from Mr. Jerry Smith in the amount of $1,330,000 as of August 31, 2016. The loans each carry interest at 18% per annum and accrued interest and principal balances are due December 31, 2016.

2. RECENT ACCOUNTING PRONOUNC16

2. RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	6 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K/A for the year ended June 30, 2014 for recent accounting pronouncements. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, or ASU 2015-03. ASU 2015-03 amends current presentation guidance by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as an asset in the balance sheet. The guidance in the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is allowed for financial statements that have not been previously issued. Entities would apply the new guidance retrospectively to all prior periods. The Company has not early adopted this standard for the December 31, 2014 financial statements. The Company does not believe that any other issued, but not yet effective accounting standards, if currently adopted, will have a material effect on the Company’s consolidated financial position, results of operations and cash flows.

5. LONG-TERM DEBT (Tables)

5. LONG-TERM DEBT (Tables)	6 Months Ended
	Dec. 31, 2014
Long-term Debt Tables
Summary of long-term debt	December 31, 2014 June 30, 2014 Schneller note payable bearing interest at 8.5% per annum, due June 30, 2017, in default $ 102,125 $ 125,500 Sonoran convertible note bearing interest at 10% - 12% per annum maturity extended to 2,457,728 2,322,712 Sonoran convertible note bearing interest at 8% - 18% per annum maturity extended to August 31, 2015, in default 2,070,469 1,988,899 Wellbrock note bearing interest at 8% per annum, due November 2008 - disputed 403,139 391,805 Coddington note bearing interest at 8% per annum - disputed 403,671 391,259 Shemen non-interest bearing note executed September 22, 2009 in default 10,000 10,000 Genesis note bearing interest at 18%, maturity extended to February 23, 2017 155,000 166,895 Bridge Loans bearing interest at 18% due December 31, 2016 678,708 - Total long-term debt 6,280,840 5,397,070 Less current maturities (6,178,715 ) (793,064 ) Total long-term maturities $ 102,125 $ 4,604,006
Future minimum payments due on long-term debt	2015 $ 6,178,715 2016 0 2017 102,125

8. WARRANTS AND OPTIONS (Tables

8. WARRANTS AND OPTIONS (Tables)	6 Months Ended
	Dec. 31, 2014
Disclosure Text Block Supplement [Abstract]
Warrant activity	December 31, 2014 December 31, 2013 Weighted Ave Exercise Warrants Exercise Price Warrants Price Range Outstanding at beginning of period 417,997,000 $ 0.0736 407,927,667 $ 0.01-$0.24 Issued 660,000 $ 1.3500 12,500,000 $ 0.01 Excercised - - - - Forfeited - - - - Expired (61,002,000 ) $ 0.0649 (14,251,666 ) $ 0.01-$0.105 Outstanding at end of period 357,655,000 $ 0.0953 406,176,001 $ 0.01-$0.24 Excersiable at end of period 357,655,000 $ 0.0953 406,176,001 $ 0.01-$0.24
Black Scholes option pricing model assumptions	Exercise Price $0.0038-$0.01492 Term 1-4 years Volatility 206%-305% Risk Free Rate of Return 0.11% - 1.02%

9. LIABILITY FOR UNISSUED COM19

9. LIABILITY FOR UNISSUED COMMON STOCK SUBSEQUENTLY ISSUED (Tables)	6 Months Ended
	Dec. 31, 2014
Liability For Unissued Common Stock Subsequently Issued Tables
Summary of the shares and subsequent issuances of common stock	Recipient Purpose # Shares Value Issue Date Sonoran Omnibus Loan Extension 150,000,000 $ 1,200,000 01/09/15 Smith Line of Credit Guarantee 50,000,000 $ 500,000 01/09/15 Sonoran Loan Extension 50,000,000 $ 107,572 Not issued 250,000,000 $ 1,807,572

3. GOING CONCERN (Details Narra

3. GOING CONCERN (Details Narrative) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Going Concern [Abstract]
Accumulated Deficit	$ 57,166,047	$ 54,264,291
Stockholders' Deficit	10,123,477	$ 9,621,435
Working Capital Deficit	$ 7,398,884

5. LONG-TERM DEBT (Details)

5. LONG-TERM DEBT (Details) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Long-term debt, gross	$ 6,280,840	$ 5,397,070
Less current maturities	(6,178,715)	(793,064)
Total long-term maturities	102,125	4,604,006
Schneller Note Payable
Long-term debt, gross	102,125	125,500
Sonoran Convertible Note
Long-term debt, gross	2,457,728	2,322,712
Sonoran Secured Convertible Note
Long-term debt, gross	2,070,469	1,988,899
Wellbrock Note
Long-term debt, gross	403,139	391,805
Coddington Note
Long-term debt, gross	403,671	391,259
Shemen Non-Interest Bearing Note
Long-term debt, gross	10,000	10,000
Genesis Note
Long-term debt, gross	155,000	166,895
Bridge Loans
Long-term debt, gross	$ 678,708	$ 0

5. LONG-TERM DEBT (Details 1)

5. LONG-TERM DEBT (Details 1)	Dec. 31, 2014USD ($)
Long-term Debt Details 1
2,015	$ 6,178,715
2,016	0
2,017	$ 102,125

6. NET EARNINGS (LOSS) PER SH23

6. NET EARNINGS (LOSS) PER SHARE (Details Narrative)	6 Months Ended
	Dec. 31, 2014shares
Options
Anti-dilutive shares excluded from the calculation of earnings per share	193,300,000
Warrant
Anti-dilutive shares excluded from the calculation of earnings per share	357,655,000

7. EMBEDDED CONVERSION LIABIL24

7. EMBEDDED CONVERSION LIABILITY – CONVERTIBLE DEBT (Details Narrative) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Embedded Conversion Liability Convertible Debt Details Narrative
Embedded conversion liability - preferred stock and convertible debt	$ 362,406	$ 304,699

8. WARRANTS AND OPTIONS (Detail

8. WARRANTS AND OPTIONS (Details) - Warrant - $ / shares	6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Outstanding at beginning of the period	417,997,000	407,927,667
Number of Issued	660,000	12,500,000
Number of Exercised	0	0
Number of Forfeited	0	0
Number of Expired	(61,002,000)	(14,251,666)
Outstanding at end of period	357,655,000	406,176,001
Exercisable at end of period	357,655,000	406,176,001
Weighted Average Exercise Price Outstanding, Beginning	$ 0.0736
Weighted Average Exercise Price Issued	1.35	$ 0.01
Weighted Average Exercise Price Exercised	0	0
Weighted Average Exercise Price Forfeited	0	0
Weighted Average Exercise Price Expired	0.0649
Weighted Average Exercise Price Outstanding, Ending	0.0953
Weighted Average Exercise Price Exercisable	$ 0.0953
Minimum [Member]
Weighted Average Exercise Price Outstanding, Beginning		.01
Weighted Average Exercise Price Expired		.01
Weighted Average Exercise Price Outstanding, Ending		.01
Weighted Average Exercise Price Exercisable		0.01
Maximum [Member]
Weighted Average Exercise Price Outstanding, Beginning		.24
Weighted Average Exercise Price Expired		.105
Weighted Average Exercise Price Outstanding, Ending		.24
Weighted Average Exercise Price Exercisable		$ 0.24

8. WARRANTS AND OPTIONS (Deta26

8. WARRANTS AND OPTIONS (Details 1)	6 Months Ended
	Dec. 31, 2014$ / shares
Minimum [Member]
Exercise Price	$ .0038
Term	1 year
Volatility	206.00%
Risk Free Rate of Return	0.11%
Maximum [Member]
Exercise Price	$ .01492
Term	4 years
Volatility	305.00%
Risk Free Rate of Return	1.02%

8. WARRANTS AND OPTIONS (Deta27

8. WARRANTS AND OPTIONS (Details Narrative)	6 Months Ended
	Dec. 31, 2014USD ($)
Warrants And Options Details Narrative
Stock compensation expense	$ 1,046,114
Unamortized stock compensation expense	$ 1,684,819

9. LIABILITY FOR UNISSUED COM28

9. LIABILITY FOR UNISSUED COMMON STOCK SUBSEQUENTLY ISSUED (Details)	6 Months Ended
	Dec. 31, 2014USD ($)shares
Subsequent issuances of common stock, shares | shares	250,000,000
Subsequent issuances of common stock, value | $	$ 1,807,572
Sonoran
Purpose	Omnibus Loan Extenension
Subsequent issuances of common stock, shares | shares	150,000,000
Subsequent issuances of common stock, value | $	$ 1,200,000
Issue date	Jan. 9, 2015
Smith
Purpose	Line of Credit Guarantee
Subsequent issuances of common stock, shares | shares	50,000,000
Subsequent issuances of common stock, value | $	$ 500,000
Issue date	Jan. 9, 2015
Sonoran
Purpose	Loan Extension
Subsequent issuances of common stock, shares | shares	50,000,000
Subsequent issuances of common stock, value | $	$ 107,572