Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Oct. 14, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Engage Mobility, Inc | ' |
Entity Central Index Key | '0001547521 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Document Type | '10-K | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'FY | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Public Float | $0 | ' |
Entity Common Stock, Shares Outstanding | ' | 21,772,567 |
Balance_Sheets
Balance Sheets (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
CURRENT ASSETS | ' | ' |
Cash | $16,201 | ' |
Accounts receivable | 650 | 8,500 |
Prepaid expenses | 32,805 | ' |
Total Current Assets | 49,656 | 8,500 |
PROPERTY AND EQUIPMENT, net | 9,627 | 2,958 |
OTHER ASSETS | ' | ' |
Intangible asset, net | 74,263 | 24,000 |
TOTAL ASSETS | 133,546 | 35,458 |
CURRENT LIABILITIES | ' | ' |
Accounts Payable and accrued expenses | 59,025 | 21,940 |
Other current liabilities | 470,000 | ' |
Due to bank | ' | 14,282 |
Total Current Liabilities | 529,025 | 36,222 |
LONG TERM LIABILITIES | ' | ' |
Notes payable | 275,000 | 280,000 |
Convertible notes payable | 2,454 | ' |
STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' |
Common Stock - No Par Value; Authorized: 100,000,000 Issued and Outstanding: 21,772,567 and 20,126,500 shares | 1,976,595 | 166,500 |
Paid in capital | 2,885,364 | 4,000 |
Accumulated Deficit | -5,534,892 | -451,264 |
Total stockholders' equity (deficit) | -672,933 | -280,764 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $133,546 | $35,458 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Balance Sheets [Abstract] | ' | ' |
Common Stock, No Par Value | ' | ' |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 21,772,567 | 20,126,500 |
Common stock, shares outstanding | 21,772,567 | 20,126,500 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Statement Of Operations [Abstract] | ' | ' |
REVENUE | $87,185 | $23,234 |
COST OF SALES | 6,500 | 15,626 |
GROSS PROFIT | 80,685 | 7,608 |
OPERATING EXPENSES: | ' | ' |
GENERAL AND ADMINISTRATIVE EXPENSES | 4,259,153 | 417,520 |
TOTAL OPERATING EXPENSES | 4,259,153 | 417,520 |
OPERATING LOSS | -4,178,468 | -409,912 |
INTEREST EXPENSE | 905,160 | 9,943 |
LOSS BEFORE INCOME TAXES | -5,083,628 | -419,855 |
INCOME TAXES | ' | ' |
NET LOSS | ($5,083,628) | ($419,855) |
Net Loss Per Common Share, basic & diluted | ($0.24) | ($0.02) |
Weighted Average Common Shares Outstanding, basic & diluted | 20,836,050 | 20,126,500 |
Statement_of_Stockholders_Equi
Statement of Stockholders' Equity (deficit) (USD $) | Total | COMMON STOCK [Member] | PAID-IN CAPITAL [Member] | ACCUMULATED DEFICIT [Member] |
Balance at Jun. 30, 2012 | $139,091 | $166,500 | $4,000 | ($31,409) |
Balance, Shares at Jun. 30, 2012 | ' | 20,126,500 | ' | ' |
Net Loss | -419,855 | ' | ' | -419,855 |
Balance at Jun. 30, 2013 | -280,764 | 166,500 | 4,000 | -451,264 |
Balance, Shares at Jun. 30, 2013 | ' | 20,126,500 | ' | ' |
Stock issued for cash | 1,275,605 | 1,275,605 | ' | ' |
Stock issued for cash, Shares | ' | 1,343,150 | ' | ' |
Stock issued for services, inducements and interest | 234,490 | 234,490 | ' | ' |
Stock issued for services, inducements and interest, Shares | ' | 47,967 | ' | ' |
Stock issued for debt conversion | 200,000 | 200,000 | ' | ' |
Stock issued for debt conversion, Shares | ' | 200,000 | ' | ' |
Stock issued for deferred compensation | ' | 100,000 | -100,000 | ' |
Stock issued for deferred compensation,Shares | ' | 54,950 | ' | ' |
Options and warrants issued for services and interest | 2,807,587 | ' | 2,807,587 | ' |
Beneficial conversion feature | 90,444 | ' | 90,444 | ' |
Deferred compensation expense recognized | 83,333 | ' | 83,333 | ' |
Net Loss | -5,083,628 | ' | ' | -5,083,628 |
Balance at Jun. 30, 2014 | ($672,933) | $1,976,595 | $2,885,364 | ($5,534,892) |
Balance, Shares at Jun. 30, 2014 | ' | 21,772,567 | ' | ' |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net loss | ($5,083,628) | ($419,855) |
Depreciation and amortization of property and equipment and intangibles | 31,828 | 1,443 |
Non-cash interest expense resulting from beneficial conversion feature | 42,898 | ' |
Common stock, options and warrants issued for services, interest and inducements | 3,125,410 | ' |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | 7,850 | -8,500 |
Prepaid expenses | -32,805 | 2,500 |
Accounts payable and accrued expenses | 37,085 | 19,940 |
Other current liabilities | 470,000 | ' |
Total adjustments to net income | 3,682,266 | 15,383 |
Net cash (used in) operating activities | -1,401,362 | -404,472 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Acquisition of intangibles | -74,963 | -24,000 |
Purchase of property and equipment | -13,797 | -4,401 |
Net cash (used in) investing activities | -88,760 | -28,401 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Due to bank | -14,282 | 14,282 |
Notes payable | 180,000 | 265,000 |
Convertible notes payable | 250,000 | ' |
Notes payable - repayment | -185,000 | ' |
Common shares issued for cash, net | 1,275,605 | ' |
Net cash provided by financing activities | 1,506,323 | 279,282 |
Net increase (decrease) in cash | 16,201 | -153,591 |
Cash - beginning balance | ' | 153,591 |
CASH ENDING BALANCE | 16,201 | ' |
Cash paid for: | ' | ' |
Interest | ' | 9,943 |
Income taxes | ' | ' |
Non-cash investing and financing activities: | ' | ' |
Conversion of note payable to common stock | 200,000 | ' |
Beneficial conversion feature on note payable | $90,444,000 | ' |
Nature_of_Operations
Nature of Operations | 12 Months Ended | |
Jun. 30, 2014 | ||
Nature of Operations [Abstract] | ' | |
NATURE OF OPERATIONS | ' | |
NOTE 1 | NATURE OF OPERATIONS | |
Engage Mobility, Inc. (the “Company”) was incorporated on December 28, 2011 under the laws of the State of Florida as MarketKast Incorporated. On March 22, 2013, the Company changed its name to Engage Mobility, Inc. The Company functions as a provider of mobile marketing services, online and mobile video production, distribution, syndication and marketing services for business owners. | ||
The Company has adopted its fiscal year end to be June 30. |
Summary_of_Accounting_Policies
Summary of Accounting Policies | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Summary of Accounting Policies [Abstract] | ' | ||||||||
SUMMARY OF ACCOUNTING POLICIES | ' | ||||||||
NOTE 2 | SUMMARY OF ACCOUNTING POLICIES | ||||||||
Basis of Presentation | |||||||||
The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | |||||||||
Cash Equivalents | |||||||||
The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. Bank overdrafts are presented in the financial statements under the caption “Due to Bank”. | |||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates. Significant estimates include the valuation of stock based compensation. | |||||||||
Revenue Recognition | |||||||||
In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. Revenue is recognized at the time the product is delivered or the service is performed. Where the Company has entered into a revenue sharing agreement with a third party, the Company will record its’ proportionate share of the revenue. | |||||||||
Deferred revenue is recorded for amounts received in advance of the time at which services are performed and included in revenue at the completion of the related services. | |||||||||
Accounts Receivable and Allowance for Doubtful Accounts | |||||||||
Accounts receivable are reported at their outstanding unpaid principal balances reduced by an allowance for doubtful accounts. The Company estimates doubtful accounts based on historical bad debts, factors related to specific customers' ability to pay and current economic trends. The Company writes off accounts receivable against the allowance when a balance is determined to be uncollectible. | |||||||||
Intangible Assets and Long Lived Assets | |||||||||
The Company makes reviews for the impairment of long-lived assets and certain identifiable intangibles whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount. | |||||||||
During January 2013 the Company entered into a licensing and development agreement with a third party to develop and integrate a mobile communication platform for a fee aggregating $48,000 In addition to the development fee the Company will pay a monthly license fee based on the number of users. Amortization for the intangible asset began in February 2014. | |||||||||
In November 2013 the Company entered into an agreement to build a mobile platform for a fee of $50,000. The platform was completed during the year and the Company began amortizing the platform in January 2014. | |||||||||
In addition, the Company developed a website at a cost of $963. | |||||||||
Intangible assets consisted of the following: | |||||||||
2014 | 2013 | ||||||||
Cost basis | $ | 98,963 | $ | 24,000 | |||||
Accumulated amortization | (24,700 | ) | - | ||||||
$ | 74,263 | $ | 24,000 | ||||||
Property and Equipment | |||||||||
Depreciation of office and production equipment is provided for by the straight-line method over the estimated useful lives of the related assets. Equipment is currently being depreciated over a period of 5 years. | |||||||||
Property and Equipment consist of the following: | |||||||||
Equipment and furniture | $ | 16,755 | $ | 2,958 | |||||
Accumulated depreciation | (7,128 | ) | - | ||||||
$ | 9,627 | $ | 2,958 | ||||||
Fair value of financial instruments | |||||||||
The Company’s short-term financial instruments consist of cash, accounts receivable, accounts payable and accrued expenses, and other current liabilities. The carrying amounts of these financial instruments approximate fair value because of their short-term maturities. The Company does not hold or issue financial instruments for trading purposes nor does it hold or issue interest rate or leveraged derivative financial instruments. The carrying value of the Company’s long-term debt approximates fair value based on the terms and conditions at which the Company could obtain similar financing. | |||||||||
Income Taxes | |||||||||
Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. | |||||||||
All tax periods from inception remain open to examination by taxing authorities. | |||||||||
Stock-Based Compensation | |||||||||
The Company records the cost resulting from all share-based transactions in the financial statements. The Company applies a fair-value-based measurement in accounting for share-based payment transactions with employees and when the Company acquires goods or services from non-employees in share-based payment transactions. | |||||||||
Net Income (Loss) Per Common Share | |||||||||
Basic earnings (loss) per share are calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares and dilutive common stock equivalents outstanding. During periods in which the Company incurs losses common stock equivalents, if any, are not considered, as their effect would be anti-dilutive. | |||||||||
Recent Pronouncements | |||||||||
The Company has elected to early adopt the FASB Codification topic 915 Development Stage Entities. | |||||||||
The Company does not believe that other recently issued accounting pronouncements will have a material impact on its financial statements. |
Going_Concern
Going Concern | 12 Months Ended | |
Jun. 30, 2014 | ||
Going Concern [Abstract] | ' | |
GOING CONCERN | ' | |
NOTE 3 | 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. As reflected in the accompanying financial statements, the Company has an accumulated deficit of $5,534,892 and a working capital deficit of $479,369 at June 30, 2014. These conditions raise substantial doubt about its ability to continue as a going concern. | ||
While the Company is attempting to execute its strategy, the Company’s cash position may not be sufficient to support the Company’s daily operations without significant financing. While the Company believes in the viability of its strategy to produce sales volume and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenues to meet its obligations. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
Accounts_Payable_And_Other_Lia
Accounts Payable And Other Liabilities | 12 Months Ended | |
Jun. 30, 2014 | ||
Accounts Payable And Other Liabilities [Abstract] | ' | |
ACCOUNTS PAYABLE AND OTHER LIABILITIES | ' | |
NOTE 4 | ACCOUNTS PAYABLE AND OTHER LIABILITIES | |
Accounts payable and accrued expenses consist of accruals from normal operations of the business. As of June 30, 2014 and 2013 the balances are $59,025 and $21,940. | ||
Other current liabilities consist of an aggregate of $470,000 received for the development of a mobile platform from the Joint Venture described in Note 12. |
Notes_Payable
Notes Payable | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
NOTE PAYABLE | ' | ||||
NOTE 5 | NOTES PAYABLE | ||||
Through June 30, 2013, the Company borrowed an aggregate of $280,000 pursuant to non-convertible promissory notes, bearing interest at 10% per annum. During the year ended June 30, 2014, the Company borrowed an additional $180,000 pursuant to non-convertible promissory notes with similar terms. In addition, the Company repaid $185,000 of the previously issued notes. Interest is payable monthly and the principal, together with any unpaid interest, is due 48 months from the dates of the notes. | |||||
The notes are due as follows: | |||||
Year Ended June 30, 2017 | $ | 205,000 | |||
Year Ended June 30, 2018 | 70,000 | ||||
$ | 275,000 | ||||
Convertible_Notes_Payable
Convertible Notes Payable | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
CONVERTIBLE NOTES PAYABLE | ' | ||||
NOTE 6 | CONVERTIBLE NOTES PAYABLE | ||||
During July 2013, the Company issued $250,000 of 10% convertible promissory notes to certain private investors. The convertible notes mature after three years, at which time all outstanding principal and accrued interest is due. The notes were convertible by the investors into the Company's current registered offering on Form S-1 with $200,000 being convertible into the offering at a 20% discount to the offering price of $1.60 per share, or $1.28 per share, and $50,000 being convertible at a 50% discount to the offering price, or $0.80 per share. In addition to the interest due, the Company issued 125,000 warrants to the lenders at an exercise price of 125% of the share price of the proposed offering or $2.00 per share (see Note 8). These convertible notes are secured by all of the Company’s assets. | |||||
In addition, the Company recognized a beneficial conversion feature related to the convertible notes of $90,444, calculated using a binomial model which was credited to additional paid-in capital. Interest on the notes is being recognized using the effective yield method over the three year life of the notes. | |||||
During February 2014 the holder of the $200,000 convertible note agreed to convert the note into 200,000 shares of the Company’s common stock (see Note 7). This note holder also purchased an additional 100,000 shares of the Company’s common stock for $100,000 in cash. The Company also granted the note holder an option to purchase 200,000 common shares at $1.50 per share and 200,000 shares at $2.00 per share for a three year period (see Note 8). | |||||
Convertible notes payable consist of the following at June 30, 2014: | |||||
Notes payable | $ | 50,000 | |||
Beneficial conversion feature and unamortized warrants | (47,546 | ) | |||
$ | 2,454 | ||||
Charges to interest expense related to amortization of the cost of the warrants and beneficial conversion feature during the year ended June 30, 2014, were $202,454. |
Stockholders_equity
Stockholder's equity | 12 Months Ended | |
Jun. 30, 2014 | ||
Stockholders' Equity [Abstract] | ' | |
STOCKHOLDERS' EQUITY | ' | |
NOTE 7 | STOCKHOLDERS’ EQUITY | |
Common Stock includes 100,000,000 shares authorized at no par value. | ||
During the year ended June 30, 2014, the Company issued common shares as follows: | ||
The Company issued 1,343,150 shares of common stock for cash of $1,275,605. | ||
On July 31, 2013, the Company’s registration statement on Form S-1 became effective. The Company is offering for sale a maximum of 6,250,000 shares of its no par value common stock at a price of $1.60 per share. As of June 30, 2014, 312,500 shares had been sold pursuant to the offering for cash of $500,000. These shares are included in the shares issued for cash described above. | ||
The Company issued 47,967 shares of common stock for services, inducements and interest. These shares were valued at the trading price of the Company’s common shares on the date it was agreed the shares would be issued of $234,490 which has been charged to operations during the period. | ||
The Company issued 200,000 shares of common stock for the conversion of a $200,000 note (see Note 6). The fair value of the shares in excess of the note of $84,000 has been charged to operations during the period. | ||
The Company issued 54,950 common shares for services to be performed over a one year period, which were valued at their estimated fair value of $100,000 based on the trading price of the Company’s common shares. The value of these shares has been recorded as deferred compensation as a reduction of paid in capital and is being amortized over the one year period during which the related services will be received. At June 30, 2014 $83,333 of deferred compensation has been charged to operations. |
Stock_Options_and_Warrants
Stock Options and Warrants | 12 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Disclosure Of Compensation Related Costs Share based Payments [Abstract] | ' | ||||||||||||||
STOCK OPTIONS AND WARRANTS | ' | ||||||||||||||
NOTE 8 | STOCK OPTIONS AND WARRANTS | ||||||||||||||
Two employees were granted an aggregate of 614,000 five year options (see Note 10) which vested immediately as to 114,000 options and as to 125,000 options per year over the next 4 years. The options are exercisable at $2.50 per share for 114,000 options, $3.00 per share for 125,000 options, $3.50 per share for 125,000 options, $3.75 for 125,000 options and $4.00 for 125,000 options. The aggregate grant date fair value of the options was $1,415,710 of which $413,398 has been charged to operations during the year ended June 30, 2014. The balance of the fair value of the options will be charged to operations over the vesting period. The options were valued using the Binomial option pricing model with the following assumptions: | |||||||||||||||
Volatility 154% - Dividend rate 0% - Interest rate 1.36% - 1.66% - Term 5 years | |||||||||||||||
A summary of the status of the stock options granted to employees and others as of June 30, 2014 is as follows: | |||||||||||||||
Weighted | |||||||||||||||
Number | Average | ||||||||||||||
of | Exercise | ||||||||||||||
Options | Price | ||||||||||||||
Options outstanding at beginning of year | — | $ | — | ||||||||||||
Changes during the year: | |||||||||||||||
Granted | 614,000 | $ | 3.37 | ||||||||||||
Cancelled/exercised | — | ||||||||||||||
Options outstanding at end of year | 614,000 | $ | 3.37 | ||||||||||||
Options exercisable at end of year | 114,000 | $ | 2.5 | ||||||||||||
Weighted average fair value of options granted during the year | $ | 3.37 | |||||||||||||
Costs incurred with respect to stock based compensation related to options for the years ended June 30, 2014 was $413,398. Unrecognized cost as of June 30, 2014 was $1,002,312 which amount is expected to be recognized over approximately 54 months. As of June 30, 2014, the aggregate intrinsic value of all stock options outstanding and expected to vest was approximately $0 and the aggregate intrinsic value of currently exercisable stock options was approximately $0. The intrinsic value of each option share is the difference between the fair market value of our common stock and the exercise price of such option share to the extent it is “in-the-money”. Aggregate intrinsic value represents the value that would have been received by the holders of in-the-money options had they exercised their options on the last trading day of the year and sold the underlying shares at the closing stock price on such day. The intrinsic value calculation is based on the assumed market value of our common stock on June 30, 2014, at $2.01 per share. The total number of in-the-money options outstanding and exercisable as of June 30, 2014, was 0. | |||||||||||||||
The following table presents summary information concerning the options outstanding as of June 30, 2014: | |||||||||||||||
Exercise | Number | Number | Weighted | ||||||||||||
prices | Outstanding | Exercisable | Average | ||||||||||||
Remaining | |||||||||||||||
Contractual | |||||||||||||||
Life (Years) | |||||||||||||||
$ 2.50 – 4.00 | 614,000 | 114,000 | 4.5 | ||||||||||||
Stock Warrants | |||||||||||||||
In conjunction with the issuance of the convertible notes described in Note 6, the Company issued 125,000 warrants exercisable at $2.00 per share that expire after three years. The aggregate fair value of the warrants was $157,584, using a binomial option pricing model and the following assumptions: | |||||||||||||||
Volatility 154% - Dividend rate 0% - Interest rate 0.77% - Term 3 years | |||||||||||||||
In conjunction with the conversion of the $200,000 note described in note 6 the Company issued an aggregate of 400,000 three year warrants exercisable 200,000 warrants at $1.50 per share and 200,000 warrants at $2.00 per share. The aggregate grant date fair value of the warrants was $580,600 and has been charged to operations during the year ended June 30, 2014. The warrants were valued using the Binomial option pricing model with the following assumptions: | |||||||||||||||
Volatility 108% - Dividend rate 0% - Interest rate 0.86% - 1.66% - Term 3 years | |||||||||||||||
The Company issued a 1,000,000 five year warrant exercisable at $1.00 per share for services. The aggregate grant date fair value of the warrant was $1,572,005 and has been charged to operations during the year ended June 30, 2014. The warrant was valued using the Binomial option pricing model with the following assumptions: | |||||||||||||||
Volatility 108% - Dividend rate 0% - Interest rate 0.86% - 1.66% - Term 3 years | |||||||||||||||
The total fair value of all warrants issued was $2,310,189 | |||||||||||||||
Stock warrants outstanding at June 30, 2014 are as follows: | |||||||||||||||
Date Issued | Expiration Date | Exercise Price | Number of Warrants | ||||||||||||
Jul-13 | Jul-16 | $ | 2 | 125,000 | |||||||||||
Feb-14 | Feb-19 | $ | 1 | 1,000,000 | |||||||||||
Feb-14 | Feb-17 | $ | 1.5 | 200,000 | |||||||||||
Feb-14 | Feb-17 | $ | 2 | 200,000 |
Income_Taxes
Income Taxes | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Income Taxes [Abstract] | ' | ||||
INCOME TAXES | ' | ||||
NOTE 9 | INCOME TAXES | ||||
No provision was made for federal income tax since the Company has significant net operating losses. At June 30, 2014 , the Company had operating loss carryforwards of approximately $1,400,000 . The net operating loss carry-forwards may be used to reduce taxable income through the year 2034. The principal difference between the net operating loss for book purposes and income tax purposes results from non-cash charges to operations related to stock options and warrants and common shares issued for services that are not currently deductible for income tax purposes. The availability of the Company’s net operating loss carry-forwards are subject to limitation if there is a 50% or more positive change in the ownership of the Company’s stock. | |||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial statement purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax liabilities and assets as of June 30, 2013 and 2014, are as follows: | |||||
2013:00:00 | |||||
Deferred tax assets: | |||||
Federal net operating loss | $ | 142,000 | |||
State net operating loss | 21,000 | ||||
Total deferred tax assets | 163,000 | ||||
Less valuation allowance | (163,000 | ) | |||
$ | -- | ||||
2014:00:00 | |||||
Deferred tax assets: | |||||
Federal net operating loss | $ | 457,000 | |||
State net operating loss | 67,000 | ||||
Total deferred tax assets | 524,000 | ||||
Less valuation allowance | (524,000 | ) | |||
$ | -- | ||||
The Company has provided a 100% valuation allowance on the deferred tax assets at June 30, 2014 and 2013, to reduce such asset to zero, since there is no assurance that the Company will generate future taxable income to utilize such assets. Management reviews this valuation allowance requirement periodically and makes adjustments as warranted. | |||||
The reconciliation of the effective income tax rate to the federal statutory rate for the periods ended June 30, 2014 and 2013 is as follows: | |||||
Federal income tax rate | (34.0 | )% | |||
State tax, net of federal benefit | (5.0 | ) | |||
Increase in valuation allowance | 39 | ||||
Effective income tax rate | - | % |
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | |
Jun. 30, 2014 | ||
Commitments And Contingencies [Abstract] | ' | |
COMMITMENTS AND CONTINGENCIES | ' | |
NOTE 10 | COMMITMENTS AND CONTINGENCIES | |
During the period ended March 31, 2014, the Company entered into a consulting agreement for a one year period. The Company advanced $103,000 in cash and issued 54,950 shares of common stock for these services, which shares were valued at their estimated fair value of $100,000. The total consideration paid of $203,000 is being amortized over the one year period of the agreement commencing in September 2013. The unamortized balance is included in prepaid expenses for the cash payment ($14,128) and deferred compensation for the share payment ($16,667). | ||
During the period ended March 31, 2014, the Company entered into employment contracts with two employees, with no set duration, for aggregate compensation of $260,000 per year. The employees were granted an aggregate of 614,000 five year options which vested immediately as to 114,000 options and as to 125,000 options per year over the next 4 years. The options are exercisable at $2.50 per share for 114,000 options, $3.00 per share for 125,000 options, $3.50 per share for 125,000 options, $3.75 for 125,000 options and $4.00 for 125,000 options (see Note 8). | ||
We are currently involved in one legal proceeding, a breach of contract lawsuit against IRTH Communications, LLC. On May 24, 2014, we filed a lawsuit in Orange County, FL (case # 2014-CA-00-2626-O), against IRTH for breach of a contract to provide investor relations services to us. In that lawsuit we seek return of $110,000 of monies paid to IRTH, and we seek the cancellation of 54,950 shares of stock issued to IRTH. IRTH has subsequently sued us separately in the California courts for breach of contract, seeking damages and also seeking to have their shares cleared for trading, which they are not currently. However, the California action has been stayed pending the outcome of the Florida lawsuit. We believe the counterclaim is without merit and if needed will defend it vigorously. Because of this, and because the case is in the early stages it is not possible to estimate its possible outcome. As such, no effect has been given to any loss that may result from the resolution of this matter in the accompanying financial statements. |
Stock_Based_Expenses
Stock Based Expenses | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Disclosure Of Compensation Related Costs Share based Payments [Abstract] | ' | ||||
STOCK BASED EXPENSES | ' | ||||
NOTE 11 | STOCK BASED EXPENSES | ||||
During the year ended June 30, 2014, the Company charged stock based compensation to operations as follows: | |||||
General and administrative expense | $ | 2,348,329 | |||
Interest expense | $ | 867,081 | |||
Subsequent_Events
Subsequent Events | 12 Months Ended | |
Jun. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
SUBSEQUENT EVENTS | ' | |
NOTE 12 | SUBSEQUENT EVENTS | |
We partnered with certain parties in China to develop and launch a Chinese version of our mobile platform, and we entered into a Joint Venture Agreement with our partners in China in February 2014. The Chinese JV was formed in August 2014 and the initial product launch in China commenced in late August 2014. We have not yet experienced any revenue from our interest in the Chinese Joint Venture. We have a 15% interest in this JV. |
Summary_of_Accounting_Policies1
Summary of Accounting Policies (Policies) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Summary of Accounting Policies [Abstract] | ' | ||||||||
Basis of Presentation | ' | ||||||||
Basis of Presentation | |||||||||
The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | |||||||||
Cash Equivalents | ' | ||||||||
Cash Equivalents | |||||||||
The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. Bank overdrafts are presented in the financial statements under the caption “Due to Bank”. | |||||||||
Use of Estimates | ' | ||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates. Significant estimates include the valuation of stock based compensation. | |||||||||
Revenue Recognition | ' | ||||||||
Revenue Recognition | |||||||||
In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. Revenue is recognized at the time the product is delivered or the service is performed. Where the Company has entered into a revenue sharing agreement with a third party, the Company will record its’ proportionate share of the revenue. | |||||||||
Deferred revenue is recorded for amounts received in advance of the time at which services are performed and included in revenue at the completion of the related services. | |||||||||
Accounts Receivable and Allowance for Doubtful Accounts | ' | ||||||||
Accounts Receivable and Allowance for Doubtful Accounts | |||||||||
Accounts receivable are reported at their outstanding unpaid principal balances reduced by an allowance for doubtful accounts. The Company estimates doubtful accounts based on historical bad debts, factors related to specific customers' ability to pay and current economic trends. The Company writes off accounts receivable against the allowance when a balance is determined to be uncollectible. | |||||||||
Intangible Assets and Long Lived Assets | ' | ||||||||
Intangible Assets and Long Lived Assets | |||||||||
The Company makes reviews for the impairment of long-lived assets and certain identifiable intangibles whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount. | |||||||||
During January 2013 the Company entered into a licensing and development agreement with a third party to develop and integrate a mobile communication platform for a fee aggregating $48,000 In addition to the development fee the Company will pay a monthly license fee based on the number of users. Amortization for the intangible asset began in February 2014. | |||||||||
In November 2013 the Company entered into an agreement to build a mobile platform for a fee of $50,000. The platform was completed during the year and the Company began amortizing the platform in January 2014. | |||||||||
In addition, the Company developed a website at a cost of $963. | |||||||||
Intangible assets consisted of the following: | |||||||||
2014 | 2013 | ||||||||
Cost basis | $ | 98,963 | $ | 24,000 | |||||
Accumulated amortization | (24,700 | ) | - | ||||||
$ | 74,263 | $ | 24,000 | ||||||
Property and Equipment | ' | ||||||||
Property and Equipment | |||||||||
Depreciation of office and production equipment is provided for by the straight-line method over the estimated useful lives of the related assets. Equipment is currently being depreciated over a period of 5 years. | |||||||||
Fair value of financial instruments | ' | ||||||||
Fair value of financial instruments | |||||||||
The Company’s short-term financial instruments consist of cash, accounts receivable, accounts payable and accrued expenses, and other current liabilities. The carrying amounts of these financial instruments approximate fair value because of their short-term maturities. The Company does not hold or issue financial instruments for trading purposes nor does it hold or issue interest rate or leveraged derivative financial instruments. The carrying value of the Company’s long-term debt approximates fair value based on the terms and conditions at which the Company could obtain similar financing. | |||||||||
Income taxes | ' | ||||||||
Income Taxes | |||||||||
Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. | |||||||||
All tax periods from inception remain open to examination by taxing authorities. | |||||||||
Stock-Based Compensation | ' | ||||||||
Stock-Based Compensation | |||||||||
The Company records the cost resulting from all share-based transactions in the financial statements. The Company applies a fair-value-based measurement in accounting for share-based payment transactions with employees and when the Company acquires goods or services from non-employees in share-based payment transactions. | |||||||||
Net Income (Loss) Per Common Share | ' | ||||||||
Net Income (Loss) Per Common Share | |||||||||
Basic earnings (loss) per share are calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares and dilutive common stock equivalents outstanding. During periods in which the Company incurs losses common stock equivalents, if any, are not considered, as their effect would be anti dilutive. | |||||||||
Recent Pronouncements | ' | ||||||||
Recent Pronouncements | |||||||||
The Company has elected to early adopt the FASB Codification topic 915 Development Stage Entities. | |||||||||
The Company does not believe that other recently issued accounting pronouncements will have a material impact on its financial statements. |
Summary_of_Accounting_Policies2
Summary of Accounting Policies (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Summary of Accounting Policies [Abstract] | ' | ||||||||
Schedule of intangible assets | ' | ||||||||
2014 | 2013 | ||||||||
Cost basis | $ | 98,963 | $ | 24,000 | |||||
Accumulated amortization | (24,700 | ) | - | ||||||
$ | 74,263 | $ | 24,000 | ||||||
Schedule of property and equipment | ' | ||||||||
Equipment and furniture | $ | 16,755 | $ | 2,958 | |||||
Accumulated depreciation | (7,128 | ) | - | ||||||
$ | 9,627 | $ | 2,958 |
Notes_Payable_Tables
Notes Payable (Tables) | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Schedule of notes payable | ' | ||||
Year Ended June 30, 2017 | $ | 205,000 | |||
Year Ended June 30, 2018 | 70,000 | ||||
$ | 275,000 | ||||
Convertible_Notes_Payable_Tabl
Convertible Notes Payable (Tables) | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Schedule of convertible notes payable | ' | ||||
Notes payable | $ | 50,000 | |||
Beneficial conversion feature and unamortized warrants | (47,546 | ) | |||
$ | 2,454 |
Stock_Options_and_Warrants_Tab
Stock Options and Warrants (Tables) | 12 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Stock Options and Warrants [Abstract] | ' | ||||||||||||||
Summary of the stock options granted to employees and others | ' | ||||||||||||||
Weighted | |||||||||||||||
Number | Average | ||||||||||||||
of | Exercise | ||||||||||||||
Options | Price | ||||||||||||||
Options outstanding at beginning of year | — | $ | — | ||||||||||||
Changes during the year: | |||||||||||||||
Granted | 614,000 | $ | 3.37 | ||||||||||||
Cancelled/exercised | — | ||||||||||||||
Options outstanding at end of year | 614,000 | $ | 3.37 | ||||||||||||
Options exercisable at end of year | 114,000 | $ | 2.5 | ||||||||||||
Weighted average fair value of options granted during the year | $ | 3.37 | |||||||||||||
Summary of options outstanding | ' | ||||||||||||||
Exercise | Number | Number | Weighted | ||||||||||||
prices | Outstanding | Exercisable | Average | ||||||||||||
Remaining | |||||||||||||||
Contractual | |||||||||||||||
Life (Years) | |||||||||||||||
$ 2.50 – 4.00 | 614,000 | 114,000 | 4.5 | ||||||||||||
Schedule of stock warrants outstanding | ' | ||||||||||||||
Date Issued | Expiration Date | Exercise Price | Number of Warrants | ||||||||||||
Jul-13 | Jul-16 | $ | 2 | 125,000 | |||||||||||
Feb-14 | Feb-19 | $ | 1 | 1,000,000 | |||||||||||
Feb-14 | Feb-17 | $ | 1.5 | 200,000 | |||||||||||
Feb-14 | Feb-17 | $ | 2 | 200,000 | |||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Income Taxes [Abstract] | ' | ||||
Schedule of components of the company's deferred tax liabilities and assets | ' | ||||
2013: | |||||
Deferred tax assets: | |||||
Federal net operating loss | $ | 142,000 | |||
State net operating loss | 21,000 | ||||
Total deferred tax assets | 163,000 | ||||
Less valuation allowance | (163,000 | ) | |||
$ | -- | ||||
2014: | |||||
Deferred tax assets: | |||||
Federal net operating loss | $ | 457,000 | |||
State net operating loss | 67,000 | ||||
Total deferred tax assets | 524,000 | ||||
Less valuation allowance | (524,000 | ) | |||
$ | -- | ||||
Schedule of reconciliation of the effective income tax rate to the federal statutory rate | ' | ||||
Federal income tax rate | (34.0 | )% | |||
State tax, net of federal benefit | (5.0 | ) | |||
Increase in valuation allowance | 39 | ||||
Effective income tax rate | - | % |
Stock_Based_Expenses_Tables
Stock Based Expenses (Tables) | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Disclosure Of Compensation Related Costs Share based Payments [Abstract] | ' | ||||
Schedule of share based compensation to operations | ' | ||||
General and administrative expense | $ | 2,348,329 | |||
Interest expense | $ | 867,081 | |||
Summary_of_Accounting_Policies3
Summary of Accounting Policies (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Summary of Accounting Policies [Abstract] | ' | ' |
Cost basis | $98,963 | $24,000 |
Accumulated amortization | -24,700 | ' |
Intangible asset, net | $74,263 | $24,000 |
Summary_of_Accounting_Policies4
Summary of Accounting Policies (Details 1) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Summary of Accounting Policies [Abstract] | ' | ' |
Equipment and furniture | $16,755 | $2,958 |
Accumulated depreciation | -7,128 | ' |
Property and Equipment, Net | $9,627 | $2,958 |
Summary_of_Accounting_Policies5
Summary of Accounting Policies (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2013 | Jan. 31, 2013 | Jun. 30, 2014 | |
Summary of Accounting Policies [Abstract] | ' | ' | ' |
Licence and development fee aggregate amount | ' | $48,000 | ' |
Property and equipment depreciation method | ' | ' | 'Straight-line method |
Equipment depreciated | ' | ' | '5 years |
Mobile platform fee aggregate amount | 50,000 | ' | ' |
Website development cost | ' | ' | $963 |
Going_Concern_Details
Going Concern (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Going Concern (Textual) | ' | ' |
Accumulated deficit | ($5,534,892) | ($451,264) |
Working capital deficit | ($479,369) | ' |
Accounts_Payable_And_Other_Lia1
Accounts Payable And Other Liabilities (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Accrued Expenses (Textual) | ' | ' |
Accounts Payable and accrued expenses | $59,025 | $21,940 |
Deposits received for development of mobile platform | $470,000 | ' |
Notes_Payable_Details
Notes Payable (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Short-term Debt [Line Items] | ' | ' |
Notes payable | $275,000 | $280,000 |
June 30, 2017 [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Notes payable | 205,000 | ' |
June 30, 2018 [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Notes payable | $70,000 | ' |
Notes_Payable_Details_Textual
Notes Payable (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Notes Payable (Textual) | ' | ' | ' |
Note payable borrowed | $280,000 | $180,000 | $265,000 |
Interest rate of note payable | 10.00% | ' | 10.00% |
Description of note payable maturity | ' | 'Interest is payable monthly and the principal, together with any unpaid interest, is due 48 months from the dates of the notes. | ' |
Additional borrowings | ' | 180,000 | ' |
Repayments of notes payable | ' | $185,000 | ' |
Convertible_Notes_Payable_Deta
Convertible Notes Payable (Details) (USD $) | Jun. 30, 2014 |
Convertible notes payable consist of the following: | ' |
Notes payable | $50,000 |
Beneficial conversion feature and unamortized warrants | -47,546 |
Convertible notes payable | $2,454 |
Convertible_Notes_Payable_Deta1
Convertible Notes Payable (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Feb. 28, 2014 | Jul. 31, 2013 | Jun. 30, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Secured notes payable from private investors | ' | ' | $250,000 | ' |
Interest on secured notes payable from private investors | ' | ' | 10.00% | ' |
Maturity period on secured notes payable from private investors | ' | ' | '3 years | ' |
Secured notes payable from private investors, Maturity description | ' | ' | 'The notes were convertible by the investors into the Company's current registered offering on Form S-1 with $200,000 being convertible into the offering at a 20% discount to the offering price of $1.60 per share, or $1.28 per share, and $50,000 being convertible at a 50% discount to the offering price, or $0.80 per share. In addition to the interest due, the Company issued 125,000 warrants to the lenders at an exercise price of 125% of the share price of the proposed offering or $2.00 per share. | ' |
Beneficial conversion feature | ' | ' | ' | 90,444 |
Interest on convertible notes effective yield method term | ' | ' | '3 years | ' |
Debt conversion, converted instrument, shares issued | ' | 200,000 | ' | ' |
Debt conversion converted instrument amount | ' | 200,000 | ' | ' |
Issuance of common stock for cash, Shares | 54,950 | 100,000 | ' | ' |
Issuance of common stock for cash, Amount | 103,000 | 100,000 | ' | ' |
Stock options, Granted | ' | ' | ' | 614,000 |
Options purchase contractual term | ' | '3 years | ' | ' |
Warrants and beneficial conversion feature | ' | ' | ' | 202,454 |
Shares at 1.50 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Debt conversion, converted instrument, shares issued | ' | ' | ' | 200,000 |
Debt conversion converted instrument amount | ' | ' | ' | $200,000 |
Stock options, Granted | ' | ' | ' | 200,000 |
Option to purchase common shares, per share | ' | ' | ' | $1.50 |
Shares at 2.00 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Debt conversion, converted instrument, shares issued | ' | ' | ' | 200,000 |
Stock options, Granted | ' | ' | ' | 200,000 |
Option to purchase common shares, per share | ' | ' | ' | $2 |
Stockholders_Equity_Details
Stockholder's Equity (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Stockholders' Equity (Deficit) (Textual) | ' | ' | ' |
Common Stock, Shares Authorized | ' | 100,000,000 | 100,000,000 |
Common Stock, No Par Value | ' | ' | ' |
Stock issued for cash | ' | $1,275,605 | ' |
Common stock maximum offering for sale | 6,250,000 | ' | ' |
Common stock maximum offering for sale per share | $1.60 | ' | ' |
Pursuant offering agreement, Shares | ' | 312,500 | ' |
Pursuant offering agreement, Value | ' | 500,000 | ' |
Stock issued for services, inducements and interest | ' | 234,490 | ' |
Stock issued for debt conversion | ' | 200,000 | ' |
Accretion of deferred compensation | ' | 83,333 | ' |
Common Stock [Member] | ' | ' | ' |
Stockholders' Equity (Deficit) (Textual) | ' | ' | ' |
Common Stock, Shares Authorized | ' | 100,000,000 | ' |
Common Stock, No Par Value | ' | ' | ' |
Stock issued for cash, Shares | ' | 1,343,150 | ' |
Stock issued for cash | ' | 1,275,605 | ' |
Stock issued for services, inducements and interest, Shares | ' | 47,967 | ' |
Stock issued for services, inducements and interest | ' | 234,490 | ' |
Stock issued for debt conversion, Shares | ' | 200,000 | ' |
Stock issued for debt conversion | ' | 200,000 | ' |
Value of shares in excess | ' | 84,000 | ' |
Accretion of deferred compensation | ' | ' | ' |
Stock option [Member] | ' | ' | ' |
Stockholders' Equity (Deficit) (Textual) | ' | ' | ' |
Stock issued for cash, Shares | ' | 54,950 | ' |
Trading price of shares issued | ' | $100,000 | ' |
Stock_Options_and_Warrants_Det
Stock Options and Warrants (Details) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Changes during the year: | ' |
Options granted | 614,000 |
Options outstanding at end of year | 614,000 |
Outstanding at end of year, Weighted average exercise price | $3.37 |
Employee Stock Option [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options outstanding at beginning of year | ' |
Changes during the year: | ' |
Options granted | 614,000 |
Options Cancelled/exercised | 3.37 |
Options outstanding at end of year | 614,000 |
Options exercisable at end of year | 114,000 |
Outstanding at beginning of year, Weighted average exercise price | $2.50 |
Outstanding at end of year, Weighted average exercise price | $3.37 |
Weighted average fair value of options granted during the year | $3.37 |
Stock_Options_and_Warrants_Det1
Stock Options and Warrants (Details 1) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average exercise price per share of outstanding options | $3.37 | ' |
Number of outstanding options | 614,000 | ' |
Stock option [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average exercise price per share of outstanding options | $3.37 | $2.50 |
Number of outstanding options | 614,000 | ' |
Number of exercisable options | 114,000 | ' |
Weighted average remaining contractual life (years) | '4 years 6 months | ' |
Maximum [Member] | Stock option [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average exercise price per share of outstanding options | $4 | ' |
Minimum [Member] | Stock option [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average exercise price per share of outstanding options | $2.50 | ' |
Stock_Options_and_Warrants_Det2
Stock Options and Warrants (Details 2) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Warrants Issuance One [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Date Issued | 'July 2013 |
Expiration Date | 'July 2016 |
Exercise Price | $2 |
Number of Warrants | 125,000 |
Warrants Issuance Two [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Date Issued | 'February 2014 |
Expiration Date | 'February 2019 |
Exercise Price | $1 |
Number of Warrants | 1,000,000 |
Warrants Issuance Three [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Date Issued | 'February 2014 |
Expiration Date | 'February 2017 |
Exercise Price | $1.50 |
Number of Warrants | 200,000 |
Warrants Issuance Four [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Date Issued | 'February 2014 |
Expiration Date | 'February 2017 |
Exercise Price | $2 |
Number of Warrants | 200,000 |
Stock_Options_and_Warrants_Det3
Stock Options and Warrants (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended |
Feb. 28, 2014 | Jun. 30, 2014 | |
Stock Options And Warrants (Textual) | ' | ' |
Stock options, Granted | ' | 614,000 |
Stock options, Granted One | ' | 114,000 |
Stock options, Granted Two | ' | 125,000 |
Vested and exercisable, Weighted Average Exercise Price 1 | ' | $2.50 |
Vested and exercisable, Weighted Average Exercise Price 2 | ' | $3 |
Vested and exercisable, Weighted Average Exercise Price 3 | ' | $3.50 |
Vested and exercisable, Weighted Average Exercise Price 4 | ' | $3.75 |
Vested and exercisable, Weighted Average Exercise Price 5 | ' | $4 |
Exercised 1 | ' | 114,000 |
Exercised 2 | ' | 125,000 |
Exercised 3 | ' | 125,000 |
Exercised 4 | ' | 125,000 |
Exercised 5 | ' | 125,000 |
Expected Volatility rate | ' | 154.00% |
Expected Dividend rate | ' | 0.00% |
Investment interest rate range start | ' | 1.36% |
Investment interest rate range end | ' | 1.66% |
Fair value assumption, expected term | ' | '5 years |
Share based compensation, shares issued during the period | ' | $413,398 |
Stock based compensation related to options | ' | 1,415,710 |
Unrecognized cost | ' | 1,002,312 |
Expected Term | ' | '54 months |
Stock options, Outstanding | ' | 0 |
Stock options, Aggregate intrinsic value | ' | 0 |
Sale of stock, Price Per Share | ' | $2.01 |
Aggregate fair value of the warrants | ' | 2,310,189 |
Debt conversion converted instrument amount | 200,000 | ' |
Debt conversion, converted instrument, shares issued | 200,000 | ' |
Stock Warrants [Member] | ' | ' |
Stock Options And Warrants (Textual) | ' | ' |
Expected Volatility rate | ' | 108.00% |
Expected Dividend rate | ' | 0.00% |
Investment interest rate range start | ' | 0.86% |
Investment interest rate range end | ' | 1.66% |
Fair value assumption, expected term | ' | '3 years |
Sale of stock, Price Per Share | ' | $1 |
Aggregate fair value of the warrants | ' | 1,572,005 |
Investment warrant, Shares | ' | 1,000,000 |
Shares at 1.50 [Member] | ' | ' |
Stock Options And Warrants (Textual) | ' | ' |
Stock options, Granted | ' | 200,000 |
Expected Volatility rate | ' | 108.00% |
Expected Dividend rate | ' | 0.00% |
Investment interest rate range start | ' | 0.86% |
Investment interest rate range end | ' | 1.66% |
Fair value assumption, expected term | ' | '3 years |
Aggregate fair value of the warrants | ' | 580,600 |
Debt conversion converted instrument amount | ' | 200,000 |
Debt conversion, converted instrument, shares issued | ' | 200,000 |
Option to purchase common shares, per share | ' | $1.50 |
Shares at 2.00 [Member] | ' | ' |
Stock Options And Warrants (Textual) | ' | ' |
Stock options, Granted | ' | 200,000 |
Expected Volatility rate | ' | 154.00% |
Expected Dividend rate | ' | 0.00% |
Investment interest rate range end | ' | 0.77% |
Fair value assumption, expected term | ' | '3 years |
Issued of conversion stock | ' | 125,000 |
Aggregate fair value of the warrants | ' | $157,584 |
Debt conversion, converted instrument, shares issued | ' | 200,000 |
Option to purchase common shares, per share | ' | $2 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Deferred tax assets: | ' | ' |
Federal net operating loss | $457,000 | $142,000 |
State net operating loss | 67,000 | 21,000 |
Total deferred tax assets | 524,000 | 163,000 |
Less valuation allowance | -524,000 | -163,000 |
Net deferred tax assets | ' | ' |
Income_Taxes_Details_1
Income Taxes (Details 1) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ' | ' |
Federal income tax rate | -34.00% | -34.00% |
State tax, net of federal benefit | -5.00% | -5.00% |
Increase in valuation allowance | 39.00% | 39.00% |
Effective income tax rate | ' | ' |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Income Taxes (Textual) | ' | ' |
Operating loss carry-forwards | $1,400,000 | ' |
Expiration date of net operating loss carry-forwards | 30-Jun-34 | ' |
Operating loss carry-forwards, limitation | 'The availability of the Company's net operating loss carry-forwards are subject to limitation if there is a 50% or more positive change in the ownership of the Company's stock. | ' |
Valuation allowance on the deferred tax assets | 100.00% | 100.00% |
Commitments_And_Contingencies_
Commitments And Contingencies (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Feb. 28, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | |
Employment | ||||
Commitments And Contingencies [Abstract] | ' | ' | ' | ' |
Prepaid expenses | ($14,128) | ' | ' | ' |
Commitments, estimated fair value | 100,000 | ' | ' | ' |
Consulting agreement term | '1 year | ' | ' | ' |
Issuance of common stock for cash, Amount | 103,000 | 100,000 | ' | ' |
Issuance of common stock for cash, Shares | 54,950 | 100,000 | ' | ' |
Vested and exercisable, Weighted Average Exercise Price 1 | ' | ' | ' | $2.50 |
Vested and exercisable, Weighted Average Exercise Price 2 | ' | ' | ' | $3 |
Vested and exercisable, Weighted Average Exercise Price 3 | ' | ' | ' | $3.50 |
Vested and exercisable, Weighted Average Exercise Price 4 | ' | ' | ' | $3.75 |
Vested and exercisable, Weighted Average Exercise Price 5 | ' | ' | ' | $4 |
Exercised 1 | ' | ' | ' | 114,000 |
Exercised 2 | ' | ' | ' | 125,000 |
Exercised 3 | ' | ' | ' | 125,000 |
Exercised 4 | ' | ' | ' | 125,000 |
Exercised 5 | ' | ' | ' | 125,000 |
Stock options, Granted | ' | ' | ' | 614,000 |
Stock options, Granted One | ' | ' | ' | 114,000 |
Stock options, Granted Two | ' | ' | ' | 125,000 |
Aggregate of contract employment terms | 260,000 | ' | ' | ' |
Aggregate of contract employment | 2 | ' | ' | ' |
Amortized cost basis agreement | ' | ' | 203,000 | ' |
Deferred Compensation | -16,667 | ' | ' | ' |
Shares cancellation | ' | ' | ' | 54,590 |
Litigation settlement amount | ' | ' | ' | $110,000 |
Stock_Based_Expenses_Details
Stock Based Expenses (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
General and Administrative Expense | $4,259,153 | $417,520 |
Interest Expense | 905,160 | 9,943 |
Stock based compensation [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
General and Administrative Expense | 2,348,329 | ' |
Interest Expense | $867,081 | ' |
Subsequent_Events_Details
Subsequent Events (Details) | Jun. 30, 2014 |
Subsequent Events [Abstract] | ' |
Equity method investment, ownership percentage | 15.00% |