Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2016 | May 16, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Engage Mobility, Inc | |
Entity Central Index Key | 1,547,521 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 23,082,567 |
Balance Sheets
Balance Sheets - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Assets | ||
Accounts receivable, net of allowance for doubtful accounts of $0 and $14,660 for March 31, 2016 and June 30, 2015 | ||
Total current assets | ||
Intangible assets, net | 26,629 | |
Total assets | 26,629 | |
Current Liabilities: | ||
Accrued expenses | 32,109 | 79,688 |
Note payable | 5,000 | 5,000 |
Due to related party | 658,759 | 562,096 |
Total Liabilities | 695,868 | 646,784 |
Stockholders' Deficiency: | ||
Common stock (No par value, 100,000,000 shares authorized, 23,082,567 shares issued and outstanding at March 31, 2016 and June 30, 2015.) | 2,891,995 | 2,891,995 |
Paid in capital | 3,091,072 | 3,091,072 |
Accumulated deficit | (6,678,935) | (6,603,222) |
Total Stockholders' Deficiency | (695,868) | (620,155) |
Total Liabilities and Stockholders' Deficiency | $ 26,629 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Balance Sheets [Abstract] | ||
Allowance for doubtful accounts | $ 0 | $ 14,660 |
Common Stock, no par value | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 23,082,567 | 23,082,567 |
Common stock, shares outstanding | 23,082,567 | 23,082,567 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |||
Statement Of Operations [Abstract] | ||||||
Revenue | $ 36 | $ 32,086 | ||||
Cost of revenue | ||||||
Gross profit | 36 | 32,086 | ||||
Operating expenses: | ||||||
General and administrative expenses | 1,200 | 133,625 | 57,251 | 548,205 | ||
Operating loss | (1,200) | (133,589) | (57,251) | (516,137) | ||
Other expense: | ||||||
Impairment loss from intangible assets | 18,462 | |||||
Interest expense | 12,242 | 28,898 | ||||
Total other expenses | 12,242 | 18,462 | 28,898 | |||
Loss from operations before income taxes | (145,831) | (75,713) | (545,035) | |||
Income taxes | ||||||
Net loss | $ (1,200) | $ (145,831) | $ (75,713) | $ (545,035) | ||
Loss per share - basic and diluted: | ||||||
Weighted-average shares outstanding, basic and diluted | 23,082,567 | 21,772,567 | 23,082,567 | 21,772,567 | ||
Basic and diluted loss per share | [1] | $ (0.01) | [1] | $ (0.03) | ||
[1] |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (75,713) | $ (545,035) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation expense | 4,642 | |
Amortization expense | 8,167 | 36,203 |
Impairment loss from intangible assets | 18,462 | |
Non-cash interest expense | 16,667 | |
Common stock, options and warrants issued for services, interest and inducements | 227,311 | |
Changes in operating assets and liabilities: | ||
Decrease in accounts receivable | 175 | |
Decrease in prepaid expenses | 15,634 | |
Increase in accrued expenses | 49,084 | 18,801 |
Net cash used in operating activities | (225,602) | |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net cash used in investing activities | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from notes payable | 165,581 | |
Deposit on stock subscription | 100,000 | |
Net cash provided by financing activities | 265,581 | |
Net increase in cash | 39,979 | |
Cash, beginning of period | 16,201 | |
Cash, end of period | 56,180 | |
Cash paid during the period for: | ||
Interest expense paid | ||
Income tax paid | ||
Non-cash financing activities | ||
Payments of accrued expenses assumed by stockholder | $ 96,663 |
Organization, Business and Oper
Organization, Business and Operations | 9 Months Ended |
Mar. 31, 2016 | |
Organization, Business and Operations [Abstract] | |
ORGANIZATION, BUSINESS AND OPERATIONS | NOTE 1—ORGANIZATION, BUSINESS AND 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. Since formation, the Company functioned as a provider of mobile marketing services, online and mobile video production, distribution, syndication and marketing services for business owners. On April 9, 2015, a Stock Purchase Agreement (“Stock Purchase Agreement”) was entered into by and among Engage International Technology Co. Ltd. (“Engage International”), James S. Byrd, Jr. (“Byrd”) and Douglas S. Hackett (“Hackett”) (Byrd and Hackett, collectively, the “Sellers”), who were the principal stockholders of the Company, pursuant to which Engage International acquired from the Sellers a total of 16,462,505 shares of the Company’s common stock, representing 75.61% of the Company’s issued and outstanding shares on that date. Pursuant to the Stock Purchase Agreement, a change in control of the Company occurred. The Company was not able to raise sufficient capital to execute its original business plan and has decided to cease its plan of operation as a mobile technology provider. As a result, the Company is now a “shell company” (as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Going forward, the Company intends to seek, investigate and, if such investigation warrants, engage in a business combination with a private entity whose business presents an opportunity for the Company’s stockholders. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The unaudited interim financial statements of the Company as of March 31, 2016 and for the nine months ended March 31, 2016 and 2015, have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the SEC which apply to interim financial statements. Accordingly, they do not include all of the information and footnotes normally required by accounting principles generally accepted in the United States of America for annual financial statements. The interim financial information should be read in conjunction with the financial statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2015, previously filed with the SEC. In the opinion of management, the interim information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. The results of operations for the nine months ended March 31, 2016 are not necessarily indicative of the results to be expected for future quarters or for the year ending June 30, 2016. Use of Estimates In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. At March 31, 2016 and June 30, 2015, the Company had no cash and cash equivalents. 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. The following reflects specific criteria for the various revenues streams of the Company: Revenue for services is recognized at the time the services are rendered. Where the Company has entered into a revenue sharing agreement with a third party, the Company records their proportionate share of the revenue. The Company’s revenues have principally been from video distribution and advertising fees via the platform. However, since July 1, 2015 until the date of this report, the Company did not report any revenues. 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. Property, Plant and Equipment Property, plant and equipment are recorded at cost, less accumulated depreciation. Cost includes the price paid to acquire or construct the asset, including capitalized interest during the construction period, and any expenditures that substantially increase the assets value or extends the useful life of an existing asset. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the periods benefited. Maintenance and repairs are generally expensed as incurred. Intangible Assets and Long-lived Assets The Company reviews for impairment its long-lived assets and certain identifiable intangible assets 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. The Company’s finite lived intangibles, comprised of patents, a mobile platform, and web and domain assets, are being amortized over a period of three years. During the nine months ended March 31, 2016 and 2015, the Company reported an impairment loss of $18,462 and $0, respectively. The impairment loss during the nine months ended March 31, 2016 was due to the cessation of the Company’s plan of operation as a mobile technology provider. Fair Value of Financial Instruments The Company’s short-term financial instruments consist of cash, accounts receivable, 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 In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), “Income Taxes” ASC 740 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with tax positions. As of March 31, 2016 and June 30, 2015, the Company does not have a liability for any unrecognized tax benefits. 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. Basic and Diluted Loss per Share The Company reports loss per share in accordance with FASB ASC 260 “Earnings per share”. The Company’s basic earnings per share are computed using the weighted average number of shares outstanding for the periods presented. Diluted earnings per share are computed based on the assumption that any dilutive options or warrants were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, the Company’s outstanding stock warrants are assumed to be exercised, and funds thus obtained were assumed to be used to purchase common stock at the average market price during the period. There were no dilutive instruments outstanding during the nine months ended March 31, 2016 and the year ended June 30, 2015. However, if present, a separate computation of diluted loss per share would not have been presented, as these common stock equivalents would have been anti-dilutive due to the Company’s net loss. Recently Issued Accounting Pronouncements Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. |
Going Concern
Going Concern | 9 Months Ended |
Mar. 31, 2016 | |
Going Concern [Abstract] | |
GOING CONCERN | NOTE 3—GOING CONCERN The accompanying unaudited condensed 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 unaudited condensed financial statements, the Company has an accumulated deficit of approximately $6,679,000 and a working capital deficit of approximately $696,000 at March 31, 2016. In addition, the Company continues to generate operating losses and negative cash flows from operations. This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan, which is now to seek, investigate and, if such investigation warrants, engage in a business combination with a private entity whose business presents an opportunity for our stockholders. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management intends to provide the Company with additional loans as needed and is seeking a merger target to implement its strategic plans. Management feels these actions provide the opportunity for the Company to continue as a going concern. |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 4—PROPERTY, PLANT AND EQUIPMENT The Company currently does not have any property, plant or equipment. During the year ended June 30, 2015, the Company disposed of all its property and equipment and recognized a loss on disposal of $3,909. Depreciation expense charged to operations for the nine months ended March 31, 2016 and 2015 was $0 and $4,642, respectively. For the three months ended March 31, 2016 and 2015, the depreciation expense was $0 and $2,039, respectively. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Mar. 31, 2016 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | NOTE 5—INTANGIBLE ASSETS Intangible assets consisted of the following: March 31, June 30, 2016 2015 Mobile platform $ 98,000 $ 98,000 Patents 1,000 1,000 99,000 99,000 Less: Accumulated amortization (80,538 ) (72,371 ) Impairment reserve (18,462 ) - Intangible assets, net $ - $ 26,629 Amortization expense charged to operations for the nine months ended March 31, 2016 and 2015 was $8,167 and $36,203, respectively. Amortization expense charged to operations for the three months ended March 31, 2016 and 2015 was $0 and $10,468, respectively. During the nine months ended March 31, 2016, the Company reported an impairment loss of $18,462 over its intangible assets. The impairment loss during the nine months ended March 31, 2016 was due to the cessation of the Company’s plan of operation as a mobile technology provider, and corresponding write down of the Company’s intangible assets. |
Due to Related Party
Due to Related Party | 9 Months Ended |
Mar. 31, 2016 | |
Due to Related Party [Abstract] | |
DUE TO RELATED PARTY | NOTE 6—DUE TO RELATED PARTY Parties, which can be a corporation or individual, are considered to be related if we have the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. The Company received advances from the following related parties, under common control, to supplement the Company’s working capital. March 31, June 30, 2016 2015 Shenzhen Engage Mobile Technology Co., Ltd. (“Engage Mobility”) $ 470,000 $ 470,000 Shenzhen Datang Engage Telecom Co., Ltd. (“Engage Telecom”) 188,759 92,096 $ 658,759 $ 562,096 Shenzhen Engage Mobile Technology Co., Limited became a related party after Engage International Technology Co., Ltd. purchased 75.61% of the Company’s common stock from two stockholders of the Company on April 9, 2015. The advance is unsecured, payable on demand and non-interest bearing. During the three and nine month periods ended March 31, 2016, the Company received $40,000 and $96,663, respectively, in advances from Engage Telecom. As of March 31, 2016, the balance of the advances form related parties was $658,759. |
Stockholders' Deficit
Stockholders' Deficit | 9 Months Ended |
Mar. 31, 2016 | |
Stockholders' Deficit [Abstract] | |
STOCKHOLDERS' DEFICIT | NOTE 7—STOCKHOLDERS’ DEFICIT Equity During the three and nine months ended March 31, 2016, the Company had not issued any new shares of common stock to the stockholders. Stock Options During the year ended June 30, 2014, two employees were granted an aggregate of 614,000 five year options which vested immediately as to 114,000 options and will vest 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 approximately $1,416,000, 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 of which $222,687 has been charged to operations during the period ended March 31, 2015. No stock based compensation was recorded during the three and nine months ended March 31, 2016 due to the cancellation of options in April 2015. The options were valued using a 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 March 31, 2016 is as follows: Number of Shares Options outstanding at June 30, 2015 $ 207,750 Changes: Granted - Exercised - Forfeited - Cancelled - Options outstanding at March 31, 2016 207,750 Options exercisable at March 31, 2016 $ 207,750 Stock Warrants Stock warrants outstanding at March 31, 2016 were as follows: Number of Shares Weighted Average Remaining Contractual Life (Years) Warrants outstanding at June 30, 2015 $ 525,000 1.48 Changes: Granted - - Exercised - - Forfeited - - Cancelled - - Warrants outstanding at March 31, 2016 525,000 0.78 Warrants exercisable at March 31, 2016 $ 525,000 $ 0.78 Date Issued Expiration Date Exercise Price Number of Warrants July 2013 July 2016 $ 2.00 125,000 February 2014 February 2017 $ 1.50 200,000 February 2014 February 2017 $ 2.00 200,000 |
Commitments and Contingency
Commitments and Contingency | 9 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingency [Abstract] | |
COMMITMENTS AND CONTINGENCY | NOTE 8—COMMITMENTS AND CONTINGENCY From time to time the Company may be a party to litigation matters involving claims against the Company. Management believes that there are no current matters that would have a material effect on the Company’s financial position or results of operations. |
Business Segments
Business Segments | 9 Months Ended |
Mar. 31, 2016 | |
Business Segments [Abstract] | |
BUSINESS SEGMENTS | NOTE 9—BUSINESS SEGMENTS There are no reportable business segments. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 10—SUBSEQUENT EVENTS Management has evaluated all activity and concluded that no subsequent events occurred as of May 16, 2016 that would require recognition in the financial statements or disclosure in the notes to the financial statements. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The unaudited interim financial statements of the Company as of March 31, 2016 and for the nine months ended March 31, 2016 and 2015, have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the SEC which apply to interim financial statements. Accordingly, they do not include all of the information and footnotes normally required by accounting principles generally accepted in the United States of America for annual financial statements. The interim financial information should be read in conjunction with the financial statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2015, previously filed with the SEC. In the opinion of management, the interim information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. The results of operations for the nine months ended March 31, 2016 are not necessarily indicative of the results to be expected for future quarters or for the year ending June 30, 2016. |
Use of Estimates | Use of Estimates In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. At March 31, 2016 and June 30, 2015, the Company had no cash and cash equivalents. |
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. The following reflects specific criteria for the various revenues streams of the Company: Revenue for services is recognized at the time the services are rendered. Where the Company has entered into a revenue sharing agreement with a third party, the Company records their proportionate share of the revenue. The Company’s revenues have principally been from video distribution and advertising fees via the platform. However, since July 1, 2015 until the date of this report, the Company did not report any revenues. |
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. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost, less accumulated depreciation. Cost includes the price paid to acquire or construct the asset, including capitalized interest during the construction period, and any expenditures that substantially increase the assets value or extends the useful life of an existing asset. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the periods benefited. Maintenance and repairs are generally expensed as incurred. |
Intangible Assets and Long-lived Assets | Intangible Assets and Long-lived Assets The Company reviews for impairment its long-lived assets and certain identifiable intangible assets 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. The Company’s finite lived intangibles, comprised of patents, a mobile platform, and web and domain assets, are being amortized over a period of three years. During the nine months ended March 31, 2016 and 2015, the Company reported an impairment loss of $18,462 and $0, respectively. The impairment loss during the nine months ended March 31, 2016 was due to the cessation of the Company’s plan of operation as a mobile technology provider. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s short-term financial instruments consist of cash, accounts receivable, 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 In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), “Income Taxes” ASC 740 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with tax positions. As of March 31, 2016 and June 30, 2015, the Company does not have a liability for any unrecognized tax benefits. 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. |
Basic and Diluted Loss per Share | Basic and Diluted Loss per Share The Company reports loss per share in accordance with FASB ASC 260 “Earnings per share”. The Company’s basic earnings per share are computed using the weighted average number of shares outstanding for the periods presented. Diluted earnings per share are computed based on the assumption that any dilutive options or warrants were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, the Company’s outstanding stock warrants are assumed to be exercised, and funds thus obtained were assumed to be used to purchase common stock at the average market price during the period. There were no dilutive instruments outstanding during the nine months ended March 31, 2016 and the year ended June 30, 2015. However, if present, a separate computation of diluted loss per share would not have been presented, as these common stock equivalents would have been anti-dilutive due to the Company’s net loss. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Intangible Assets [Abstract] | |
Schedule of intangible assets | March 31, June 30, 2016 2015 Mobile platform $ 98,000 $ 98,000 Patents 1,000 1,000 99,000 99,000 Less: Accumulated amortization (80,538 ) (72,371 ) Impairment reserve (18,462 ) - Intangible assets, net $ - $ 26,629 |
Due to Related Party (Tables)
Due to Related Party (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Due to Related Party [Abstract] | |
Schedule of Company's working capital | March 31, June 30, 2016 2015 Shenzhen Engage Mobile Technology Co., Ltd. (“Engage Mobility”) $ 470,000 $ 470,000 Shenzhen Datang Engage Telecom Co., Ltd. (“Engage Telecom”) 188,759 92,096 $ 658,759 $ 562,096 |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Stockholders' Deficit [Abstract] | |
Summary of stock options granted to employees and others | Number of Shares Options outstanding at June 30, 2015 $ 207,750 Changes: Granted - Exercised - Forfeited - Cancelled - Options outstanding at March 31, 2016 207,750 Options exercisable at March 31, 2016 $ 207,750 |
Summary of stock warrants outstanding | Number of Shares Weighted Average Remaining Contractual Life (Years) Warrants outstanding at June 30, 2015 $ 525,000 1.48 Changes: Granted - - Exercised - - Forfeited - - Cancelled - - Warrants outstanding at March 31, 2016 525,000 0.78 Warrants exercisable at March 31, 2016 $ 525,000 $ 0.78 |
Schedule of stock warrants outstanding | Date Issued Expiration Date Exercise Price Number of Warrants July 2013 July 2016 $ 2.00 125,000 February 2014 February 2017 $ 1.50 200,000 February 2014 February 2017 $ 2.00 200,000 |
Organization, Business and Op20
Organization, Business and Operations (Details) | Apr. 09, 2015shares |
Organization, Business and Operations (Textual) | |
Common stock acquired from sellers | 16,462,505 |
Percentage of company's common stock acquired | 75.61% |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Summary of Significant Accounting Policies (Textual) | ||||
Finite lived intangible assets, useful life | 3 years | |||
Property and equipment depreciation method | Straight-line method | |||
Impairment loss | $ 18,462 |
Going Concern (Details)
Going Concern (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2015 | |
Going Concern (Textual) | ||
Accumulated deficit | $ (6,678,935) | $ (6,603,222) |
Working capital deficit | $ 696,000 |
Property, Plant and Equipment (
Property, Plant and Equipment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Property, Plant and Equipment (Textual) | |||||
Disposed of property and equipment and recognized a loss | $ 3,909 | ||||
Depreciation expense | $ 0 | $ 2,039 | $ 4,642 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 99,000 | $ 99,000 |
Less: Accumulated amortization | (80,538) | (72,371) |
Impairment reserve | (18,462) | |
Intangible assets, net | 26,629 | |
Mobile platform [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 98,000 | 98,000 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 1,000 | $ 1,000 |
Intangible Assets (Details Text
Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Intangible Assets (Textual) | ||||
Amortization expense | $ 0 | $ 10,468 | $ 8,167 | $ 36,203 |
Impairment loss | $ 18,462 |
Due to Related Party (Details)
Due to Related Party (Details) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 658,759 | $ 562,096 |
Shenzhen Engage Mobile Technology Co., Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 470,000 | 470,000 |
Shenzhen Datang Engage Telecom Co., Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 188,759 | $ 92,096 |
Due to Related Party (Details T
Due to Related Party (Details Textual) - USD ($) | Apr. 09, 2015 | Mar. 31, 2016 | Mar. 31, 2016 | Jun. 30, 2015 |
Due to Related Party (Textual) | ||||
Percentage of company's common stock acquired | 75.61% | |||
Advances received from related party | $ 40,000 | $ 96,663 | ||
Advances form related parties | $ 658,759 | $ 658,759 | $ 562,096 |
Stockholders' Deficit (Details)
Stockholders' Deficit (Details) - Employee Stock Option [Member] | 9 Months Ended |
Mar. 31, 2016shares | |
Option Indexed to Issuer's Equity [Line Items] | |
Options Outstanding at beginning of year | 207,750 |
Changes: | |
Granted | |
Exercised | |
Forfeited | |
Cancelled | |
Options Outstanding at ending of period | 207,750 |
Options exercisable at end of period | 207,750 |
Stockholders' Deficit (Details
Stockholders' Deficit (Details 1) - Warrant [Member] - shares | 9 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants outstanding at beginning of year | 525,000 | |
Changes: | ||
Granted | ||
Exercised | ||
Forfeited | ||
Cancelled | ||
Warrants outstanding at end of period | 525,000 | 525,000 |
Warrants exercisable at end of period | 525,000 | |
Warrants outstanding at Weighted Average Remaining Contractual Life (Years) | 9 months 11 days | 1 year 5 months 23 days |
Warrants exercisable at Weighted Average Remaining Contractual Life (Years) | 9 months 11 days |
Stockholders' Deficit (Detail30
Stockholders' Deficit (Details 2) | 9 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Warrants Issuance One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Date Issued | July 2,013 |
Expiration Date | July 2,016 |
Exercise Price | $ / shares | $ 2 |
Number of Warrants | shares | 125,000 |
Warrants Issuance Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Date Issued | February 2,014 |
Expiration Date | February 2,017 |
Exercise Price | $ / shares | $ 1.50 |
Number of Warrants | shares | 200,000 |
Warrants Issuance Three [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Date Issued | February 2,014 |
Expiration Date | February 2,017 |
Exercise Price | $ / shares | $ 2 |
Number of Warrants | shares | 200,000 |
Stockholders' Deficit (Detail31
Stockholders' Deficit (Details Textual) | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015USD ($) | Jun. 30, 2014USD ($)Employee$ / sharesshares | |
Stockholders' Deficit (Textual) | |||
Aggregate grant date fair value of options | $ | $ 1,416,000 | ||
Employee Stock Option [Member] | |||
Stockholders' Deficit (Textual) | |||
Stock options, Granted | 614,000 | ||
Number of employees | Employee | 2 | ||
Stock option term | 5 years | ||
Stock options vested | 114,000 | ||
Stock options expected to vest over the next 4 years | 114,000 | ||
Stock option expected to vest price per share | $ / shares | $ 2.50 | ||
Aggregate grant date fair value of options | $ | $ 413,398 | ||
Fair value of options charged to operations | $ | $ 222,687 | ||
Fair value assumptions method | Binomial option pricing model. | ||
Volatility | 154.00% | ||
Dividend rate | 0.00% | ||
Maximum interest rate | 1.66% | ||
Minimum interest rate | 1.36% | ||
Expected term | 5 years | ||
Employee Stock Option [Member] | Vesting year one [Member] | |||
Stockholders' Deficit (Textual) | |||
Stock options expected to vest over the next 4 years | 125,000 | ||
Stock option expected to vest price per share | $ / shares | $ 3 | ||
Employee Stock Option [Member] | Vesting year two [Member] | |||
Stockholders' Deficit (Textual) | |||
Stock options expected to vest over the next 4 years | 125,000 | ||
Stock option expected to vest price per share | $ / shares | $ 3.50 | ||
Employee Stock Option [Member] | Vesting year three [Member] | |||
Stockholders' Deficit (Textual) | |||
Stock options expected to vest over the next 4 years | 125,000 | ||
Stock option expected to vest price per share | $ / shares | $ 3.75 | ||
Employee Stock Option [Member] | Vesting year four [Member] | |||
Stockholders' Deficit (Textual) | |||
Stock options expected to vest over the next 4 years | 125,000 | ||
Stock option expected to vest price per share | $ / shares | $ 4 |