ReposiTrak (TRAK) 10-Q 8 Feb 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2017	Feb. 07, 2018
Document And Entity Information
Entity Registrant Name	PARK CITY GROUP INC
Entity Central Index Key	50,471
Document Type	10-Q
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		19,638,174
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Dec. 31, 2017	Jun. 30, 2017
Current assets:
Cash	$ 14,818,508	$ 14,054,006
Receivables, net allowance for doubtful accounts of $484,613 and $392,250 at December 31, 2017 and June 30, 2017, respectively	5,860,874	4,009,127
Prepaid expense and other current assets	789,057	643,600
Total Current Assets	21,468,439	18,706,733
Property and equipment, net	2,066,482	2,115,277
Other assets:
Long-term receivables, deposits, and other assets	1,773,819	2,540,291
Investments	477,884	477,884
Customer relationships	985,500	1,051,200
Goodwill	20,883,886	20,883,886
Capitalized software costs, net	217,956	137,205
Total Other Assets	24,339,045	25,090,466
Total Assets	47,873,966	45,912,476
Current liabilities:
Accounts payable	639,418	565,487
Accrued liabilities	1,582,041	2,084,980
Deferred revenue	2,409,816	2,350,846
Lines of credit	2,850,000	2,850,000
Current portion of notes payable	255,071	318,616
Total current liabilities	7,736,346	8,169,929
Long-term liabilities:
Notes payable, less current portion	1,951,412	1,996,953
Other long-term liabilities	22,009	36,743
Total liabilities	9,709,767	10,203,625
Commitments and contingencies
Stockholders' equity:
Common stock, $0.01 par value, 50,000,000 shares authorized; 19,534,586 and 19,423,821 issued and outstanding at December 31, 2017 and June 30, 2017, respectively	195,348	194,241
Additional paid-in capital	76,542,022	75,489,189
Accumulated deficit	(38,582,484)	(39,983,692)
Total stockholders' equity	38,164,199	35,708,851
Total liabilities and stockholders' equity	47,873,966	45,912,476
Series B Preferred Stock [Member]
Stockholders' equity:
Preferred Stock	6,254	6,254
Series B1 Preferred Stock [Member]
Stockholders' equity:
Preferred Stock	$ 3,059	$ 2,859

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2017	Jun. 30, 2017
Current assets:
Receivables, net of allowance	$ 484,613	$ 392,250
Stockholders' equity:
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized	30,000,000	30,000,000
Common stock, par value	$ .01	$ .01
Common stock, authorized	50,000,000	50,000,000
Common stock, issued	19,534,586	19,423,821
Common stock, outstanding	19,534,586	19,423,821
Series B Preferred Stock [Member]
Stockholders' equity:
Preferred stock, authorized	700,000	700,000
Preferred stock, issued	625,375	625,375
Preferred stock, outstanding	625,375	625,375
Series B1 Preferred Stock [Member]
Stockholders' equity:
Preferred stock, authorized	550,000	550,000
Preferred stock, issued	305,859	285,859
Preferred stock, outstanding	305,859	285,859

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Revenues	$ 5,724,706	$ 4,785,589	$ 10,436,871	$ 9,002,134
Operating expenses:
Cost of services and product support	1,426,351	1,190,404	2,844,364	2,393,919
Sales and marketing	1,621,149	1,159,073	3,207,089	2,352,249
General and administrative	1,140,085	938,087	2,275,855	1,961,237
Depreciation and amortization	163,825	112,861	322,628	229,441
Total operating expenses	4,351,410	3,400,425	8,649,936	6,936,846
Income from operations	1,373,296	1,385,164	1,786,935	2,065,288
Other expense:
Interest expense	(7,696)	(6,836)	(29,887)	(13,323)
Income before income taxes	1,365,600	1,378,328	1,757,048	2,051,965
(Provision) benefit for income taxes	(15,116)	0	(75,714)	(59,184)
Net income	1,350,484	1,378,328	1,681,334	1,992,781
Dividends on preferred stock	(162,966)	(195,448)	(280,126)	(382,252)
Net income applicable to common shareholders	$ 1,187,518	$ 1,182,880	$ 1,401,208	$ 1,610,529
Weighted average shares, basic	19,487,000	19,338,000	19,455,000	19,302,000
Weighted average shares, diluted	20,338,000	20,313,000	20,340,000	19,493,000
Basic income per share	$ 0.06	$ 0.06	$ 0.07	$ 0.08
Diluted income per share	$ 0.06	$ 0.06	$ 0.07	$ 0.08

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash Flows from Operating Activities:
Net income	$ 1,681,334	$ 1,992,781
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	322,628	229,441
Stock compensation expense	388,099	578,080
Bad debt expense	195,050	155,700
(Increase) decrease in:
Accounts receivables	(2,046,797)	(2,269,610)
Long-term receivables, prepaid and other assets	621,015	43,232
(Decrease) increase in:
Accounts payable	73,931	(97,020)
Accrued liabilities	74,383	21,385
Deferred revenue	58,970	(274,922)
Net cash provided by operating activities	1,368,613	379,067
Cash Flows From Investing Activities:
Capitalization of software costs	(111,241)	0
Purchase of property and equipment	(177,643)	(19,499)
Net cash used in investing activities	(288,884)	(19,499)
Cash Flows From Financing Activities:
Proceeds from employee stock plans	119,790	113,987
Proceeds from issuance of note payable	56,078	0
Net increase in lines of credit	0	250,000
Proceeds from exercise of options and warrants	0	35,000
Payments on notes payable and capital leases	(165,164)	(133,891)
Dividends paid	(325,931)	(5,288)
Net cash provided by (used in) financing activities	(315,227)	259,808
Net increase in cash and cash equivalents	764,502	619,376
Cash and cash equivalents at beginning of period	14,054,006	11,443,388
Cash and cash equivalents at end of period	14,818,508	12,062,764
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes	75,714	59,184
Cash paid for interest	123,921	22,452
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Preferred stock to pay accrued liabilities	734,350	655,107
Common stock to pay accrued liabilities	200,000	100,000
Dividends accrued on preferred stock	280,126	382,252
Dividends paid with preferred stock	$ 0	$ 364,271

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	6 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
DESCRIPTION OF BUSINESS	Park City Group, Inc. is the parent company of ReposiTrak Inc., a compliance, supply chain, and MarketPlace B2B e-commerce services platform that partners with retailers and wholesalers, and their suppliers, to accelerate sales, control risks, and improve supply chain efficiencies. The Company’s supply chain and MarketPlace services provide its customers with greater flexibility in sourcing products by enabling them to choose new suppliers and integrate them into their supply chain faster and more cost effectively, and we help them to more efficiently manage these relationships, enhancing revenue while lowering working capital, labor costs and waste. Our food safety and compliance solutions help reduce a company’s potential regulatory, legal, and criminal risk from its supply chain partners by providing a way for them to ensure these suppliers are compliant with food safety regulations, such as the Food Safety Modernization Act (“ FSMA The Company’s services are delivered though proprietary software products designed, developed, marketed and supported by the Company. These products are designed to provide transparency and to facilitate improved business processes among all key constituents in the supply chain, starting with the retailer and moving back to suppliers and eventually to raw material providers. The Company provides cloud-based applications and services that address e-commerce, supply chain, and food safety and compliance activities. The principal customers for the Company’s products are multi-store food retail store chains and their suppliers, branded food manufacturers, food wholesalers and distributors, and other food service businesses. The Company has a hub and spoke business model. The Company is typically engaged by retailers and distributors (“ Hubs Spokes The Company is incorporated in the state of Nevada. The Company has three principal subsidiaries: PC Group, Inc., a Utah corporation (98.76% owned); Park City Group, Inc., a Delaware corporation (100% owned); and ReposiTrak, Inc., a Utah corporation (100% owned). All intercompany transactions and balances have been eliminated in consolidation. Our principal executive offices of the Company are located at 299 South Main Street, Suite 2225, Salt Lake City, Utah 84111. Our telephone number is (435) 645-2000. Our website address is http://www.parkcitygroup.com, and ReposiTrak’s website address is http://repositrak.com. Basis of Financial Statement Presentation The interim financial information of the Company as of December 31, 2017 and for the three and six months ended December 31, 2017 and 2016 is unaudited, and the balance sheet as of June 30, 2017 is derived from audited financial statements. The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial statements. Accordingly, they omit or condense notes and certain other information normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles. The accounting policies followed for quarterly financial reporting conform with the accounting policies disclosed in Note 2 to the Notes to Financial Statements included in our Annual Report on Form 10-K for the year ended June 30, 2017. In the opinion of management, all adjustments necessary for a fair presentation of the financial information for the interim periods reported have been made. All such adjustments are of a normal recurring nature. The results of operations for the three and six months ended December 31, 2017 are not necessarily indicative of the results that can be expected for the fiscal year ending June 30, 2018. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended June 30, 2017.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Dec. 31, 2017
Significant Accounting Policies
SIGNIFICANT ACCOUNTING POLICIES	Principles of Consolidation The financial statements presented herein reflect the consolidated financial position of Park City Group, Inc. and our subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that materially affect the amounts reported in the consolidated financial statements. Actual results could differ from these estimates. The methods, estimates and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results it reports in its financial statements. The Securities and Exchange Commission has defined the most critical accounting policies as those that are most important to the portrayal of the Company’s financial condition and results, and require the Company to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. Based on this definition, the Company’s most critical accounting policies include: income taxes, goodwill and other long-lived asset valuations, revenue recognition, stock-based compensation, and capitalization of software development costs. Earnings Per Share Basic net income per common share (“ Basic EPS Diluted EPS The following table presents the components of the computation of basic and diluted earnings per share for the periods indicated: Three Months Ended Six Months Ended December 31, December 31, 2017 2016 2017 2016 Numerator Net income applicable to common shareholders $ 1,187,518 $ 1,182,880 $ 1,401,208 $ 1,610,529 Denominator Weighted average common shares outstanding, basic 19,487,000 19,338,000 19,455,000 19,302,000 Warrants to purchase common stock 851,000 975,000 885,000 191,000 Weighted average common shares outstanding, diluted 20,338,000 20,313,000 20,340,000 19,493,000 Net income per share Basic $ 0.06 $ 0.06 $ 0.07 $ 0.08 Diluted $ 0.06 $ 0.06 $ 0.07 $ 0.08 Reclassifications Certain prior-year amounts have been reclassified to conform with the current year’s presentation.

EQUITY

EQUITY	6 Months Ended
	Dec. 31, 2017
Warrants
EQUITY	Restricted Stock Units Weighted Average Grant Date Fair Value ($/share) Outstanding at June 30, 2017 982,613 $ 6.01 Granted 9,897 12.12 Vested and issued (95,201 ) 7.21 Forfeited (13,669 ) 11.89 Outstanding at December 31, 2017 883,640 $ 5.86 The number of restricted stock units outstanding at December 31, 2017 included 3,380 units that have vested but for which shares of common stock had not yet been issued pursuant to the terms of the agreement. As of December 31, 2017, there was approximately $5.2MM of unrecognized stock-based compensation expense under our equity compensation plans, which is expected to be recognized on a straight-line basis over a weighted average period of 4.5 years. Warrants The following tables summarize information about warrants outstanding and exercisable at December 31, 2017: Warrants Outstanding at December 31, 2017 Warrants Exercisable at December 31, 2017 Range of exercise prices Number Outstanding Weighted average remaining contractual life (years) Weighted average exercise price Number exercisable Weighted average exercise price $ 3.45 – 4.00 1,271,618 1.82 $ 3.94 1,271,618 $ 3.94 $ 6.45 – 10.00 100,481 .99 $ 7.29 100,481 $ 7.29 1,372,099 1.76 $ 4.18 1,372,099 $ 4.18 Preferred Stock The Company’s certificate of incorporation currently authorizes the issuance of up to 30,000,000 shares of ‘blank check’ preferred stock with designations, rights, and preferences as may be determined from time to time by the Company’s Board of Directors, of which 700,000 shares are currently designated as Series B Preferred Stock (“ Series B Preferred Series B-1 Preferred PIK Shares PIK Shares In July 2017, the Company issued 20,000 shares of Series B-1 Preferred in satisfaction of an accrued bonus payable to the Company’s Chief Executive Officer. Management believes the Series B-1 Preferred favorably impacts the Company’s overall cost of capital in that it is (i) is perpetual and, therefore, an equity instrument that positively impacts the Company’s coverage ratios; (ii) posesses a below-market dividend rate relative to similar instruments; (iii) offers the flexibility of a paid-in-kind (PIK) payment option; and (iv) is without covenants. After exploring alternative options for redeeming the Series B-1 Preferred, management determined that alternative financing options were materially more expensive, or would impair the Company’s net cash position, which management believes could cause customer concerns and negatively impact the Company’s ability to attract new business.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	During the six months ended December 31, 2017, the Company continued to be a party to a Service Agreement with Fields Management, Inc. (“ FMI

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Dec. 31, 2017
Income Taxes
RECENT ACCOUNTING PRONOUNCEMENTS	In May 2014, August 2015, April 2016, May 2016, and September 2017, the Financial Accounting Standards Board (“ FASB Revenue from Contracts with Customers Revenue from Contracts with Customers, Deferral of the Effective Date Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In March 2016, the FASB issued ASU 2016-09 (ASC Topic 718), Stock Compensation—Improvements to Employee Share-Based Payment Accounting. In February 2016, the FASB issued ASU 2016-02 (ASC Topic 842), Leases

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Dec. 31, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	Redemption of Shares of Series B Preferred Stock Section 4 of the Company’s First Amended and Restated Certificate of Designation of the Relative Rights, Powers and Preferences of the Series B-1 Preferred Stock, as amended (the “ Series B-1 COD Redemption Notice On January 27, 2018, the Company’s Board of Directors approved the redemption of 93,457 of the 305,859 issued and outstanding shares of the Company’s Series B-1 Preferred (the “ Redemption Shares Redemption Date Series B-1 Redemption In accordance with the Subsequent Events Topic of the FASB ASC 855, we have evaluated subsequent events, through the filing date and noted no additional subsequent events that are reasonably likely to impact the financial statements.

SIGNIFICANT ACCOUNTING POLICI12

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Principles of Consolidation	The financial statements presented herein reflect the consolidated financial position of Park City Group, Inc. and our subsidiaries. All inter-company transactions and balances have been eliminated in consolidation.
Use of Estimates	The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that materially affect the amounts reported in the consolidated financial statements. Actual results could differ from these estimates. The methods, estimates and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results it reports in its financial statements. The Securities and Exchange Commission has defined the most critical accounting policies as those that are most important to the portrayal of the Company’s financial condition and results, and require the Company to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. Based on this definition, the Company’s most critical accounting policies include: income taxes, goodwill and other long-lived asset valuations, revenue recognition, stock-based compensation, and capitalization of software development costs.
Earnings Per Share	Basic net income per common share (“ Basic EPS Diluted EPS The following table presents the components of the computation of basic and diluted earnings per share for the periods indicated: Three Months Ended Six Months Ended December 31, December 31, 2017 2016 2017 2016 Numerator Net income applicable to common shareholders $ 1,187,518 $ 1,182,880 $ 1,401,208 $ 1,610,529 Denominator Weighted average common shares outstanding, basic 19,487,000 19,338,000 19,455,000 19,302,000 Warrants to purchase common stock 851,000 975,000 885,000 191,000 Weighted average common shares outstanding, diluted 20,338,000 20,313,000 20,340,000 19,493,000 Net income per share Basic $ 0.06 $ 0.06 $ 0.07 $ 0.08 Diluted $ 0.06 $ 0.06 $ 0.07 $ 0.08
Reclassifications	Certain prior-year amounts have been reclassified to conform with the current year’s presentation.

SIGNIFICANT ACCOUNTING POLICI13

SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Dec. 31, 2017
Significant Accounting Policies Tables
Basic and diluted earnings per share	Three Months Ended Six Months Ended December 31, December 31, 2017 2016 2017 2016 Numerator Net income applicable to common shareholders $ 1,187,518 $ 1,182,880 $ 1,401,208 $ 1,610,529 Denominator Weighted average common shares outstanding, basic 19,487,000 19,338,000 19,455,000 19,302,000 Warrants to purchase common stock 851,000 975,000 885,000 191,000 Weighted average common shares outstanding, diluted 20,338,000 20,313,000 20,340,000 19,493,000 Net income per share Basic $ 0.06 $ 0.06 $ 0.07 $ 0.08 Diluted $ 0.06 $ 0.06 $ 0.07 $ 0.08

EQUITY (Tables)

EQUITY (Tables)	6 Months Ended
	Dec. 31, 2017
Warrants
Restricted stock	Restricted Stock Units Weighted Average Grant Date Fair Value ($/share) Outstanding at June 30, 2017 982,613 $ 6.01 Granted 9,897 12.12 Vested and issued (95,201 ) 7.21 Forfeited (13,669 ) 11.89 Outstanding at December 31, 2017 883,640 $ 5.86
Warrants	Warrants Outstanding at December 31, 2017 Warrants Exercisable at December 31, 2017 Range of exercise prices Number Outstanding Weighted average remaining contractual life (years) Weighted average exercise price Number exercisable Weighted average exercise price $ 3.45 – 4.00 1,271,618 1.82 $ 3.94 1,271,618 $ 3.94 $ 6.45 – 10.00 100,481 .99 $ 7.29 100,481 $ 7.29 1,372,099 1.76 $ 4.18 1,372,099 $ 4.18

DESCRIPTION OF BUSINESS (Detail

DESCRIPTION OF BUSINESS (Details Narrative)	6 Months Ended
	Dec. 31, 2017
Incorporated state	State of Nevada
PC Group Inc. [Member]
Incorporated state	Utah
Ownership interest by parent	98.76%
Park City Group Inc. [Member]
Incorporated state	Delaware
Ownership interest by parent	100.00%
ReposiTrak [Member]
Incorporated state	Utah
Ownership interest by parent	100.00%

SIGNIFICANT ACCOUNTING POLICI16

SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Numerator
Net income (loss) applicable to common shareholders	$ 1,187,518	$ 1,182,880	$ 1,401,208	$ 1,610,529
Denominator
Weighted average shares, basic	19,487,000	19,338,000	19,455,000	19,302,000
Warrants to purchase common stock	851,000	975,000	885,000	191,000
Weighted average shares, diluted	20,338,000	20,313,000	20,340,000	19,493,000
Net income (loss per share)
Basic income (loss) per share	$ 0.06	$ 0.06	$ 0.07	$ 0.08
Diluted income (loss) per share	$ 0.06	$ 0.06	$ 0.07	$ 0.08

EQUITY (Details)

EQUITY (Details) - Restricted Stock [Member]	6 Months Ended
	Dec. 31, 2017$ / sharesshares
Restricted stock units
Outstanding, beginning of period | shares	982,613
Granted | shares	9,897
Vested and issued | shares	(95,201)
Forfeited | shares	(13,669)
Outstanding, end of period | shares	883,640
Outstanding, beginning of period | $ / shares	$ 6.01
Granted | $ / shares	12.12
Vested and issued | $ / shares	7.21
Forfeited | $ / shares	11.89
Outstanding, end of period | $ / shares	$ 5.86

EQUITY (Details 1)

EQUITY (Details 1) - Warrant [Member]	6 Months Ended
	Dec. 31, 2017$ / sharesshares
Outstanding at End of Period, Shares | shares	1,372,099
Weighted average remaining contractual life (years), Shares Outstanding	1 year 9 months 4 days
Weighted average exercise price, Shares Outstanding	$ 4.18
Exercisable at End of Period, Shares | shares	1,372,099
Weighted average exercise price, Shares Exercisable	$ 4.18
$3.45-4.00 [Member]
Outstanding at End of Period, Shares | shares	1,271,618
Weighted average remaining contractual life (years), Shares Outstanding	1 year 9 months 25 days
Weighted average exercise price, Shares Outstanding	$ 3.94
Exercisable at End of Period, Shares | shares	1,271,618
Weighted average exercise price, Shares Exercisable	$ 3.94
$6.45-10.00 [Member]
Outstanding at End of Period, Shares | shares	100,481
Weighted average remaining contractual life (years), Shares Outstanding	11 months 26 days
Weighted average exercise price, Shares Outstanding	$ 7.29
Exercisable at End of Period, Shares | shares	100,481
Weighted average exercise price, Shares Exercisable	$ 7.29
Minimum [Member] | $3.45-4.00 [Member]
Range of exercise prices	3.45
Minimum [Member] | $6.45-10.00 [Member]
Range of exercise prices	6.45
Maximum [Member] | $3.45-4.00 [Member]
Range of exercise prices	4
Maximum [Member] | $6.45-10.00 [Member]
Range of exercise prices	$ 10

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Dec. 31, 2017	Jun. 30, 2017
FMI [Member]
Due to related parties	$ 45,200	$ 77,628