Veritec (VRTC) 10-K 21 Jan 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2015	Dec. 15, 2015	Dec. 31, 2014
Document And Entity Information
Entity Registrant Name	VERITEC INC
Entity Central Index Key	773,318
Document Type	10-K
Document Period End Date	Jun. 30, 2015
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?	No
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 1,273,607
Entity Common Stock, Shares Outstanding		39,538,007
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Current Assets:
Cash	$ 52,762	$ 24,665
Accounts receivables, net of allowance of $0 and $13,395 respectively	38,749	70,500
Inventories	14,461	7,829
Prepaid expenses	18,234	17,143
Total Current Assets	124,206	120,137
Restricted cash	63,029	51,957
Property and Equipment, net	583	$ 994
Intangibles, net	144,375
Total Assets	332,193	$ 173,088
Current Liabilities:
Notes payable - in default	521,610	493,017
Notes payable, related party - in default	3,041,097	2,649,202
Accounts payable	630,490	540,794
Accounts payable, related party	96,110	78,753
Customer deposits	25,482	91,260
Deferred revenue	492,603	258,764
Payroll tax liabilities	453,277	539,218
Accrued expenses	22,957	104,168
Total Current Liabilities	5,283,626	$ 4,755,176
Contingent earnout liability	155,000
Total Liabilities	5,438,626	$ 4,755,176
Stockholders' Deficiency:
Convertible preferred stock, par value $1.00; authorized 10,000,000 shares, 276,000 shares of Series H authorized, 1,000 shares issued and outstanding as of June 30, 2015 and 2014	1,000	1,000
Common stock, par value $.01; authorized 50,000,000 shares, 16,530,088 and 15,920,088 shares issued and outstanding as of June 30, 2015 and 2014, respectively	165,301	159,201
Common stock to be issued, 940,000 shares and 400,000 shares, respectively	51,800	39,596
Additional paid-in capital	14,959,006	14,594,181
Accumulated deficit	(20,283,540)	(19,376,066)
Total Stockholders' Deficiency	(5,106,433)	(4,582,088)
Total Liabilities and Stockholders' Deficiency	$ 332,193	$ 173,088

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Allowance for Doubtful Accounts	$ 0	$ 13,395
Convertible preferred stock, par value	$ 1	$ 1
Convertible preferred stock, shares authorized	10,000,000	10,000,000
Convertible preferred stock, shares issued	1,000	1,000
Convertible preferred stock, shares outstanding	1,000	1,000
Common stock, par value	$ .01	$ .01
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	16,530,088	15,920,088
Common stock, shares outstanding	16,530,088	15,920,088
Common stock, shares to be issued	940,000	400,000
Series H Convertible
Convertible preferred stock, shares authorized	276,000	276,000
Convertible preferred stock, shares issued	1,000	1,000
Convertible preferred stock, shares outstanding	1,000	1,000

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Revenue:
Barcode technology revenue	$ 507,960	$ 1,623,109
Mobile banking technology revenue	437,847	12,254
Total revenue	945,807	1,635,363
Cost of Sales	329,703	345,107
Gross Profit	616,104	1,290,256
Operating Expenses:
General and administrative	841,816	578,947
Sales and marketing	83,863	31,590
Research and development	98,412	188,810
Total Operating Expenses	1,024,091	799,347
Income (Loss) from Operations	$ (407,987)	490,909
Other Expense:
Interest income		58
Interest expense, including $172,564 and $152,501, respectively to related parties	$ (499,487)	(188,914)
Total Other Expense	(499,487)	(188,856)
Net Income (Loss)	$ (907,475)	$ 302,053
Net Income (Loss) Per Common Share
Basic	$ (0.06)	$ 0.02
Diluted	$ (0.06)	$ 0.02
Weighted Average Number of Shares Outstanding
Basic	16,351,956	15,920,088
Diluted	16,351,956	18,976,588

Consolidated Statements of Ope5

Consolidated Statements of Operations (Parenthetical) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Interest expense, related parties	$ 172,564	$ 152,501

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Deficiency - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Preferred Stock
Beginning balance, Shares	1,000	1,000
Beginning balance, Amount	$ 1,000	$ 1,000
Shares issued for acquisitions, shares
Shares issued for acquisitions, amount
Shares issued for services, shares
Shares issued for services, amount
Shares issued for common stock issuable, shares
Shares issued for common stock issuable, amount
Stock based compensation
Beneficial conversion feature on issuance of convertible notes payable
Net (Loss) Income
Ending balance, Shares	1,000	1,000
Ending balance, Amount	$ 1,000	$ 1,000
Common Stock
Beginning balance, Shares	15,920,088	15,920,088
Beginning balance, Amount	$ 159,201	$ 159,201
Shares issued for acquisitions, shares	250,000
Shares issued for acquisitions, amount	$ 2,500
Shares issued for services, shares	135,000
Shares issued for services, amount	$ 1,350
Shares issued for common stock issuable, shares	225,000
Shares issued for common stock issuable, amount	$ 2,250
Stock based compensation
Beneficial conversion feature on issuance of convertible notes payable
Net (Loss) Income
Ending balance, Shares	16,530,088	15,920,088
Ending balance, Amount	$ 165,301	$ 159,201
Common Stock to be Issued
Beginning balance, Amount	$ 39,596	$ 10,477
Shares issued for acquisitions, amount
Shares issued for services, shares		3,869
Shares issued for services, amount	$ 9,300
Shares issued for common stock issuable, amount	(25,250)
Stock based compensation	$ 28,154	$ 25,250
Beneficial conversion feature on issuance of convertible notes payable
Net (Loss) Income
Ending balance, Amount	$ 51,800	$ 39,596
Additional Paid-In Capital
Beginning balance, Amount	14,594,181	$ 14,594,181
Shares issued for acquisitions, amount	35,000
Shares issued for services, shares
Shares issued for services, amount	8,950
Shares issued for common stock issuable, amount	$ 23,000
Stock based compensation
Beneficial conversion feature on issuance of convertible notes payable	$ 297,875
Net (Loss) Income
Ending balance, Amount	$ 14,959,006	$ 14,594,181
Accumulated Deficit
Beginning balance, Amount	$ (19,376,066)	$ (19,678,119)
Shares issued for acquisitions, amount
Shares issued for services, shares
Shares issued for services, amount
Shares issued for common stock issuable, amount
Stock based compensation
Beneficial conversion feature on issuance of convertible notes payable
Net (Loss) Income	$ (907,474)	$ 302,053
Ending balance, Amount	(20,283,540)	(19,376,066)
Beginning balance, Amount	(4,582,088)	$ (4,913,260)
Shares issued for acquisitions, amount	$ 37,500
Shares issued for services, shares	135,000
Shares issued for services, amount	$ 19,600
Shares issued for common stock issuable, amount
Stock based compensation	$ 28,154	$ 25,250
Beneficial conversion feature on issuance of convertible notes payable	297,875
Net (Loss) Income	(907,474)	$ 302,053
Ending balance, Amount	$ (5,106,433)	$ (4,582,088)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (907,475)	$ 302,053
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation	411	$ 239
Amortization	$ 48,125
Allowance on accounts receivable		$ 244
Beneficial conversion feature on convertible notes payable	$ 297,875
Shares issued for services	19,600
Stock based compensation expense	28,154	$ 25,250
Interest accrued on notes payable	199,489	170,897
Changes in operating assets and liabilities:
Accounts receivable	31,751	217,579
Restricted cash	(11,072)	447,320
Inventories	(6,632)	(3,014)
Prepaid expenses	(1,091)	15,744
Deferred revenue	233,839	(767,911)
Payroll tax liabilities	(85,941)	(141,242)
Customer deposits	(65,778)	19,973
Accounts payables and accrued expenses	25,842	759
Net cash provided by (used in) operating activities	$ (192,903)	291,760
CASH FLOWS FROM INVESTING ACTIVITIES
Advances on notes receivable		(1,234)
Net cash used in investing activities		(1,234)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of notes payable		(300,279)
Proceeds from notes payable, related party	$ 365,000	68,500
Payments on notes payable, related party	(144,000)	(110,000)
Net cash provided by (used in) financing activities	221,000	(341,779)
NET INCREASE (DECREASE) IN CASH	28,097	(51,253)
CASH AT BEGINNING OF YEAR	24,665	75,918
CASH AT END OF YEAR	$ 52,762	24,665
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest		$ 14,423
NON CASH INVESTING AND FINANCING ACTIVITIES
Common stock issued for acquisition	$ 37,500
Contingent earnout liability from acquisitions	$ 155,000

Operations and Summary of Signi

Operations and Summary of Significant Accounting Policies	12 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Operations and Summary of Significant Accounting Policies	NOTE 1 - OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company Veritec, Inc. (Veritec) was formed in the State of Nevada on September 8, 1982. Veritec’s wholly owned subsidiaries include, Vcode Holdings, Inc. (Vcode®), and Veritec Financial Systems, Inc. (VTFS) (collectively the “Company”). Nature of Business The Company as primarily engaged in the development, marketing, sales and licensing of products and rendering of professional services related thereto in the following two fields of technology: (1) proprietary two-dimensional matrix symbology (also commonly referred to as “two-dimensional barcodes” or “2D barcodes”), and (2) mobile banking solutions. Subsequent to June 30, 2015, the Company began to focus exclusively on mobile banking technology, and sold its barcode technology. Barcode Technology The Company’s Barcode Technology was originally invented by the founders of Veritec under United States patents 4,924,078, 5,331,176, 5,612,524 and 7,159,780. Our principal licensed product to date that contains our VeriCode ® Barcode Technology has been a product identification system for identification and tracking of manufactured parts, components and products mostly in the liquid crystal display (LCD) markets. The VeriCode® symbol is a two-dimensional high data density machine-readable symbol that can contain up to approximately 500 bytes of data. The Company’s VSCode® Barcode Technology is a derivative of the VeriCode® symbol with the ability to encrypt a greater amount of data by increasing data density. The VSCode ® is a data storage “container” that offers a high degree of security and which can also be tailored to the application requirements of the user. The VSCode ® symbol can hold any form of binary information that can be digitized, including numbers, letters, images, photos, graphics, and the minutia for biometric information, including fingerprints and facial image data, to the extent of its data storage capacity, that are likewise limited by the resolution of the marking and reading devices employed by the user. VSCode ® is ideal for secure identification documents (such as national identification cards, driver’s licenses, and voter registration cards), financial cards, medical records and other high security applications. In its PhoneCodes™ product platform, Veritec developed software to send, store, display, and read a VeriCode® Barcode Technology symbol on the LCD screen of a mobile phone. With the electronic media that provide the ease of transferring information over the web, Veritec’s PhoneCodes™ technology enables individuals and companies to receive or distribute gift certificates, tickets, coupons, receipts, or engage in banking transactions using the VeriCode ® technology via wireless phone or PDA. On September 30, 2015, the Company sold all of its assets of its Barcode Technology, which was comprised solely of its intellectual property. The sale allows the Company to focus its efforts solely on its growing Mobile Banking Technology (See Note 12). Mobile Banking Solutions In January 12, 2009, Veritec formed VTFS, a Delaware corporation, to bring its Mobile Banking Technology, products and related professional services to market. In May 2009 Veritec was registered by Security First Bank in Visa’s Third Party Registration Program as a Cardholder Independent Sales Organization and Third-Party Servicer. As a Cardholder Independent Sales Organization, Veritec was able to promote and sell Visa branded card programs. As a Third-Party Servicer, Veritec provided back-end cardholder transaction processing services for Visa branded card programs on behalf of Security First Bank. As of October 2010 the Company’s registration with Security First Bank terminated. As of April 2011 the Company signed an ISO and processor agreement with Palm Desert National Bank (which was later assigned to First California Bank) to market and processes the Company’s Visa branded card program on behalf of the bank. First California Bank was sold to Pacific Western Bank and June 2013 Pacific Western Bank closed its entire debit card division and transferred its contract with VTFS to Central Bank of Kansas City Bank. On February 5th, 2014 the entire relationship between Veritec and Pacific Western Bank ended and the new relationship with Central Bank of Kansas City began. On September 30, 2014, Veritec ("Buyer"), and Tangible Payments LLC ("Seller"), a Maryland Limited Liability Company, entered into an Asset Purchase Agreement (the "Asset Purchase Agreement") pursuant to which Veritec acquired certain assets and liabilities of the Tangible Payments LLC (See Note 5). The Company has a portfolio of five United States and eight foreign patents. In addition, we have seven U.S. and twenty-eight foreign pending patent applications. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany transactions and balances were eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Those estimates and assumptions include estimates for reserves of uncollectible accounts, analysis of impairments of long lived assets, accruals for potential liabilities and assumptions made in valuing stock instruments issued for services. Accounts Receivable The Company sells to domestic and foreign companies and grants uncollateralized credit to customers, but requires deposits on unique orders. Management periodically reviews its accounts receivable and provides an allowance for doubtful accounts after analyzing the age of the receivable, payment history and prior experience with the customer. The estimated loss that management believes is probable is included in the allowance for doubtful accounts. While the ultimate loss may differ, management believes that any additional loss will not have a material impact on the Company's financial position. Due to uncertainties in the settlement process, however, it is at least reasonably possible that management's estimate will change during the near term. Inventories Inventories, consisting of purchased components for resale, are stated at the lower of cost or market, applying the first-in, first-out (FIFO) method. Inventory is net of reserves of $23,900 at both June 30, 2015 and 2014. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over estimated useful lives of 3 to 7 years. When assets are retired or otherwise disposed, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized. Maintenance and repairs are expensed as incurred; significant renewals and betterments are capitalized. Concentrations The Company’s cash balances on deposit with banks are guaranteed by the Federal Deposit Insurance Corporation up to $250,000. The Company may be exposed to risk for the amounts of funds held in one bank in excess of the insurance limit. In assessing the risk, the Company’s policy is to maintain cash balances with high quality financial institutions. The Company had cash balances in excess of the guarantee during the year ended June 30, 2015. Major Customers Customers in excess of 10% of total revenues were as follows: Years Ended June 30, 2015 2014 Customer A --% 31 % Customer B 12 % 16 % Customer C 11 % 8 % 23 % 55 % As of June 30, 2015, the Company had approximately $6,025 (16%), $5,650 (15%), and $4,575 (12%) of accounts receivable due from its major customers. As of June 30, 2014, the Company had approximately $86,361 (69%) and $23,250 (19%), respectively, of accounts receivable due from its major customers. Foreign Revenues Foreign revenues accounted for 45% (9% Korea, 19% Taiwan, and 17% others) of the Company’s total revenues in fiscal 2015 and 70% (54% Korea, 10% Taiwan, and 6% others) in fiscal 2014. Fair Value of Financial Instruments Fair Value Measurements are adopted by the Company based on the authoritative guidance provided by the Financial Accounting Standards Board, with the exception of the application of the statement to non-recurring, non-financial assets and liabilities as permitted. The adoption based on the authoritative guidance provided by the Financial Accounting Standards Board did not have a material impact on the Company's fair value measurements. Based on the authoritative guidance provided by the Financial Accounting Standards Board defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. FASB authoritative guidance establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows: Level 1- Quoted prices in active markets for identical assets or liabilities. Level 2- Inputs, other than the quoted prices in active markets that are observable either directly or indirectly. Level 3- Unobservable inputs based on the Company's assumptions. The Company had no such assets or liabilities recorded to be valued on the basis above at June 30, 2015 or 2014. For certain financial instruments, the carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, and current liabilities, including notes payable and convertible notes, each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. Revenue Recognition The Company accounts for revenue recognition in accordance with guidance of the Financial Accounting Standards Board. Revenues for the Company are classified into barcode technology revenue and mobile banking technology revenue. Revenues from licenses and identification cards are recognized when the product is shipped, the Company no longer has any service or other continuing obligations, and collection is reasonably assured. The process typically begins with a customer purchase order detailing its specifications so the Company can import its software into the customer's hardware. Once importation is completed, if the customer only wishes to purchase a license, the Company typically transmits the software to the customer via the Internet. Revenue is recognized at that point. If the customer requests both license and other products, once the software is imported into the hardware and the process is complete, the product is shipped and revenue is recognized at time of shipment. Once the software and/or other products are either shipped or transmitted, the customers do not have a right of refusal or return. Under some conditions, the customers remit payment prior to the Company having completed importation of the software. In these instances, the Company delays revenue recognition and reflects the prepayments as customer deposits. The Company, as a processor and a distributor, recognizes revenue from transaction fees charged cardholders for the use of its issued mobile debit cards. The fees are recognized on a monthly basis after all cardholder transactions have been summarized and reconciled with third party processors. Shipping and Handling Fees and Costs For the years ended June 30, 2015 and 2014, shipping and handling fees billed to customers of $997 and $2,125, respectively were included in revenues and shipping and handling costs of $997 and $2,032, respectively were included in cost of sales. Research and Development Research and development costs were expensed as incurred. Loss per Common Share Basic earnings (loss) per share are computed by dividing the net income (loss) applicable to Common Stockholders by the weighted average number of shares of Common Stock outstanding during the year. Diluted earnings (loss) per share is computed by dividing the net income (loss) applicable to Common Stockholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method. Potential common shares are excluded from the computation as their effect is antidilutive. For the year ended June 30, 2015 the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an anti-dilutive effect. For the year ended June 30, 2014 the calculation of diluted earnings per share included stock options and warrants, calculated under the treasury stock method, and excluded preferred stock and convertible notes payable since the effect was antidilutive. The following table sets forth the computation of basic and diluted income per common share. June 30, 2015 2014 Net Income (Loss) $ (907,475 ) $ 302,053 Weighted average common shares – basic 16,351,956 15,920,088 Dilutive effect of outstanding stock options — 3,056,500 Weighted average shares outstanding – diluted 16,351,956 18,976,588 As of June 30, 2015 and 2014, we excluded the outstanding securities summarized below, which entitle the holders thereof to acquire shares of common stock, from our calculation of earnings per share, as their effect would have been anti-dilutive June 30, 2015 2014 Series H Preferred Stock $ 10,000 $ 10,000 Convertible Notes Payable 19,563,168 6,347,046 Options 2,520,000 — Total 22,093,168 6,357,046 Stock-Based Compensation The Company periodically issues stock options and warrants to employees and non-employees in capital raising transactions, for services and for financing costs. Stock-based compensation for employees is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. Options vest and expire according to terms established at the grant date. The value of the stock compensation to non-employees is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Intangible Assets The Company accounts for intangible assets in accordance with the authoritative guidance issued by the ASC Topic 350 – Goodwill and Other At June 30, 2015, the intangibles assets of $144,375 relates to our acquisition of Tangible Payments LLC during fiscal year 2015 (see Note 5). Our first impairment test will be conducted in fiscal year 2016, however management believes there were no indications of impairment based on management’s assessment of these assets at June 30, 2015. Factors we consider important that could trigger an impairment review include significant underperformance relative to historical or projected future operating results, significant changes in the manner of the use of our assets or the strategy for our overall business, and significant negative industry or economic trends. If current economic conditions worsen causing decreased revenues and increased costs, we may have to record an impairment to our goodwill and intangible assets. Income Taxes Current income tax expense is the amount of income taxes expected to be payable for the current year. A deferred income tax asset or liability is established for the expected future consequences of temporary differences in the financial reporting and tax bases of assets and liabilities. The Company considers future taxable income and ongoing, prudent and feasible tax planning strategies, in assessing the value of its deferred tax assets. If the Company determines that it is more likely than not that these assets will not be realized, the Company will reduce the value of these assets to their expected realizable value, thereby decreasing net income. Evaluating the value of these assets is necessarily based on the Company’s judgment. If the Company subsequently determined that the deferred tax assets, which had been written down, would be realized in the future, the value of the deferred tax assets would be increased, thereby increasing net income in the period when that determination was made. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only in annual reporting periods beginning after December 15, 2016, including interim periods therein. Entities will be able to transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company is in the process of evaluating the impact of ASU 2014-09 on the Company’s financial statements and disclosures. In June 2014, the FASB issued Accounting Standards Update No. 2014-12, Compensation – Stock Compensation (Topic 718). The pronouncement was issued to clarify the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The pronouncement is effective for reporting periods beginning after December 15, 2015. The adoption of ASU 2014-12 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2014-15 on the Company’s financial statements and disclosures. In November 2014, the FASB issued Accounting Standards Update No. 2014-16 (ASU 2014-16), Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. The amendments in this ASU do not change the current criteria in U.S. GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. The amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. The ASU applies to all entities that are issuers of, or investors in, hybrid financial instruments that are issued in the form of a share and is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company is in the process of evaluating the impact of 2014-16 on the Company’s financial statements and disclosures. In July 2015, the FASB issued Accounting Standards Update 2015-11, Simplifying the Measurement of Inventory, which requires that inventory within the scope of ASU 2015-11 be measured at the lower of cost and net realizable value. Inventory measured using last-in, first-out (LIFO) and the retail inventory method are not impacted by the new guidance. ASU 2015-11 applies to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure inventory within the scope of ASU 2015-11 at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 is effective for public business entities in fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2015-11 on the Company’s financial statements and disclosures. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.

Going Concern

Going Concern	12 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	NOTE 2 - GOING CONCERN The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company experienced a loss of $907,474 during the year ended June 30, 2015, and at June 30, 2015, the Company had a working capital deficit of $5,159,420 and a stockholders’ deficiency of $5,106,433. The Company is in default of $3,562,707 of its note payable obligations and is also delinquent in payment of certain amounts due of $453,277 for payroll taxes and accrued interest and penalties as of June 30, 2015. These and other factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. The Company believes it will require additional funds to continue its operations through fiscal 2016 and to continue to develop its existing projects and plans to raise such funds by finding additional investors to purchase the Company’s securities, generating sufficient sales revenue, implementing dramatic cost reductions or any combination thereof. There is no assurance that the Company can be successful in raising such funds, generating the necessary sales or reducing major costs. Further, if the Company is successful in raising such funds from sales of equity securities, the terms of these sales may cause significant dilution to existing holders of common stock. The consolidated financial statements do not include any adjustments that may result from this uncertainty. The Company has relied on The Matthews Group, LLC (TMG), a related party owned 50% by Van Tran, the Company’s CEO/Executive Chair and a director, and 50% by Lawrence J. Johanns, a significant stockholder of the Company, for funding.

Restricted Cash

Restricted Cash	12 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Restricted Cash	NOTE 3 – RESTRICTED CASH The Company entered into Store Value Prepaid Card Sponsorship Agreements (the “Agreement”) with certain banks whereas the Company markets and sells store value prepaid card programs (the “Programs”). The Programs are marketed and managed daily at the direction of the Bank, for which the Company receives a transaction fee. In connection with the agreements the Company is required to establish a Reserve Account controlled by the Bank. At June 30, 2015 and 2014, the restricted cash totaled $63,029 and $51,957, respectively. Since this amount is restricted for the purposes related to the Programs, it is classified as restricted cash on the consolidated balance sheets.

Property and Equipment

Property and Equipment	12 Months Ended
	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment	NOTE 4 - PROPERTY AND EQUIPMENT Property and equipment consists of the following as of: June 30, 2015 2014 Furniture and equipment $ 140,316 $ 140,316 Software 73,000 73,000 Vehicles 23,301 23,301 236,617 236,617 Less accumulated depreciation (236,034 ) (235,623 ) Total $ 583 $ 944 Depreciation expense for the years ended June 30, 2015 and 2014 was $411 and $239, respectively.

Acquisition

Acquisition	12 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
Acquisition	NOTE 5 – ACQUISITION On September 30, 2014, the Company and Tangible Payments LLC, a Maryland Limited Liability Company, entered into an Asset Purchase Agreement pursuant to which the Company acquired certain assets and liabilities of the Tangible Payments LLC. Tangible Payments LLC is a combined-solution software package that incorporates features the market is currently purchasing as an individual-solutions product that requires integrated services at an additional cost. With a one-stop package, Tangible’s Payments LLC solution eliminates costs and reduces deployment time. The purchase price for the acquisition was comprised of 250,000 shares of restricted common stock of Veritec valued at $37,500, issued on closing, and an earnout payment of $155,000 for an aggregate purchase price of $192,500. The earnout payment is payable on a monthly basis from the net profits derived from the acquired assets commencing three months after the closing. The earnout payment is accelerated and the balance of the earnout payment shall be due in full at such time as Veritec receives equity investments aggregating $1.3 million. The Company assigned $192,500 of the purchase price to contract commitments which will be amortized over a three year period. During the twelve months ended June 30, 2015, the Company recorded $48,125 of amortization expense related to this intangible which is included in general and administrative expense in the Consolidated Statements of Operations. Total estimated amortization expense with respect to intangible assets for 2016 through 2018 is as follows: Years Ending June 30, Amount 2016 $ 64,167 2017 64,167 2018 16,041 Total $ 144,375 The following table presents our unaudited pro forma combined historical results of operations as if we had consummated the acquisition as of July 1, 2013. June 30, 2015 2014 (Unaudited) (Unaudited) Revenues $ 1,007,932 $ 1,909,323 Net income (loss) $ (919,775 ) $ 190,156

Related Party Transactions

Related Party Transactions	12 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	NOTES 6 – RELATED PARTY TRANSACTIONS During the years ended June 30, 2015 and 2014 the Company received various unsecured, non-interest bearing, due on demand advances from its CEO Ms. Van Tran, a related party. The balances due Ms. Tran as of June 30, 2015 and 2014 were $96,110 and $78,753, respectively. These advances have been classified as accounts payable, related party on the accompanying consolidated balance sheets. The Company has relied on The Matthews Group, LLC (TMG), owned 50% by Ms. Van Tran, the Company’s CEO/Executive Chair and a director, and 50% by Larry Johanns, a significant stockholder of the Company, for funding (see Note 7). The Company also leases its office facilities from Ms. Van Tran (see Note 11).

Notes Payable

Notes Payable	12 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Notes Payable	NOTE 7 – NOTES PAYABLE AND NOTES PAYABLE, RELATED PARTY Notes payable includes accrued interest and consists of the following as of June 30, 2015 and 2014: 2015 2014 Convertible Notes Payable Convertible notes payable (includes $138,120 and $130,898, respectively, to non-related parties), unsecured, interest at 8%, due September 2010 through November 2010. The principal and accrued interest is convertible at a conversion price of $0.30. The principal and interest is due immediately on the event of default or change of control. The notes are currently in default. $ 759,763 $ 720,302 Convertible notes payable to related parties, unsecured, principal and interest are convertible into common stock at $0.30 to $0.33 per share, interest at 8% to 10%, due on demand to November 2010. The notes are currently in default. 1,414,260 1,017,435 Convertible note payable to related party, secured by the Company’s intellectual property, principal and interest are convertible into common stock at $0.25 per share subject to board of directors’ approval, interest at 8%. The note was due November 2010 and is now in default. 290,871 274,871 Botes payable, secured by the Company's certificate of deposit with a financial institution and classified on the balance sheet as restricted cash, interest at 5%, convertible into common stock at $0.08 per share, due on demand 33,688 32,215 Convertible note payable, unsecured, principal and interest are convertible into common stock at $0.30 to $0.40 per share subject to board of directors’ approval, interest at 5% to 8%, due January 2011 to March 2013. 14,385 13,586 Convertible note payable, unsecured, principal and interest are convertible into common stock at $1.00 per share subject to board of directors’ approval, interest at 8%. The note was paid in full. — 1,766 Subtotal convertible notes 2,512,967 2,150,175 Promissory Notes Note payable to related party, secured by the Company’s intellectual property, interest at 8% due August 2010 and is now in default. 564,058 533,318 Notes payable to related parties, unsecured, interest at 0% to 8%, due on demand. 150,430 142,430 Note payable, unsecured, interest at 10%. The note was due in January 2010 and is now in default 31,783 29,167 Note payable, secured by the Company's intellectual property, interest at variable rates starting September 1, 2012, due December 2012 and is now in default. 303,469 287,129 Subtotal notes payable 1,049,740 992,044 Total $ 3,562,707 $ 3,142,219 During fiscal year 2015, the Company issued $365,000 of convertible notes payable that could be converted at a price of $0.08 per share. The market price on the date the convertible notes payable were issued was in excess of the conversion price. The difference between the conversion price of $0.08 per share and the market price was recognized as an expense of $297,875 and was included in interest expense in the Condensed Consolidated Statements of Operations for the year ended June 30, 2015. No similar activity occurred during fiscal year 2014. For the purposes of Balance Sheet presentation notes payable have been presented as follows: June 30, 2015 2014 Notes payable $ 521,610 $ 493,017 Notes payable, related party 3,041,097 2,649,202 Total $ 3,562,707 $ 3,142,219

Stockholders' Deficiency

Stockholders' Deficiency	12 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Stockholders' Equity (Deficit)	NOTE 8 - STOCKHOLDERS’ DEFICIENCY Preferred Stock The articles of incorporation of Veritec authorize 10,000,000 shares of preferred stock with a par value of $1.00 per share. The Board of Directors is authorized to determine any number of series into which shares of preferred stock may be divided and to determine the rights, preferences, privileges and restrictions granted to any series of the preferred stock. In 1999, a new Series H convertible preferred stock was authorized. Each share of Series H convertible preferred stock is convertible into 10 shares of the Veritec’s common stock at the option of the holder. As of June 30, 2015 and 2014, there were 1,000 shares of Series H convertible preferred stock issued and outstanding. Common Stock Shares issued to consultants for services During the twelve months ended June 30, 2015, the Company granted and issued 135,000 shares of common stock for services received. The common shares, based on the fair value on the dates granted, were valued at $0.05 to $0.51 per share, for an aggregate of $19,600. No similar activity occurred during the twelve months ended June 30, 2014. Common Stock to be issued Shares to be issued to consultants for services rendered On July 15, 2014, the Company entered into a "Consulting Agreement" with a consultant to be a general advisor on technical issues to both the Company’s President and its subsidiary, Veritec Financial Systems, Inc. Per the payment terms of the Consulting Agreement, the consultant is to receive both monthly cash compensation and 5,000 shares of common stock. During the year ended June 30, 2015, the Company recorded an obligation to issue 55,000 shares of common stock with an aggregate fair value of $8,150 of which 5,000 shares of common stock were issued in December 2014. As of June 30, 2015, the remaining 50,000 shares of common stock with a value of $7,400 On June 23, 2014, the Company entered into an "Advisory Agreement" with a consultant to be an executive advisor to the Company’s President. Per the payment terms of the Advisory Agreement, the consultant is to receive both monthly cash compensation and 5,000 shares of common stock. The Advisory Agreement was terminated in January 2015. During the year ended June 30, 2015, the Company recorded an obligation to issue 35,000 shares of common stock with an aggregate fair value of $4,050 of which 20,000 shares of common stock were issued in December 2014. As of June 30, 2015, the remaining 15,000 shares of common stock with a value of $1,900 have not been issued and have been reflected as common shares to be issued in the accompanying consolidated balance sheet. On June 7, 2013, the Company entered into a "Business Development Agreement" with a consultant to assist the Company in establishing business relationships in the United States and to assist in seeking financing for the Company. Upon signing of the agreement the Company granted the consultant 50,000 shares of common stock with a fair value at the date of grant of $7,000 as an initial non-refundable engagement fee and recognized such amount as consulting fee during the fiscal year June 30, 2013. In December 2013 and in March 2014, the Company authorized an additional 50,000 shares of common stock issuable under the agreement, and recorded the aggregate fair value as of their grant dates of $3,869 as consulting fees during the fiscal year ended June 30, 2014. The consultant subsequently agreed to receive 50,000 shares as full settlement of the Company’s obligation under the agreement. The 50,000 shares due with a value of $7,000 have not been issued as of June 30, 2015 and have been reflected as common shares to be issued in the accompanying consolidated balance sheet. Shares to be issued to directors and employees for services During the year ended June 30, 2015, the Company granted an aggregate of 750,000 shares of the Company’s common stock to four of the Company’s directors and certain employees for services rendered and recognized as stock based compensation expense during the fiscal year ended June 30, 2015 based on their fair value at grant dates in the aggregate amount of $28,154. The shares due have not been issued as of June 30, 2015 and have been reflected as common shares to be issued in the accompanying consolidated balance sheet. During the year ended June 30, 2014, the Company granted an aggregate of 225,000 shares of the Company’s common stock to four of the Company’s directors for services rendered and recognized as directors’ fees during the fiscal year ended June 30, 2014 based on their fair value on their grant dates in the aggregate amount of $25,250. The shares due had not been issued as of June 30, 2014 and had been reflected as common shares to be issued. The 225,000 shares were issued in 2015.

Stock Options and Warrants

Stock Options and Warrants	12 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	NOTE 9 – STOCK OPTIONS AND WARRANTS Stock Options A summary of stock options as of June 30, 2015 and for the two years then ended is as follows: Number of Weighted - Average Shares Exercise Price Outstanding at June 30, 2013 3,165,653 $ 0.42 Granted — $ 0.00 Forfeited (109,153 ) $ 0.00 Outstanding at June 30, 2014 3,056,500 $ 0.42 Granted — $ 0.00 Forfeited (536,500 ) $ 0.42 Outstanding at June 30, 2015 2,520,000 $ 0.42 Exercisable at June 30, 2015 2,520,000 $ 0.42 The Company has agreements with certain employees that provide for five years of annual grants of options, on each employment anniversary date, to purchase shares of the Company’s common stock. The option price is determined based on the market price on the date of grant, the options vest one year from the date of grant, and the options expire five years after vesting. The Company granted 2,500,000 options under this arrangement during fiscal year 2013. There were no options granted in 2015 and 2014 under this agreement. The Company recognized no stock-based compensation expense related to stock options during the years ended June 30, 2015 and 2014, respectively. As of June 30, 2015, there was no remaining unrecognized compensation costs related to stock options. Based upon the trading value of the common shares, there was no intrinsic value of these options as of June 30, 2015. The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model that uses the weighted-average assumptions noted in the following table. The risk-free rate for periods within the contractual life of the options is based on the U. S. Treasury yield in effect at the time of the grant. Volatility was based on the historical volatility of the Company’s common stock. The Company estimated the expected life of options based on historical experience and other averaging methods. Additional information regarding options outstanding as of June 30, 2015 is as follows: Options Outstanding at June 30, 2015 Options Exercisable at June 30, 2015 Range of Exercise Number of Shares Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number of Shares Exercisable Weighted Average Exercise Price $0.13 - $1.45 2,520,000 4.64 $ 0.42 2,520,000 $ 4.64 2,520,000 2,520,000 Stock Warrant A summary of stock warrants as of June 30, 2015 and for the two years then ended is as follows: Number of Shares Weighted - Average Exercise Price Outstanding at June 30, 2013 275,000 $ 2.0 Granted — Forfeited (275,000 ) $ 2.0 Outstanding at June 30, 2014 — Granted — Forfeited — Outstanding at June 30, 2015 — The Company issued 275,000 warrants related to notes payable issued in fiscal year 2009. The warrants are fully vested as of the issue date, and were exercisable at $2.00 per share. The weighted average contractual life of the warrants was 5 years, and the warrants expired in March 2014 and May 2014.

Income Taxes

Income Taxes	12 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 10 - INCOME TAXES Veritec files a consolidated income tax return in the United States. For the year ended June 30, 2015, our net loss was $907,475 and there was no provision for income taxes. We made no provision for income taxes due to our utilization of federal net operating loss carry forwards to offset both regular taxable income and alternative minimum taxable income. For the year ended June 30, 2014, net income was $302,053 and no income tax provision was recorded. It is the Company’s practice to recognize penalties and/or interest related to income tax matters in the interest and penalties expense. There are no interest and penalties recognized in the consolidated statement of operations or accrued on the consolidated balance sheets. The Company is subject to U.S. federal, state, or local income tax examination by tax authorities for all years for which a loss carry forward is utilized in subsequent periods. Reconciliation between the expected federal income tax rate and the actual tax rate is as follows: Year Ended June 30, 2015 2014 Federal statutory tax rate 35 % 35 % State tax, net of federal benefit 6 % 6 % Total tax rate 40 % 40 % Allowance (40) % (40) % Effective tax rate - % - % The following is a summary of the deferred tax assets: June 30, 2015 2014 Net operating loss carryforwards $ 4,224,000 4,021,600 Valuation allowance (4,224,000 ) (4,021,600 ) Net deferred tax asset $ — $ — Deferred income tax assets have been reduced by a valuation allowance as it is more likely than not that they will not be realized. Veritec has net operating loss carryforwards of approximately $10 million for federal purposes available to offset future taxable income that expire in varying amounts through 2034. The ability to utilize the net operating loss carry forwards could be limited by Section 382 of the Internal Revenue Code which limits their use if there is a change in control (generally a greater than 50% change in ownership).

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Jun. 30, 2015
Commitments and Contingencies
Commitments and Contingencies	NOTE 11 – COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases approximately 4,200 square feet of office and laboratory space at 2445 Winnetka Avenue North, Golden Valley, Minnesota, which serves as our primary place of business. This lease is with Van Thuy Tran, the Strategic Partnership Agreements On October 25, 2010, the Company entered into a Strategic Services Agreement with a customer. The term of the license is for 5 years commencing on the effective date, which was the date of the first payment, or September 28, 2011. The customer has paid the total fee of $250,000 in two installments. The Company initially classified this fee as deferred revenue to be recognized over the license term of 5 years as the Company has a continuing obligation. As of June 30, 2014, the amount of deferred revenues was $115,347. During the year ended June 30, 2015, the Company recognized revenue of $50,000 relating to this agreement. As of June 30, 2015, the balance remaining to be recognized was $65,347. On November 14, 2012 (effective date), the Company entered into a Strategic Product License Agreement with a customer for a $100,000 license fee. The term of the license is for 5 years commencing on the effective date. The Company has classified the license fee as deferred revenue to be recognized ratably over the license term of 5 years as the Company has a continuing obligation. As of June 30, 2014, the amount of deferred revenue was $72,500. During the year ended June 30, 2015, the Company recognized revenue of $20,000 relating to this agreement. As of June 30, 2015, the balance remaining to be recognized was $52,500. On July 1, 2014 (effective date), the Company entered into a Strategic Product License Agreement with one its customers for a $150,000 license fee. The term of the license is for 5 years commencing on the effective date. The Company has classified the license fee as deferred revenue to be recognized ratably over the license term of 5 years as the Company has a continuing obligation. During the year ended June 30, 2015, the Company recognized revenue of $30,000 relating to this agreement. As of June 30, 2015, the balance remaining to be recognized was $120,000. On August 14, 2014 (effective date), the Company entered into a Pilot Program Agreement with one its customers for a $175,000 fee, which was paid in advance of completion. The Company is responsible for certain deliveries as defined in the agreement. The Company partially completed a portion of its deliverables under the agreement and recognized $86,361 as revenues. The Company had not completed its remaining obligations as of June 30, 2015, and has classified the remaining balance as deferred revenue to be recognized as revenue upon completion of its obligations. As of June 30, 2015, the balance remaining to be recognized was $88,639. On April 4, 2015 (effective date), the Company entered into a Continuing Services Agreement with one its customers for a $142,500 fee, which was paid in advance of completion. The Company is responsible for certain deliveries as defined in the agreement. As the Company had not completed its obligations as of June 30, 2015, the Company has classified the fees as deferred revenue to be recognized upon completion of its obligations. As of June 30, 2015, the balance remaining to be recognized was $142,500. Incentive Compensation Bonus Plan On December 5, 2008, the Company adopted an incentive compensation bonus plan to provide payments to key employees in the aggregated amount of 10% of pre-tax earnings in excess of $3,000,000 after the end of each fiscal year to be distributed annually to employees. As of June 30, 2015, the Company had not achieved an annual pre-tax earnings in excess of $3,000,000.

Subsequent Events

Subsequent Events	12 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	NOTE 12 – SUBSEQUENT EVENTS In September 2015, The Matthews Group, a related party and the Company’s largest debt holder, elected to convert $1.8 million of its convertible notes payable balance, at a conversion price of $0.08 per share of common stock, into 22.2 million shares of the Company’s common stock. In September 2015, the Company sold its Barcode Technology assets to The Matthews Group, a related party, for $670,000. The proceeds from the sale were used to reduce the Company’s notes payable balance to The Matthews Group. For the years ended June 30, 2015 and 2014, barcode technology revenues were $507,960 and $1,623,109, respectively. In December 2015, the Company issued 815,000 shares of its common stock to both partially fulfill its obligation of its directors and certain employees for its stock to be issued balance as of June 30, 2015 and to pay for services received during fiscal year 2016. On January 17, 2016, Veritec Inc. (the “Company”) entered into an agreement with Vietnam Alliance Capital (“VAC”), who is domiciled in Vietnam, to form a joint venture (“JV’) to operate a debit card business in Vietnam. The JV will be named Veritec Asia. The Company will be a 30% member in the JV and VAC will be a 70% member in the JV. Pursuant to the agreement, the Company will grant a license of certain products to the JV, and provide certain technologies and technological support to the JV. VAC will manage, control, and conduct its day-to-day business and development activities. In addition VAC has agreed to raise all funds to capitalize the JV.

Operations and Summary of Sig20

Operations and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Nature of Business	Nature of Business The Company as primarily engaged in the development, marketing, sales and licensing of products and rendering of professional services related thereto in the following two fields of technology: (1) proprietary two-dimensional matrix symbology (also commonly referred to as “two-dimensional barcodes” or “2D barcodes”), and (2) mobile banking solutions. Subsequent to June 30, 2015, the Company began to focus exclusively on mobile banking technology, and sold its barcode technology. Barcode Technology The Company’s Barcode Technology was originally invented by the founders of Veritec under United States patents 4,924,078, 5,331,176, 5,612,524 and 7,159,780. Our principal licensed product to date that contains our VeriCode ® Barcode Technology has been a product identification system for identification and tracking of manufactured parts, components and products mostly in the liquid crystal display (LCD) markets. The VeriCode® symbol is a two-dimensional high data density machine-readable symbol that can contain up to approximately 500 bytes of data. The Company’s VSCode® Barcode Technology is a derivative of the VeriCode® symbol with the ability to encrypt a greater amount of data by increasing data density. The VSCode ® is a data storage “container” that offers a high degree of security and which can also be tailored to the application requirements of the user. The VSCode ® symbol can hold any form of binary information that can be digitized, including numbers, letters, images, photos, graphics, and the minutia for biometric information, including fingerprints and facial image data, to the extent of its data storage capacity, that are likewise limited by the resolution of the marking and reading devices employed by the user. VSCode ® is ideal for secure identification documents (such as national identification cards, driver’s licenses, and voter registration cards), financial cards, medical records and other high security applications. In its PhoneCodes™ product platform, Veritec developed software to send, store, display, and read a VeriCode® Barcode Technology symbol on the LCD screen of a mobile phone. With the electronic media that provide the ease of transferring information over the web, Veritec’s PhoneCodes™ technology enables individuals and companies to receive or distribute gift certificates, tickets, coupons, receipts, or engage in banking transactions using the VeriCode ® technology via wireless phone or PDA. On September 30, 2015, the Company sold all of its assets of its Barcode Technology, which was comprised solely of its intellectual property. The sale allows the Company to focus its efforts solely on its growing Mobile Banking Technology (See Note 12). Mobile Banking Solutions In January 12, 2009, Veritec formed VTFS, a Delaware corporation, to bring its Mobile Banking Technology, products and related professional services to market. In May 2009 Veritec was registered by Security First Bank in Visa’s Third Party Registration Program as a Cardholder Independent Sales Organization and Third-Party Servicer. As a Cardholder Independent Sales Organization, Veritec was able to promote and sell Visa branded card programs. As a Third-Party Servicer, Veritec provided back-end cardholder transaction processing services for Visa branded card programs on behalf of Security First Bank. As of October 2010 the Company’s registration with Security First Bank terminated. As of April 2011 the Company signed an ISO and processor agreement with Palm Desert National Bank (which was later assigned to First California Bank) to market and processes the Company’s Visa branded card program on behalf of the bank. First California Bank was sold to Pacific Western Bank and June 2013 Pacific Western Bank closed its entire debit card division and transferred its contract with VTFS to Central Bank of Kansas City Bank. On February 5th, 2014 the entire relationship between Veritec and Pacific Western Bank ended and the new relationship with Central Bank of Kansas City began. On September 30, 2014, Veritec ("Buyer"), and Tangible Payments LLC ("Seller"), a Maryland Limited Liability Company, entered into an Asset Purchase Agreement (the "Asset Purchase Agreement") pursuant to which Veritec acquired certain assets and liabilities of the Tangible Payments LLC (See Note 5). The Company has a portfolio of five United States and eight foreign patents. In addition, we have seven U.S. and twenty-eight foreign pending patent applications.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany transactions and balances were eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Those estimates and assumptions include estimates for reserves of uncollectible accounts, analysis of impairments of long lived assets, accruals for potential liabilities and assumptions made in valuing stock instruments issued for services.
Accounts Receivable	Accounts Receivable The Company sells to domestic and foreign companies and grants uncollateralized credit to customers, but requires deposits on unique orders. Management periodically reviews its accounts receivable and provides an allowance for doubtful accounts after analyzing the age of the receivable, payment history and prior experience with the customer. The estimated loss that management believes is probable is included in the allowance for doubtful accounts. While the ultimate loss may differ, management believes that any additional loss will not have a material impact on the Company's financial position. Due to uncertainties in the settlement process, however, it is at least reasonably possible that management's estimate will change during the near term.
Inventories	Inventories Inventories, consisting of purchased components for resale, are stated at the lower of cost or market, applying the first-in, first-out (FIFO) method. Inventory is net of reserves of $23,900 at both June 30, 2015 and 2014.
Property and Equipment	Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over estimated useful lives of 3 to 7 years. When assets are retired or otherwise disposed, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized. Maintenance and repairs are expensed as incurred; significant renewals and betterments are capitalized.
Concentrations	Concentrations The Company’s cash balances on deposit with banks are guaranteed by the Federal Deposit Insurance Corporation up to $250,000. The Company may be exposed to risk for the amounts of funds held in one bank in excess of the insurance limit. In assessing the risk, the Company’s policy is to maintain cash balances with high quality financial institutions. The Company had cash balances in excess of the guarantee during the year ended June 30, 2015.
Major Customers	Major Customers Customers in excess of 10% of total revenues were as follows: Years Ended June 30, 2015 2014 Customer A --% 31 % Customer B 12 % 16 % Customer C 11 % 8 % 23 % 55 % As of June 30, 2015, the Company had approximately $6,025 (16%), $5,650 (15%), and $4,575 (12%) of accounts receivable due from its major customers. As of June 30, 2014, the Company had approximately $86,361 (69%) and $23,250 (19%), respectively, of accounts receivable due from its major customers.
Foreign Revenues	Foreign Revenues Foreign revenues accounted for 45% (9% Korea, 19% Taiwan, and 17% others) of the Company’s total revenues in fiscal 2015 and 70% (54% Korea, 10% Taiwan, and 6% others) in fiscal 2014.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair Value Measurements are adopted by the Company based on the authoritative guidance provided by the Financial Accounting Standards Board, with the exception of the application of the statement to non-recurring, non-financial assets and liabilities as permitted. The adoption based on the authoritative guidance provided by the Financial Accounting Standards Board did not have a material impact on the Company's fair value measurements. Based on the authoritative guidance provided by the Financial Accounting Standards Board defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. FASB authoritative guidance establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows: Level 1- Quoted prices in active markets for identical assets or liabilities. Level 2- Inputs, other than the quoted prices in active markets that are observable either directly or indirectly. Level 3- Unobservable inputs based on the Company's assumptions. The Company had no such assets or liabilities recorded to be valued on the basis above at June 30, 2015 or 2014. For certain financial instruments, the carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, and current liabilities, including notes payable and convertible notes, each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest.
Revenue Recognition	Revenue Recognition The Company accounts for revenue recognition in accordance with guidance of the Financial Accounting Standards Board. Revenues for the Company are classified into barcode technology revenue and mobile banking technology revenue. Revenues from licenses and identification cards are recognized when the product is shipped, the Company no longer has any service or other continuing obligations, and collection is reasonably assured. The process typically begins with a customer purchase order detailing its specifications so the Company can import its software into the customer's hardware. Once importation is completed, if the customer only wishes to purchase a license, the Company typically transmits the software to the customer via the Internet. Revenue is recognized at that point. If the customer requests both license and other products, once the software is imported into the hardware and the process is complete, the product is shipped and revenue is recognized at time of shipment. Once the software and/or other products are either shipped or transmitted, the customers do not have a right of refusal or return. Under some conditions, the customers remit payment prior to the Company having completed importation of the software. In these instances, the Company delays revenue recognition and reflects the prepayments as customer deposits. The Company, as a processor and a distributor, recognizes revenue from transaction fees charged cardholders for the use of its issued mobile debit cards. The fees are recognized on a monthly basis after all cardholder transactions have been summarized and reconciled with third party processors.
Shipping and Handling Fees and Costs	Shipping and Handling Fees and Costs For the years ended June 30, 2015 and 2014, shipping and handling fees billed to customers of $997 and $2,125, respectively were included in revenues and shipping and handling costs of $997 and $2,032, respectively were included in cost of sales.
Research and Development	Research and Development Research and development costs were expensed as incurred.
Loss per Common Share	Loss per Common Share Basic earnings (loss) per share are computed by dividing the net income (loss) applicable to Common Stockholders by the weighted average number of shares of Common Stock outstanding during the year. Diluted earnings (loss) per share is computed by dividing the net income (loss) applicable to Common Stockholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method. Potential common shares are excluded from the computation as their effect is antidilutive. For the year ended June 30, 2015 the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an anti-dilutive effect. For the year ended June 30, 2014 the calculation of diluted earnings per share included stock options and warrants, calculated under the treasury stock method, and excluded preferred stock and convertible notes payable since the effect was antidilutive. The following table sets forth the computation of basic and diluted income per common share. June 30, 2015 2014 Net Income (Loss) $ (907,475 ) $ 302,053 Weighted average common shares – basic 16,351,956 15,920,088 Dilutive effect of outstanding stock options — 3,056,500 Weighted average shares outstanding – diluted 16,351,956 18,976,588 As of June 30, 2015 and 2014, we excluded the outstanding securities summarized below, which entitle the holders thereof to acquire shares of common stock, from our calculation of earnings per share, as their effect would have been anti-dilutive June 30, 2015 2014 Series H Preferred Stock $ 10,000 $ 10,000 Convertible Notes Payable 19,563,168 6,347,046 Options 2,520,000 — Total 22,093,168 6,357,046
Stock-Based Compensation	Stock-Based Compensation The Company periodically issues stock options and warrants to employees and non-employees in capital raising transactions, for services and for financing costs. Stock-based compensation for employees is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. Options vest and expire according to terms established at the grant date. The value of the stock compensation to non-employees is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete.
Intangible Assets	Intangible Assets The Company accounts for intangible assets in accordance with the authoritative guidance issued by the ASC Topic 350 – Goodwill and Other At June 30, 2015, the intangibles assets of $144,375 relates to our acquisition of Tangible Payments LLC during fiscal year 2015 (see Note 5). Our first impairment test will be conducted in fiscal year 2016, however management believes there were no indications of impairment based on management’s assessment of these assets at June 30, 2015. Factors we consider important that could trigger an impairment review include significant underperformance relative to historical or projected future operating results, significant changes in the manner of the use of our assets or the strategy for our overall business, and significant negative industry or economic trends. If current economic conditions worsen causing decreased revenues and increased costs, we may have to record an impairment to our goodwill and intangible assets.
Income Taxes	Income Taxes Current income tax expense is the amount of income taxes expected to be payable for the current year. A deferred income tax asset or liability is established for the expected future consequences of temporary differences in the financial reporting and tax bases of assets and liabilities. The Company considers future taxable income and ongoing, prudent and feasible tax planning strategies, in assessing the value of its deferred tax assets. If the Company determines that it is more likely than not that these assets will not be realized, the Company will reduce the value of these assets to their expected realizable value, thereby decreasing net income. Evaluating the value of these assets is necessarily based on the Company’s judgment. If the Company subsequently determined that the deferred tax assets, which had been written down, would be realized in the future, the value of the deferred tax assets would be increased, thereby increasing net income in the period when that determination was made.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only in annual reporting periods beginning after December 15, 2016, including interim periods therein. Entities will be able to transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company is in the process of evaluating the impact of ASU 2014-09 on the Company’s financial statements and disclosures. In June 2014, the FASB issued Accounting Standards Update No. 2014-12, Compensation – Stock Compensation (Topic 718). The pronouncement was issued to clarify the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The pronouncement is effective for reporting periods beginning after December 15, 2015. The adoption of ASU 2014-12 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2014-15 on the Company’s financial statements and disclosures. In November 2014, the FASB issued Accounting Standards Update No. 2014-16 (ASU 2014-16), Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. The amendments in this ASU do not change the current criteria in U.S. GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. The amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. The ASU applies to all entities that are issuers of, or investors in, hybrid financial instruments that are issued in the form of a share and is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company is in the process of evaluating the impact of 2014-16 on the Company’s financial statements and disclosures. In July 2015, the FASB issued Accounting Standards Update 2015-11, Simplifying the Measurement of Inventory, which requires that inventory within the scope of ASU 2015-11 be measured at the lower of cost and net realizable value. Inventory measured using last-in, first-out (LIFO) and the retail inventory method are not impacted by the new guidance. ASU 2015-11 applies to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure inventory within the scope of ASU 2015-11 at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 is effective for public business entities in fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2015-11 on the Company’s financial statements and disclosures. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.

Operations and Summary of Sig21

Operations and Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Major Customers	Years Ended June 30, 2015 2014 Customer A --% 31 % Customer B 12 % 16 % Customer C 11 % 8 % 23 % 55 %
Basic and diltued income per share	June 30, 2015 2014 Net Income (Loss) $ (907,475 ) $ 302,053 Weighted average common shares – basic 16,351,956 15,920,088 Dilutive effect of outstanding stock options — 3,056,500 Weighted average shares outstanding – diluted 16,351,956 18,976,588
Anti-dilutive earnings per share	June 30, 2015 2014 Series H Preferred Stock $ 10,000 $ 10,000 Convertible Notes Payable 19,563,168 6,347,046 Options 2,520,000 — Total 22,093,168 6,357,046

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and equipment consists of the following as of: June 30, 2015 2014 Furniture and equipment $ 140,316 $ 140,316 Software 73,000 73,000 Vehicles 23,301 23,301 236,617 236,617 Less accumulated depreciation (236,034 ) (235,623 ) Total $ 583 $ 944

Acquisition (Tables)

Acquisition (Tables)	12 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
Amortization expense	Years Ending June 30, Amount 2016 $ 64,167 2017 64,167 2018 16,041 Total $ 144,375
Unaudited results of operations	June 30, 2015 2014 (Unaudited) (Unaudited) Revenues $ 1,007,932 $ 1,909,323 Net income (loss) $ (919,775 ) $ 190,156

Notes Payable (Tables)

Notes Payable (Tables)	12 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Notes Payable	2015 2014 Convertible Notes Payable Convertible notes payable (includes $138,120 and $130,898, respectively, to non-related parties), unsecured, interest at 8%, due September 2010 through November 2010. The principal and accrued interest is convertible at a conversion price of $0.30. The principal and interest is due immediately on the event of default or change of control. The notes are currently in default. $ 759,763 $ 720,302 Convertible notes payable to related parties, unsecured, principal and interest are convertible into common stock at $0.30 to $0.33 per share, interest at 8% to 10%, due on demand to November 2010. The notes are currently in default. 1,414,260 1,017,435 Convertible note payable to related party, secured by the Company’s intellectual property, principal and interest are convertible into common stock at $0.25 per share subject to board of directors’ approval, interest at 8%. The note was due November 2010 and is now in default. 290,871 274,871 Botes payable, secured by the Company's certificate of deposit with a financial institution and classified on the balance sheet as restricted cash, interest at 5%, convertible into common stock at $0.08 per share, due on demand 33,688 32,215 Convertible note payable, unsecured, principal and interest are convertible into common stock at $0.30 to $0.40 per share subject to board of directors’ approval, interest at 5% to 8%, due January 2011 to March 2013. 14,385 13,586 Convertible note payable, unsecured, principal and interest are convertible into common stock at $1.00 per share subject to board of directors’ approval, interest at 8%. The note was paid in full. — 1,766 Subtotal convertible notes 2,512,967 2,150,175 Promissory Notes Note payable to related party, secured by the Company’s intellectual property, interest at 8% due August 2010 and is now in default. 564,058 533,318 Notes payable to related parties, unsecured, interest at 0% to 8%, due on demand. 150,430 142,430 Note payable, unsecured, interest at 10%. The note was due in January 2010 and is now in default 31,783 29,167 Note payable, secured by the Company's intellectual property, interest at variable rates starting September 1, 2012, due December 2012 and is now in default. 303,469 287,129 Subtotal notes payable 1,049,740 992,044 Total $ 3,562,707 $ 3,142,219
Notes payable- Balance Sheet presentation	June 30, 2015 2014 Notes payable $ 521,610 $ 493,017 Notes payable, related party 3,041,097 2,649,202 Total $ 3,562,707 $ 3,142,219

Stock Options and Warrants (Tab

Stock Options and Warrants (Tables)	12 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Options	Number of Weighted - Average Shares Exercise Price Outstanding at June 30, 2013 3,165,653 $ 0.42 Granted — $ 0.00 Forfeited (109,153 ) $ 0.00 Outstanding at June 30, 2014 3,056,500 $ 0.42 Granted — $ 0.00 Forfeited (536,500 ) $ 0.42 Outstanding at June 30, 2015 2,520,000 $ 0.42 Exercisable at June 30, 2015 2,520,000 $ 0.42
Additional information regarding outstanding options	Options Outstanding at June 30, 2015 Options Exercisable at June 30, 2015 Range of Exercise Number of Shares Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number of Shares Exercisable Weighted Average Exercise Price $0.13 - $1.45 2,520,000 4.64 $ 0.42 2,520,000 $ 4.64 2,520,000 2,520,000
Summary of stock warrants	Number of Shares Weighted - Average Exercise Price Outstanding at June 30, 2013 275,000 $ 2.0 Granted — Forfeited (275,000 ) $ 2.0 Outstanding at June 30, 2014 — Granted — Forfeited — Outstanding at June 30, 2015 —

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Reconciliation between the federal and actual tax rate	Year Ended June 30, 2015 2014 Federal statutory tax rate 35 % 35 % State tax, net of federal benefit 6 % 6 % Total tax rate 40 % 40 % Allowance (40) % (40) % Effective tax rate - % - %
Deferred tax assets	June 30, 2015 2014 Net operating loss carryforwards $ 4,224,000 4,021,600 Valuation allowance (4,224,000 ) (4,021,600 ) Net deferred tax asset $ — $ —

Operations and Summary of Sig27

Operations and Summary of Significant Accounting Policies - Major Customers (Details)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Revenue from Major Customers	23.00%	55.00%
Customer A
Revenue from Major Customers		31.00%
Customer B
Revenue from Major Customers	12.00%	16.00%
Customer C
Revenue from Major Customers	11.00%	8.00%

Operations and Summary of Sig28

Operations and Summary of Significant Accounting Policies - Basic and diluted income per share (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Accounting Policies [Abstract]
Net income (loss)	$ (907,475)	$ 302,053
Weighted average common shares - basic	16,351,956	15,920,088
Dilutive effect of outstanding stock options		3,056,500
Weighted average shares outstanding - diluted	16,351,956	18,976,588

Operations and Summary of Sig29

Operations and Summary of Significant Accounting Policies - Anti-dilutive earnings per share (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Dilutive securities	$ 22,093,168	$ 6,357,046
Preferred Stock
Dilutive securities	10,000	10,000
Convertible Notes Payable
Dilutive securities	19,563,168	$ 6,347,046
Options
Dilutive securities	$ 2,520,000

Property and Equipment - Proper

Property and Equipment - Property and Equipment (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Property and Equipment	$ 583	$ 994
Less accumulated depreciation	(236,034)	(235,623)
Furniture and equipment
Property and Equipment	140,316	140,316
Software
Property and Equipment	73,000	73,000
Vehicles
Property and Equipment	$ 23,301	$ 23,301

Acquisition - Amortization expe

Acquisition - Amortization expense (Details)	12 Months Ended
	Jun. 30, 2015USD ($)
Business Combinations [Abstract]
2,016	$ 64,167
2,017	64,167
2,018	16,041
Amortization Expense	$ 144,375

Acquisition - Unaudited results

Acquisition - Unaudited results of operations (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Business Combinations [Abstract]
Revenues	$ 1,007,932	$ 1,909,323
Net income (loss)	$ (919,775)	$ 190,156

Notes Payable - Notes Payable (

Notes Payable - Notes Payable (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Notes payable	$ 2,512,967	$ 2,150,175
Notes Payable	3,562,707	3,142,219
Unsecured, due Sept 2010 to Nov 2010
Convertible notes payable	759,763	720,302
Convertible notes payable, non-related paries	$ 138,120	$ 130,898
Interest rate	8.00%	8.00%
Conversion price	$ .30	$ .30
Warrant to purchase common stock for every dollar of investment	$ 2	$ 2
Unsecured, due Nov 2010
Convertible notes payable	$ 414,260	$ 1,017,435
Interest rate	8.00%	8.00%
Interest rate, maximum	10.00%	10.00%
Conversion price	$ 0.30	$ 0.30
Conversion price, maximum	$ 0.33	$ 0.33
Secured, due Nov 2010
Convertible notes payable	$ 290,871	$ 274,871
Interest rate	8.00%	8.00%
Conversion price	$ .25	$ .25
Notes Payable to Banks
Convertible notes payable	$ 33,688	$ 32,215
Interest rate	5.00%	5.00%
Conversion price	$ .08	$ 0.08
Unsecured, due Jan 2011 to March 2013
Convertible notes payable	$ 14,385	$ 13,586
Interest rate	5.00%	5.00%
Interest rate, maximum	8.00%	8.00%
Conversion price	$ .30	$ 0.30
Conversion price, maximum	$ .40	$ 0.40
Paid In Full
Convertible notes payable		$ 1,766
Interest rate	8.00%	8.00%
Conversion price	$ 1	$ 1
Secured, due Aug 2010
Interest rate	8.00%	8.00%
Notes payable	$ 564,058	$ 533,318
Unsecured, due on demand
Interest rate	0.00%	0.00%
Interest rate, maximum	8.00%	8.00%
Notes payable	$ 150,430	$ 142,460
Unsecured, due Jan 2010
Interest rate	10.00%	10.00%
Notes payable	$ 31,783	$ 29,167
Secured, due Dec 2012
Notes payable	$ 303,469	$ 287,129

Notes Payable - Notes payable -

Notes Payable - Notes payable - Balance Sheet presentation (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Debt Disclosure [Abstract]
Notes payable	$ 521,610	$ 493,017
Notes payable, related party	3,041,097	2,649,202
Total	$ 3,562,707	$ 3,142,219

Stock Options and Warrants - Su

Stock Options and Warrants - Summary of Stock Options (Details) - $ / shares	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Beginning number of shares; outstanding	3,056,500	3,165,653
Beginning weighted-average exercise price; outstanding	$ .42	$ 0.42
Options Granted
Options granted, weighted average exercise price	$ 0	$ 0
Options Forfeited	(536,500)	(109,153)
Options Forfeited, weighted average exercise price	$ 0.42	$ 0
Ending number of shares; outstanding	2,520,000	3,056,500
Ending weighted-average exercise price; outstanding	$ .42	$ .42
Number of Shares; exercisable	2,520,000
Weighted-average exercise price; exercisable	$ .42

Stock Options and Warrants - Ad

Stock Options and Warrants - Additional information regarding outstanding options (Details)	12 Months Ended
	Jun. 30, 2015$ / sharesshares
Options outstanding, shares | shares	2,520,000
Weighted average remaining contractual life	4 years 7 months
Options excercisable | shares	2,520,000
Options exercisable, weighted average exercise price	$ .42
Min
Weighted average exercise price	0.13
Max
Weighted average exercise price	$ 1.5

Stock Options and Warrants - 37

Stock Options and Warrants - Summary of stock warrants (Details) - $ / shares	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Warrants Outstanding, Shares		(275,000)	275,000
Warrants Outstanding, Weighted Average Exercise Price	$ 2	$ 2	$ 2
Warrants Granted
Warrants Forfeited

Income Taxes - Reconciliation b

Income Taxes - Reconciliation between the federal and actual tax rate (Details)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Federal Statutory tax rate	35.00%	35.00%
State tax, net of federal benefit	6.00%	6.00%
Change in valuation	40.00%	40.00%
Allowance	(40.00%)	(40.00%)
Effective tax rate

Income Taxes - Deferred tax ass

Income Taxes - Deferred tax assets (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Net operating loss carryforwards	$ 4,224,000	$ 4,021,600
Valuation allowance	$ (4,224,000)	$ (4,021,600)
Net deferred tax asset

Operations and Summary of Sig40

Operations and Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Inventory	$ 23,900	$ 23,900
FDIC guarantee	$ 250,000
Foreign revenues	45.00%	70.00%
Shiping and handling fees billed to customers	$ 997	$ 2,125
Shipping and handling costs	$ 997	$ 2,032
Korea
Foreign revenues	9.00%	54.00%
Taiwan
Foreign revenues	19.00%	10.00%
Other
Foreign revenues	17.00%	6.00%
Max
Equipment Useful life	7 years
Min
Equipment Useful life	3 years
16%
Accounts receivable	$ 6,025
15%
Accounts receivable	5,650
12%
Accounts receivable	$ 4,575
69%
Accounts receivable		$ 86,361
19%
Accounts receivable		$ 23,250

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Net Income (Loss)	$ (907,475)	$ 302,053
Working capital deficit	5,159,420
Stockholders' deficiency	(5,106,433)	(4,582,088)	$ (4,913,260)
Note payable obligations - in default	3,562,707
Payroll taxes and accrued interest and penalties	$ 453,277	$ 539,218
Van Tran
Ownership of TMG	50.00%
Larry Johanns
Ownership of TMG	50.00%

Restricted Cash (Details Narrat

Restricted Cash (Details Narrative) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Accounting Policies [Abstract]
Restricted Cash	$ 63,029	$ 51,957

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 411	$ 239

Acquisition (Details Narrative)

Acquisition (Details Narrative)	12 Months Ended
	Jun. 30, 2015USD ($)shares
Business Combinations [Abstract]
Shares issued | shares	250,000
Value of shares issued	$ 37,500
Earnout Payment	155,000
Aggregate purchase price	192,500
Equity investments received	1,300,000
Contract commitments	192,500
Amortization expense	$ 48,125

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Accounts payable, related party	$ 96,110	$ 78,753
Larry Johanns
Ownership of TMG	50.00%
Van Tran
Ownership of TMG	50.00%

Notes Payable (Details)

Notes Payable (Details)	12 Months Ended
	Jun. 30, 2015USD ($)$ / shares
Debt Disclosure [Abstract]
Convertible notes payable issued	$ 365,000
Convertible notes payable, per share | $ / shares	$ 0.08
Interest expense	$ 297,875

Stockholders' Deficiency (Detai

Stockholders' Deficiency (Details Narrative) - USD ($)	1 Months Ended		11 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Jun. 07, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 23, 2014	Jun. 15, 2014	Jun. 30, 2013	Mar. 31, 2014	Dec. 30, 2013
Convertible preferred stock, par value				$ 1	$ 1
Convertible preferred stock, shares authorized				10,000,000	10,000,000
Convertible preferred stock, shares issued				1,000	1,000
Convertible preferred stock, shares outstanding				1,000	1,000
Series H convertible preferred stock to common stock				10	10
Common stock, par value				$ .01	$ .01
Common stock, shares authorized				50,000,000	50,000,000
Common stock, shares issued				16,530,088	15,920,088
Common stock, shares outstanding				16,530,088	15,920,088
Shares issued for services, shares	815,000			135,000
Shares issued for services, fair value				$ 19,600
Consulting Agreement
Stock issued		5,000					5,000
Obligation to issue stock, Shares				55,000
Stock issued, aggregate fair value				$ 8,150
Shares authorized but unissued				50,000
Shares authorized but unissued, value				$ 7,400
Advisory Agreement
Stock issued		20,000		35,000		5,000
Stock issued, aggregate fair value				$ 4,050
Shares authorized but unissued				15,000
Shares authorized but unissued, value				$ 1,900
Business Development Agreement
Obligation to issue stock, Shares			50,000	50,000
Stock issued, aggregate fair value				$ 7,000				$ 7,000
Shares authorized but unissued									50,000	50,000
Shares authorized but unissued, value									$ 3,869	$ 3,869
Company's Directors
Stock issued				750,000	225,000
Stock issued, aggregate fair value				$ 28,154	$ 25,250
Series H Convertible
Convertible preferred stock, shares authorized				276,000	276,000
Convertible preferred stock, shares issued				1,000	1,000
Convertible preferred stock, shares outstanding				1,000	1,000

Stock Options and Warrants (Det

Stock Options and Warrants (Details Narrative) - $ / shares	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Warrants issued	275,000
Warrant exercise price	$ 2	$ 2	$ 2
Warrant, contractual life	5 years
2013 Agreement terms	The Company has agreements with certain employees that provide for five years of annual grants of options, on each employment anniversary date, to purchase shares of the Company’s common stock. The option price is determined based on the market price on the date of grant, the options vest one year from the date of grant, and the options expire five years after vesting.

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2034
Income Tax Disclosure [Abstract]
Net loss	$ (907,475)	$ 302,053
Net operating loss carryforwards			$ 10,000,000

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	11 Months Ended	12 Months Ended
	Sep. 28, 2013	Jun. 30, 2015	Jun. 30, 2017	Jun. 30, 2014	Dec. 05, 2010
Monthly lease payments		$ 4,200
Future annual minimum lease payments		50,400
Total minimum lease payments			$ 100,800
Deferred revenue		492,603		$ 258,764
Received from major customer		552,600
Incentive compensation plan percentage					10.00%
Incentive Compensation Bonus, Minimum Threshold					$ 3,000,000
NIS
Term of license	5 years
Total fee	$ 250,000
Deferred revenue		115,347
Revenue		50,000
Remaining revenue recognized		$ 65,347
AAA
Term of license		5 years
Total fee		$ 100,000
Deferred revenue				$ 72,500
Revenue		20,000
Remaining revenue recognized		$ 52,500
Strategic Product License Agreement
Term of license		5 years
Total fee		$ 150,000
Revenue		30,000
Remaining revenue recognized		120,000
Pilot Program Agreement
Total fee		175,000
Revenue		86,361
Remaining revenue recognized		88,639
Continuing Services Agreement
Total fee		142,500
Remaining revenue recognized		$ 142,500

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	1 Months Ended		12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Jan. 17, 2016
Convertible notes			$ 365,000
Common stock issued upon conversion			16,530,088	15,920,088
Barcode technology revenues			$ 507,960	$ 1,623,109
Common stock issued for services	815,000		135,000
Vietnam Alliance Capital
Ownership in joint venture					70.00%
Veritec Inc.
Ownership in joint venture					30.00%
The Matthews Group
Convertible notes		$ 1,800,000
Conversion Price		$ 0.08
Common stock issued upon conversion		22,200,000
Proceeds from sale of Barcode Technology assets		$ 670,000