Veritec (VRTC) 10-Q 21 Mar 16 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Dec. 31, 2014shares
Document And Entity Information
Entity Registrant Name	VERITEC INC
Entity Central Index Key	773,318
Document Type	10-Q
Document Period End Date	Dec. 31, 2014
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 Common Stock, Shares Outstanding	16,530,088
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Current Assets:
Cash	$ 86,678	$ 24,665
Accounts receivables, net of allowance of $0 and $13,395 respectively	46,000	70,500
Inventories	13,370	7,829
Prepaid expenses	8,491	17,143
Total Current Assets	154,539	120,137
Restricted cash	55,480	51,957
Property and Equipment, net	788	$ 994
Intangibles, net	176,458
Total Assets	387,265	$ 173,088
Current Liabilities:
Notes payable - in default	507,300	493,017
Notes payable, related party - in default	2,730,732	2,649,202
Accounts payable	623,196	540,794
Accounts payable, related party	87,610	78,753
Customer deposits	99,278	91,260
Deferred revenues	384,901	258,764
Payroll tax liabilities	511,076	539,218
Accrued expenses	6,061	104,168
Total Current Liabilities	4,950,154	$ 4,755,176
Contingent earnout liability	155,000
Total Liabilities	5,105,154	$ 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 December 31, 2014 and June 30, 2014, respectively.	1,000	1,000
Common stock, par value $.01; authorized 50,000,000 shares, 16,520,088 and 15,920,088 shares issued and outstanding as of December 31, 2014 and June 30, 2014, respectively	165,201	159,201
Common stock to be issued, 205,000 shares and 400,000 shares, respectively	18,096	39,596
Additional paid-in capital	14,757,506	14,594,181
Accumulated deficit	(19,659,892)	(19,376,066)
Total Stockholders' Deficiency	(4,717,889)	(4,582,088)
Total Liabilities and Stockholders' Deficiency	$ 387,265	$ 173,088

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Allowance for Doubtful Accounts	$ 0	$ 13,395
Convertible preferred stock, par value	$ 1
Convertible preferred stock, shares authorized	10,000,000
Convertible preferred stock, shares issued	1,000
Convertible preferred stock, shares outstanding	1,000
Common stock, par value	$ .01	$ .01
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	16,520,088	15,920,088
Common stock, shares outstanding	16,520,088	15,920,088
Common stock, shares to be issued	205,000	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

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Revenue:
Barcode technology revenue	$ 194,170	$ 305,653	$ 263,407	$ 1,081,982
Mobile banking technology revenue	203,658		289,347	2,031
Total revenue	397,828	$ 305,653	552,754	1,084,013
Cost of Sales	99,480	70,087	168,660	187,688
Gross Profit	298,348	235,566	384,094	896,325
Operating Expenses:
General and administrative	252,326	124,334	374,959	258,344
Sales and marketing	16,000	29,429	45,196	46,800
Research and development	25,876	45,342	57,358	91,921
Total Operating Expenses	294,202	199,106	477,513	397,065
Income (Loss) from Operations	$ 4,146	36,460	$ (93,419)	499,260
Other Expense:
Interest income		27		28
Interest expense and finance costs, including $38,567, $39,120, $175,963 and $76,927, respectively, to related parties	$ (45,967)	(46,080)	$ (190,407)	(95,858)
Total Other Expense	(45,967)	(46,053)	(190,407)	(95,830)
Net Income (Loss)	$ (41,821)	$ (9,593)	$ (283,826)	$ 403,430
Net Income (Loss) Per Common Share
Basic	$ 0	$ 0	$ (0.02)	$ 0.03
Diluted	$ 0	$ 0	$ (0.02)	$ 0.02
Weighted Average Number of Shares Outstanding
Basic	16,359,762	15,920,088	16,177,425	15,920,088
Diluted	16,359,762	15,920,088	16,177,425	19,232,093

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
Interest expense, related parties	$ 38,567	$ 39,120	$ 175,963	$ 76,927

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Stockholders' Deficiency - USD ($)	3 Months Ended	6 Months Ended
	Sep. 30, 2014	Dec. 31, 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
Beneficial conversion feature on issuance of convertible notes payable
Net loss
Ending balance, Shares		1,000
Ending balance, Amount		$ 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		125,000
Shares issued for services, amount		$ 1,250
Shares issued for common stock issuable, shares		225,000
Shares issued for common stock issuable, amount		$ 2,250
Beneficial conversion feature on issuance of convertible notes payable
Net loss
Ending balance, Shares		16,520,088
Ending balance, Amount		$ 165,201
Common Stock to be Issued
Beginning balance, Amount	39,596	$ 39,596
Shares issued for acquisitions, amount
Shares issued for services, amount		$ 3,750
Shares issued for common stock issuable, amount		$ (25,250)
Beneficial conversion feature on issuance of convertible notes payable
Net loss
Ending balance, Amount		$ 18,096
Additional Paid-In Capital
Beginning balance, Amount	14,594,181	14,594,181
Shares issued for acquisitions, amount		35,000
Shares issued for services, amount		6,650
Shares issued for common stock issuable, amount		23,000
Beneficial conversion feature on issuance of convertible notes payable		$ 98,875
Net loss
Ending balance, Amount		$ 14,757,706
Retained Earnings / Accumulated Deficit
Beginning balance, Amount	(19,376,066)	$ (19,376,066)
Shares issued for acquisitions, amount
Shares issued for services, amount
Shares issued for common stock issuable, amount
Beneficial conversion feature on issuance of convertible notes payable
Net loss		$ (283,826)
Ending balance, Amount		(19,659,892)
Beginning balance, Amount	$ (4,582,088)	(4,582,088)
Shares issued for acquisitions, shares	250,000
Shares issued for acquisitions, amount		$ 37,500
Shares issued for services, shares		125,000
Shares issued for services, amount		$ 11,650
Shares issued for common stock issuable, amount
Beneficial conversion feature on issuance of convertible notes payable		$ 98,875
Net loss		(283,826)
Ending balance, Amount		$ (4,717,889)

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (283,826)	$ 403,430
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation	206	$ 34
Amortization	16,042
Shares issued for services	11,650	$ 2,785
Beneficial conversion feature on convertible notes payable	98,875
Interest accrued on notes payable	91,313	$ 85,336
Changes in operating assets and liabilities:
Accounts receivable	24,500	285,368
Restricted cash	(3,523)	461,114
Inventories	(5,541)	(3,128)
Prepaid expenses	8,652	23,430
Deferred revenues	126,137	(655,952)
Payroll tax liabilities	(28,142)	(28,782)
Customer deposits	8,018	15,891
Accounts payables and accrued expenses	(6,848)	8,980
Net cash provided by operating activities	$ 57,513	598,506
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment		(1,234)
Net cash used in investing activities		(1,234)
Payment of notes payable		$ (364,036)
Proceeds from notes payable, related party	$ 148,000
Payments on notes payable, related party	(143,500)
Net cash provided by (used in) financing activities	4,500	$ (364,036)
NET INCREASE IN CASH	62,013	233,236
CASH AT BEGINNING OF PERIOD	24,665	75,918
CASH AT END OF PERIOD	$ 86,678	309,154
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest		$ 9,757
NON CASH INVESTING AND FINANCING ACTIVITIES
Common stock issued for acquisition	$ 37,500
Contingent earnout liability from acquisitions	$ 155,000

Nature of Business

Nature of Business	6 Months Ended
	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	NOTE 1. NATURE OF BUSINESS References to the “Company” in this Form 10-Q refer to Veritec, Inc. (“Veritec”) and its wholly owned subsidiaries Vcode Holdings, Inc. (Vcode®), and Veritec Financial Systems, Inc. (VTFS). 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 11). 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 and Tangible Payments LLC, a Maryland Limited Liability Company, entered into an Asset Purchase Agreement pursuant to which Veritec acquired certain assets and liabilities of the Tangible Payments LLC (See Note 6). 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.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
Basis of Presentation	NOTE 2. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month periods ended December 31, 2014 are not necessarily indicative of the results that may be expected for the year ending June 30, 2015. The Condensed Consolidated Balance Sheet as of December 31, 2014 was derived from the unaudited consolidated financial statements as of such date, but does not include all of the information and footnotes required by GAAP. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in our Form 10-K as of and for the year ended June 30, 2014. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the 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. The accompanying condensed consolidated financial statements include the accounts of Veritec, VCode, and VTFS. All inter-company transactions and balances were eliminated in consolidation.

Going Concern

Going Concern	6 Months Ended
	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	NOTE 3. GOING CONCERN The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. During the six months ended December 31, 2014, the Company incurred a net loss of $283,826. At December 31, 2014, the Company had a working capital deficit of $4,795,615 and a stockholders’ deficiency of $4,717,889. In addition, as of December 31, 2014, the Company is delinquent in payment of $3,238,032 of its notes payable obligations and is also delinquent in payment of $511,077 in payroll taxes and accrued interest and penalties. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to develop additional sources of capital and to ultimately achieve profitable operations. The Company’s independent registered public accounting firm, in their report on the Company’s financial statements for the year ending June 30, 2014, expressed substantial doubt about the Company’s ability to continue as a going concern. The Company’s financial statements do not include any adjustments that might result from the outcome of these uncertainties. The Company believes its cash and forecasted cash flow from operations will not be sufficient to continue operations through fiscal 2015 without continued external investment. The Company will require additional funds to continue its operations through fiscal 2015 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.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
Significant Accounting Policies	NOTE 4. SIGNIFICANT ACCOUNTING POLICIES Net Loss per Common Share: Basic earnings (loss) per share is 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 three and six months ended December 31, 2014 and the three months ended December 31, 2013, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an anti-dilutive effect. For the six months ended December 31, 2013 the calculation of diluted earnings per share included stock options and warrants, calculated under the treasury stock method, and excluded preferred stock, certain warrants and stock options and convertible notes payable since the effect was antidilutive. The following table sets forth the computation of basic and diluted income per common share for the six months period ended December 31, 2014 and 2013. Six Months Ended December 31, 2014 2013 Net Income (Loss) $ (278,826 ) $ 403,430 Weighted average common shares – basic 16,177,425 15,920,088 Dilutive effect of outstanding stock options — 2,500,000 Dilutive effect of convertible notes payable — 812,005 Weighted average shares outstanding – diluted 16,177,425 19,232,093 As of December 31, 2014 and 2013, 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. December 31, 2014 2013 Series H preferred stock $ 10,000 $ 10,000 Warrants — 275,000 Convertible notes payable 15,630,841 7,326,220 Options 2,602,500 631,500 Total 18,243,341 8,242,720 Concentrations During the three months ended December 31, 2014 and 2013, the Company had four customers that accounted for approximately 19%, 15%, 11% and 10% of sales in 2014 and three customers that accounted for approximately 30%, 19% and 17% of sales in 2013, respectively. No other customers accounted for more than 10% of sales in either period. During the six months ended December 31, 2014 and 2013, the Company had three customers that accounted for approximately 21%, 11% and 10% of sales in 2014 and two customers that accounted for approximately 21% and 18% of sales in 2013, respectively. No other customers accounted for more than 10% of sales in either period. As of December 31, 2014, the Company had approximately $11,000 (24%), $10,050 (22%), $6,500 (14%) and $5,000 (11%) respectively, 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. For the three months ended December 31, 2014 and 2013, foreign revenues accounted for 34% (17% Taiwan, 9% China, and and 8% other) and 53% (30% Korea, and 23% Taiwan) of the Company’s total revenues, respectively. For the six months ended December 31, 2014 and 2013, foreign revenues accounted for 39% (17% Taiwan, 10% Korea, 8% China, and - 4% other) and 68% (47% Korea and 21% Taiwan) of the Company’s total revenues, respectively. Recent Accounting Pronouncements 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.

Restricted Cash

Restricted Cash	6 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
Restricted Cash	NOTE 5. 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 December 31, 2014 and June 30, 2014, the restricted cash totaled $55,480 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.

Acquisition

Acquisition	6 Months Ended
	Dec. 31, 2014
Business Combinations [Abstract]
Acquisition	NOTE 6. 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 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. The following table presents our unaudited pro forma combined historical results of operations for the six months December 31, 2014 and 2013, respectively, as if we had consummated the acquisition as of July 1, 2013. December 31, 2014 2013 (Unaudited) (Unaudited) Revenues $ 614,879 $ 1,224,923 Net income (loss) $ (291,126 ) $ 320,661

Related Party Transactions

Related Party Transactions	6 Months Ended
	Dec. 31, 2014
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 7. RELATED PARTY TRANSACTIONS During the six months ended December 31, 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 December 31, 2014 and June 30, 2014 were $87,610 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	6 Months Ended
	Dec. 31, 2014
Debt Disclosure [Abstract]
Notes Payable	NOTE 8. NOTES PAYABLE Notes payable includes accrued interest and consists of the following as of December 31, 2014 and June 30, 2014: December 31, 2014 June 30, 2014 Convertible Notes Payable Convertible notes payable (includes $134,521 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. $ 740,044 $ 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. 1,149,322 1,107,435 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. 282,871 274,871 Notes 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 32,945 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 and is now in default. 13,987 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 2,219,169 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. 548,688 533,318 Notes payable to related parties, unsecured, interest at 0% to 8%, due on demand. 146,430 142,430 Note payable, unsecured, interest at 10%. The note was due in January 2010 and is now in default. 30,167 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. 293,578 287,129 Subtotal notes payable 1,018,863 992,044 Total $ 3,238,032 $ 3,142,219 During the six months ended December 30, 2014, the Company issued $126,500 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 $98,875 and was included in interest expense in the Condensed Consolidated Statements of Operations for the six months ended December 31, 2014. No similar activity occurred during the same period of the prior year. For the purposes of Balance Sheet presentation notes payable have been presented as follows: December 31, 2014 June 30, 2014 Notes payable $ 507,300 $ 493,017 Notes payable, related party 2,730,732 2,649,202 Total $ 3,238,032 $ 3,142,219

Stockholders' Deficiency

Stockholders' Deficiency	6 Months Ended
	Dec. 31, 2014
Equity [Abstract]
Stockholders' Equity (Deficit)	NOTE 9 - 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 September 30, 2014 and June 30, 2014, there were 1,000 shares of Series H convertible preferred stock issued and outstanding. Common Stock Shares issued for acquisition On September 30, 2014, the Company issued 250,000 shares of common stock as partial consideration for an acquisition (See Note 6). Shares issued to consultants for services During the six months ended December 31, 2014, the Company granted and issued 125,000 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 $11,650. Shares issued to directors for services During the six months ended December 31, 2014, the Company issued an aggregate of 225,000 shares of common stock to four of the Company’s directors. These shares were for services rendered during the fiscal year ended June 30, 2014 valued at $25,250 which had been included in the Company’s common shares to be issued balance as of 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 six months ended December 31, 2014, the Company recorded an obligation to issue 25,000 shares of common stock with an aggregate fair value of $3,200 or $0.13 per share. As of December 31, 2014, the 20,000 shares of common stock have not been issued and have been reflected as common shares to be issued in the accompanying condensed consolidated balance sheet. 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 six months ended December 31, 2014, the Company recorded an obligation to issue 30,000 shares of common stock with an aggregate fair value of $3,450 or $0.12 per share. As of December 31, 2014, the 10,000 shares of common stock have not been issued and have been reflected as common shares to be issued in the accompanying condensed consolidated balance sheet.

Stock Options

Stock Options	6 Months Ended
	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	NOTE 10 – STOCK OPTIONS Stock Options A summary of stock options for the six months ended December 31, 2014 is as follows: Number of Weighted - Average Shares Exercise Price Outstanding at June 30, 2014 3,056,500 $ 0.42 Granted — $ 0.00 Forfeited (454,000 ) $ 0.42 Outstanding at December 31, 2014 2,602,500 $ 0.42 Exercisable at December 31, 2014 2,602,500 $ 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 fiscal year 2014 or during the six months ended December 31, 2014 under this agreement. The Company recognized no stock-based compensation expense related to stock options during the three and six months ended December 31, 2014 and 2013, respectively. As of December 31, 2014, 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 December 31, 2014. 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 December 31, 2014 is as follows: Options Outstanding at December 31, 2014 Options Exercisable at December 31, 2014 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 2,602,500 4.14 $ 0.42 2,602,500 $ 0.42 2,602,500 2,602,500 The weighted-average remaining contractual life of stock options outstanding and exercisable at December 31, 2014 is 4.14 years.

Subsequent Events

Subsequent Events	6 Months Ended
	Dec. 31, 2014
Subsequent Events [Abstract]
Subsequent Events	NOTE 11. SUBSEQUENT EVENTS These unaudited condensed consolidated financial statements should be read in conjunctions with the financial statements and notes thereto included in the Company’s Form 10-K for the year ended June 30, 2015 filed on January 20, 2016 with the Security and Exchange Commission, which contains additional information of events subsequent to December 31, 2014.

Significant Accounting Polici19

Significant Accounting Policies (Policies)	6 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
Net Loss per Common Share	Net Loss per Common Share: Basic earnings (loss) per share is 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 three and six months ended December 31, 2014 and the three months ended December 31, 2013, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an anti-dilutive effect. For the six months ended December 31, 2013 the calculation of diluted earnings per share included stock options and warrants, calculated under the treasury stock method, and excluded preferred stock, certain warrants and stock options and convertible notes payable since the effect was antidilutive. The following table sets forth the computation of basic and diluted income per common share for the six months period ended December 31, 2014 and 2013. Six Months Ended December 31, 2014 2013 Net Income (Loss) $ (278,826 ) $ 403,430 Weighted average common shares – basic 16,177,425 15,920,088 Dilutive effect of outstanding stock options — 2,500,000 Dilutive effect of convertible notes payable — 812,005 Weighted average shares outstanding – diluted 16,177,425 19,232,093 As of December 31, 2014 and 2013, 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. December 31, 2014 2013 Series H preferred stock $ 10,000 $ 10,000 Warrants — 275,000 Convertible notes payable 15,630,841 7,326,220 Options 2,602,500 631,500 Total 18,243,341 8,242,720
Concentrations	Concentrations During the three months ended December 31, 2014 and 2013, the Company had four customers that accounted for approximately 19%, 15%, 11% and 10% of sales in 2014 and three customers that accounted for approximately 30%, 19% and 17% of sales in 2013, respectively. No other customers accounted for more than 10% of sales in either period. During the six months ended December 31, 2014 and 2013, the Company had three customers that accounted for approximately 21%, 11% and 10% of sales in 2014 and two customers that accounted for approximately 21% and 18% of sales in 2013, respectively. No other customers accounted for more than 10% of sales in either period. As of December 31, 2014, the Company had approximately $11,000 (24%), $10,050 (22%), $6,500 (14%) and $5,000 (11%) respectively, 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. For the three months ended December 31, 2014 and 2013, foreign revenues accounted for 34% (17% Taiwan, 9% China, and and 8% other) and 53% (30% Korea, and 23% Taiwan) of the Company’s total revenues, respectively. For the six months ended December 31, 2014 and 2013, foreign revenues accounted for 39% (17% Taiwan, 10% Korea, 8% China, and - 4% other) and 68% (47% Korea and 21% Taiwan) of the Company’s total revenues, respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements 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.

Significant Accounting Polici20

Significant Accounting Policies (Tables)	6 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
Basic and diltued income per share	Six Months Ended December 31, 2014 2013 Net Income (Loss) $ (278,826 ) $ 403,430 Weighted average common shares – basic 16,177,425 15,920,088 Dilutive effect of outstanding stock options — 2,500,000 Dilutive effect of convertible notes payable — 812,005 Weighted average shares outstanding – diluted 16,177,425 19,232,093
Summary of securities excluded from EPS calculation	December 31, 2014 2013 Series H preferred stock $ 10,000 $ 10,000 Warrants — 275,000 Convertible notes payable 15,630,841 7,326,220 Options 2,602,500 631,500 Total 18,243,341 8,242,720

Acquisition (Tables)

Acquisition (Tables)	6 Months Ended
	Dec. 31, 2014
Business Combinations [Abstract]
Unaudited results of operations	December 31, 2014 2013 (Unaudited) (Unaudited) Revenues $ 614,879 $ 1,224,923 Net income (loss) $ (291,126 ) $ 320,661

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
	Dec. 31, 2014
Debt Disclosure [Abstract]
Notes Payable	September 30, 2014 June 30, 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. $ 730,964 $ 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. 1,112,629 1,107,435 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. 278,871 274,871 Notes 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 32,580 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. The note is currently in default. 13,786 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 2,168,830 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. 541,003 533,318 Notes payable to related parties, unsecured, interest at 0% to 8%, due on demand. 144,430 142,430 Note payable, unsecured, interest at 10%. The note was due in January 2010 and is now in default. 29,667 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. 290,354 287,129 Subtotal notes payable 1,005,454 992,044 Total $ 3,174,284 $ 3,142,219
Notes payable- Balance Sheet presentation	September 30, 2014 June 30, 2014 Notes payable $ 500,119 $ 493,017 Notes payable, related party 2,674,165 2,649,202 Total $ 3,174,284 $ 3,142,219

Stock Options and Warrants (Tab

Stock Options and Warrants (Tables)	6 Months Ended
	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Options	Number of Weighted - Average Shares Exercise Price Outstanding at June 30, 2014 3,056,500 $ 0.42 Granted — $ 0.00 Forfeited (454,000 ) $ 0.42 Outstanding at December 31, 2014 2,602,500 $ 0.42 Exercisable at December 31, 2014 2,602,500 $ 0.42
Additional information regarding outstanding options	Options Outstanding at December 31, 2014 Options Exercisable at December 31, 2014 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 2,602,500 4.14 $ 0.42 2,602,500 $ 0.42 2,602,500 2,602,500

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Jun. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income (loss)	$ (41,821)	$ (9,593)	$ (283,826)	$ 403,430
Working capital deficit	4,795,615		4,795,615
Stockholders' deficiency	(4,717,889)		(4,717,889)		$ (4,582,088)
Note payable obligations - in default	3,238,032		3,238,032
Payroll taxes and accrued interest and penalties	$ 511,076		$ 511,076		$ 539,218

Significant Accounting Polici25

Significant Accounting Policies - Basic and diluted income per share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Accounting Policies [Abstract]
Net income (loss)	$ (41,821)	$ (9,593)	$ (283,826)	$ 403,430
Weighted average common shares - basic	16,359,762	15,920,088	16,177,425	15,920,088
Dilutive effect of outstanding stock options				2,500,000
Dilutive effect of convertible notes payable				812,005
Weighted average shares outstanding - diluted	16,359,762	15,920,088	16,177,425	19,232,093

Significant Accounting Polici26

Significant Accounting Policies - Summary of securities excluded from EPS calculation (Details) - shares	Dec. 31, 2014	Dec. 31, 2013
Accounting Policies [Abstract]
Series H Preferred Stock	10,000	10,000
Warrants		275,000
Convertible Notes Payable	15,630,841	7,326,220
Options	2,602,500	631,500
Total	18,243,341	8,242,720

Significant Accounting Polici27

Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Jun. 30, 2014
Foreign revenues	34.00%	53.00%	39.00%	68.00%
Taiwan
Foreign revenues	13.00%	23.00%	17.00%	21.00%
China
Foreign revenues	9.00%		8.00%
Other
Foreign revenues	8.00%		4.00%
Korea
Foreign revenues		30.00%	10.00%	47.00%
Customer 1
Sales percentage from major customers	19.00%	30.00%	21.00%	21.00%
Customer 2
Sales percentage from major customers	15.00%	19.00%	11.00%	18.00%
Customer 3
Sales percentage from major customers	11.00%	17.00%	10.00%
Customer 4
Sales percentage from major customers	10.00%
24%
Accounts receivable	$ 11,000		$ 11,000
22%
Accounts receivable	10,050		10,050
14%
Accounts receivable	6,500		6,500
11%
Accounts receivable	$ 5,000		$ 5,000
69%
Accounts receivable					$ 86,361
19%
Accounts receivable					$ 23,250

Restricted Cash (Details Narrat

Restricted Cash (Details Narrative) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Accounting Policies [Abstract]
Restricted Cash	$ 55,480	$ 51,957

Acquisition - Unaudited results

Acquisition - Unaudited results of operations (Details) - USD ($)	6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Business Combinations [Abstract]
Revenues	$ 614,879	$ 1,224,923
Net income (loss)	$ (291,126)	$ 320,661

Acquisition (Details Narrative)

Acquisition (Details Narrative)	6 Months Ended
	Dec. 31, 2014USD ($)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

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Accounts payable, related party		$ 87,610	$ 78,753	$ 78,753
Larry Johanns
Ownership of TMG	50.00%
Van Tran
Ownership of TMG	50.00%

Notes Payable - Notes Payable (

Notes Payable - Notes Payable (Details) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Convertible notes payable, non-related paries	$ 2,219,169	$ 2,150,175
Promissory Notes Payable	1,018,863	992,044
Notes payable	3,238,032	3,142,219
Unsecured, due Sept 2010 to Nov 2010
Convertible notes payable	740,044	720,302
Convertible notes payable, non-related paries	$ 138,120	$ 130,898
Interest rate	8.00%	8.00%
Conversion price	$ .30	$ .30
Unsecured, due Nov 2010
Convertible notes payable	$ 1,149,322	$ 1,107,435
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	$ 282,871	$ 274,871
Interest rate	8.00%	8.00%
Conversion price	$ .25	$ .25
Secured, due on demand
Convertible notes payable	$ 32,945	$ 32,215
Interest rate	5.00%	5.00%
Conversion price	$ .08	$ .08
Unsecured, due Jan 2011 to March 2013
Convertible notes payable	$ 13,987	$ 13,586
Interest rate	5.00%	5.00%
Interest rate, maximum	8.00%	8.00%
Conversion price	$ .30	$ .30
Conversion price, maximum	$ .40	$ .40
Unsecured, due Nov 2009
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%
Promissory Notes Payable	$ 548,688	$ 533,318
Unsecured, due on demand
Interest rate	0.00%	0.00%
Interest rate, maximum	8.00%	8.00%
Promissory Notes Payable	$ 146,430	$ 142,430
Unsecured, due Jan 2010
Interest rate	10.00%	10.00%
Promissory Notes Payable	$ 30,167	$ 29,167
Secured, due Dec 2012
Promissory Notes Payable	$ 293,578	$ 287,129

Notes Payable - Notes payable-

Notes Payable - Notes payable- Balance Sheet presentation (Details) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Debt Disclosure [Abstract]
Notes payable	$ 507,300	$ 493,017
Notes payable, related party	2,730,732	2,649,202
Total	$ 3,238,032	$ 3,142,219

Stockholders' Deficiency (Detai

Stockholders' Deficiency (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended		12 Months Ended
	Sep. 30, 2014	Dec. 31, 2014	Dec. 31, 2013	Jun. 23, 2014	Jun. 15, 2014	Jun. 30, 2014
Convertible preferred stock, par value		$ 1
Convertible preferred stock, shares authorized		10,000,000
Convertible preferred stock, shares issued		1,000
Convertible preferred stock, shares outstanding		1,000
Shares issued for acquisitions, shares	250,000
Shares issued for services, shares		125,000
Shares issued for services, fair value		$ 11,650	$ 2,785
Shares issued to directors, shares		225,000
Shares issued to directors, value		$ 25,250
Consulting Agreement
Stock issued					5,000
Obligation to issue stock, Shares		30,000
Stock issued, aggregate fair value		$ 3,200
Stock issued, aggregate fair value, price per share		$ 0.13
Shares authorized but unissued		20,000
Advisory Agreement
Stock issued				5,000
Obligation to issue stock, Shares		30,000
Stock issued, aggregate fair value		$ 3,450
Stock issued, aggregate fair value, price per share		$ 0.12
Shares authorized but unissued		10,000
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
Series H convertible preferred stock to common stock		10				10

Stock Options - Summary of Stoc

Stock Options - Summary of Stock Options (Details) - $ / shares	6 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Beginning number of shares; outstanding	3,056,500
Beginning weighted-average exercise price; outstanding	$ 0.42
Options Granted		2,500,000
Options granted, weighted average exercise price	$ 0
Options Forfeited	(454,000)
Options Forfeited, weighted average exercise price	$ .42
Ending number of shares; outstanding	2,602,500
Ending weighted-average exercise price; outstanding	$ 0.42
Number of Shares; exercisable	2,602,500
Weighted-average exercise price; exercisable	$ 0.42

Stock Options - Additional info

Stock Options - Additional information regarding outstanding options (Details) - $ / shares	6 Months Ended	12 Months Ended
	Dec. 31, 2014	Jun. 30, 2015
Options outstanding, shares		2,602,500
Weighted average remaining contractual life	4 years 4 months	4 years 1 month
Options excercisable		2,602,500
Options exercisable, weighted average exercise price		$ 0.42
Min
Weighted average exercise price	$ 0.13
Max
Weighted average exercise price	$ 1.45

Stock Options (Details Narrativ

Stock Options (Details Narrative) - shares	6 Months Ended	12 Months Ended
	Dec. 31, 2014	Jun. 30, 2015	Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options granted			2,500,000
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.
Weighted average remaining contractual life	4 years 4 months	4 years 1 month