Veritec (VRTC) 10-Q 21 Mar 16 2015 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Sep. 30, 2015shares
Document And Entity Information
Entity Registrant Name	VERITEC INC
Entity Central Index Key	773,318
Document Type	10-Q
Document Period End Date	Sep. 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 Common Stock, Shares Outstanding	38,723,007
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,015

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2015	Jun. 30, 2015
Current Assets:
Cash	$ 45,012	$ 52,762
Accounts receivable	29,357	38,749
Inventories	11,544	14,461
Prepaid expenses	10,738	18,234
Total Current Assets	96,650	124,206
Restricted cash	64,484	63,029
Property and Equipment, net	480	583
Intangibles, net	128,333	144,375
Total Assets	289,948	332,193
Current Liabilities:
Notes payable - in default	528,181	521,610
Notes payable, related party - in default	749,090	3,041,097
Accounts payable	650,065	630,490
Accounts payable, related party	96,110	96,110
Customer deposits	25,482	25,482
Deferred revenues	448,652	492,603
Payroll tax liabilities	409,377	453,277
Accrued expenses	75,374	22,957
Total Current Liabilities	2,982,329	5,283,626
Contingent earnout liability	155,000	155,000
Total Liabilities	3,137,329	5,438,626
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 September 30, 2015 and June 30, 2015, respectively	1,000	1,000
Common stock, par value $.01; authorized 50,000,000 shares, 38,723,007 and 16,530,088 shares issued and outstanding as of September 30, 2015 and June 30, 2015, respectively	387,230	165,301
Common stock to be issued, 955,000 shares and 940,000 shares, respectively	53,200	51,800
Additional paid-in capital	17,789,594	14,959,006
Accumulated deficit	(21,078,405)	(20,283,540)
Total Stockholders' Deficiency	(2,847,381)	(5,106,433)
Total Liabilities and Stockholders' Deficiency	$ 289,948	$ 332,193

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Jun. 30, 2015
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	$ 0.01
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	38,723,007	16,530,088
Common stock, shares outstanding	38,723,007	16,530,085
Common stock, shares to be issued	955,000	940,000
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
Common stock, par value	$ 1,000	$ 1,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Mobile banking technology revenue	$ 67,263	$ 69,237
Barcode technology revenue	133,714	85,689
Total revenue	200,976	154,926
Cost of Sales	86,636	69,180
Gross Profit	114,340	85,746
Operating Expenses:
General and administrative	214,544	122,633
Sales and marketing	14,075	29,196
Research and development	15,858	31,481
Total Operating Expenses	247,204	183,310
Loss from Operations	(132,864)	(97,564)
Other Expense:
Interest expense and finance costs, including $655,265 and $137,316, respectively, to related parties	(662,000)	(144,440)
Total Other Expense	(662,000)	(144,440)
Net Loss	$ (794,864)	$ (242,004)
Net Income (Loss) Per Common Share
Basic	$ (0.05)	$ (0.02)
Diluted	$ (0.05)	$ (0.02)
Weighted Average Number of Shares Outstanding
Basic	16,776,676	15,995,912
Diluted	16,776,676	15,995,912

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Interest expense, related parties	$ 655,265	$ 137,316

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Stockholders' Deficiency (Unaudited)	3 Months Ended
	Sep. 30, 2015USD ($)shares
Preferred Stock
Beginning balance, Shares | shares	1,000
Beginning balance, Amount	$ 1,000
Shares issued on conversion of notes payable, Shares | shares
Shares issued on conversion of notes payable, Amount
Shares issued for services, shares | shares
Shares issued for services, amount
Beneficial conversion feature on issuance of convertible notes payable
Fair value of shares issued as inducement for conversion of notes payable
Modification cost of conversion feature of note payable
Gain on sale of assets to related party treated as a capital contribution
Net loss
Ending balance, Shares | shares	1,000
Ending balance, Amount	$ 1,000
Common Stock
Beginning balance, Shares | shares	16,530,088
Beginning balance, Amount	$ 165,301
Shares issued on conversion of notes payable, Shares | shares	22,192,919
Shares issued on conversion of notes payable, Amount	$ 221,929
Shares issued for services, shares | shares
Shares issued for services, amount
Beneficial conversion feature on issuance of convertible notes payable
Fair value of shares issued as inducement for conversion of notes payable
Modification cost of conversion feature of note payable
Gain on sale of assets to related party treated as a capital contribution
Net loss
Ending balance, Shares | shares	38,723,007
Ending balance, Amount	$ 387,230
CommonStockToBeIssuedMember
Beginning balance, Amount	$ 51,800
Shares issued on conversion of notes payable, Amount
Shares issued for services, amount	$ 1,400
Beneficial conversion feature on issuance of convertible notes payable
Fair value of shares issued as inducement for conversion of notes payable
Modification cost of conversion feature of note payable
Gain on sale of assets to related party treated as a capital contribution
Net loss
Ending balance, Amount	$ 53,200
Additional Paid-In Capital
Beginning balance, Amount	14,959,006
Shares issued on conversion of notes payable, Amount	$ 1,553,505
Shares issued for services, amount
Beneficial conversion feature on issuance of convertible notes payable	$ 18,313
Fair value of shares issued as inducement for conversion of notes payable	452,770
Modification cost of conversion feature of note payable	136,000
Gain on sale of assets to related party treated as a capital contribution	$ 670,000
Net loss
Ending balance, Amount	$ 17,789,594
Accumulated Deficit
Beginning balance, Amount	$ (20,283,541)
Shares issued on conversion of notes payable, Amount
Shares issued for services, amount
Beneficial conversion feature on issuance of convertible notes payable
Fair value of shares issued as inducement for conversion of notes payable
Modification cost of conversion feature of note payable
Gain on sale of assets to related party treated as a capital contribution
Net loss	$ (794,864)
Ending balance, Amount	(21,078,405)
Beginning balance, Amount	(5,106,433)
Shares issued on conversion of notes payable, Amount	1,775,434
Shares issued for services, amount	1,400
Beneficial conversion feature on issuance of convertible notes payable	18,313
Fair value of shares issued as inducement for conversion of notes payable	452,770
Modification cost of conversion feature of note payable	136,000
Gain on sale of assets to related party treated as a capital contribution	670,000
Net loss	(794,864)
Ending balance, Amount	$ (2,847,381)

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (794,864)	$ (242,004)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation	103	$ 103
Amortization	16,042
Shares issued for services	1,400	$ 8,250
Beneficial conversion feature on convertible notes payable	18,313	$ 98,875
Fair value of shares issued as inducement for conversion of notes payable	452,770
Modification cost of conversion feature of note payable	136,000
Interest accrued on notes payable	53,997	$ 45,565
Changes in operating assets and liabilities:
Accounts receivable	9,392	(22,684)
Restricted cash	(1,455)	(2,649)
Inventories	2,917	4,074
Prepaid expenses	7,496	7,404
Deferred revenues	(43,951)	212,388
Payroll tax liabilities	$ (43,900)	(13,841)
Customer deposits		(5,517)
Accounts payables and accrued expenses	$ 71,991	(82,332)
Net cash (used in) provided by operating activities	(113,750)	7,632
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable, related party	108,500	126,500
Payments on notes payable, related party	(2,500)	(140,000)
Net cash provided by (used in) financing activities	106,000	(13,500)
NET DECREASE IN CASH	(7,750)	(5,868)
CASH AT BEGINNING OF YEAR	52,762	24,665
CASH AT END OF YEAR	$ 45,012	$ 18,797
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest
NON CASH INVESTING AND FINANCING ACTIVITIES
Related party capital contribution on sale of assets offset to related party notes payable balance	$ 670,000
Conversion of notes payable into common stock	$ 1,775,434
Common stock issued for acquisition		$ 37,500
Contingent earnout liability from acquisitions		$ 155,000

Nature of Business

Nature of Business	3 Months Ended
	Sep. 30, 2015
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 is primarily engaged in the development, marketing, sales and licensing of products and rendering of professional services related to mobile banking technology as defined below. On September 30, 2015, the Company sold its barcode technology assets to a related party (See Note 7) and ceased any future sales and support efforts for this product line. Subsequent to September 30, 2015, the Company is currently focusing exclusively on its mobile banking technology business. 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 (ISO) 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 process the Company’s Visa branded card program on behalf of the bank. First California Bank was sold to Pacific Western Bank and in June 2013 Pacific Western Bank closed its entire debit card division and transferred its contract with VTFS to Central Bank of Kansas City. 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). Barcode Technology (Sold September 30, 2015) 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 and included products that contained our VeriCode ® Barcode Technology for identification and tracking of manufactured parts, components and products mostly in the liquid crystal display markets. On September 30, 2015, the Company sold all of its assets of its Barcode Technology, which was comprised solely of its intellectual property, to The Matthews Group, a related party (see Note 7). The sale allows the Company to focus its efforts solely on its growing Mobile Banking Technology. 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	3 Months Ended
	Sep. 30, 2015
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 month period ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending June 30, 2016. The Condensed Consolidated Balance Sheet as of September 30, 2015 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, 2015. 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	3 Months Ended
	Sep. 30, 2015
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 three months ended September 30, 2015, the Company incurred a net loss of $794,864. At September 30, 2015, the Company had a working capital deficit of $2,885,679 and a stockholders’ deficiency of $2,847,382. In addition, as of September 30, 2015, the Company is delinquent in payment of $1,277,270 of its notes payable and is also delinquent in payment of $409,377 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 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, 2015, 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 2016 without continued external investment. The Company 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.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Significant Accounting Policies	NOTE 4. SIGNIFICANT ACCOUNTING POLICIES Net 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 three months ended September 30, 2015 and 2014, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an anti-dilutive effect. As of September 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. September 30, 2015 2014 Series H preferred stock $ 10,000 $ 10,000 Convertible notes payable 5,452,696 15,392,058 Options 2,510,000 3,056,500 Total 7,972,696 18,458,558 Concentrations Revenues During the three months ended September 30, 2015 and 2014, the Company had one customer that accounted for approximately 12% of sales in 2015 and two customers that accounted for approximately 24% and 19% of sales in 2014, respectively. No other customers accounted for more than 10% of sales in either period. Foreign Revenues Foreign revenues accounted for 65% (20% Taiwan, 18% China, 10% Korea, and 17% others) of the Company’s total revenues in fiscal 2015 and 45% (9% Korea, 19% Taiwan, and 17% others) in fiscal 2014. Accounts Receivable As of September 30, 2015, the Company had approximately $7,750 (26%), $5,000 (17%), $4,500 (15%) and $3,867 (13%) of accounts receivable due from its major customers. 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 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. 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	3 Months Ended
	Sep. 30, 2015
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 September 30, 2015 and June 30, 2015, the restricted cash totaled $64,484 and $63,029, 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	3 Months Ended
	Sep. 30, 2015
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. During the three months ended September 30, 2015 and 2014, the Company recorded amortization expense of $16,042 and $0, respectively. The following table presents our unaudited pro forma combined historical results of operations for the three months ended September 30, 2014 as if we had consummated the acquisition as of July 1, 2014. September 30, 2014 (Unaudited) Revenues $ 217,051 Net loss $ (254,304 )

Notes Payable

Notes Payable	3 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Notes Payable	NOTE 7. NOTES PAYABLE Notes payable includes accrued interest and consists of the following as of September 30, 2015 and June 30, 2015: September 30, 2015 June 30, 2015 Convertible Notes Payable Convertible notes payable (includes $139,921 and $138,120, 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. On September 30, 2015, $70,699 of notes were converted at $0.08 per share into 887,738 shares of common stock (see (1) below), $100,000 of notes were settled from the sale of assets (see (2) below), and $2,500 of principal was paid. $ 595,616 $ 759,763 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%, and due on demand to November 2010. The notes are currently in default. On September 30, 2015, $1,032,991 of notes were converted at $0.08 per share into 12,912,388 shares of common stock (see (1) below) and $425,699 of notes were settled from the sale of assets (see (2) below). During the three months ended September 30, 2015, $108,500 of convertible notes were issued that are convertible in shares of common stock at a price of $0.08 per share. The market price on the date the convertible notes were issued was in excess of the conversion price and the difference was recognized as a beneficial conversion feature of $18,313 and is recorded as interest expense and finance costs and additional paid in capital. 90,394 1,414,260 Convertible note payable to related party, unsecured, principal and interest are convertible into common stock at $0.08, interest at 10% and due on demand. On September 30, 2015, this note was issued to replace an outstanding note (see 3 below). 200,000 — 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 was in default. On September 30, 2015, the note totaled $294,871 and $94,871 was settled from the sale of assets (see (1) below) and $200,000 was replaced by another note (see 3 below). — 290,871 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. The notes are now in default. 34,053 33,688 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 in default. 14,586 14,385 Subtotal convertible notes 934,649 2,512,967 Promissory Notes Note payable to related party, secured by the Company’s intellectual property, interest at 8% due August 2010 and was in default. On September 30, 2015, the note totaled $571,743 and was converted at a price of $0.08 per share into 7,146,794 shares of common stock (see (1) below). — 564,058 Notes payable to related parties, unsecured, interest at 0% to 8%, due on demand. On September 30, 2015, $100,000 of notes were converted at $0.08 per share into 1,250,000 shares of common stock (see (1) below) and $49,430 of notes were settled from the sale of assets (see (2) below). 3,000 150,430 Note payable, unsecured, interest at 10%. The note was due in January 2010 and is in default. 32,283 31,783 Note payable, secured by the Company's intellectual property, interest at variable rates starting September 1, 2012, due December 2012 and is in default. 307,338 303,469 Subtotal notes payable 342,621 1,049,740 Total $ 1,227,270 $ 3,562,707 During the three months ended September 30, 2015 and 2014, the Company recorded interest on its convertible notes payable and promissory notes of $53,997 and $45,565, respectively. (1) On September 30, 2015, the Company agreed to convert $1,775,433 of various notes payable to The Matthews Group into 22,122,919 shares of common stock, or $0.08 per share. The Matthews Group is 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 (see Note 10). The transaction included $670,038 of notes payable that were converted at less than their stated conversion prices which ranged from $0.10 per share to $0.33 per share. The Company determined this was an induced conversion and calculated an inducement expense of $452,770, which represents the fair value of the additional number of common shares issued as a result of the lower conversion price. The Company recorded the $452,770 in interest expense and finance costs and additional paid in capital. No similar expense occurred during the same period of the prior year. (2) On September 30 2015, the Company sold its Barcode Technology assets to The Matthews Group for $670,000 in settlement of various notes payables due to The Matthews Group. The cost basis of the Barcode Technology assets were zero, resulting in a gain of $670,000. As the transaction was between the Company and The Matthews Group, a related party, the Company accounted for the gain as a capital contribution. (3) On September 28, 2015, the Company agreed to replace a convertible note payable for $200,000 due The Matthews Group that was in default (the original note) with another convertible note payable for $200,000 due to the Matthews Group (the replacement note). The original note was for $200,000, secured, 8% interest rate, and convertible into common stock at a rate of $0.25 per share. The replacement note is for $200,000, unsecured, 10% interest rate, and convertible into common stock at a rate of $0.08 per share. The Company determined that the change in the fair value of the conversion option was more than 10% of the carrying value of the original note and recorded a loss on extinguishment of $136,000. The $136,000 is included in interest expense and finance costs and additional paid in capital. No similar expense occurred during the same period of the prior year. For the purposes of Balance Sheet presentation notes payable have been presented as follows: September 30, 2015 June 30, 2015 Notes payable $ 528,181 $ 521,610 Notes payable, related party 749,090 3,041,097 Total $ 1,277,270 $ 5,562,707

Stockholders' Deficiency

Stockholders' Deficiency	3 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Stockholders' Equity (Deficit)	NOTE 8 - STOCKHOLDERS’ DEFICIENCY 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. As of June 30, 2015, 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. As of September 30, 2015 and 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. The Common shares were issued in December 2015. 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 September 30, 2015 and June 30, 2015 and have been reflected as common shares to be issued in the accompanying consolidated balance sheet. The common shares were issued in December 2015.

Stock Options

Stock Options	3 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	NOTE 9 – STOCK OPTIONS Stock Options A summary of stock options for the three months ended September 30, 2015 is as follows: Number of Shares Weighted-Average Exercise Price Outstanding at June 30, 2015 2,520,000 $ 0.42 Granted — $ 0.00 Forfeited (10,000 ) $ 0.42 Outstanding at September 30, 2015 2,510,000 $ 0.42 Exercisable at September 30, 2015 2,510,000 $ 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 during the three months ended September 30, 2015 under this agreement. The Company recognized no stock-based compensation expense related to stock options during the three months ended September 30, 2015 and 2014, respectively. As of September 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 September 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 September 30, 2015 is as follows: Options Outstanding at September 30, 2015 Options Exercisable at September 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 2,510,000 4.49 $ 0.42 2,510,000 $ 0.42 2,510,000 2,510,000 The weighted-average remaining contractual life of stock options outstanding and exercisable at September 30, 2015 is 4.49 years.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 10. RELATED PARTY TRANSACTIONS The Company has relied on The Matthews Group, LLC, 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. For the three months ended September 30, 2015 and 2014, rental payments to Ms. Van Tran totaled $12,750 and $12,750, respectively. During the year ended June 30, 2015, the Company received various unsecured, non-interest bearing, due on demand advances from its CEO Ms. Van Tran, a related party. No additional advances were received from Ms. Tran during the three months ended September 30, 2015. The balances due Ms. Tran as of September 30, 2015 and June 30, 2015 were $96,110 and $96,110, respectively. These advances have been classified as accounts payable, related party on the accompanying consolidated balance sheets.

Subsequent Events

Subsequent Events	3 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	NOTE 11. SUBSEQUENT EVENTS Effective October 1, 2015, the Company entered into a management agreement with The Matthews Group to manage the barcode technology assets sold to The Matthews Group. The term of the management agreement is from October 1, 2015 to May 30, 2016 and the Company will earn a management fee equal to 20% of the revenue collected for the barcode technology during the period and will be reimbursed for all engineering time and costs incurred.. On January 17, 2016, Veritec Inc. (the “Company”) entered into an agreement with Vietnam Alliance Capital (“VAC”), which 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.

Significant Accounting Polici19

Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Net Loss per Common Share	Net 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 three months ended September 30, 2015 and 2014, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an anti-dilutive effect. As of September 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. September 30, 2015 2014 Series H preferred stock $ 10,000 $ 10,000 Convertible notes payable 5,452,696 15,392,058 Options 2,510,000 3,056,500 Total 7,972,696 18,458,558
Revenues	Revenues During the three months ended September 30, 2015 and 2014, the Company had one customer that accounted for approximately 12% of sales in 2015 and two customers that accounted for approximately 24% and 19% of sales in 2014, respectively. No other customers accounted for more than 10% of sales in either period.
Foreign Revenues	Foreign Revenues Foreign revenues accounted for 65% (20% Taiwan, 18% China, 10% Korea, and 17% others) of the Company’s total revenues in fiscal 2015 and 45% (9% Korea, 19% Taiwan, and 17% others) in fiscal 2014.
Accounts Receivable	Accounts Receivable As of September 30, 2015, the Company had approximately $7,750 (26%), $5,000 (17%), $4,500 (15%) and $3,867 (13%) of accounts receivable due from its major customers. 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
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)	3 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Summary of securities excluded from EPS calculation	September 30, 2015 2014 Series H preferred stock $ 10,000 $ 10,000 Convertible notes payable 5,452,696 15,392,058 Options 2,510,000 3,056,500 Total 7,972,696 18,458,558

Acquisition (Tables)

Acquisition (Tables)	3 Months Ended
	Sep. 30, 2015
Business Combinations [Abstract]
Unaudited results of operations	September 30, 2014 (Unaudited) Revenues $ 217,051 Net loss $ (254,304 )

Notes Payable (Tables)

Notes Payable (Tables)	3 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Notes Payable	NOTE 7. NOTES PAYABLE Notes payable includes accrued interest and consists of the following as of September 30, 2015 and June 30, 2015: September 30, 2015 June 30, 2015 Convertible Notes Payable Convertible notes payable (includes $139,921 and $138,120, 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. On September 30, 2015, $70,699 of notes were converted at $0.08 per share into 887,738 shares of common stock (see (1) below), $100,000 of notes were settled from the sale of assets (see (2) below), and $2,500 of principal was paid. $ 595,616 $ 759,763 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%, and due on demand to November 2010. The notes are currently in default. On September 30, 2015, $1,032,991 of notes were converted at $0.08 per share into 12,912,388 shares of common stock (see (1) below) and $425,699 of notes were settled from the sale of assets (see (2) below). During the three months ended September 30, 2015, $108,500 of convertible notes were issued that are convertible in shares of common stock at a price of $0.08 per share. The market price on the date the convertible notes were issued was in excess of the conversion price and the difference was recognized as a beneficial conversion feature of $18,313 and is recorded as interest expense and finance costs and additional paid in capital. 90,394 1,414,260 Convertible note payable to related party, unsecured, principal and interest are convertible into common stock at $0.08, interest at 10% and due on demand. On September 30, 2015, this note was issued to replace an outstanding note (see 3 below). 200,000 — 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 was in default. On September 30, 2015, the note totaled $294,871 and $94,871 was settled from the sale of assets (see (1) below) and $200,000 was replaced by another note (see 3 below). — 290,871 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. The notes are now in default. 34,053 33,688 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 in default. 14,586 14,385 Subtotal convertible notes 934,649 2,512,967 Promissory Notes Note payable to related party, secured by the Company’s intellectual property, interest at 8% due August 2010 and was in default. On September 30, 2015, the note totaled $571,743 and was converted at a price of $0.08 per share into 7,146,794 shares of common stock (see (1) below). — 564,058 Notes payable to related parties, unsecured, interest at 0% to 8%, due on demand. On September 30, 2015, $100,000 of notes were converted at $0.08 per share into 1,250,000 shares of common stock (see (1) below) and $49,430 of notes were settled from the sale of assets (see (2) below). 3,000 150,430 Note payable, unsecured, interest at 10%. The note was due in January 2010 and is in default. 32,283 31,783 Note payable, secured by the Company's intellectual property, interest at variable rates starting September 1, 2012, due December 2012 and is in default. 307,338 303,469 Subtotal notes payable 342,621 1,049,740 Total $ 1,227,270 $ 3,562,707
Notes payable- Balance Sheet presentation	September 30, 2015 June 30, 2015 Notes payable $ 528,181 $ 521,610 Notes payable, related party 749,090 3,041,097 Total $ 1,277,270 $ 5,562,707

Stock Options (Tables)

Stock Options (Tables)	3 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Options	Number of Shares Weighted-Average Exercise Price Outstanding at June 30, 2015 2,520,000 $ 0.42 Granted — $ 0.00 Forfeited (10,000 ) $ 0.42 Outstanding at September 30, 2015 2,510,000 $ 0.42 Exercisable at September 30, 2015 2,510,000 $ 0.42
Additional information regarding outstanding options	Options Outstanding at September 30, 2015 Options Exercisable at September 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 2,510,000 4.49 $ 0.42 2,510,000 $ 0.42 2,510,000 2,510,000

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income (loss)	$ (794,864)	$ (242,004)
Working capital deficit	2,885,679
Stockholders' deficiency	(2,847,381)		$ (5,106,433)
Note payable obligations - in default	1,277,270
Payroll taxes and accrued interest and penalties	$ 409,377		$ 453,277

Significant Accounting Polici25

Significant Accounting Policies - Summary of securities excluded from EPS calculation (Details) - shares	Sep. 30, 2015	Sep. 30, 2014
Accounting Policies [Abstract]
Series H Preferred Stock	10,000	10,000
Convertible Notes Payable	5,452,696	15,392,058
Options	2,510,000	3,056,500
Total	7,972,696	18,458,558

Significant Accounting Polici26

Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Foreign revenues	65.00%	45.00%
Taiwan
Foreign revenues	20.00%	19.00%
China
Foreign revenues	18.00%
Korea
Foreign revenues	10.00%	9.00%
Other
Foreign revenues	17.00%	17.00%
Customer 1
Sales percentage from major customers	12.00%	24.00%
Customer 2
Sales percentage from major customers		19.00%
26%
Accounts receivable	$ 750
17%
Accounts receivable	5,000
15%
Accounts receivable	4,500		$ 5,650
13%
Accounts receivable	$ 3,867
16%
Accounts receivable			6,025
12%
Accounts receivable			$ 4,575

Restricted Cash (Details Narrat

Restricted Cash (Details Narrative) - USD ($)	Sep. 30, 2015	Jun. 30, 2015
Accounting Policies [Abstract]
Restricted Cash	$ 64,484	$ 63,029

Acquisition - Unaudited results

Acquisition - Unaudited results of operations (Details)	3 Months Ended
	Sep. 30, 2014USD ($)
Business Combinations [Abstract]
Revenues	$ 217,051
Net income (loss)	$ (254,304)

Acquisition (Details Narrative)

Acquisition (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Business Combinations [Abstract]
Shares issued	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	$ 16,042	$ 0

Notes Payable - Notes Payable (

Notes Payable - Notes Payable (Details) - USD ($)	3 Months Ended
	Sep. 30, 2015	Jun. 30, 2015
Convertible notes payable	$ 200,000
Convertible notes payable, non-related paries	$ 934,649	$ 2,512,967
Interest rate	8.00%	8.00%
Interest rate, maximum	10.00%	10.00%
Promissory Notes Payable	$ 342,621	$ 1,049,740
Notes payable	1,227,270	3,562,707
Unsecured, due Sept 2010 to Nov 2010
Convertible notes payable	595,616	759,763
Convertible notes payable, non-related paries	$ 139,921	$ 138,120
Interest rate	8.00%	8.00%
Conversion price	$ .30	$ .30
Notes settled	$ 100,000	$ 100,000
Principal paid	2,500	2,500
Unsecured, due Nov 2010
Convertible notes payable	90,394	$ 1,414,260
Converted shares of common stock, value	$ 1,032,991
Converted shares of common stock	12,912,388
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
Notes settled	$ 425,699
Convertible notes issued	108,500
Beneficial conversion feature	$ 18,313
Secured, due Nov 2010
Convertible notes payable		$ 290,871
Interest rate	8.00%	8.00%
Conversion price	$ .25	$ .25
Notes settled	$ 294,871	$ 94,871
Replaced by another note	200,000
Secured, due on demand
Convertible notes payable	$ 34,053	$ 33,688
Interest rate	5.00%	5.00%
Conversion price	$ .08	$ .08
Unsecured, due Jan 2011 to March 2013
Convertible notes payable	$ 14,586	$ 14,385
Interest rate	5.00%	5.00%
Interest rate, maximum	8.00%	8.00%
Conversion price	$ .30	$ .30
Conversion price, maximum	$ .40	$ .40
Secured, due Aug 2010
Converted shares of common stock, value	$ 571,743
Converted shares of common stock	7,146,794
Interest rate	8.00%	8.00%
Promissory Notes Payable		$ 564,058
Unsecured, due on demand
Converted shares of common stock, value	$ 100,000
Converted shares of common stock	1,250,000
Interest rate	0.00%	0.00%
Interest rate, maximum	8.00%	8.00%
Notes settled	$ 49,430
Promissory Notes Payable	$ 3,000	$ 150,430
Unsecured, due Jan 2010
Interest rate	10.00%	10.00%
Promissory Notes Payable	$ 32,283	$ 31,783
Secured, due Dec 2012
Promissory Notes Payable	$ 307,338	$ 303,469

Notes Payable - Notes payable-

Notes Payable - Notes payable- Balance Sheet presentation (Details) - USD ($)	Sep. 30, 2015	Jun. 30, 2015
Debt Disclosure [Abstract]
Notes payable	$ 528,181	$ 521,610
Notes payable, related party	749,090	3,041,097
Total	$ 1,277,270	$ 5,562,707

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 28, 2015	Sep. 30, 2014	Jun. 30, 2015
Recorded interest on notes	$ 53,997		$ 45,565
Convertible notes payable	$ 200,000
Interest rate	8.00%			8.00%
Interest rate, maximum	10.00%			10.00%
Matthews Group
Converted shares of common stock, value	$ 1,775,433
Converted shares of common stock	22,122,919
Interest rate	8.00%
Ownership by CEO and stockholder	50.00%
Conversion price	$ .10
Conversion price, maximum	$ .33
Interest expense and finance costs	$ 452,770
Matthews Group Replacement
Interest rate		8.00%
Interest rate, maximum		10.00%
Ownership by CEO and stockholder		8.00%
Conversion price		$ .25
Interest expense and finance costs		$ 136,000
Replaced by another note		$ 200,000
Barcode Technology
Notes settled	$ 670,000

Stockholders Deficiency (Detail

Stockholders Deficiency (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015	Jul. 15, 2014	Jun. 23, 2014
Common stock issued			$ 1,400	$ 8,250
Consulting Agreement
Cash compensation, shares						5,000
Common stock to be issued			$ 8,900		$ 7,400
Common stock to be issued, shares			65,000		50,000
Obligation to issue shares			15,000
Obligation to issue shares, value			$ 1,400
Advisory Agreement
Cash compensation, shares							5,000
Common stock to be issued			$ 1,900		$ 1,900
Common stock to be issued, shares			15,000		15,000
Business Development Agreement
Common stock issued	50,000	50,000	50,000
Common stock issued	$ 3,869	$ 3,869	$ 7,000
Common stock to be issued			$ 7,000		$ 7,000
Common stock to be issued, shares			50,000		50,000

Stock Options - Summary of Stoc

Stock Options - Summary of Stock Options (Details) - $ / shares	3 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Beginning number of shares; outstanding	2,520,000
Beginning weighted-average exercise price; outstanding	$ 0.42
Options Granted		2,500,000
Options granted, weighted average exercise price	$ 0
Options Forfeited	(10,000)
Options Forfeited, weighted average exercise price	$ .42
Ending number of shares; outstanding	2,510,000
Ending weighted-average exercise price; outstanding	$ 0.42
Number of Shares; exercisable	2,510,000
Weighted-average exercise price; exercisable	$ 0.42

Stock Options - Additional info

Stock Options - Additional information regarding outstanding options (Details)	3 Months Ended
	Sep. 30, 2015$ / sharesshares
Options outstanding, shares | shares	2,510,000
Weighted average remaining contractual life	4 years 5 months
Options excercisable | shares	2,510,000
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	3 Months Ended	12 Months Ended
	Sep. 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 5 months

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2014
Rental payments	$ 12,750		$ 12,750
Accounts payable, related party	$ 96,110	$ 96,110	$ 96,110
Larry Johanns
Ownership of TMG		50.00%
Van Tran
Ownership of TMG		50.00%

Subsequent Events (Details Narr

Subsequent Events (Details Narrative)	6 Months Ended
	Mar. 30, 2016	Jan. 17, 2016
Management Agreement
Managament fee, percent of revenue	0.20
Veritec, Inc
Percent member in joint venture		30.00%
Vietnam Alliance Capital
Percent member in joint venture		70.00%