Veritec (VRTC) 10-Q 16 May 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Mar. 31, 2016shares
Document And Entity Information
Entity Registrant Name	VERITEC INC
Entity Central Index Key	773,318
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
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	39,538,007
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Current Assets:
Cash	$ 30,378	$ 52,762
Accounts receivable	$ 15,386	38,749
Inventories		14,461
Prepaid expenses	$ 758	18,234
Total Current Assets	46,522	124,206
Restricted cash	36,398	63,029
Property and Equipment, net	274	583
Intangibles, net	96,250	144,375
Total Assets	179,444	332,193
Current Liabilities:
Notes payable	542,214	521,610
Notes payable, related party	1,243,107	3,041,097
Accounts payable	618,941	630,490
Accounts payable, related party	96,110	96,110
Customer deposits	25,482	25,482
Deferred revenues	396,150	492,603
Payroll tax liabilities	322,477	453,277
Accrued expenses	66,841	22,957
Total Current Liabilities	3,311,322	5,283,626
Contingent earnout liability	155,000	155,000
Total Liabilities	3,466,322	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 March 31, 2016 and June 30, 2015, respectively	1,000	1,000
Common stock, par value $.01; authorized 50,000,000 shares, 39,538,007 and 16,530,088 shares issued and outstanding as of March 31, 2016 and June 30, 2015, respectively	395,380	165,301
Common stock to be issued, 155,000 shares and 940,000 shares, respectively	12,500	51,800
Additional paid-in capital	17,881,719	14,959,006
Accumulated deficit	(21,577,477)	(20,283,540)
Total Stockholders' Deficiency	(3,286,878)	(5,106,433)
Total Liabilities and Stockholders' Deficiency	$ 179,444	$ 332,193

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2016	Jun. 30, 2015
Convertible preferred stock, par value	$ 1	$ 1
Convertible preferred stock, shares authorized	10,000,000	10,000,000
Convertible preferred stock, shares issued	1,000
Convertible preferred stock, shares outstanding	1,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	39,538,007	16,530,088
Common stock, shares outstanding	39,538,007	16,530,085
Common stock, shares to be issued	155,000	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

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Revenue:
Mobile banking technology revenue	$ 59,803	$ 62,521	$ 198,524	$ 351,868
Barcode technology revenue		$ 109,664	133,714	$ 373,071
Other revenue, related party	$ 16,098		38,066
Total revenue	75,901	$ 172,185	370,304	$ 724,939
Cost of Sales	52,722	85,079	250,310	253,739
Gross Profit	23,179	87,106	119,994	471,200
Operating Expenses:
General and administrative	$ 170,451	201,175	567,468	571,135
Sales and marketing		16,660	16,641	61,856
Research and development	$ 17,248	25,007	59,064	82,365
Total Operating Expenses	187,699	242,842	643,173	715,356
Loss from Operations	(164,520)	(155,736)	(523,179)	(244,156)
Other Expense:
Interest expense and finance costs, including $45,581, $114,229, $750,699 and $290,112, respectively, to related parties	(51,658)	(122,339)	(770,758)	(312,746)
Total Other Expense	(51,658)	(122,339)	(770,758)	(312,746)
Net Loss	$ (216,178)	$ (278,075)	$ (1,293,937)	$ (556,902)
Net Income (Loss) Per Common Share
Basic	$ (0.01)	$ (0.02)	$ (0.04)	$ (0.03)
Diluted	$ (0.01)	$ (0.02)	$ (0.04)	$ (0.03)
Weighted Average Number of Shares Outstanding
Basic	39,538,007	16,523,784	31,757,147	16,472,751
Diluted	39,538,007	16,523,784	31,757,147	16,472,751

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Interest expense, related parties	$ 45,581	$ 114,229	$ 750,699	$ 290,112

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Stockholders' Deficiency (Unaudited)	9 Months Ended
	Mar. 31, 2016USD ($)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 common stock to be issued, shares | shares
Shares issued for common stock to be issued, amount
Shares to be issued for services
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 common stock to be issued, shares | shares	815,000
Shares issued for common stock to be issued, amount	$ 8,150
Shares to be issued for services
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	39,538,007
Ending balance, Amount	$ 395,380
CommonStockToBeIssuedMember
Beginning balance, Amount	$ 51,800
Shares issued on conversion of notes payable, Amount
Shares issued for common stock to be issued, amount	$ (41,400)
Shares to be issued for services	$ 2,100
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	$ 12,500
Additional Paid-In Capital
Beginning balance, Amount	14,959,006
Shares issued on conversion of notes payable, Amount	1,553,505
Shares issued for common stock to be issued, amount	$ 33,250
Shares to be issued for services
Beneficial conversion feature on issuance of convertible notes payable	$ 77,188
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	$ 17,881,719
Accumulated Deficit
Beginning balance, Amount	$ (20,283,540)
Shares issued on conversion of notes payable, Amount
Shares issued for common stock to be issued, amount
Shares to be issued for services
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	$ (1,293,937)
Ending balance, Amount	(21,577,477)
Beginning balance, Amount	(5,106,433)
Shares issued on conversion of notes payable, Amount	$ 1,775,434
Shares issued for common stock to be issued, amount
Shares to be issued for services	$ 2,100
Beneficial conversion feature on issuance of convertible notes payable	77,188
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	(1,293,937)
Ending balance, Amount	$ (3,286,878)

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (1,293,937)	$ (556,902)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation	309	309
Amortization	48,125	$ 32,083
Allowance for inventory obsolescence	14,461
Shares issued for services	2,100	$ 17,350
Beneficial conversion feature on convertible notes payable	77,188	$ 175,375
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	104,532	$ 136,129
Changes in operating assets and liabilities:
Accounts receivable	23,363	(89,173)
Restricted cash	$ 26,631	(6,008)
Inventories		(4,847)
Prepaid expenses	$ 17,746	9,772
Deferred revenues	(96,453)	242,386
Payroll tax liabilities	$ (130,800)	(57,041)
Customer deposits		(5,517)
Accounts payables and accrued expenses	$ 32,335	54,422
Net cash used in operating activities	(585,630)	(51,662)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable, related party	565,746	224,500
Payments on notes payable, related party	(2,500)	(143,500)
Net cash provided by financing activities	563,246	81,000
Net Decrease in Cash	(22,384)	29,338
Cash at Beginning of Year	52,762	24,665
Cash at End of Year	$ 30,378	$ 54,003
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	9 Months Ended
	Mar. 31, 2016
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 to the mobile banking technology. On September 30, 2015, the Company sold its barcode technology assets to a related party (See Note 7). 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. Starting in May 2009, Veritec has been registered by various banking institutions to market and processes the Company’s Visa branded card programs. In February, 2014 the Company began its current relationship with Woodland National Bank. On December 31, 2014, Veritec acquired certain assets and liabilities of the Tangible Payments LLC related to the Company’s mobile banking technology solutions (See Note 6). Barcode Technology (Sold September 30, 2015) The Company’s Barcode Technology was originally invented by the founders of Veritec 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 Mobile Banking Solutions. Effective October 1, 2015, the Company entered into a management services agreement with The Matthews Group for which the Company will manage all facets of its previous barcode technology operations, on behalf of the Matthews Group, from October 1, 2015 to May 30, 2016 (see Note 10). The Matthews Group bears the risk of loss from the barcode operations and has the right to the residual benefits of the barcode operations. Joint Venture Agreement 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. As of March 31, 2016, the JV has not received funding from VAC and no operating activity has occurred.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Mar. 31, 2016
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 nine month periods ended March 31, 2016 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 March 31, 2016 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. Inter-company transactions and balances were eliminated in consolidation.

Going Concern

Going Concern	9 Months Ended
	Mar. 31, 2016
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, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. During the nine months ended March 31, 2016, the Company incurred a net loss of $1,293,937 and used cash to fund operating activities of $585,630, and at March 31, 2016, the Company had a stockholders’ deficiency of $3,286,878. In addition, as of March 31, 2016, the Company is delinquent in payment of $1,785,321 of its notes payable and is also delinquent in payment of $322,477 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	9 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Significant Accounting Policies	NOTE 4. SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Those estimates and assumptions include estimates for reserves of uncollectible accounts, analysis of impairments of long lived assets, accruals for potential liabilities and assumptions made in valuing stock-based compensation. Revenue Recognition The Company’s revenue is classified into barcode technology revenue, mobile banking technology revenue, and other revenue-related party. Barcode technology revenues from licenses and identification cards are recognized when the product is shipped, the Company no longer has any service or other continuing obligations, and collection is reasonably assured. Under some conditions, the customers remit payment prior to the Company having completed importation of the software. In these instances, the Company delays revenue recognition and reflects the prepayments as customer deposits. For mobile banking technology revenue, the Company, as a processor and a distributor, recognizes revenue from transaction fees charged cardholders for the use of its issued mobile debit cards. The fees are recognized on a monthly basis after all cardholder transactions have been summarized and reconciled with third party processors. The Company has a management services agreement with a related party to manage its previous barcode technology assets and recognizes revenue when the management fee is collected. Fair Value Measurements Fair value measurements are determined using authoritative guidance issued by the FASB, with the exception of the application of the guidance to non-recurring, non-financial assets and liabilities as permitted. Fair value is defined in the authoritative guidance as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three broad levels as follows: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Inputs, other than the quoted prices in active markets, are observable either directly or indirectly. Level 3—Unobservable inputs based on the Company's assumptions. The Company is required to use observable market data if available without undue cost and effort. The Company’s financial instruments include cash, accounts receivable, and accounts payable. Management has estimated that the carrying amounts approximate their fair value due to their short-term nature. 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 if their effect is antidilutive. For the three months and nine months ended March 31, 2016 and 2015, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an anti-dilutive effect. As of March 31, 2016 and 2015, 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. March 31, 2016 2015 Series H preferred stock 10,000 10,000 Convertible notes payable 9,884,519 16,077,124 Options 2,510,000 2,530,500 Total 12,404,519 18,617,624 Concentrations Revenues During the three months ended March 31, 2016 and 2015, the Company had three customers that accounted for approximately 24%, 19%, and 16% of sales in 2016 and two customers that accounted for approximately 24% and 11% of sales in 2015, respectively. No other customers accounted for more than 10% of sales in either period. During the nine months ended March 31, 2016 and 2015, the Company had no customers that accounted for more than 10% of sales in 2016 and two customers that accounted for approximately 16% and 13% of sales in 2015, respectively. No other customers accounted for more than 10% of sales in either period. Foreign Revenues For the three months ended March 31, 2016 and 2015, foreign revenues accounted for 0% and 49% (27% Taiwan, 12% Korea, 7% China and 3% other) of the Company’s total revenues, respectively. For the nine months ended March 31, 2016 and 2015, foreign revenues accounted for 36% (11% Taiwan, 10% China, and 155% other) and 42% (19% Taiwan, 10% Korea, 8% China, and 5% other) of the Company’s total revenues, respectively. Accounts Receivable As of March 31, 2016, the Company had approximately $5,700 (37%), $3,000 (19%), $2,000 (13%) and $2,000 (13%) respectively, 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 February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new standard requires a lessee to record a right of use asset and a corresponding lease liability on the balance sheet for all leases with terms longer than 12 months, including leases currently accounted for as operating leases. ASU 2016-02 is effective for all interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently evaluating the impact that the adoption of ASU 2016-02 will have on our financial statements and related 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	9 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Restricted Cash	NOTE 5. RESTRICTED CASH The Company entered into Store Value Prepaid Card Sponsorship Agreements (the “Agreements”) 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 March 31, 2016 and June 30, 2015, the restricted cash totaled $36,398 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	9 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
Acquisition	NOTE 6. ACQUISITION On December 31, 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 provides a software package that provides integrated services for mobile banking applications. 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 is being amortized over a three year period. During the three and nine months ended March 31, 2016 and 2015, the Company recorded $16,042, $48,125, $16,042, and $32,083 of amortization expense, respectively. The following table presents our unaudited pro forma combined historical results of operations for the three and nine months ended March 31, 2015 as if we had consummated the acquisition as of July 1, 2014. Three months ended March 31, 2015 Nine months ended March 31, 2015 (Unaudited) (Unaudited) Revenues 172,185 787,064 Net loss (231,841 ) (596,285 )

Notes Payable

Notes Payable	9 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Notes Payable	NOTE 7. NOTES PAYABLE Notes payable includes accrued interest and consists of the following as of March 31, 2016 and June 30, 2015: March 31, 2016 June 30, 2015 Convertible notes payable, including $1,113,226 and $2,326,609 due to related parties at March 31, 2016 and June 30, 2015, respectively. At March 31, 2016, $694,268 of the convertible notes, including $467,695 due to related parties, are in default. The notes are unsecured, interest at 5% to 10%, and due on various dates through March 2016 or on demand. The principal and accrued interest are convertible at a conversion prices ranging from $0.08 per share to $0.40 per share. On September 30, 2015, a portion of the outstanding balances were converted into shares of common stock (see (1) below), settled from sale of assets (see (2) below), or replaced (see (3) below). $ 1,339,778 $ 2,512,267 Notes payable, including $129,881 and $714,488 due to related parties at March 31, 2016 and June 30, 2015, respectively. At March 31, 2016, $318,077 of the notes payable, including $3,000 due to related parties, are in default. The notes are both secured by the Company’s intellectual property, and unsecured, interest at 0% to 10%. On September 30, 2015, a portion of the outstanding balance were converted into shares of common stock (see (1) below). 445,543 1,049,740 Total $ 1,785,321 $ 3,562,707 During the three and nine months ended March 31, 2016 and 2015, the Company recorded interest expense on its convertible notes payable and notes payable of $29,663, $104,802, $44,816 and $136,129, respectively. (1) On September 30, 2015, the Company agreed to convert $1,775,433 of various convertible 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 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 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 convertible 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 to 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. During the nine months ended March 31, 2016, the Company issued $441,389 of convertible notes payable-related party. In addition, the Company received loans of $124,357 from The Matthews Group related to the sale of the Company’s Barcode Technology to The Matthews Group (see Note 1). The convertible notes payable-related party can be converted at a price of $0.08 per share. The market price on the date some of the convertible notes payable-related party were issued was in excess of the conversion price, and as a result the Company recognized an expense of $77,188 which is included in interest expense. For the purposes of Balance Sheet presentation notes payable have been presented as follows: March 31, 2016 June 30, 2015 Notes payable $ 542,214 $ 521,610 Notes payable, related party 1,243,107 3,041,097 Total $ 1,785,321 $ 3,562,707

Stockholders' Deficiency

Stockholders' Deficiency	9 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Stockholders' Equity (Deficit)	NOTE 8 - STOCKHOLDERS’ DEFICIENCY Common Stock to be issued On July 15, 2014, the Company entered into a consulting agreement with a consultant, which included, among other things, monthly compensation of 5,000 shares of common stock. The consulting agreement was terminated on October 31, 2015. As of June 30, 2015, 50,000 shares of common stock with a value of $7,400 have not been issued and are included in common shares to be issued in the accompanying consolidated balance sheet. During the nine months ended March 31, 2016, the Company recorded an obligation to issue an additional 20,000 shares of common stock with an aggregate fair value of $2,100. As of March 31, 2016, the 70,000 shares of common stock with a value of $9,500 have not been issued and are included in common shares to be issued in the accompanying consolidated balance sheet.

Stock Options

Stock Options	9 Months Ended
	Mar. 31, 2016
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 March 31, 2016 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 March 31, 2016 2,510,000 $ 0.42 Exercisable at March 31, 2016 2,510,000 $ 0.42 At March 31, 2016, the Company had 2,510,000 of options outstanding and exercisable. There were no options granted during the nine months ended March 31, 2016 and the Company recognized no stock-based compensation expense related to stock options during the three and nine months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, there was no remaining unrecognized compensation costs related to stock options, and there was no intrinsic value of these options. Additional information regarding options outstanding as of March 31, 2016 is as follows: Options Outstanding at March 31, 2016 Options Exercisable at March 31, 2016 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 4.00 $ 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 March 31, 2016 is 4.00 years.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Mar. 31, 2016
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 8). 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. During the nine months March 31, 2016, the Company received no additional advances from Ms. Tran. The balances due Ms. Tran as of March 31, 2016 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. Effective October 1, 2015, the Company entered into a management services agreement with the Matthews Group for which the Company will manage all facets of its previous barcode technology operations, on behalf of the Matthews Group, from October 1, 2015 to May 30, 2016. Per the terms of the management services agreement, the Company earns a fee of 20% of all revenues, or $16,098 and $38,066, from the barcode technology operations during the three months and nine months ended March 31, 2016, respectively. Additionally all cash flow (all revenues collected less direct costs paid) will be retained by the Company and classified as a unsecured note payable-related party, due on demand, bearing interest at 10% per annum. At March 31, 2016, the total of note payable-related party related to this agreement was $124,357 (see Note 7). The Matthews Group bears the risk of loss from the barcode operations and has the right to the residual benefits of the barcode operations. The Company also leases its office facilities from Ms. Tran. For the three and nine months ended March 31, 2016 and 2014, rental payments to Ms. Van Tran totaled $12,750, $38,250, $12,750 and $38,250, respectively.

Significant Accounting Polici18

Significant Accounting Policies (Policies)	9 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Those estimates and assumptions include estimates for reserves of uncollectible accounts, analysis of impairments of long lived assets, accruals for potential liabilities and assumptions made in valuing stock-based compensation.
Revenue Recognition	Revenue Recognition The Company’s revenue is classified into barcode technology revenue, mobile banking technology revenue, and other revenue-related party. Barcode technology revenues from licenses and identification cards are recognized when the product is shipped, the Company no longer has any service or other continuing obligations, and collection is reasonably assured. Under some conditions, the customers remit payment prior to the Company having completed importation of the software. In these instances, the Company delays revenue recognition and reflects the prepayments as customer deposits. For mobile banking technology revenue, the Company, as a processor and a distributor, recognizes revenue from transaction fees charged cardholders for the use of its issued mobile debit cards. The fees are recognized on a monthly basis after all cardholder transactions have been summarized and reconciled with third party processors. The Company has a management services agreement with a related party to manage its previous barcode technology assets and recognizes revenue when the management fee is collected.
Fair Value Measurements	Fair Value Measurements Fair value measurements are determined using authoritative guidance issued by the FASB, with the exception of the application of the guidance to non-recurring, non-financial assets and liabilities as permitted. Fair value is defined in the authoritative guidance as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three broad levels as follows: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Inputs, other than the quoted prices in active markets, are observable either directly or indirectly. Level 3—Unobservable inputs based on the Company's assumptions. The Company is required to use observable market data if available without undue cost and effort. The Company’s financial instruments include cash, accounts receivable, and accounts payable. Management has estimated that the carrying amounts approximate their fair value due to their short-term nature.
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 if their effect is antidilutive. For the three months and nine months ended March 31, 2016 and 2015, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an anti-dilutive effect. As of March 31, 2016 and 2015, 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. March 31, 2016 2015 Series H preferred stock 10,000 10,000 Convertible notes payable 9,884,519 16,077,124 Options 2,510,000 2,530,500 Total 12,404,519 18,617,624
Revenues	Revenues During the three months ended March 31, 2016 and 2015, the Company had three customers that accounted for approximately 24%, 19%, and 16% of sales in 2016 and two customers that accounted for approximately 24% and 11% of sales in 2015, respectively. No other customers accounted for more than 10% of sales in either period. During the nine months ended March 31, 2016 and 2015, the Company had no customers that accounted for more than 10% of sales in 2016 and two customers that accounted for approximately 16% and 13% of sales in 2015, respectively. No other customers accounted for more than 10% of sales in either period.
Foreign Revenues	Foreign Revenues For the three months ended March 31, 2016 and 2015, foreign revenues accounted for 0% and 49% (27% Taiwan, 12% Korea, 7% China and 3% other) of the Company’s total revenues, respectively. For the nine months ended March 31, 2016 and 2015, foreign revenues accounted for 36% (11% Taiwan, 10% China, and 155% other) and 42% (19% Taiwan, 10% Korea, 8% China, and 5% other) of the Company’s total revenues, respectively.
Accounts Receivable	Accounts Receivable As of March 31, 2016, the Company had approximately $5,700 (37%), $3,000 (19%), $2,000 (13%) and $2,000 (13%) respectively, 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 February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new standard requires a lessee to record a right of use asset and a corresponding lease liability on the balance sheet for all leases with terms longer than 12 months, including leases currently accounted for as operating leases. ASU 2016-02 is effective for all interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently evaluating the impact that the adoption of ASU 2016-02 will have on our financial statements and related 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 Polici19

Significant Accounting Policies (Tables)	9 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of securities excluded from EPS calculation	March 31, 2016 2015 Series H preferred stock 10,000 10,000 Convertible notes payable 9,884,519 16,077,124 Options 2,510,000 2,530,500 Total 12,404,519 18,617,624

Acquisition (Tables)

Acquisition (Tables)	9 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
Unaudited results of operations	Three months ended March 31, 2015 Nine months ended March 31, 2015 (Unaudited) (Unaudited) Revenues 172,185 787,064 Net loss (231,841 ) (596,285 )

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Notes Payable	March 31, 2016 June 30, 2015 Convertible notes payable, including $1,113,226 and $2,326,609 due to related parties at March 31, 2016 and June 30, 2015, respectively. At March 31, 2016, $694,268 of the convertible notes, including $467,695 due to related parties, are in default. The notes are unsecured, interest at 5% to 10%, and due on various dates through March 2016 or on demand. The principal and accrued interest are convertible at a conversion prices ranging from $0.08 per share to $0.40 per share. On September 30, 2015, a portion of the outstanding balances were converted into shares of common stock (see (1) below), settled from sale of assets (see (2) below), or replaced (see (3) below). $ 1,339,778 $ 2,512,267 Notes payable, including $129,881 and $714,488 due to related parties at March 31, 2016 and June 30, 2015, respectively. At March 31, 2016, $318,077 of the notes payable, including $3,000 due to related parties, are in default. The notes are both secured by the Company’s intellectual property, and unsecured, interest at 0% to 10%. On September 30, 2015, a portion of the outstanding balance were converted into shares of common stock (see (1) below). 445,543 1,049,740 Total $ 1,785,321 $ 3,562,707
Notes payable- Balance Sheet presentation	March 31, 2016 June 30, 2015 Notes payable $ 542,214 $ 521,610 Notes payable, related party 1,243,107 3,041,097 Total $ 1,785,321 $ 3,562,707

Stock Options (Tables)

Stock Options (Tables)	9 Months Ended
	Mar. 31, 2016
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 March 31, 2016 2,510,000 $ 0.42 Exercisable at March 31, 2016 2,510,000 $ 0.42
Additional information regarding outstanding options	Options Outstanding at March 31, 2016 Options Exercisable at March 31, 2016 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 4.00 $ 0.42 2,510,000 $ 0.42 2,510,000 2,510,000

Nature of Business (Details Nar

Nature of Business (Details Narrative)	Jan. 17, 2016
Veritec, Inc.
Joint venture ownership percentage	30.00%
Vietnam Alliance Capital
Joint venture ownership percentage	70.00%

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income (loss)	$ (216,178)	$ (278,075)	$ (1,293,937)	$ (556,902)
Net cash used in operating activities			(585,630)	$ (51,662)
Stockholders' deficiency	(3,286,878)		(3,286,878)		$ (5,106,433)
Note payable obligations - in default	1,785,321		1,785,321
Payroll taxes and accrued interest and penalties	$ 322,477		$ 322,477		$ 453,277

Significant Accounting Polici25

Significant Accounting Policies - Summary of securities excluded from EPS calculation (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Accounting Policies [Abstract]
Series H Preferred Stock	10,000	10,000
Convertible Notes Payable	$ 9,884,519	$ 16,077,124
Options	2,510,000	2,530,500
Total	12,404,519	18,617,624

Significant Accounting Polici26

Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Foreign revenues	0.00%	49.00%	36.00%	42.00%
Taiwan
Foreign revenues		27.00%	11.00%	19.00%
Korea
Foreign revenues		12.00%		10.00%
China
Foreign revenues		7.00%	10.00%	8.00%
Other
Foreign revenues			15.00%	5.00%
Customer 1
Sales percentage from major customers	24.00%	24.00%		16.00%
Customer 2
Sales percentage from major customers	19.00%	11.00%		13.00%
Customer 3
Sales percentage from major customers	16.00%
37%
Accounts receivable	$ 5,700		$ 5,700
19%
Accounts receivable	3,000		3,000
13%
Accounts receivable	2,000		2,000
15%
Accounts receivable	$ 3,000		$ 3,000		$ 5,650
16%
Accounts receivable					6,025
12%
Accounts receivable					$ 4,575

Restricted Cash (Details Narrat

Restricted Cash (Details Narrative) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Accounting Policies [Abstract]
Restricted Cash	$ 36,398	$ 63,029

Acquisition - Unaudited results

Acquisition - Unaudited results of operations (Details) - USD ($)	3 Months Ended	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Business Combinations [Abstract]
Revenues	$ 172,185	$ 787,064
Net income (loss)	$ (231,841)	$ (596,285)

Acquisition (Details Narrative)

Acquisition (Details Narrative) - USD ($)	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
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 ($)	Mar. 31, 2016	Jun. 30, 2015
Debt Disclosure [Abstract]
Convertible notes payable	$ 1,339,778	$ 2,512,267
Notes payable	445,543	1,049,740
Total	$ 1,785,321	$ 3,562,707

Notes Payable - Notes Payable31

Notes Payable - Notes Payable (Details) (Parenthetical) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Convertible note due to related parties	$ 1,113,226	$ 2,326,609
Convertible note in default	694,268
Convertible note due to related parties in default	467,695
Notes payable due to related party	129,881	$ 714,488
Notes payable in default	318,077
Notes payable due to related party in default	$ 3,000
Convertible Notes | Min
Interest rate	5.00%
Conversion price	$ 0.08
Convertible Notes | Max
Interest rate	10.00%
Conversion price	$ 0.40
Notes Payable | Min
Interest rate	0.00%
Notes Payable | Max
Interest rate	10.00%

Notes Payable - Notes payable-

Notes Payable - Notes payable- Balance Sheet presentation (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Debt Disclosure [Abstract]
Notes payable	$ 542,214	$ 521,610
Notes payable, related party	1,243,107	3,041,097
Total	$ 1,785,321	$ 3,562,707

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)	3 Months Ended			9 Months Ended
	Mar. 31, 2016	Sep. 28, 2015	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Recorded interest on notes	$ 29,663		$ 104,802	$ 44,816	$ 136,129
Interest rate	10.00%			10.00%		8.00%
Interest expense and finance costs	$ 77,188
Convertible notes issued to related party	441,389
Matthews Group
Converted shares of common stock, value	$ 1,775,433			$ 1,775,433
Converted shares of common stock	22,122,919			22,122,919
Interest rate	8.00%			8.00%
Convertible notes converted at less than stated conversion price	$ 670,038			$ 670,038
Ownership by CEO and stockholder	50.00%			50.00%
Conversion price	$ .10			$ .10
Conversion price, maximum	$ .33			$ .33
Interest expense and finance costs				$ 452,770
Convertible notes issued to related party				124,357
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			$ 670,000

Stockholders Deficiency (Detail

Stockholders Deficiency (Details Narrative) - Consulting Agreement - USD ($)	9 Months Ended
	Mar. 31, 2016	Jun. 30, 2015	Jul. 15, 2014
Cash compensation, shares			5,000
Common stock to be issued	$ 70,000	$ 7,400
Common stock to be issued, shares	95,000	50,000
Obligation to issue shares	20,000
Obligation to issue shares, value	$ 2,100

Stock Options - Summary of Stoc

Stock Options - Summary of Stock Options (Details) - $ / shares	9 Months Ended	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2014
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		2,510,000
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) - $ / shares	9 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Options outstanding, shares		2,510,000
Weighted average remaining contractual life	4 years
Weighted average exercise price		$ 0.42
Options excercisable		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	9 Months Ended	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options granted		2,510,000
Weighted average remaining contractual life	4 years

Related Party Transactions (Det

Related Party Transactions (Details Narrative)	3 Months Ended		6 Months Ended	9 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Mar. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Jun. 30, 2015USD ($)
Advances received				$ 10,000
Rental payments	$ 12,750	$ 12,750		38,250	$ 38,250
Accounts payable, related party	96,110	$ 96,110		96,110	$ 96,110	$ 96,110
Other revenue, related party	$ 16,098			$ 38,066
Unsecured related party note, interest	10.00%			10.00%		8.00%
Unsecured related party note	$ 124,357			$ 124,357
Management Agreement
Managament fee, percent of revenue			0.20
Other revenue, related party			$ 38,066
Larry Johanns
Ownership of TMG						50.00%
Van Tran
Ownership of TMG						50.00%