Veritec (VRTC) 10-Q 22 May 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Mar. 31, 2017shares
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, 2017
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	39,538,007
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2017	Jun. 30, 2016
Current Assets:
Cash	$ 53,400	$ 60,953
Accounts receivable	14,428	9,309
Prepaid expenses	8,294	1,897
Total Current Assets	76,122	72,159
Equipment, net		171
Intangibles, net	220,972	80,208
Total Assets	297,094	152,538
Current Liabilities:
Accounts payable	643,888	624,153
Accounts payable, related party	96,110	96,110
Accrued expenses	73,364	75,374
Payroll tax liabilities		238,718
Notes payable - in default	568,588	548,384
Notes payable, related party	2,117,048	1,484,211
Customer deposits		25,000
Deferred revenues	84,993	138,760
Derivative liabilities	664,000
Total Current Liabilities	4,247,991	3,230,710
Contingent earnout liability	155,000	155,000
Total Liabilities	4,402,991	3,385,710
Stockholders' Deficiency:
Convertible preferred stock, par value $1.00; authorized 10,000,000 shares, 276,000 shares of Seried H authorized, 1,000 shares issued and outstanding as of March 31, 2017 and June 30, 2016	1,000	1,000
Common stock, par value $.01; authorized 50,000,000 shares, 39,538,007 shares issued and outstanding as of March 31, 2017 and June 30, 2016	395,380	395,380
Common stock to be issued, 2,145,000 shares and 145,000 shares to be issued as of March 31, 2017 and June 30, 2016, respectively	212,500	12,500
Additional paid-in capital	17,974,576	17,939,576
Accumulated deficit	(22,689,353)	(21,581,628)
Total Stockholders' Deficiency	(4,105,897)	(3,233,172)
Total Liabilities and Stockholders' Deficiency	$ 297,094	$ 152,538

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Jun. 30, 2016
Convertible preferred stock, par value	$ 1	$ 1
Convertible preferred stock, shares authorized	10,000,000	10,000,000
Convertible preferred stock, shares issued	1,000	1,000
Convertible preferred stock, shares outstanding	1,000	1,000
Common stock, par value	$ .01	$ 0.01
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	39,538,007	39,538,007
Common stock, shares outstanding	39,538,007	39,538,007
Common stock, shares to be issued	2,145,000	145,000
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		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Revenue:
Mobile banking technology revenue	$ 35,790	$ 59,803	$ 120,000	$ 198,524
Management fee revenue-related party	68,461	16,098	143,791	38,066
Barcode technology revenue				133,714
Total revenue	104,251	75,901	263,791	370,304
Cost of Sales	54,222	52,722	203,082	250,310
Gross Profit	50,029	23,179	60,709	119,994
Operating Expenses:
General and administrative	193,922	170,451	550,922	567,468
Sales and marketing	57,026		62,586	16,641
Research and development	65,361	17,248	87,491	59,064
Total Operating Expenses	316,309	187,699	700,999	643,173
Loss from Operations	(266,280)	(164,520)	(640,290)	(523,179)
Other Expense:
Gain on settlement - former officer			364,690
Change in fair value of derivative liabilities	(482,000)		(482,000)
Expense related to fair value of derivative liabilities			(182,000)
Interest expense, including $67,787. $45,581, $147,918 and $750,699 respectively, to related parties	(74,525)	(51,658)	(168,125)	(770,758)
Total other expense	(556,525)	(51,658)	(467,435)	(770,758)
Net Loss	$ (822,805)	$ (2,161,178)	$ (1,107,725)	$ (1,293,937)
Net Income (Loss) Per Common Share
Basic	$ (0.02)	$ (0.01)	$ (0.03)	$ (0.04)
Diluted	$ (0.02)	$ (0.01)	$ (0.03)	$ (0.04)
Weighted Average Number of Shares Outstanding
Basic	39,538,007	39,130,007	39,538,007	31,575,147
Diluted	39,538,007	39,130,007	39,538,007	31,575,147

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Interest expense, related parties	$ 67,787	$ 45,581	$ 147,918	$ 750,699

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Stockholders' Deficiency (Unaudited)	9 Months Ended
	Mar. 31, 2017USD ($)shares
Preferred Stock
Beginning balance, Shares | shares	1,000
Beginning balance, Amount	$ 1,000
Shares to be issued for asset acquisition
Beneficial conversion feature on issuance of convertible notes payable
Net loss
Ending balance, Shares | shares	1,000
Ending balance, Amount	$ 1,000
Common Stock
Beginning balance, Shares | shares	39,538,007
Beginning balance, Amount	$ 395,380
Shares to be issued for asset acquisition
Beneficial conversion feature on issuance of convertible notes payable
Net loss
Ending balance, Shares | shares	39,538,007
Ending balance, Amount	$ 395,380
CommonStockToBeIssuedMember
Beginning balance, Amount	12,500
Shares to be issued for asset acquisition	200,000
Beneficial conversion feature on issuance of convertible notes payable
Net loss
Ending balance, Amount	212,500
Additional Paid-In Capital
Beginning balance, Amount	17,939,576
Shares to be issued for asset acquisition
Beneficial conversion feature on issuance of convertible notes payable	35,000
Net loss
Ending balance, Amount	17,974,576
Accumulated Deficit
Beginning balance, Amount	(21,581,628)
Shares to be issued for asset acquisition
Beneficial conversion feature on issuance of convertible notes payable
Net loss	(1,107,725)
Ending balance, Amount	(22,689,353)
Beginning balance, Amount	(3,233,172)
Shares to be issued for asset acquisition	200,000
Beneficial conversion feature on issuance of convertible notes payable	35,000
Net loss	(1,107,725)
Ending balance, Amount	$ (4,105,897)

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (1,107,725)	$ (1,293,937)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation	171	206
Amortization	59,236	48,125
Allowance for inventory obsolescence		14,461
Shares to be issued for services		2,100
Gain on settlement-former officer	(364,690)
Expense related to fair value of derivative liabilities	182,000
Change in fair value of derivative liabilities	482,000
Beneficial conversion feature on issuance of convertible notes payable-related party	35,000	77,188
Fair value of shares issued as inducement for conversion of notes payable - related party		452,770
Modification cost of conversion feature of note payable		136,000
Changes in operating assets and liabilities:
Accounts receivable	(5,119)	23,363
Restricted cash		26,631
Prepaid expenses	(6,397)	17,746
Accounts payable	(5,265)	(11,549)
Accrued expenses	(2,010)	43,884
Payroll tax liabilities	(238,718)	(130,800)
Deferred revenues	(53,767)	(96,453)
Accrued interest	130,625	104,532
Net cash used in operating activities	(894,659)	(565,630)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from convertible notes payable-related party	477,500	441,389
Proceeds from notes payable, related party	409,606	124,357
Payments on notes payable, related party		(2,500)
Net cash provided by (used in) financing activities	887,106	563,246
NET DECREASE IN CASH	(7,553)	(22,384)
CASH AT BEGINNING OF PERIOD	60,953	52,762
CASH AT END OF PERIOD	53,400	30,378
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
Reclassification of customer deposit to accounts payable	25,000
Shares to be issued for asset acquisition	$ 200,000

Nature of Business

Nature of Business	9 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	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, 2017 are not necessarily indicative of the results that may be expected for the year ending June 30, 2017. The Condensed Consolidated Balance Sheet information as of June 30, 2016 was derived from the Company’s audited Condensed Consolidated Financial Statements as of and for the year ended June 30, 2016 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on September 26, 2016. These financial statements should be read in conjunction with that report. The accompanying Condensed Consolidated Financial Statements include the accounts of Veritec and its wholly owned subsidiaries, Veritec Financial Systems, Inc., Tangible Payment Systems, Inc., and Public Bell, Inc. Inter-company transactions and balances were eliminated in consolidation.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month periods ended December 31, 2016 are not necessarily indicative of the results that may be expected for the year ending June 30, 2017. The consolidated balance sheet information as of June 30, 2016 was derived from the Company’s audited consolidated financial statements as of and for the year ended June 30, 2016 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on September 26, 2016. These financial statements should be read in conjunction with that report. 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, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	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, 2017, the Company incurred a net loss of $1,107,725 and used cash in operating activities of $894,659, and at March 31, 2017, the Company had a working capital deficit of $4,171,869 and a stockholders’ deficiency of $4,105,897. In addition, as of March 31, 2017, the Company is delinquent in payment of $532,344 of its notes payable and $185,874 of its notes payable-related parties. These factors, among others, raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued. In addition, the Company’s independent registered public accounting firm, in its report on our June 30, 2016 financial statements, raised 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 this uncertainty be necessary should we be unable to continue as a going concern. The Company believes it will require additional funds to continue its operations through fiscal 2017 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 major cost reductions or any combination thereof. There is no assurance that the Company can be successful in raising such funds, generating the necessary sales or reducing major costs. Further, if the Company is successful in raising such funds from sales of equity securities, the terms of these sales may cause significant dilution to existing holders of common stock. The Condensed Consolidated Financial Statements do not include any adjustments that may result from this uncertainty.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Significant Accounting Policies	Use of Estimates The preparation of Condensed 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 Condensed 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 used in valuing derivatives and stock-based compensation, and the valuation of deferred taxes. Fair Value of Financial Instruments Fair value measurements adopted by the Company are based on the authoritative guidance provided by the Financial Accounting Standards Board (“FASB”) which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. FASB authoritative guidance establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs, other than the quoted prices in active markets that are observable either directly or indirectly. Level 3 - Unobservable inputs based on the Company's assumptions. The carrying amounts reported in the Condensed Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, and current liabilities, including notes payable and convertible notes, approximate their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. At March 31, 2017, the Company’s Condensed Consolidated Balance Sheet included the fair value of derivative liabilities of $664,000, which was based on Level 2 measurements. At June 30, 2016, the Company did not have derivative liabilities. Derivative Financial Instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the Condensed Consolidated Statements of Operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. In the case of insufficient authorized share capital available to fully settle outstanding contracts, the Company utilizes the earliest inception date sequencing method to prioritize its convertible securities. At each reporting date, the Company reviews its convertible securities to determine their classification is appropriate. Net Income (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 and nine months ended March 31, 2017 and 2016, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an anti-dilutive effect. At March 31, 2017, the Company’s Series H Preferred Stock, Convertible Notes Payable and Options were antidilutive because their exercise prices and conversion prices were out of the money. As of March 31, 2017 and 2016, 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. As of March 31, 2017 2016 Series H Preferred Stock 10,000 10,000 Convertible Notes Payable 17,533,531 7,884,519 Options 2,500,000 2,510,000 Total 20,043,531 10,404,519 Concentrations The Company’s cash balances on deposit with banks are guaranteed by the Federal Deposit Insurance Corporation up to $250,000. The Company may be exposed to risk for the amounts of funds held in one bank in excess of the insurance limit. In assessing the risk, the Company’s policy is to maintain cash balances with high quality financial institutions. The Company did not have cash balances in excess of the guarantee during the nine months ended March 31, 2017. During the three months ended March 31, 2017, the Company had two customers that represented an aggregate of 78% (66% and 12%) of our revenue. During the three months ended March 31, 2016, the Company had three customers that represented an aggregate of 59% (24%, 19% and 16%) of our revenue. During the nine months ended March 31, 2017, the Company had two customers that represented an aggregate of 65% (53% and 12%) of our revenue. During the nine months ended March 31, 2016, the Company had no customers that accounted for more than 10% of our revenue. Foreign Revenues During the three months ended March 31, 2017 and 2016, the Company had no foreign revenues. During the nine months ended March 31, 2017, the Company had no foreign revenues. During the nine months ended March 31, 2016, foreign revenues accounted for 36% (11% Taiwan, 10% China, and 15% others) of the Company’s total revenues. 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. Under ASU 2014-09, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has recently issued ASU 2016-08, ASU 2016-10, ASU 2016-11, ASU 2016-12, ASU 2016-20, and ASU 2017-05, all of which clarify certain implementation guidance within ASU 2014-09. 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. The standard can be adopted either retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The Company is currently in the process of analyzing the information necessary to determine the impact of adopting this new guidance on its financial position, results of operations, and cash flows. The Company will adopt the provisions of this statement in the first quarter of fiscal 2018. In February 2016, the FASB issued ASU No. 2016-02, Leases. This update will require the recognition of a right-of-use asset and a corresponding lease liability, initially measured at the present value of the lease payments, for all leases with terms longer than 12 months. For operating leases, the asset and liability will be expensed over the lease term on a straight-line basis, with all cash flows included in the operating section of the statement of cash flows. For finance leases, interest on the lease liability will be recognized separately from the amortization of the right-of-use asset in the statement of comprehensive income and the repayment of the principal portion of the lease liability will be classified as a financing activity while the interest component will be included in the operating section of the statement of cash flows. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. Upon adoption, leases will be recognized and measured at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on its financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-01, an update to ASC Topic 805, Business Combinations. ASU 2017-01 narrows the definition of a business and provides a framework for making reasonable judgments about whether a transaction involves an asset or a business. ASU 2017-01 clarifies that when substantially all the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. ASU 2017-01 also requires that a set cannot be considered a business unless it includes, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. ASU 2017-01 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those years, with early adoption permitted, including adoption in an interim period. The Company early adopted the provisions of ASU 2017-01 on January 1, 2017, and concluded that the acquisition of certain intellectual property in February 2017 (see Note 2) did not meet the definition of a business and was treated as an asset acquisition. 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 financial statements.

Intangible Assets

Intangible Assets	9 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Contingent Earnout Liability	NOTE 2 – INTANGIBLE ASSETS Intangible assets consists of the following at March 31, 2017 and June 30, 2016: March 31, 2017 June 30, 2016 (a) Contract commitments $ 192,500 $ 192,500 (b) Intellectual property 200,000 — 392,500 192,500 Less accumulated amortization (171,528 ) (112,292 ) Intangible assets, net $ 220,972 $ 80,208 For the three and nine months ended March 31, 2017 and 2016, the Company recorded $27,153 and $59,236, and $16,042 and $48,042, of amortization expense respectively, related to intangible assets which is included in general and administrative expense in the accompanying Condensed Consolidated Statements of Operations. Estimated future amortization expense for intangible assets is as follows: Remainder of June 30, 2017 $32,666; June 30, 2018 $82,750; June 30, 2019 $66,660; and June 30, 2020 $38,896. (a) On September 30, 2014, the Company acquired certain assets and liabilities of Tangible Payments LLC for $192,500, including a contingent earnout payment of $155,000. The Company assigned $192,500 of the purchase price to contract commitments which are amortized over a three year period. As of March 31, 2017 and June 30, 2016, the unamortized balance of contract commitments was $32,083 and $80,208, respectively. The earnout payment of $155,000 is payable on a monthly basis from the net profits derived from the acquired assets, as defined. From the date of the acquisition and up to March 31, 2017, there was no net profit derived from the acquired assets and accordingly, no payments were made on the earnout. The earnout payment is due in full at such time as the Company receives equity investments aggregating $1.3 million. (b) On February 8, 2017, the Company, through its wholly-owned subsidiary, Public Bell, a Delaware corporation, acquired certain intellectual property from Public Bell, Inc., a California corporation and C. Nguyen, its sole shareholder. The intellectual property is related to the development of mobile and Wi-Fi/WiMax software applications. In consideration, the Company agreed to issue 2,000,000 restricted shares of the Company’s common stock valued at $200,000 to Nguyen, based on the closing price of the Company’s stock on the date of the transaction. As the assets acquired do not constitute a business, the Company accounted for this as an asset acquisition. Accordingly the Company valued the acquired intellectual property at $200,000 which will be amortized over a two year period. As of March 31, 2017, the unamortized balance of the intellectual property was $188,889. In addition, the Company entered into a five-year employment agreement with Nguyen. The Company agreed to pay Nguyen a base salary of $30,000 per annum and a performance bonus equal to 25% of the Company’s wholly-owned subsidiary, Public Bell’s annual net income, as defined, up to $3,000,000. Given the preliminary stage of development of the operations of this subsidiary and the level of uncertainty that exists related to future probability, management has assessed the likelihood of payment under this bonus as being remote. Accordingly, no contingent earnout liability was recorded when the purchase of the intellectual property assets was recorded.

Notes Payable

Notes Payable	9 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Notes Payable	NOTE 3 – NOTES PAYABLE Notes payable-in default Notes payable includes principal and accrued interest and consists of the following at March 31, 2017 and June 30, 2016: March 31, 2017 June 30, 2016 (a) Convertible notes-in default $ 202,750 $ 195,655 (b) Notes payable-in default 365,838 352,729 Total notes-third parties $ 568,588 $ 548,384 (a) At June 30, 2016, convertible notes totaled $195,655. During the nine months ended March 31, 2017, accrued interest of $7,095 was added to principal. At March 31, 2017, convertible notes totaled $202,750. The notes are unsecured, and interest accrues at rates ranging from 5% to 8% per annum. At March 31, 2017, $166,506 of notes were due through 2011 and are in default. These notes are convertible at a conversion price of $0.30 per share into 555,021 shares of the Company’s common stock. The balance of $36,244 is due on demand, and is convertible at a conversion price of $0.08 per share into 453,051 shares of the Company’s common stock. (b) At June 30, 2016, notes payable totaled $352,729. During the nine months ended March 31, 2017, accrued interest of $13,109 was added to principal. At March 31, 2017, the notes payable totaled $365,838. $330,555 of notes are secured by the Company’s intellectual property, and $35,283 of notes are unsecured. Interest accrues at rates ranging from 6.5% to 10% per annum. The total of $365,838 was due in 2012, and is in default. Notes payable-related party Notes payable-related includes principal and accrued interest and consists of the following at March 31, 2017 and June 30, 2016: March 31, 2017 June 30, 2016 (c) Convertible notes-The Matthews Group $ 1 ,210,116 $ 669,648 (d) Notes payable-The Matthews Group 658,704 216,648 (e) Convertible notes-other related-in default 248,228 237,725 (f) Convertible notes-former officer — 360,190 Total notes-related party $ 2,117,048 $ 1,484,211 (c) The Matthews Group (see Note 7) is owned 50% by Ms. Van Tran, the Company’s CEO, and 50% by Larry Johanns, a significant shareholder of the Company. At June 30, 2016, convertible notes due to The Matthews Group totaled $669,648. During the nine months ended March 31, 2017, $477,500 of convertible notes were issued to The Matthews Group, and accrued interest of $62,968 was added to principal. At March 31, 2017, convertible notes due to The Matthews Group totaled $1,210,116. The notes are unsecured, interest accrues at rates ranging from 8% to 10% per annum, and are due on demand. At March 31, 2017, the notes are convertible at a conversion price of $0.08 per share into 15,126,454 shares of the Company’s common stock. During the three and nine months ended March 31, 2017, the market price on the date some of the notes were issued was in excess of the conversion price, and as a result the Company recorded a beneficial conversion feature on issuance of the notes of $18,750 and $35,000, respectively, which is included in interest expense and financing costs in the Condensed Consolidated Statements of Operations. During the three and nine months ended March 31, 2016, the Company recorded a beneficial conversion feature on issuance of the notes of $22,000 and $77,188, respectively (d) At June 30, 2016, notes payable due to The Matthews Group totaled $216,648. During the nine months ended March 31, 2017, $409,606 of notes payable were issued to The Matthews Group, and accrued interest of $32,450 was added to principal. At March 31, 2017, notes payable due to The Matthews Group totaled $658,704. The notes are unsecured, accrued interest at 10% per annum, and are due on demand. The notes were made in relation to a management services agreement with The Matthews Group (see Note 7). (e) At June 30, 2016, convertible notes due other related parties totaled $237,725. During the nine months ended March 31, 2017, accrued interest of $10,503 was added to principal. At March 31, 2017 convertible notes due other related parties totaled $248,228. The notes are unsecured and accrue interest at rates ranging from 8% to 10% per annum. At March 31, 2017, $185,874 of the notes were due in 2010 and are in default, and the balance of $62,354 is due on demand. At March 31, 2017, $185,874 of the notes are convertible at a conversion price of $0.30 per share into 619,581 shares of the Company’s common stock, $23,505 of the notes are convertible at a conversion price of $0.10 per share into 235,050 shares of the Company’s common stock, and $38,849 of the notes are convertible at a conversion price of $0.08 per share into 485,613 shares of the Company’s common stock. (f) On September 21, 2016, the Company entered into a settlement agreement with an individual who was a former officer of the Company. The individual had loaned the Company $250,000 in prior years and was also issued 500,000 shares of common stock for services. The Company alleged that the individual used the Company's intellectual property without approval. Under the terms of the settlement agreement, the individual agreed to relinquish a convertible note payable and unpaid interest aggregating $364,686, and return 500,000 shares of common stock previously issued to him. In turn, the Company agreed to release and discharge the individual against all claims arising on or prior to the date of the settlement agreement. The Company recorded a gain on the settlement of $364,686 in the accompanying Condensed Consolidated Statements of Operations for the nine months ended March 31, 2017. As of March 31, 2017, the 500,000 shares have not been relinquished. When the Company receives the shares, it will record a cancellation of shares.

Derivative Liabilities

Derivative Liabilities	9 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Liabilities	NOTE 4 - DERIVATIVE LIABILITIES From time to time, the Company issues convertible notes payable with embedded conversion features and options to purchase common stock. Pursuant to the FASB authoritative guidance on determining whether an instrument (or embedded feature) is indexed to an entity’s own stock, when there are insufficient authorized shares, the obligation for the exercise of the convertible instrument should be classified as a liability and measured at fair value. During the nine months ended March 31, 2017, the Company determined that there were not sufficient authorized shares of common stock available for issuance upon conversion of certain of its convertible notes. During the nine months ended March 31, 2017, the Company recorded an expense related to fair value of derivative liabilities of $182,000. During the three and nine months ended March 31, 2017, the Company recorded a change in the fair value of the derivative liabilities of $482,000. The conversion feature of the notes is re-measured at the end of every reporting period with the change in value reported in the Condensed Consolidated Statements of Operations. The derivative liability was valued at the following dates using a Black-Scholes-Merton model with the following assumptions: March 31, 2017 December 31, 2017 Conversion feature: Risk-free interest rate 1.5 % 0.07 % Expected volatility 124 % 99 % Expected life (in years) 1 - 2.7 years 1.2 years Expected dividend yield — — Fair Value: Conversion feature $ 664,000 $ 182,000 The risk-free interest rate was based on rates established by the Federal Reserve Bank. The Company used its own historical stock’s volatility as the estimated volatility. The expected life of the conversion feature of the notes or options was based on the estimated remaining terms of the notes or options, or expected settlement date for notes due on demand or that have matured. The expected dividend yield was based on the fact that the Company has not customarily paid dividends to its holders of common stock in the past and does not expect to pay dividends to holders of its common stock in the future.

Stockholders' Deficiency

Stockholders' Deficiency	9 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Stockholders' Deficiency	NOTE 5 - STOCKHOLDERS’ DEFICIENCY As of March 31, 2017 and June 30, 2016, 2,145,000 and 145,000 shares of common stock issuable with an aggregate value of $212,500 and $12,500, respectively, have not been issued and are reflected as common shares to be issued in the accompanying Condensed Consolidated Balance Sheets, respectively.

Stock Options

Stock Options	9 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options	NOTE 6 – STOCK OPTIONS Stock Options A summary of stock options for the nine months ended March 31, 2017 is as follows: Number of Weighted - Average Shares Exercise Price Outstanding at June 30, 2016 2,510,000 $ 0.08 Granted — $ 0.00 Forfeited (10,000 ) $ 0.08 Outstanding at March 31, 2017 2,500,000 $ 0.08 Exercisable at March 31, 2017 2,500,000 $ 0.08 At March 31, 2017, the Company had 2,500,000 of options outstanding and exercisable. The options expire in February, 2020, and are exercisable at $0.08 per share. There were no options granted during the nine months ended March 31, 2017 and the Company recognized no stock-based compensation expense related to stock options during the three and nine months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, there was no remaining unrecognized compensation costs related to stock options, and the intrinsic value of these options was $62,500. Additional information regarding options outstanding as of March 31, 2017 is as follows: Options Outstanding at March 31, 2017 Options Exercisable at March 31, 2017 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 $ 0.08 2,500,000 2.75 $ 0.08 2,500,000 $ 0.08 2,500,000 2,500,000 The weighted-average remaining contractual life of stock options outstanding and exercisable at March 31, 2017 is 2.75 years.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 7 – RELATED PARTY TRANSACTIONS 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. The Company has relied on The Matthews Group for funding (see Notes 1 and 3). Barcode Technology management services agreement and loans On September 30, 2015, the Company sold all of its assets of its Barcode Technology comprised solely of its intellectual property to The Matthews Group. The Company’s Barcode Technology was originally invented by the founders of Veritec as a product identification system for identification and tracking of parts, components and products mostly in the liquid crystal display (LCD) markets and for secure identification documents, financial cards, medical records and other high security applications. The Company has a management services agreement with The Matthews Group to manage all facets of the barcode technology operations, on behalf of The Matthews Group, through May 30, 2017. The Matthews Group bears the risk of loss from the barcode operations and has the right to the residual benefits of the barcode operations. In consideration, the Company earns a fee of 20% of all revenues from the barcode technology operations. During the three and nine months ended March 31, 2017 and 2016, the Company recorded management fee revenue related to this agreement of $68,461 and $143,791, and $16,098 and $38,066, respectively. Pursuant to the management services agreement, all cash flow (all revenues collected less direct costs paid) of the barcode technology operations is retained by the Company as proceeds from unsecured notes payable due The Matthews Group. During the nine months ended March 31, 2017 and 2016, cash flow loans of $409,606 and $124,357, respectively, were made to the Company at 10% interest per annum and due on demand. At March 31, 2017, cash flow loans of $658,704 are due to The Matthews Group (see Note 3). During the nine months ended March 31, 2017, The Matthews Group loaned the Company $477,500 of convertible notes. At March 31, 2017, convertible notes of $1,210,116 are due The Matthews Group (see Note 3). On March 1, 2017, the Company’s wholly owned subsidiary, Public Bell, Inc., entered into an Exclusive Product Provider Agreement (“Agreement”) with an affiliate of American Heritage College (AHC). Ms. Van Tran, the Company’s CEO/Executive Chair, is a part owner of the affiliate of AHC. Public Bell paid AHC $50,000 in exchange for AHC agreeing to purchase Wi-Fi/WiMax broadband equipment exclusively from Public Bell and for the exclusive right to provide future products and services to AHC. During both the three and nine months ended March 31, 2017, the $50,000 paid to AHC was recorded to sales and marketing expense in the accompanying Condensed Consolidated Statements of Operations. As of March 31, 2017 and June 30, 2016, $96,110 and $96,110, respectively, of advances due to Ms. Van Tran have been presented as accounts payable, related party on the accompanying Condensed Consolidated Balance Sheets. The advances are unsecured, non-interest bearing, and due on demand. The Company leases its office facilities from Ms. Tran. For both the three and nine months ended March 31, 2017 and 2016, rental payments to Ms. Van Tran totaled $12,750 and $38,250, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Mar. 31, 2017
Commitments and Contingencies
Commitments and Contingencies	NOTE 8 – COMMITMENTS AND CONTINGENCIES On September 22, 2016, the Company announced that it has entered into a Non-Binding Letter of Intent (“LOI”) to acquire all of Flathead Bancorporation, Inc.’s (“FB”) issued and outstanding shares. FB is the majority owner of First Citizens Bank of Polson, Montana (“Citizens Bank”). If the Company is successful with its proposal to FB, the Company plans to use its mobile banking technology products and services with Citizens Bank. Under the proposed terms of the LOI, Veritec would acquire 9.9 percent of FB’s issued and outstanding shares for $320,000 at the closing date. Veritec plans to purchase the remaining 90.1 percent of FB’s outstanding common shares within three years of the closing date for $2,880,000. The transaction is subject to, among other things, Veritec being able to obtain funding and obtain regulatory approval from applicable banking authorities. The Company is currently evaluating its options related to this transaction including its termination. 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, 2017, the JV has not received funding and the Company is currently evaluating its options related to the JV including its termination.

Significant Accounting Polici19

Significant Accounting Policies (Policies)	9 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of Condensed 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 Condensed 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 used in valuing derivatives and stock-based compensation, and the valuation of deferred taxes.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value measurements adopted by the Company are based on the authoritative guidance provided by the Financial Accounting Standards Board (“FASB”) which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. FASB authoritative guidance establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs, other than the quoted prices in active markets that are observable either directly or indirectly. Level 3 - Unobservable inputs based on the Company's assumptions. The carrying amounts reported in the Condensed Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, and current liabilities, including notes payable and convertible notes, approximate their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. At March 31, 2017, the Company’s Condensed Consolidated Balance Sheet included the fair value of derivative liabilities of $664,000, which was based on Level 2 measurements. At June 30, 2016, the Company did not have derivative liabilities.
Derivative Financial Instruments	Derivative Financial Instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the Condensed Consolidated Statements of Operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. In the case of insufficient authorized share capital available to fully settle outstanding contracts, the Company utilizes the earliest inception date sequencing method to prioritize its convertible securities. At each reporting date, the Company reviews its convertible securities to determine their classification is appropriate.
Net Income (Loss) per Common Share	Net Income (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 and nine months ended March 31, 2017 and 2016, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an anti-dilutive effect. At March 31, 2017, the Company’s Series H Preferred Stock, Convertible Notes Payable and Options were antidilutive because their exercise prices and conversion prices were out of the money. As of March 31, 2017 and 2016, 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. As of March 31, 2017 2016 Series H Preferred Stock 10,000 10,000 Convertible Notes Payable 17,533,531 7,884,519 Options 2,500,000 2,510,000 Total 20,043,531 10,404,519
Concentrations	Concentrations The Company’s cash balances on deposit with banks are guaranteed by the Federal Deposit Insurance Corporation up to $250,000. The Company may be exposed to risk for the amounts of funds held in one bank in excess of the insurance limit. In assessing the risk, the Company’s policy is to maintain cash balances with high quality financial institutions. The Company did not have cash balances in excess of the guarantee during the nine months ended March 31, 2017. During the three months ended March 31, 2017, the Company had two customers that represented an aggregate of 78% (66% and 12%) of our revenue. During the three months ended March 31, 2016, the Company had three customers that represented an aggregate of 59% (24%, 19% and 16%) of our revenue. During the nine months ended March 31, 2017, the Company had two customers that represented an aggregate of 65% (53% and 12%) of our revenue. During the nine months ended March 31, 2016, the Company had no customers that accounted for more than 10% of our revenue.
Foreign Revenues	Foreign Revenues During the three months ended March 31, 2017 and 2016, the Company had no foreign revenues. During the nine months ended March 31, 2017, the Company had no foreign revenues. During the nine months ended March 31, 2016, foreign revenues accounted for 36% (11% Taiwan, 10% China, and 15% others) of the Company’s total revenues.
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. Under ASU 2014-09, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has recently issued ASU 2016-08, ASU 2016-10, ASU 2016-11, ASU 2016-12, ASU 2016-20, and ASU 2017-05, all of which clarify certain implementation guidance within ASU 2014-09. 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. The standard can be adopted either retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The Company is currently in the process of analyzing the information necessary to determine the impact of adopting this new guidance on its financial position, results of operations, and cash flows. The Company will adopt the provisions of this statement in the first quarter of fiscal 2018. In February 2016, the FASB issued ASU No. 2016-02, Leases. This update will require the recognition of a right-of-use asset and a corresponding lease liability, initially measured at the present value of the lease payments, for all leases with terms longer than 12 months. For operating leases, the asset and liability will be expensed over the lease term on a straight-line basis, with all cash flows included in the operating section of the statement of cash flows. For finance leases, interest on the lease liability will be recognized separately from the amortization of the right-of-use asset in the statement of comprehensive income and the repayment of the principal portion of the lease liability will be classified as a financing activity while the interest component will be included in the operating section of the statement of cash flows. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. Upon adoption, leases will be recognized and measured at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on its financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-01, an update to ASC Topic 805, Business Combinations. ASU 2017-01 narrows the definition of a business and provides a framework for making reasonable judgments about whether a transaction involves an asset or a business. ASU 2017-01 clarifies that when substantially all the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. ASU 2017-01 also requires that a set cannot be considered a business unless it includes, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. ASU 2017-01 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those years, with early adoption permitted, including adoption in an interim period. The Company early adopted the provisions of ASU 2017-01 on January 1, 2017, and concluded that the acquisition of certain intellectual property in February 2017 (see Note 2) did not meet the definition of a business and was treated as an asset acquisition. 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 financial statements.

Significant Accounting Polici20

Significant Accounting Policies (Tables)	9 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of securities excluded from EPS calculation	As of March 31, 2017 2016 Series H Preferred Stock 10,000 10,000 Convertible Notes Payable 17,533,531 7,884,519 Options 2,500,000 2,510,000 Total 20,043,531 10,404,519

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	March 31, 2017 June 30, 2016 (a) Contract commitments $ 192,500 $ 192,500 (b) Intellectual property 200,000 — 392,500 192,500 Less accumulated amortization (171,528 ) (112,292 ) Intangible assets, net $ 220,972 $ 80,208

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Notes Payable	March 31, 2017 June 30, 2016 (a) Convertible notes-in default $ 202,750 $ 195,655 (b) Notes payable-in default 365,838 352,729 Total notes-third parties $ 568,588 $ 548,384
Notes payable- related party	March 31, 2017 June 30, 2016 (c) Convertible notes-The Matthews Group $ 1 ,210,116 $ 669,648 (d) Notes payable-The Matthews Group 658,704 216,648 (e) Convertible notes-other related-in default 248,228 237,725 (f) Convertible notes-former officer — 360,190 Total notes-related party $ 2,117,048 $ 1,484,211

Derivative Liabilities (Tables)

Derivative Liabilities (Tables)	9 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule Of Derivative Liabilities	March 31, 2017 December 31, 2017 Conversion feature: Risk-free interest rate 1.5 % 0.07 % Expected volatility 124 % 99 % Expected life (in years) 1 - 2.7 years 1.2 years Expected dividend yield — — Fair Value: Conversion feature $ 664,000 $ 182,000

Stock Options (Tables)

Stock Options (Tables)	9 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Options	Number of Weighted - Average Shares Exercise Price Outstanding at June 30, 2016 2,510,000 $ 0.08 Granted — $ 0.00 Forfeited (10,000 ) $ 0.08 Outstanding at March 31, 2017 2,500,000 $ 0.08 Exercisable at March 31, 2017 2,500,000 $ 0.08
Additional information regarding outstanding options	Options Outstanding at March 31, 2017 Options Exercisable at March 31, 2017 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 $ 0.08 2,500,000 2.75 $ 0.08 2,500,000 $ 0.08 2,500,000 2,500,000

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income (loss)	$ (822,805)	$ (2,161,178)	$ (1,107,725)	$ (1,293,937)
Cash used in operating activities			894,659	$ 565,630
Working capital deficit	4,171,869		4,171,869
Stockholders' deficiency	(4,105,897)		(4,105,897)		$ (3,233,172)
Note payable obligations - in default	532,344		532,344
Note payable - related parties obligations - in default	$ 183,874		$ 183,874

Significant Accounting Polici26

Significant Accounting Policies - Summary of securities excluded from EPS calculation (Details) - shares	9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Convertible Notes Payable	17,533,531	7,884,519
Options	2,500,000	2,510,000
Total	20,043,531	1,104,045,119
Series H Convertible
Series H Preferred Stock	10,000	10,000

Significant Accounting Polici27

Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Fair value of derivative liabilities			$ 664,000
Federal Deposit Insurance Corporation, amount	$ 250,000		$ 250,000
Foreign revenues			45.00%	45.00%
Taiwan
Foreign revenues				11.00%
China
Foreign revenues				10.00%
Other
Foreign revenues				15.00%
Customer 1
Sales percentage from major customers	66.00%	24.00%	53.00%
Customer 2
Sales percentage from major customers	12.00%	19.00%	12.00%
Customer 3
Sales percentage from major customers		16.00%

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)		Mar. 31, 2017	Jun. 30, 2016
Intangible Assets - Schedule Of Intangible Assets Details
Contract Commitments	[1]	$ 192,500	$ 192,500
Intellectual Property		200,000		[2]
Intangible Assets		392,500	192,500
Less accumulated amoritzation		(171,528)	(112,292)
Intangible assets, net		$ 220,972	$ 80,208
[1]	(a) On September 30, 2014, the Company acquired certain assets and liabilities of Tangible Payments LLC for $192,500, including a contingent earnout payment of $155,000. The Company assigned $192,500 of the purchase price to contract commitments which are amortized over a three year period. As of March 31, 2017 and June 30, 2016, the unamortized balance of contract commitments was $32,083 and $80,208, respectively. The earnout payment of $155,000 is payable on a monthly basis from the net profits derived from the acquired assets, as defined. From the date of the acquisition and up to March 31, 2017, there was no net profit derived from the acquired assets and accordingly, no payments were made on the earnout. The earnout payment is due in full at such time as the Company receives equity investments aggregating $1.3 million.
[2]	(b) On February 8, 2017, the Company, through its wholly-owned subsidiary, Pacific Bell, a Delaware corporation, acquired certain intellectual property from Public Bell, Inc., a California corporation and C. Nguyen, its sole shareholder. The intellectual property is related to the development of mobile and Wi-Fi/WiMax software applications. In consideration, the Company agreed to issue 2,000,000 restricted shares of the Companys common stock valued at $200,000 to Nguyen, based on the closing price of the Companys stock on the date of the transaction. As the assets acquired do not constitute a business, the Company accounted for this as an asset acquisition. Accordingly the Company valued the acquired intellectual property at $200,000 which will be amortized over a two year period. As of March 31, 2017, the unamortized balance of the intellectual property was $188,889. In addition, the Company entered into a five-year employment agreement with Nguyen. The Company agreed to pay Nguyen a base salary of $30,000 per annum and a performance bonus equal to 25% of the Companys wholly-owned subsidiary, Public Bells annual net income, as defined, up to $3,000,000. Given the preliminary stage of development of the operations of this subsidiary and the level of uncertainty that exists related to future probability, management has assessed the likelihood of payment under this bonus as being remote. Accordingly, no contingent earnout liability was recorded when the purchase of the intellectual property assets was recorded.

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)	3 Months Ended			9 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Sep. 30, 2014	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016		Dec. 31, 2014
Unamortized balance of contract commitments				$ 32,083		$ 80,208
Amortization expense	$ 27,153	$ 16,042		59,236	$ 48,042
Future amortization expense for intangible assets; remainder of fiscal year	32,666			32,666
Future amortization expense for intangible assets; 2018	82,750			82,750
Future amortization expense for intangible assets; 2019	66,660			66,660
Future amortization expense for intangible assets; 2020	38,896			38,896
Intellectual Property	200,000			200,000			[1]
Unamortized value of intellectual property	$ 188,889			188,889
C. Nguyen
Base salary				$ 30,000
Performance bonus terms				The Company agreed to pay Nguyen a base salary of $30,000 per annum and a performance bonus equal to 25% of the Company’s wholly-owned subsidiary, Public Bell’s annual net income, as defined, up to $3,000,000.
C. Nguyen
Restricted shares issued				2,000,000
Restricted shares issued, value				$ 200,000
Tangible Payments LLC
Aggregate purchase price			$ 192,500
Earnout Payment			155,000
Equity investments received			$ 1,300,000
Contract commitments								$ 192,500
[1]	(b) On February 8, 2017, the Company, through its wholly-owned subsidiary, Pacific Bell, a Delaware corporation, acquired certain intellectual property from Public Bell, Inc., a California corporation and C. Nguyen, its sole shareholder. The intellectual property is related to the development of mobile and Wi-Fi/WiMax software applications. In consideration, the Company agreed to issue 2,000,000 restricted shares of the Companys common stock valued at $200,000 to Nguyen, based on the closing price of the Companys stock on the date of the transaction. As the assets acquired do not constitute a business, the Company accounted for this as an asset acquisition. Accordingly the Company valued the acquired intellectual property at $200,000 which will be amortized over a two year period. As of March 31, 2017, the unamortized balance of the intellectual property was $188,889. In addition, the Company entered into a five-year employment agreement with Nguyen. The Company agreed to pay Nguyen a base salary of $30,000 per annum and a performance bonus equal to 25% of the Companys wholly-owned subsidiary, Public Bells annual net income, as defined, up to $3,000,000. Given the preliminary stage of development of the operations of this subsidiary and the level of uncertainty that exists related to future probability, management has assessed the likelihood of payment under this bonus as being remote. Accordingly, no contingent earnout liability was recorded when the purchase of the intellectual property assets was recorded.

Notes Payable - Notes Payable (

Notes Payable - Notes Payable (Details) - USD ($)	Mar. 31, 2017	Jun. 30, 2016
Debt Disclosure [Abstract]
Convertible notes payable - in default	$ 202,750	$ 195,655
Notes payable - in default	365,838	352,729
Total Notes payable	$ 568,588	$ 548,384

Notes Payable - Notes Payable R

Notes Payable - Notes Payable Related Party (Details) - USD ($)	Mar. 31, 2017	Jun. 30, 2016
Notes Payable Related Party	$ 2,117,048	$ 1,484,211
Matthews Group
Convertible Notes, Related Party	1,210,116	669,648
Notes Payable Related Party	658,704	216,648
Other
Convertible Notes, Related Party	248,228	237,725
Former Officer
Convertible Notes, Related Party	$ 360,190

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)	3 Months Ended			9 Months Ended
	Mar. 31, 2017	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Sep. 21, 2016	Jun. 30, 2016
Interest rate	10.00%	10.00%		10.00%
Beneficial conversion feature		$ 18,750	$ 22,000	$ 35,000	$ 77,188
Convertible note relinquished	$ 364,686
Common stock returned						500,000
Gain on Settlement			$ 364,686
Convertible Notes Payable
Notes payable	202,750	202,750		202,750			$ 195,655
Recorded increase on interest				7,095
Interest rate							10.00%
Accrued interest				13,109
Convertible Notes Payable | Matthews Group
Notes payable	$ 1,210,116	$ 1,210,116		$ 1,210,116			$ 669,648
Interest rate	10.00%	10.00%		10.00%			10.00%
Conversion price	$ 0.08	$ 0.08		$ 0.08
Shares issued upon conversion	15,126,454	15,126,454		15,126,454
Convertible Notes Payable | Other Related Parties
Notes payable	$ 248,228	$ 248,228		$ 248,228			$ 237,725
Recorded increase on interest				$ 10,503
Interest rate	10.00%	10.00%		10.00%			8.00%
Notes in Default	$ 185,874	$ 185,874		$ 185,874
Balance due on demand	$ 62,354	$ 62,354		$ 62,354
Conversion price	$ 0.30	$ 0.30		$ 0.30
Shares issued upon conversion	619,581	619,581		619,581
Convertible Notes Payable | Minimum
Interest rate	5.00%	5.00%		5.00%
Convertible Notes Payable | Maximum
Interest rate	8.00%	8.00%		8.00%
Convertible Notes Payable #1
Notes payable	$ 361,465	$ 361,465		$ 361,465
Notes in Default	$ 166,506	$ 166,506		$ 166,506
Conversion price	$ 0.30	$ 0.30		$ 0.30
Shares issued upon conversion	555,021	555,021		555,021
Convertible Notes Payable #2
Notes payable	$ 352,729	$ 352,729		$ 352,729
Balance due on demand	$ 36,244	$ 36,244		$ 36,244
Conversion price	$ 0.08	$ 0.08		$ 0.08
Shares issued upon conversion	453,051	453,051		453,051
Notes Payable
Notes payable	$ 365,838	$ 365,838		$ 365,838			$ 352,729
Recorded increase on interest				8,739
Notes in Default	365,838	365,838		365,838
Notes Payable; Secured
Notes payable	330,555	330,555		330,555
Notes Payable; Unsecured
Notes payable	$ 35,283	$ 35,283		$ 35,283
Notes Payable; Unsecured | Minimum
Interest rate	6.50%	6.50%		6.50%
Notes Payable; Unsecured | Maximum
Interest rate	10.00%	10.00%		10.00%
Matthews Group
Notes payable	$ 454,407	$ 454,407		$ 454,407			$ 216,648
Recorded increase on interest				$ 32,450
Interest rate	10.00%	10.00%		10.00%			10.00%
Ownership by CEO and Significant Stockholder				50.00%
Notes issued				$ 409,606
Matthews Group | Convertible Debt
Recorded increase on interest				42,591
Accrued interest				62,968
Notes issued				477,500
Convertible Notes Payable #2 | Other Related Parties
Notes in Default	$ 23,505	$ 23,505		$ 23,505
Conversion price	$ .10	$ .10		$ .10
Shares issued upon conversion	235,050	235,050		235,050
Convertible Notes Payable #3 | Other Related Parties
Notes in Default	$ 38,849	$ 38,849		$ 38,849
Conversion price	$ .08	$ .08		$ .08
Shares issued upon conversion	485,613	485,613		485,613

Derivative Liabilities - Schedu

Derivative Liabilities - Schedule Of Derivative Liabilities (Details) - USD ($)	6 Months Ended	9 Months Ended
	Dec. 31, 2016	Mar. 31, 2017	Dec. 31, 2017	Jun. 30, 2016
Conversion feature:
Risk-free interest rate	0.07%	1.50%
Expected volatility	99.00%	124.00%
Expected life (in years)	1 year 2 months	2 years 8 months
Expected dividend yield
Fair Value:
Conversion feature		$ 664,000	$ 182,000

Derivative Liabilities (Details

Derivative Liabilities (Details Narrative) - USD ($)	Dec. 31, 2017	Mar. 31, 2017	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative liabilities	$ 182,000	$ 664,000

Stockholders Deficiency (Detail

Stockholders Deficiency (Details Narrative) - USD ($)	Mar. 31, 2017	Jun. 30, 2016
Equity [Abstract]
Common stock to be issued	2,145,000	145,000
Common stock to be issued, value	$ 212,500	$ 12,500

Stock Options - Summary of Stoc

Stock Options - Summary of Stock Options (Details)	9 Months Ended
	Mar. 31, 2017$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Beginning number of shares; outstanding | shares	2,510,000
Beginning weighted-average exercise price; outstanding	$ .08
Options granted, weighted average exercise price	$ 0
Options Forfeited | shares	(10,000)
Options Forfeited, weighted average exercise price	$ .08
Ending number of shares; outstanding | shares	2,500,000
Ending weighted-average exercise price; outstanding	$ .08
Number of Shares; exercisable | shares	2,500,000
Weighted-average exercise price; exercisable	$ .08

Stock Options - Additional info

Stock Options - Additional information regarding outstanding options (Details)	9 Months Ended
	Mar. 31, 2017$ / sharesshares
Options outstanding, shares | shares	2,500,000
Weighted average remaining contractual life	2 years 9 months
Weighted average exercise price	$ .08
Options excercisable | shares	2,500,000
Options exercisable, weighted average exercise price	$ .08
Min
Weighted average exercise price	.08
Max
Weighted average exercise price	$ .08

Stock Options (Details Narrativ

Stock Options (Details Narrative)	9 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options out | shares	2,500,000
Weighted average exercise price | $ / shares	$ .08
Intrinsic value of options | $	$ 62,500
Weighted average remaining contractual life	2 years 9 months

Related Party Transactions (Det

Related Party Transactions (Details Narrative)	3 Months Ended		9 Months Ended
	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Jun. 30, 2016USD ($)
Managament fee, percent of revenue	68,461	16,098	143,791	38,066
Cash flow loans	$ 409,606	$ 124,357	$ 409,606	$ 124,357
Cash flow loans, interest	10.00%		10.00%
Accounts payable, related party	$ 96,110		$ 96,110		$ 96,110
Sales and marketing expense	50,000		50,000
Rental payments	12,750		38,250
Matthews Group
Convertible notes loaned to Company	477,500		477,500
Convertible Notes due to related party	1,210,116		1,210,116
Cash flow loans	$ 658,704		$ 658,704
Larry Johanns
Ownership of TMG	50.00%		50.00%
Van Tran
Ownership of TMG	50.00%		50.00%
Accounts payable, related party	$ 96,110		$ 96,110		$ 96,110

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	Sep. 22, 2016	Jan. 17, 2016
Acquired
Acquired shares	9.90%
Acquired shares value	$ 320,000
Plans to Purchase
Acquired shares	90.10%
Acquired shares value	$ 2,880,000
Veritec Inc
Member in joint venture		30.00%
Vietnam Alliance Capital
Member in joint venture		70.00%