Veritec (VRTC) 10-Q 11 May 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Mar. 31, 2018shares
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, 2018
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	2,018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2018	Jun. 30, 2017
Current Assets:
Cash	$ 33,763	$ 46,693
Accounts receivable	8,632	8,139
Prepaid expenses	4,095	1,985
Total Current Assets	46,490	56,817
Intangibles, net		16,042
Total Assets	46,490	72,859
Current Liabilities:
Accounts payable	645,166	647,946
Accounts payable, related party	96,110	96,110
Accrued expenses	58,044	72,101
Notes payable (including $538,714 and $557,822 in default at March 31, 2018 and June 30, 2017, respectively)	595,526	575,323
Notes payable, related party (including $194,874 and $188,124 in default at March 31, 2018 and June 30, 2017, respectively)	2,813,715	2,293,866
Deferred revenues	37,500	72,492
Derivative liabilities	208,418	728,000
Total Current Liabilities	4,454,479	4,485,838
Contingent earnout liability	155,000	155,000
Total Liabilities	4,609,479	4,640,838
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, 2018 and June 30, 2017	1,000	1,000
Common stock, par value $0.01; authorized 50,000,000 shares, 39,538,007 shares issued and outstanding as of March 31, 2018 and June 30, 2017	395,380	395,380
Common stock to be issued, 145,000 shares to be issued as of March 31, 2018 and June 30, 2017, respectively	12,500	12,500
Additional paid-in capital	17,974,576	17,974,576
Accumulated deficit	(22,946,445)	(22,951,435)
Total Stockholders' Deficiency	(4,562,989)	(4,567,979)
Total Liabilities and Stockholders' Deficiency	$ 46,490	$ 72,859

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)		Mar. 31, 2018	Jun. 30, 2017
Notes payable, in default	[1]	$ 383,315	$ 370,207
Notes payable, related party in default		$ 194,874	$ 188,124
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		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
[1]	(b) The notes are either secured by the Companys intellectual property or unsecured and bear interest ranging from 6.5% to 10% per annum, due in 2012, and in default. At June 30, 2017, the notes totaled $370,207. During the period ended March 31, 2018, interest of $13,108 was added to principal, leaving a balance owed of $383,315 at March 31, 2018. At March 31, 2018, $347,032 of notes are secured by the Companys intellectual property and $36,283 of notes are unsecured.

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Revenue:
Mobile banking technology revenue	$ 31,324	$ 35,790	$ 92,441	$ 120,000
Other revenue, management fee related party	35,034	68,461	208,527	143,791
Total revenue	66,358	104,251	300,968	263,791
Cost of Sales	61,189	54,222	168,305	203,082
Gross Profit	5,169	50,029	132,663	60,709
Operating Expenses:
General and administrative	132,381	193,922	446,308	550,922
Sales and marketing		57,026		62,586
Research and development		65,361	19,938	87,491
Total Operating Expenses	132,381	316,309	466,246	700,999
Loss from Operations	(127,212)	(266,280)	(333,583)	(640,290)
Other Expense:
Change in fair value of derivative liabilities	(186,829)	(482,000)	519,582	(482,000)
Expense related to fair value of derivative liabilities				(182,000)
Gain on settlement of note payable to former officer				364,690
Interest expense, including $56,538, 67,787, 160,805 and 147,918 respectively, to realted parties	(63,274)	(74,525)	(181,009)	(168,125)
Total other income (expense)	(250,103)	(556,525)	338,573	(467,435)
Net Income (Loss)	$ (377,315)	$ (822,805)	$ 4,990	$ (1,107,725)
Net Income (Loss) Per Common Share - Basic and Diluted	$ (0.01)	$ (0.02)	$ 0	$ (0.03)
Weighted Average Number of Shares Outstanding - Basic and Diluted	39,538,007	39,538,007	39,538,007	39,538,007

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Interest expense, related parties	$ 56,538	$ 67,787	$ 160,805	$ 147,918

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Stockholder's Equity/Deficiency (Unaudited) - 9 months ended Mar. 31, 2018 - USD ($)	Preferred Stock	Common Stock	Common Stock to be Issued	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning balance, Shares at Jun. 30, 2017	1,000	39,538,007
Beginning balance, Amount at Jun. 30, 2017	$ 1,000	$ 395,380	$ 12,500	$ 17,974,576	$ (22,951,435)	$ (4,567,979)
Net Income					4,990	4,990
Ending balance, Shares at Mar. 31, 2018	1,000	39,538,007
Ending balance, Amount at Mar. 31, 2018	$ 1,000	$ 395,380	$ 12,500	$ 17,974,576	$ (22,946,445)	$ (4,562,989)

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$ 4,990	$ (1,107,725)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation		171
Amortization	16,042	59,236
Gain on settlement of note payable to former officer		(364,690)
Change in fair value of derivative liabilities	(519,582)	482,000
Beneficial conversion feature on issuance of convertible notes payable-related party		35,000
Interest accrued on notes payable	181,009	130,625
Changes in operating assets and liabilities:
Accounts receivable	(493)	(5,119)
Prepaid expenses	(2,110)	(6,397)
Accounts payable	(2,780)	(5,265)
Accrued expenses	(14,057)	(2,010)
Payroll tax liabilities		(238,718)
Deferred revenues	(34,993)	(53,767)
Net cash used in operating activities	(371,974)	(894,659)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from convertible notes payable-related party		477,500
Proceeds from notes payable, related party	359,044	409,606
Net cash provided by financing activities	359,044	887,106
NET DECREASE IN CASH	(12,930)	(7,553)
CASH AT BEGINNING OF PERIOD	46,693	60,953
CASH AT END OF PERIOD	33,763	53,400
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest
NON CASH INVESTING AND FINANCING ACTIVITIES
Reclassification of customer deposit to accounts payable		25,000
Shares to be issued for asset acquisition		$ 200,000

Nature of Business and Summary

Nature of Business and Summary of Significant Accounting Policies	9 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Significant Accounting Policies	NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company Veritec, Inc. (Veritec) was formed in the State of Nevada on September 8, 1982. Veritec’s wholly owned subsidiaries include Veritec Financial Systems, Inc., Tangible Payment Systems, Inc., and Public Bell, Inc. (collectively the “Company”). Nature of Business The Company is primarily engaged in the development, sales, and licensing of products and providing services related to its mobile banking solutions. Mobile Banking Solutions On January 12, 2009, Veritec formed Veritec Financial Systems, Inc., a Delaware corporation, to bring its Mobile Banking Technology, products and related professional services to market. In 2009 through 2016, the Company has had agreements with various banks, including Security First Bank (terminated in October 2010), Palm Desert National Bank (which was later assigned to First California Bank and subsequently Pacific Western Bank that terminated in June 2013), and Central Bank of Kansas City (“CBKC”). Late in the fiscal year ended June 30, 2016, the relationship between CBKC and the Company ended and the Company is currently seeking a bank to sponsor its Prepaid Card programs. As a Cardholder Independent Sales Organization, Veritec is able to promote and sell Visa branded card programs. As a Third-Party Servicer, Veritec provides back-end cardholder transaction processing services for Visa branded card programs on behalf of its sponsoring bank. The Company has a portfolio of five United States and eight foreign patents. In addition, the Company has seven U.S. and twenty-eight foreign pending patent applications. 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 period ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending June 30, 2018. The Condensed Consolidated Balance Sheet information as of June 30, 2017 was derived from the Company’s audited Consolidated Financial Statements as of and for the year ended June 30, 2017 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on October 10, 2017. 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. Inter-company transactions and balances were eliminated in consolidation. 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, 2018, the Company incurred a loss from operations of $333,583 and used cash in operating activities of $371,974, and at March 31, 2018, the Company had a working capital deficit of $4,407,989 and a stockholders’ deficiency of $4,562,989. In addition, as of March 31, 2018, the Company is delinquent in payment of $733,588 of its notes payable. These factors, among others, raise substantial doubt about our ability to continue as a going concern within one year of 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, 2017 financial statements, has 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 be necessary if the Company is unable to continue as a going concern. The Company believes it will require additional funds to continue its operations through fiscal 2018 and to continue to develop its existing projects and plans to raise such funds by finding additional investors to purchase the Company’s securities, generating sufficient sales revenue, implementing dramatic cost reductions or any combination thereof. There is no assurance that the Company can be successful in raising such funds, generating the necessary sales or reducing major costs. Further, if the Company is successful in raising such funds from sales of equity securities, the terms of these sales may cause significant dilution to existing holders of common stock. The Condensed Consolidated Financial Statements do not include any adjustments that may result from this uncertainty. 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 Sheet 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, 2018 and June 30, 2017, the Company’s Condensed Consolidated Balance Sheet included the fair value of derivative liabilities of $208,418 and $728,000, respectively, which was based on Level 2 inputs. 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 nine months ended March 31, 2018 and 2017, 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, 2018, 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, 2018 and 2017, 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, 2018 2017 Series H Preferred Stock 10,000 10,000 Convertible Notes Payable 19,017,287 17,533,531 Options 2,500,000 2,500,000 Total 21,527,287 20,043,531 Concentrations During the three months ended March 31, 2018, the Company had one customer, a related party, that represented 53% of its revenue, one customer that represented 23% of its revenue, and one customer that represented 11% of its revenue. During the three months ended March 31, 2017, the Company had one customer, a related party that represented 66% of its revenue, and one customer that represented 12% of its revenue. During the nine months ended March 31, 2018, the Company had one customer, a related party that represented 69% of its revenue, and one customer that represented 13% of its revenue. During the nine months ended March 31, 2017, the Company had one customer, a related party that represented 53% of its revenue, and two additional customers that represented 12% and 10% of its revenue. Segment Reporting FASB ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company had one operating segment at March 31, 2018, which is the payment services segment, which processes debit card transactions. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), and the FASB has since issued several amendments to this standard, which clarifies the principles for recognizing revenue. This guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard supersedes all existing U.S. GAAP guidance on revenue recognition and is expected to require the use of more judgment and result in additional disclosures. The new standard is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company will adopt the guidance of ASU 2014-09 on July 1, 2018. The Company does not expect that the adoption of the new guidance will have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to reflect most leases on their balance sheet as lease liabilities with a corresponding right-of-use asset, while leaving presentation of lease expense in the statement of income largely unchanged. The standard also eliminates the real-estate specific provisions that exist under current U.S. GAAP and modifies the classification criteria and accounting lessors must apply to sales-type and direct financing leases. The Company will be required to adopt ASU 2016-02 as of July 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-02 on the Company's consolidated financial statements. 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.

Contingent Earnout Liability

Contingent Earnout Liability	9 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Contingent Earnout Liability	NOTE 2 –CONTINGENT EARNOUT LIABILITY In 2014, the Company acquired Tangible Payments LLC, which developed online payment technology that encrypts sensitive information securely between customers and merchants during online transactions. The purchase price for the acquisition was $192,500 and included an earnout payment of $155,000. The earnout payment is payable on a monthly basis from the net profits derived from the acquired assets commencing three months after the closing. From the date of the acquisition and up to March 31, 2018, there was no net profit derived from the acquired assets and accordingly, no payments were made on the earnout. The Company assigned $192,500 of the purchase price to contract commitments which were amortized over a three year period. For the three and nine months ended March 31, 2018 and 2017, the Company recorded $0 and $16,042, and $27,153 and $59,236, respectively, of amortization expense related to this intangible asset which is included in general and administrative expense in the Condensed Consolidated Statements of Operations.

Notes Payable

Notes Payable	9 Months Ended
	Mar. 31, 2018
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, 2018 and June 30, 2017: March 31, 2018 June 30, 2017 (a) Convertible notes ($174,506 and $168,507 in default at March 31, 2018 and June 30, 2017, respectively) $ 212,211 $ 205,116 (b) Notes payable-in default 383,315 370,207 Total notes-third parties $ 595,526 $ 575,323 (a) The notes are unsecured, convertible into common stock at amounts ranging from $0.08 to $0.30 per share, and bear interest at rates ranging from 5% to 8% per annum. At June 30, 2017, convertible notes totaled $205,116. During the period ended March 31, 2018, interest of $7,096 was added to principal leaving a balance owed of $212,211 at March 31, 2018. At March 31, 2018, $174,506 of the convertible notes were in default, and convertible at a conversion price of $0.30 per share into 581,688 shares of the Company’s common stock. The balance of $37,705 is due on demand and convertible at a conversion price of $0.08 per share into 471,311 shares of the Company’s common stock. (b) The notes are either secured by the Company’s intellectual property or unsecured and bear interest ranging from 6.5% to 10% per annum, due in 2012, and in default. At June 30, 2017, the notes totaled $370,207. During the period ended March 31, 2018, interest of $13,108 was added to principal, leaving a balance owed of $383,315 at March 31, 2018. At March 31, 2018, $347,032 of notes are secured by the Company’s intellectual property and $36,283 of notes are unsecured. Notes payable-related party Notes payable-related party includes principal and accrued interest and consists of the following at March 31, 2018, and June 30, 2017: March 31, 2018 June 30, 2017 (c) Convertible notes-The Matthews Group $ 1,317,822 $ 1,236,943 (d) Notes payable-The Matthews Group 1,233,665 805,195 (e) Convertible notes-other related-in default 262,228 251,728 Total notes-related party $ 2,813,715 $ 2,293,866 (c) The notes are unsecured, convertible into common stock at $0.08 per share, bear interest at rates ranging from 8% to 10% per annum, and are due on demand. 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, 2017, convertible notes due to The Matthews Group was $1,236,943. During the period ended March 31, 2018, interest of $80,879 was added to principal leaving a balance owed of $1,317,823 at March 31, 2018. At March 31, 2018, $1,317,823 of the notes are convertible at a conversion price of $0.08 per share into 16,472,782 shares of the Company’s common stock. (d) The notes are unsecured, accrue interest at 10% per annum, and are due on demand. The notes were issued relating to a management services agreement with The Matthews Group (see Note 7) dated September 30, 2015. At June 30, 2017, notes payable totaled $805,195. During the period ended March 31, 2018, $359,044 of notes payable were issued and interest of $69,426 was added to principal leaving a balance due of $1,233,665 at March 31, 2018. (e) The notes are due to a current and a former director, are unsecured, convertible into common stock at per share amounts ranging from $0.08 to $0.30, and bear interest at rates ranging from 8% to 10% per annum. At June 30, 2017, convertible notes due other related parties totaled $251,728. During the period ended March 31, 2018, interest of $10,500 was added to principal leaving a balance owed of $262,228 at March 31, 2018. At March 31, 2018, the notes are convertible at conversion prices ranging from $0.08 per share to $0.30 per share into 1,491,506 shares of the Company’s common stock.

Derivative Liabilities

Derivative Liabilities	9 Months Ended
	Mar. 31, 2018
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 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 and recorded a charge for the fair value of the derivative liabilities, and a The conversion feature derivative liability was valued at the following dates using a Black-Scholes-Merton model with the following assumptions: March 31, 2018 June 30, 2017 Conversion feature: Risk-free interest rate 2.09 % 1.50 % Expected volatility 132 % 179 % Expected life (in years) 1 year 1 year Expected dividend yield — — Fair Value: Conversion feature $ 208,418 $ 728,000 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, 2018
Equity [Abstract]
Stockholders' Deficiency	NOTE 5 - STOCKHOLDERS’ DEFICIENCY As of both March 31, 2018 and June 30, 2017, 145,000 shares of common stock to be issued with an aggregate value of $12,500 have not been issued and are reflected as common stock to be issued in the accompanying Condensed Consolidated Balance Sheets.

Stock Options

Stock Options	9 Months Ended
	Mar. 31, 2018
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, 2018 is as follows: Number of Weighted - Average Shares Exercise Price Outstanding at June 30, 2017 2,500,000 $ 0.08 Granted — — Forfeited — — Outstanding at December 31, 2017 2,500,000 $ 0.08 Exercisable at December 31, 2017 2,500,000 $ 0.08 At March 31, 2018, 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, 2018 and the Company recognized no stock-based compensation expense related to stock options during the three and nine months ended March 31, 2018 and 2017, respectively. As of March 31, 2018, there was no remaining unrecognized compensation costs related to stock options and no intrinsic value. Additional information regarding options outstanding as of March 31, 2018 is as follows: Options Outstanding at March 31, 2018 Options Exercisable at March 31, 2018 Weighted Average Weighted Weighted Number of Remaining Average Number of Average Range of Shares Contractual Life Exercise Shares Exercise Exercise Outstanding (Years) Price Exercisable Price $ 0.08 2,500,000 1.92 $ 0.08 2,500,000 $ 0.08 2,500,000 2,500,000

Related Party Transactions

Related Party Transactions	9 Months Ended
	Mar. 31, 2018
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 Note 3). Management Services Agreement and Related Notes Payable with Related Party 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 July 31, 2018. 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 through May 31, 2017, and 35% of all revenues from June 1, 2017 to July 31, 2018 from the barcode technology operations. During the three and nine months ended March 31, 2018 and 2017, the Company recorded management fee revenue related to this agreement of $35,034 and $208,527, and $68,461 and $143,791, 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, 2018 and 2017, cash flow loans of $359,044 and $409,606, respectively, were made to the Company at 10% interest per annum and due on demand. At March 31, 2018, cash flow loans of $1,233,665 are due to The Matthews Group (see Note 3). Advances from Related Parties As of March 31, 2018, and June 30, 2017, $96,110 of advances due to Ms. Van Tran have been presented as accounts payable, related party on the accompanying Condensed Consolidated Balance Sheets, respectively. The advances are unsecured, non-interest bearing, and due on demand. Other Transactions with Related Parties The Company leases its office facilities from Ms. Tran. For the three and nine months ended March 31, 2018 and 2017, rental payments to Ms. Van Tran totaled $12,750 and $38,250, and $12,750 and $38,250, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Mar. 31, 2018
Commitments and Contingencies
Commitments and Contingencies	NOTE 8 – COMMITMENTS AND CONTINGENCIES 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 of the JV and VAC will be a 70% member of the JV. Pursuant to the agreement, the Company will grant a license for 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, 2018, the JV has not received funding and the Company is currently evaluating its options related to the JV including its termination. Incentive Compensation Bonus Plan On December 5, 2008, the Company adopted an incentive compensation bonus plan to provide payments to key employees in the aggregated amount of 10% of pre-tax earnings in excess of $3,000,000 after the end of each fiscal year to be distributed annually to employees. As of March 31, 2018, the Company had not achieved an annual pre-tax earnings in excess of $3,000,000.

Subsequent Event

Subsequent Event	9 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
Subsequent Event	NOTE 9 – SUBSEQUENT EVENT On February 2, 2018, the Company’s Board of Directors voted to increase the Company’s authorized common shares to 150,000,000 common shares. The Company filed the requisite documentation with the State of Nevada in April 2018, with an effective date of April 18, 2018. The Company is currently waiting for approval from the State of Nevada.

Nature of Business and Summar17

Nature of Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Mar. 31, 2018
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 period ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending June 30, 2018. The Condensed Consolidated Balance Sheet information as of June 30, 2017 was derived from the Company’s audited Consolidated Financial Statements as of and for the year ended June 30, 2017 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on October 10, 2017. 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. Inter-company transactions and balances were eliminated in consolidation.
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, 2018, the Company incurred a loss from operations of $333,583 and used cash in operating activities of $371,974, and at March 31, 2018, the Company had a working capital deficit of $4,407,989 and a stockholders’ deficiency of $4,562,989. In addition, as of March 31, 2018, the Company is delinquent in payment of $733,588 of its notes payable. These factors, among others, raise substantial doubt about our ability to continue as a going concern within one year of 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, 2017 financial statements, has 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 be necessary if the Company is unable to continue as a going concern. The Company believes it will require additional funds to continue its operations through fiscal 2018 and to continue to develop its existing projects and plans to raise such funds by finding additional investors to purchase the Company’s securities, generating sufficient sales revenue, implementing dramatic cost reductions or any combination thereof. There is no assurance that the Company can be successful in raising such funds, generating the necessary sales or reducing major costs. Further, if the Company is successful in raising such funds from sales of equity securities, the terms of these sales may cause significant dilution to existing holders of common stock. The Condensed Consolidated Financial Statements do not include any adjustments that may result from this uncertainty.
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 Sheet 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, 2018 and June 30, 2017, the Company’s Condensed Consolidated Balance Sheet included the fair value of derivative liabilities of $208,418 and $728,000, respectively, which was based on Level 2 inputs.
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 nine months ended March 31, 2018 and 2017, 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, 2018, 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, 2018 and 2017, 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, 2018 2017 Series H Preferred Stock 10,000 10,000 Convertible Notes Payable 19,017,287 17,533,531 Options 2,500,000 2,500,000 Total 21,527,287 20,043,531
Concentrations	Concentrations During the three months ended March 31, 2018, the Company had one customer, a related party, that represented 53% of its revenue, one customer that represented 23% of its revenue, and one customer that represented 11% of its revenue. During the three months ended March 31, 2017, the Company had one customer, a related party that represented 66% of its revenue, and one customer that represented 12% of its revenue. During the nine months ended March 31, 2018, the Company had one customer, a related party that represented 69% of its revenue, and one customer that represented 13% of its revenue. During the nine months ended March 31, 2017, the Company had one customer, a related party that represented 53% of its revenue, and two additional customers that represented 12% and 10% of its revenue.
Segment Reporting	Segment Reporting FASB ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company had one operating segment at March 31, 2018, which is the payment services segment, which processes debit card transactions.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), and the FASB has since issued several amendments to this standard, which clarifies the principles for recognizing revenue. This guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard supersedes all existing U.S. GAAP guidance on revenue recognition and is expected to require the use of more judgment and result in additional disclosures. The new standard is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company will adopt the guidance of ASU 2014-09 on July 1, 2018. The Company does not expect that the adoption of the new guidance will have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to reflect most leases on their balance sheet as lease liabilities with a corresponding right-of-use asset, while leaving presentation of lease expense in the statement of income largely unchanged. The standard also eliminates the real-estate specific provisions that exist under current U.S. GAAP and modifies the classification criteria and accounting lessors must apply to sales-type and direct financing leases. The Company will be required to adopt ASU 2016-02 as of July 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-02 on the Company's consolidated financial statements. 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.

Nature of Business and Summar18

Nature of Business and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Summary of securities excluded from EPS calculation	As of March 31, 2018 2017 Series H Preferred Stock 10,000 10,000 Convertible Notes Payable 19,017,287 17,533,531 Options 2,500,000 2,500,000 Total 21,527,287 20,043,531

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Notes Payable	March 31, 2018 June 30, 2017 (a) Convertible notes ($174,506 and $168,507 in default at March 31, 2018 and June 30, 2017, respectively) $ 212,211 $ 205,116 (b) Notes payable-in default 383,315 370,207 Total notes-third parties $ 595,526 $ 575,323
Notes payable- related party	March 31, 2018 June 30, 2017 (c) Convertible notes-The Matthews Group $ 1,317,822 $ 1,236,943 (d) Notes payable-The Matthews Group 1,233,665 805,195 (e) Convertible notes-other related-in default 262,228 251,728 Total notes-related party $ 2,813,715 $ 2,293,866

Derivative Liabilities (Tables)

Derivative Liabilities (Tables)	9 Months Ended
	Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule Of Derivative Liabilities	March 31, 2018 June 30, 2017 Conversion feature: Risk-free interest rate 2.09 % 1.50 % Expected volatility 132 % 179 % Expected life (in years) 1 year 1 year Expected dividend yield — — Fair Value: Conversion feature $ 208,418 $ 728,000

Stock Options (Tables)

Stock Options (Tables)	9 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Options	Number of Weighted - Average Shares Exercise Price Outstanding at June 30, 2017 2,500,000 $ 0.08 Granted — — Forfeited — — Outstanding at December 31, 2017 2,500,000 $ 0.08 Exercisable at December 31, 2017 2,500,000 $ 0.08
Additional information regarding outstanding options	Options Outstanding at March 31, 2018 Options Exercisable at March 31, 2018 Weighted Average Weighted Weighted Number of Remaining Average Number of Average Range of Shares Contractual Life Exercise Shares Exercise Exercise Outstanding (Years) Price Exercisable Price $ 0.08 2,500,000 1.92 $ 0.08 2,500,000 $ 0.08 2,500,000 2,500,000

Summary of securities excluded

Summary of securities excluded from EPS calculation (Details) - shares	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accounting Policies [Abstract]
Series H Preferred Stock	10,000	10,000
Convertible Notes Payable	19,017,287	17,533,531
Options	2,500,000	2,500,000
Total	21,527,287	20,043,531

Nature of Business and Summar23

Nature of Business and Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2017
Loss from Operations	$ (127,212)	$ (266,280)	$ (333,583)	$ (640,290)
Cash used in operating activities			371,974	$ 894,659
Working capital deficit	4,407,989		4,407,989
Stockholders' deficiency	(4,562,989)		(4,562,989)		$ (4,567,979)
Notes payable in delinquency	733,588		733,588
Derivative liabilities	$ 208,418		$ 208,418		$ 728,000
Customer 1
Sales percentage from major customers	53.00%	66.00%	69.00%	53.00%
Customer 2
Sales percentage from major customers	23.00%	12.00%	13.00%	12.00%
Customer 3
Sales percentage from major customers	11.00%			10.00%

Contingent Earnout Liability (D

Contingent Earnout Liability (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2015
Amortization expense	$ 0	$ 16,042	$ 27,153	$ 59,236
Tangible Payments LLC
Aggregate purchase price					$ 192,500
Earnout Payment					$ 155,000

Notes Payable - Notes Payable (

Notes Payable - Notes Payable (Details) - USD ($)		Mar. 31, 2018	Jun. 30, 2017
Debt Disclosure [Abstract]
Convertible notes payable - in default	[1]	$ 212,211	$ 205,116
Notes payable - in default	[2]	383,315	370,207
Total Notes payable		$ 595,526	$ 575,323
[1]	(a) The notes are unsecured, convertible into common stock at amounts ranging from $0.08 to $0.30 per share, and bear interest at rates ranging from 5% to 8% per annum. At June 30, 2017, convertible notes totaled $205,116. During the period ended March 31, 2018, interest of $7,096 was added to principal leaving a balance owed of $212,211 at March 31, 2018. At March 31, 2018, $174,506 of the convertible notes were in default, and convertible at a conversion price of $0.30 per share into 581,688 shares of the Companys common stock. The balance of $37,705 is due on demand and convertible at a conversion price of $0.08 per share into 471,311 shares of the Companys common stock.
[2]	(b) The notes are either secured by the Companys intellectual property or unsecured and bear interest ranging from 6.5% to 10% per annum, due in 2012, and in default. At June 30, 2017, the notes totaled $370,207. During the period ended March 31, 2018, interest of $13,108 was added to principal, leaving a balance owed of $383,315 at March 31, 2018. At March 31, 2018, $347,032 of notes are secured by the Companys intellectual property and $36,283 of notes are unsecured.

Notes Payable - Notes Payable R

Notes Payable - Notes Payable Related Party (Details) - USD ($)		Mar. 31, 2018	Jun. 30, 2017
Notes Payable Related Party		$ 2,813,715	$ 2,293,866
The Matthews Group
Convertible Notes, Related Party	[1]	1,317,822	1,236,943
Notes Payable Related Party	[2]	359,044	805,195
Other
Convertible Notes, Related Party	[3]	$ 262,228	$ 251,728
[1]	(c) The notes are unsecured, convertible into common stock at $0.08 per share, bear interest at rates ranging from 8% to 10% per annum, and are due on demand. The Matthews Group (see Note 7) is owned 50% by Ms. Van Tran, the Companys CEO, and 50% by Larry Johanns, a significant shareholder of the Company. At June 30, 2017, convertible notes due to The Matthews Group was $1,236,943. During the period ended March 31, 2018, interest of $80,879 was added to principal leaving a balance owed of $1,317,823 at March 31, 2018. At March 31, 2018, $1,317,823 of the notes are convertible at a conversion price of $0.08 per share into 16,472,782 shares of the Companys common stock.
[2]	(d) The notes are unsecured, accrue interest at 10% per annum, and are due on demand. The notes were issued relating to a management services agreement with The Matthews Group (see Note 7) dated September 30, 2015. At June 30, 2017, notes payable totaled $805,195. During the period ended March 31, 2018, $359,044 of notes payable were issued and interest of $69,426 was added to principal leaving a balance due of $1,233,665 at March 31, 2018.
[3]	(e) The notes are due to a current and a former director, are unsecured, convertible into common stock at per share amounts ranging from $0.08 to $0.30, and bear interest at rates ranging from 8% to 10% per annum. At June 30, 2017, convertible notes due other related parties totaled $251,728. During the period ended March 31, 2018, interest of $10,500 was added to principal leaving a balance owed of $262,228 at March 31, 2018. At March 31, 2018, the notes are convertible at conversion prices ranging from $0.08 per share to $0.30 per share into 1,491,506 shares of the Companys common stock.

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)		9 Months Ended
		Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2017
Note Terms		NOTE 3 – NOTES PAYABLE Notes payable-in default Notes payable includes principal and accrued interest and consists of the following at March 31, 2018 and June 30, 2017: March 31, 2018 June 30, 2017 (a) Convertible notes ($174,506 and $168,507 in default at March 31, 2018 and June 30, 2017, respectively) $ 212,211 $ 205,116 (b) Notes payable-in default 383,315 370,207 Total notes-third parties $ 595,526 $ 575,323 (a) The notes are unsecured, convertible into common stock at amounts ranging from $0.08 to $0.30 per share, and bear interest at rates ranging from 5% to 8% per annum. At June 30, 2017, convertible notes totaled $205,116. During the period ended March 31, 2018, interest of $7,096 was added to principal leaving a balance owed of $212,211 at March 31, 2018. At March 31, 2018, $174,506 of the convertible notes were in default, and convertible at a conversion price of $0.30 per share into 581,688 shares of the Company’s common stock. The balance of $37,705 is due on demand and convertible at a conversion price of $0.08 per share into 471,311 shares of the Company’s common stock. (b) The notes are either secured by the Company’s intellectual property or unsecured and bear interest ranging from 6.5% to 10% per annum, due in 2012, and in default. At June 30, 2017, the notes totaled $370,207. During the period ended March 31, 2018, interest of $13,108 was added to principal, leaving a balance owed of $383,315 at March 31, 2018. At March 31, 2018, $347,032 of notes are secured by the Company’s intellectual property and $36,283 of notes are unsecured. Notes payable-related party Notes payable-related party includes principal and accrued interest and consists of the following at March 31, 2018, and June 30, 2017: March 31, 2018 June 30, 2017 (c) Convertible notes-The Matthews Group $ 1,317,822 $ 1,236,943 (d) Notes payable-The Matthews Group 1,233,665 805,195 (e) Convertible notes-other related-in default 262,228 251,728 Total notes-related party $ 2,813,715 $ 2,293,866 (c) The notes are unsecured, convertible into common stock at $0.08 per share, bear interest at rates ranging from 8% to 10% per annum, and are due on demand. 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, 2017, convertible notes due to The Matthews Group was $1,236,943. During the period ended March 31, 2018, interest of $80,879 was added to principal leaving a balance owed of $1,317,823 at March 31, 2018. At March 31, 2018, $1,317,823 of the notes are convertible at a conversion price of $0.08 per share into 16,472,782 shares of the Company’s common stock. (d) The notes are unsecured, accrue interest at 10% per annum, and are due on demand. The notes were issued relating to a management services agreement with The Matthews Group (see Note 7) dated September 30, 2015. At June 30, 2017, notes payable totaled $805,195. During the period ended March 31, 2018, $359,044 of notes payable were issued and interest of $69,426 was added to principal leaving a balance due of $1,233,665 at March 31, 2018. (e) The notes are due to a current and a former director, are unsecured, convertible into common stock at per share amounts ranging from $0.08 to $0.30, and bear interest at rates ranging from 8% to 10% per annum. At June 30, 2017, convertible notes due other related parties totaled $251,728. During the period ended March 31, 2018, interest of $10,500 was added to principal leaving a balance owed of $262,228 at March 31, 2018. At March 31, 2018, the notes are convertible at conversion prices ranging from $0.08 per share to $0.30 per share into 1,491,506 shares of the Company’s common stock.
Notes Payable Related Party		$ 2,813,715		$ 2,293,866
The Matthews Group
Conversion price		$ 0.08
Accrued interest		$ 69,426
Shares issued upon conversion		16,472,782
Interest rate		10.00%
Note Terms		At December 31, 2017, $1,290,863 of the notes are convertible at a conversion price of $0.08 per share into 16,135,785 shares of the Company’s common stock.
Notes Payable Related Party		$ 1,233,665
Matthews Group #2
Accrued interest			$ 43,347
Interest rate			10.00%
Notes payable issued			$ 241,590
Minimum
Conversion price		$ .08
Maximum
Conversion price		.10
Convertible Notes Payable (In Default)
Conversion price		$ .30
Notes payable		$ 212,211		205,116
Accrued interest		7,096
Notes in Default		174,506
Balance due on demand		$ 37,705
Shares issued upon conversion		471,311
Convertible Notes Payable (In Default) | Minimum
Conversion price		$ 0.08
Shares issued upon conversion		466,746
Interest rate		5.00%
Convertible Notes Payable (In Default) | Maximum
Conversion price		$ 0.30
Shares issued upon conversion		575,021
Interest rate		8.00%
Notes Payable (In Default)
Notes in Default		$ 383,315
Notes Payable (In Default) | Minimum
Interest rate		6.50%
Notes Payable (In Default) | Maximum
Interest rate		10.00%
Secured or Unsecured Interest Bearing Notes
Accrued interest		$ 13,108
Notes in Default				370,207
Note Terms		At September 30, 2017, $338,293 of notes are secured by the Company’s intellectual property and $36,283 of notes are unsecured.
Secured Interest Bearing Notes
Notes in Default		$ 347,032
Unsecured Interest Bearing Notes
Notes in Default		$ 36,283
Minimum
Conversion price		$ .08
Interest rate		8.00%
Maximum
Conversion price		$ .30
Interest rate		10.00%
The Matthews Group
Convertible Notes, Related Party	[1]	$ 1,317,822		1,236,943
Notes Payable Related Party	[2]	$ 359,044		805,195
Other
Conversion price		$ 0.08
Accrued interest		$ 10,500
Shares issued upon conversion		1,491,506
Note Terms		At December 31, 2017, the notes are convertible at conversion prices ranging from $0.08 per share to $0.30 per share into 1,409,619 shares of the Company’s common stock.
Convertible Notes, Related Party	[3]	$ 262,228		$ 251,728
[1]	(c) The notes are unsecured, convertible into common stock at $0.08 per share, bear interest at rates ranging from 8% to 10% per annum, and are due on demand. The Matthews Group (see Note 7) is owned 50% by Ms. Van Tran, the Companys CEO, and 50% by Larry Johanns, a significant shareholder of the Company. At June 30, 2017, convertible notes due to The Matthews Group was $1,236,943. During the period ended March 31, 2018, interest of $80,879 was added to principal leaving a balance owed of $1,317,823 at March 31, 2018. At March 31, 2018, $1,317,823 of the notes are convertible at a conversion price of $0.08 per share into 16,472,782 shares of the Companys common stock.
[2]	(d) The notes are unsecured, accrue interest at 10% per annum, and are due on demand. The notes were issued relating to a management services agreement with The Matthews Group (see Note 7) dated September 30, 2015. At June 30, 2017, notes payable totaled $805,195. During the period ended March 31, 2018, $359,044 of notes payable were issued and interest of $69,426 was added to principal leaving a balance due of $1,233,665 at March 31, 2018.
[3]	(e) The notes are due to a current and a former director, are unsecured, convertible into common stock at per share amounts ranging from $0.08 to $0.30, and bear interest at rates ranging from 8% to 10% per annum. At June 30, 2017, convertible notes due other related parties totaled $251,728. During the period ended March 31, 2018, interest of $10,500 was added to principal leaving a balance owed of $262,228 at March 31, 2018. At March 31, 2018, the notes are convertible at conversion prices ranging from $0.08 per share to $0.30 per share into 1,491,506 shares of the Companys common stock.

Derivative Liabilities - Schedu

Derivative Liabilities - Schedule Of Derivative Liabilities (Details) - USD ($)	9 Months Ended	12 Months Ended
	Mar. 31, 2018	Jun. 30, 2017
Conversion feature:
Risk-free interest rate	2.09%	1.50%
Expected volatility	132.00%	179.00%
Expected life (in years)	1 year	1 year
Expected dividend yield
Fair Value:
Conversion feature	$ 208,418	$ 728,000

Derivative Liabilities (Details

Derivative Liabilities (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2018	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative liabilities	$ 208,418	$ 208,418	$ 728,000
Change in the fair value of the derivative liabilities	$ (186,829)	$ 519,582

Stockholders Deficiency (Detail

Stockholders Deficiency (Details Narrative) - USD ($)	Mar. 31, 2018	Jun. 30, 2017
Equity [Abstract]
Common stock to be issued	145,000	145,000
Common stock to be issued, value	$ 12,500	$ 12,500

Stock Options - Summary of Stoc

Stock Options - Summary of Stock Options (Details) - $ / shares	9 Months Ended	12 Months Ended
	Mar. 31, 2018	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Beginning number of shares; outstanding	2,500,000	2,500,000
Beginning weighted-average exercise price; outstanding	$ 0.08	$ .08
Options Granted
Options granted, weighted average exercise price
Options Forfeited
Options Forfeited, weighted average exercise price
Ending number of shares; outstanding		2,500,000
Ending weighted-average exercise price; outstanding		$ .08
Number of Shares; exercisable	2,500,000	2,500,000
Weighted-average exercise price; exercisable	$ 0.08	$ .08

Stock Options - Additional info

Stock Options - Additional information regarding outstanding options (Details)	9 Months Ended
	Mar. 31, 2018$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options outstanding, shares | shares	2,500,000
Weighted average remaining contractual life	1 year 11 months
Weighted average exercise price | $ / shares	$ 0.08
Options excercisable | shares	2,500,000
Options exercisable, weighted average exercise price | $ / shares	$ 0.08

Stock Options (Details Narrativ

Stock Options (Details Narrative)	Mar. 31, 2018USD ($)$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options outstanding | shares	2,500,000
Weighted average exercise price | $ / shares	$ 0.08
Intrinsic value of options | $

Related Party Transactions (Det

Related Party Transactions (Details Narrative)	3 Months Ended		9 Months Ended		14 Months Ended	20 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Jul. 31, 2018	May 31, 2017	Jun. 30, 2017USD ($)
Accounts payable, related party	$ 96,110		$ 96,110				$ 96,110
Managament fee, percent of revenue					0.35	0.20
Other revenue, related party	35,034	$ 68,461	208,527	$ 143,791
Proceeds from notes payable, related party			359,044	$ 409,606
Notes Payable Related Party	2,813,715		2,813,715				2,293,866
The Matthews Group
Notes Payable Related Party	$ 1,233,665		$ 1,233,665
Unsecured related party note, interest	10.00%		10.00%
Unsecured related party note	$ 359,044		$ 359,044
Matthews Group #2
Unsecured related party note, interest		10.00%		10.00%
Unsecured related party note		$ 409,606		$ 409,606
Van Tran
Advances due to related party	96,100		96,100				$ 96,100
Rental Payments	$ 12,750	$ 12,750	$ 38,250	$ 38,250
Larry Johanns
Ownership of TMG	50.00%		50.00%
Van Tran
Ownership of TMG	50.00%		50.00%

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	Jan. 17, 2016	Dec. 05, 2008
Incentive compensation plan percentage		10.00%
Incentive Compensation Bonus, Minimum Threshold		$ 3,000,000
Veritec Inc
Member in joint venture	30.00%
Vietnam Alliance Capital
Member in joint venture	70.00%

Subsequent Event (Details Narra

Subsequent Event (Details Narrative) - shares	Mar. 31, 2018	Feb. 02, 2018	Jun. 30, 2017
Subsequent Events [Abstract]
Common shares, authorized	50,000,000	150,000,000	50,000,000