Veritec (VRTC) 10-K 30 Sep 19 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2019	Sep. 28, 2019	Dec. 31, 2018
Document And Entity Information
Entity Registrant Name	VERITEC INC
Entity Central Index Key	0000773318
Document Type	10-K
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Is Entity's Reporting Status Current?	No
Entity Filer Category	Non-accelerated Filer
Is Entity Small Business?	true
Is Entity Emerging Growth Company?	false
Is Entity Well Known Seasoned Issuer?	No
Is Entity A Voluntary Filer?	No
Is Entity Shell Company?	false
Entity Public Float			$ 194,065
Entity Common Stock, Shares Outstanding		39,538,007
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2019

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Current Assets:
Cash	$ 91,112	$ 139,086
Accounts receivable	9,117	7,071
Prepaid expenses	5,391	5,328
Total Assets	105,620	151,485
Current Liabilities:
Accounts payable	716,704	671,197
Accounts payable, related party	100,360	96,110
Accrued expenses	63,363	63,507
Customer deposits	68,251
Convertible notes and notes payable (includes $589,668 and $562,730 in default)	654,352	602,261
Convertible notes and notes payable, related party ($206,124 and $197,124 in default)	3,646,967	2,994,599
Deferred revenues		30,000
Total Current Liabilities	5,249,997	4,457,674
Contingent earnout liability	155,000	155,000
Total Liabilities	5,404,997	4,612,674
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	1,000	1,000
Common stock, par value $.01; authorized 150,000,000 shares, respectively; 39,538,007 shares issued and outstanding	395,380	395,380
Common stock to be issued, 145,000 shares to be issued	12,500	12,500
Additional paid-in capital	18,110,791	18,099,576
Accumulated deficit	(23,819,048)	(22,969,645)
Total Stockholders' Deficiency	(5,299,377)	(4,461,189)
Total Liabilities and Stockholders' Deficiency	$ 105,620	$ 151,485

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
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	150,000,000	150,000,000
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
Convertible notes and notes payable, in default	$ 589,668	$ 562,730
Convertible notes and notes payable, related party, in default	$ 206,124	$ 197,124
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

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)		12 Months Ended
		Jun. 30, 2019	Jun. 30, 2018
Revenue:
Mobile banking technology revenue		$ 120,009	$ 121,901
Other revenue, management fee related party		186,520	376,580
Total revenue		306,529	498,481
Cost of Sales		229,891	247,408
Gross Profit		76,638	251,073
Operating Expenses:
General and administrative expenses		604,959	587,166
Sales and marketing			1,762
Research and development		18,750	29,997
Total Operating Expenses		623,709	618,925
Loss from Operations		(547,071)	(367,852)
Other Income (Expense):
Interest expense	[1]	(302,332)	(253,358)
Change in fair value of derivative liabilities			603,000
Total other income (expense)		(302,332)	349,642
Net Loss		$ (849,403)	$ (18,210)
Net Loss Per Common Share - Basic and Diluted		$ (0.02)	$ 0
Weighted Average Number of Shares Outstanding - Basic and Diluted		39,538,007	39,538,007
[1]	Includes interest expense to related parties

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Deficiency) - 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)
Reclassification of embedded conversion option				125,000		125,000
Stock-Based Compensation
Net Loss					(18,210)	(18,210)
Ending balance, Shares at Jun. 30, 2018	1,000	39,538,007
Ending balance, Amount at Jun. 30, 2018	$ 1,000	$ 395,380	12,500	18,099,576	(22,969,645)	(4,461,189)
Stock-Based Compensation				11,215		11,215
Net Loss					(849,403)	(849,403)
Ending balance, Shares at Jun. 30, 2019	1,000	39,538,007
Ending balance, Amount at Jun. 30, 2019	$ 1,000	$ 395,380	$ 12,500	$ 18,110,791	$ (23,819,048)	$ (5,299,377)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (849,403)	$ (18,210)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Amortization		16,042
Change in fair value of derivative liabilities		(603,000)
Interest accrued on notes payable	302,332	128,359
Stock-based compensation expense	11,215
Changes in operating assets and liabilities:
Accounts receivable	(2,046)	1,068
Prepaid expenses	(63)	(3,343)
Deferred revenues	(30,000)	(42,492)
Customer deposits	68,251
Accounts payable	45,507	23,251
Accounts payable, related party	4,250
Accrued expenses	(144)	(8,594)
Net cash used in operating activities	(450,101)	(506,919)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable	25,000
Proceeds from notes payable - related party	377,127	599,312
Net cash provided by financing activities	402,127	599,312
NET INCREASE (DECREASE) IN CASH	(47,974)	92,393
CASH AT BEGINNING OF PERIOD	139,086	46,693
CASH AT END OF PERIOD	91,112	139,086
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid		125,000
NON CASH INVESTING AND FINANCING ACTIVITIES
Reclassification of embedded conversion option derivative to additional paid-in capital		$ 125,000

Nature of Business and Summary

Nature of Business and Summary of Significant Accounting Policies	12 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Significant Accounting Policies	NOTE 1 - OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company Veritec, Inc. (Veritec) was formed in the State of Nevada on September 8, 1982. Veritec is primarily engaged in the development, sales, and licensing of products and providing services related to its mobile banking solutions. 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. Veritec has a portfolio of five United States and eight foreign patents. In addition, we have seven U.S. and twenty-eight foreign pending patent applications. Veritec has had agreements with various banks in the past andis currently seeking a bank to sponsor its Prepaid Card programs. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries Veritec Financial Systems, Inc., Tangible Payment Systems, Inc., and Public Bell, Inc. (collectively the “Company”). Intercompany transactions and balances were eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Those estimates and assumptions include estimates for reserves of uncollectible accounts, analysis of impairments of long-lived assets, accruals for potential liabilities, assumptions made in valuing stock instruments issued for services, and valuation of deferred tax assets. Actual results could differ from those estimates. Cash and cash equivalents Investments with original maturities of three months or less are considered to be cash equivalents. Accounts Receivable The Company sells to domestic and foreign companies and grants uncollateralized credit to customers but requires deposits on unique orders. Management periodically reviews its accounts receivable and provides an allowance for doubtful accounts after analyzing the age of the receivable, payment history and prior experience with the customer. The estimated loss that management believes is probable is included in the allowance for doubtful accounts. While the ultimate loss may differ, management believes that any additional loss will not have a material impact on the Company's financial position. Due to uncertainties in the settlement process, however, it is at least reasonably possible that management's estimate will change during the near term. Based on management’s assessment, no allowance for doubtful accounts was considered necessary at June 30, 2019, or 2018. Revenue Recognition Revenues for the Company are classified into management fee revenue and mobile banking technology. Prior to July 1, 2018, the Company recognized its revenue in accordance with Accounting Standards Codification (ASC) 605 Revenue Recognition Effective July 1, 2018, the Company adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Mobile Banking Technology Revenue The Company, as a merchant payment processor and a distributor, recognizes revenue from transaction fees charged to cardholders for the use of its issued mobile debit cards. The fees are recognized on a monthly basis after all cardholder transactions have been summarized and reconciled with third party processors. The Company has entered into certain long term agreements to provide application development and support. Some customers paid the agreement in full at signing and the Company recorded the receipt of payment as deferred revenue. The Company records revenue relating to these agreements on a pro-rata basis over the term of the agreement and reduces its deferred revenue balance accordingly. Other Revenue, Management Fee - Related Party On September 30, 2015, the Company sold all of its assets of its Barcode Technology, which was comprised solely of its intellectual property, to The Matthews Group (a related party, see Note 9). The Company subsequently entered into a management services agreement with The Matthews Group to manage all facets of the barcode technology operations through June 30, 2019. The Company earned a fee of 20% of all revenues billed from the barcode technology operations up to May 31, 2017, and now earns a fee of 35% of all revenues billed up to June 30, 2020. The Company recognizes management fee revenue as services are performed. Disaggregation of Net Sales The following table shows the Company’s disaggregated net sales by product type: Fiscal years ended June 30, 2019 2018 Mobile banking technology revenue $ 120,009 $ 121,901 Other revenue, management fee - related party 186,520 376,580 Total revenue $ 306,529 $ 498,481 The following table shows the Company’s disaggregated net sales by customer type: Fiscal years ended June 30, 2019 Real Estate $ 186,520 $ 376,580 Medical 62,363 54,824 Associations 30,000 42,492 Education 12,000 12,000 Other 15,646 12,585 Total revenue $ 306,529 $ 498,481 During the years ended June 30, 2019 and 2018, all of the Company’s revenues were earned in the United States of America. Income Taxes The Company accounts for income taxes using the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Research and Development Research and development costs are expensed as incurred. 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 stock outstanding plus the number of additional common stock that would have been outstanding if all dilutive potential common stock had been issued, using the treasury stock method. For the years ended June 30, 2019 and 2018, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an anti-dilutive effect. As of June 30, 2019 and 2018, 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. June 30, 2019 2018 Series H Preferred Stock 10,000 10,000 Convertible Notes Payable 20,874,054 19,337,127 Options 3,650,000 2,500,000 Total 24,534,054 21,847,127 Stock-Based Compensation The Company periodically issues stock options and warrants to employees and non-employees in non-capital raising transactions, for services and for financing costs. The Company accounts for share-based payments under the guidance as set forth in the Share-Based Payment Topic of the FASB Accounting Standards Codification (“ASC”), which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees, officers, directors, and consultants, including employee stock options, based on estimated fair values. The Company estimates the fair value of share-based payment awards to employees and directors on the date of grant using a Black-Scholes-Merton option-pricing model, and the value of the portion of the award that is ultimately expected to vest is recognized as expense over the required service period in the Company’s statements of operations. The Company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with the authoritative guidance whereas the value of the stock compensation is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) the date at which the necessary performance to earn the equity instruments is complete. Stock-based compensation is based on awards ultimately expected to vest and is reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, as necessary, in subsequent periods if actual forfeitures differ from those estimates. Fair Value of Financial Instruments The Company determines the fair value of its assets and liabilities based on the exchange price in U.S. dollars that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of financial instruments such as cash, accounts receivable, and accounts payable and accrued liabilities, approximate the related fair values due to the short-term maturities of these instruments. Concentrations During the year ended June 30, 2019 and 2018, the Company had one customer, a related party, that represented 61% and 76% of our revenues, respectively. No other customer represented more than 10% of our revenues. Segments The Company operates in one segment, the mobile financial banking industry. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in: economic characteristics; nature of products and services; and procurement, manufacturing and distribution processes. Since the Company operates in one segment, all financial information required by “Segment Reporting” can be found in the accompanying consolidated financial statements Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to nonemployee share-based payment accounting Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements.

Going Concern

Going Concern	12 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	NOTE 2 - GOING CONCERN The accompanying 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 year ended June 30, 2019, the Company recorded a loss of $849,403, used cash in operating activities of $450,101, and at June 30, 2019, the Company had a stockholders’ deficiency of $5,299,377. In addition, as of June 30, 2019, the Company is delinquent in payment of $795,792 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. 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 2020 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 consolidated financial statements do not include any adjustments that may result from this uncertainty.

Contingent Earnout Liability

Contingent Earnout Liability	12 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Contingent Earnout Liability	NOTE 3 – INTANGIBLE ASSETS AND CONTINGENT EARNOUT LIABILITY On September 30, 2014, the Company and Tangible Payments LLC, a Maryland Limited Liability Company, entered into an Asset Purchase Agreement pursuant to which the Company acquired certain assets and liabilities of the Tangible Payments LLC. Tangible Payments LLC developed online payment technology that encrypts sensitive information securely between customers and merchants during online transactions. The purchase price for the acquisition was comprised of 250,000 shares of restricted common stock of Veritec valued at $37,500, issued on closing, and an earnout payment of $155,000 for an aggregate purchase price of $192,500. The earnout payment is payable on a monthly basis from the net profits derived from the acquired assets commencing three months after the closing. The earnout payment is accelerated and the balance of the earnout payment shall be due in full at such time as Veritec receives equity investments aggregating $1,300,000. For the years ended June 30, 2019 and 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 (“intangible”) which were amortized over a three-year period. During the year ended June 30, 2018, the Company recorded $16,042 of amortization expense related to this intangible and at June 30, 2018, the intangible was fully amortized. Accordingly, no further amortization expense was recorded related to this intangible during the year ended June 30, 2019.

Convertible Notes and Notes Pay

Convertible Notes and Notes Payable	12 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Notes Payable	NOTE 4 – CONVERTIBLE NOTES AND NOTES PAYABLE Convertible notes and notes payable Notes payable includes principal and accrued interest and consists of the following at June 30, 2019 and June 30, 2018: June 30, June 30, (a) Convertible notes ($184,506 and $175,045 in default) $ 224,037 $ 214,576 (b) Notes payable (in default) 405,162 387,685 (c) Notes payable 25,153 — Total notes-third parties $ 654,352 $ 602,261 (a) The notes are unsecured, convertible into common stock at amounts ranging from $0.08 to $0.30 per share, bear interest at rates ranging from 5% to 8% per annum, were due through 2011 and are in default or due on demand. At June 30, 2017, convertible notes totaled $205,115. During the year ended June 30, 2018, interest of $9,461 was added to principal leaving a balance owed of $214,576 at June 30, 2018. During the year ended June 30, 2019, interest of $9,461 was added to principal, leaving a balance owed of $224,037 at June 30, 2019. At June 30, 2019, $184,506 of the convertible notes were in default, and convertible at a conversion price of $0.30 per share into 615,021 shares of the Company’s common stock. Certain of the amounts due are subject to a legal proceeding (see Note 9). The balance of $39,531 is due on demand and convertible at a conversion price of $0.08 per share into 494,137 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, were due in 2012, and are in default. At June 30, 2017, the notes totaled $370,207. During the year ended June 30, 2018, interest of $17,477 was added to principal, leaving a balance owed of $387,684 at June 30, 2018. During the year ended June 30, 2019, interest of $17,477 was added to principal leaving a balance owed of $405,162 at June 30, 2019. At June 30, 2019, $365,379 of notes are secured by the Company’s intellectual property and $39,783 on notes are unsecured. (c) The notes are unsecured and bear interest of 4% per annum and due on March 17, 2020. On March 18, 2019 and June 6, 2019, the Company entered into notes payable for $10,000 and $15,000, respectively. During the period, interest of $153 was added to principal, leaving a balance owed of $25,153 at June 30, 2019. Convertible notes and notes payable-related parties Notes payable-related parties includes principal and accrued interest and consists of the following at June 30, 2019 and June 30, 2018: June 30, June 30, (a) Convertible notes-The Matthews Group $ 1,452,621 $ 1,344,782 (b) Notes payable-The Matthews Group 1,914,618 1,384,088 (c) Convertible notes-other related parties ($206,124 and 197,124 in default) 279,728 265,729 Total notes-related parties $ 3,646,967 $ 2,994,599 (a) 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 is a related party (see Note 8) and 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 totaled $1,236,943. During the year ended June 30, 2018, interest of $107,839 was added to principal leaving a balance payable of $1,344,782 at June 30, 2018. During the year ended June 30, 2019, interest of $107,839 was added to principal leaving a balance payable of $1,452,621 at June 30, 2019. At June 30, 2019, the notes are convertible at a conversion price of $0.08 per share into 18,157,765 shares of the Company’s common stock. (b) 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 8) dated September 30, 2015. At June 30, 2017, notes due to The Matthews Group totaled $805,195. During the year ended June 30, 2018, $599,312 of notes payable were issued, interest of $104,581 was added to principal, and an interest payment of $125,000 was made, leaving a balance owed of $1,384,088 at June 30, 2018. During the year ended June 30, 2019, $377,127 of notes payable were issued and interest of $153,403 was added to principal, leaving a balance owed of $1,914,618 at June 30, 2019. (c) 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 to other related parties totaled $251,728. During the year ended June 30, 2018, interest of $14,001 was added to principal leaving a balance owed of $265,729 at June 30, 2018. During the year ended June 30, 2019, interest of $13,999 was added to principal leaving a balance owed of $279,728 at June 30, 2019. At June 30, 2019, $206,124 of the notes were due in 2010 and are in default, and the balance of $73,604 is due on demand. At June 30, 2019, $206,124 of the notes are convertible at a conversion price of $0.30 per share into 687,081 shares of the Company’s common stock, and $73,604 of the notes are convertible at a conversion price of $0.08 per share into 920,050 shares of the Company’s common stock.

Stockholders' Deficiency

Stockholders' Deficiency	12 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Stockholders' Deficiency	NOTE 5 - STOCKHOLDERS’ DEFICIENCY Preferred Stock The articles of incorporation of Veritec authorize 10,000,000 shares of preferred stock with a par value of $1.00 per share. The Board of Directors is authorized to determine any number of series into which shares of preferred stock may be divided and to determine the rights, preferences, privileges, and restrictions granted to any series of the preferred stock. In 1999, a new Series H convertible preferred stock was authorized. Each share of Series H convertible preferred stock is convertible into 10 shares of the Veritec’s common stock at the option of the holder. As of June 30, 2019 and 2018, there were 1,000 shares of Series H convertible preferred stock issued and outstanding. Common Stock On February 2, 2018, the Company’s Board of Directors voted to increase the Company’s authorized common shares from 50,000,000 shares to 150,000,000 common shares. The Company filed the required documentation with the State of Nevada in April 2018, with an effective date of April 18, 2018. Common Stock to be Issued At June 30, 2019 and 2018, 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 consolidated financial statements.

Stock Options

Stock Options	12 Months Ended
	Jun. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options	NOTE 6 – STOCK OPTIONS A summary of stock options as of June 30, 2019 and for the two years then ended is as follows: Number of Shares Weighted - Average Exercise Price Outstanding at June 30, 2017 2,500,000 $ 0.08 Granted — — Forfeited — $ 0.08 Outstanding at June 30, 2018 2,500,000 $ 0.08 Granted 1,150,000 0.03 Forfeited — $ — Outstanding at June 30, 2019 3,650,000 $ 0.06 Exercisable at June 30, 2019 3,075,000 $ 0.07 In December 2018, the Company granted to its directors and employees, stock options to purchase an aggregate of 1,150,000 shares of Common Stock. The fair value of the stock options granted was determined to be $21,285 and is being amortized over the vesting period of 12 months. During the year ended June 30, 2019, the Company recorded stock-based compensation expense of $11,215. As of June 30, 2019, the Company has outstanding unvested options with future compensation costs of $10,070, which will be recorded as compensation cost as the options vest over their remaining average vesting period of six months. The Company did not grant stock options during the prior year ended June 30, 2018. The outstanding and exercisable stock options had an intrinsic value of $11,500 and $5,750, respectively, at June 30, 2019. The fair value of each option on the date of grant was estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions: 2019 Exercise Price $ 0.03 Stock Price $ 0.03 Risk-free interest rate 2.63 % Expected volatility 121 % Expected life (in years) 2.0 Expected dividend yield 0 % Additional information regarding options outstanding as of June 30, 2019, is as follows: Options Outstanding at June 30, 2019 Options Exercisable at June 30, 2019 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 $ 0.03 1,150,000 5.48 $ 0.03 575,000 $ 0.03 $ 0.08 2,500,000 0.61 $ 0.08 2,500,000 $ 0.08 3,650,000 3,075,000

Income Taxes

Income Taxes	12 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 7 - INCOME TAXES For the year ended June 30, 2019, net loss was $849,403, as compared to a net loss of $18,210 for the year ended June 30, 2018. For the years ended June 30, 2019 and 2018, no provision for income taxes was recorded. We made no provision for income taxes due to our utilization of federal net operating loss carryforwards to offset both regular taxable income and alternative minimum taxable income. Reconciliation between the expected federal income tax rate and the actual tax rate is as follows: Year Ended June 30, 2019 2018 Federal statutory tax rate 21 % 28 % State tax, net of federal benefit 6 % 6 % Total tax rate 27 % 34 % Allowance (27 )% (34 )% Effective tax rate — % — % The following is a summary of the deferred tax assets: Year Ended June 30, 2019 2018 Net operating loss carryforwards $ 3,403,000 $ 2,580,000 Deferred tax assets before valuation allowance 3,403,000 2,580,000 Valuation allowance (3,403,000 ) (2,580,000 ) Net deferred tax asset $ — $ — The Company has provided a valuation allowance on the deferred tax assets at June 30, 2019 and 2018 to reduce such asset to zero, since there is no assurance that the Company will generate future taxable income to utilize such asset. Management will review this valuation allowance requirement periodically and make adjustments as warranted. The net change in the valuation allowance for the year ended June 30, 2019, was an increase of $823,000. Veritec has net operating loss carryforwards of approximately $12,602,000 million for federal purposes available to offset future taxable income that expires in varying amounts through 2036. The ability to utilize the net operating loss carryforwards could be limited by Section 382 of the Internal Revenue Code which limits their use if there is a change in control (generally a greater than 50% change in ownership). The Company is subject to examination by tax authorities for all years for which a loss carryforward is utilized in subsequent periods. The Company follows FASB guidelines that address the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under this guidance, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. This guidance also provides guidance on derecognition, classification, interest, and penalties on income taxes, accounting in interim periods and requires increased disclosures. As of June 30, 2019 and 2018, the Company did not have a liability for unrecognized tax benefits, and no adjustment was required at adoption. The Company’s policy is to record interest and penalties on uncertain tax provisions as income tax expense. As of June 30, 2019 and 2018, the Company has no accrued interest or penalties related to uncertain tax positions.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Jun. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 8 – RELATED PARTY TRANSACTIONS The Matthews Group is owned 50% by Ms. 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 4). Management Services Agreement and Related Notes Payable with Related Party The Company’s Barcode Technology was 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. 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 then entered into a management services agreement with The Matthews Group to manage all facets of the barcode technology operations, on behalf of The Matthews Group, through June 30, 2019. 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 of the services provided by the Company to The Matthews Group, the Company earned a fee of 20% of all revenues up to May 31, 2017, and 35% of all revenues up to June 30, 2020, from the barcode technology operations. During the year ended June 30, 2019 and 2018, the Company recorded management fee revenue related to this agreement of $186,520 and $376,580, respectively. Additionally, 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 year ended June 30, 2019 and 2018, cash flow loans of $377,127 and $599,312, respectively, were made to the Company at 10% interest per annum and due on demand. At June 30, 2019, cash flow loans of $1,914,618 are due to The Matthews Group (see Note 4). Advances from Related Parties From time to time, Ms. Tran, the Company’s CEO/Executive Chair, provides advances to finance the Company’s working capital requirements. As of June 30, 2019 and 2018, total advances to Ms. Tran amounted to $100,360 and $96,110, respectively, and have been presented as accounts payable, related party on the accompanying Consolidated Balance Sheets. 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, the Company’s CEO/Executive Chair. For both the years ended June 30, 2019 and 2018, lease payments to Ms. Tran totaled $51,000.

Legal Proceedings

Legal Proceedings	12 Months Ended
	Jun. 30, 2019
Commitments and Contingencies
Legal Proceedings	NOTE 9 – LEGAL PROCEEDINGS On or about November 13, 2017, David A. Badhwa and Denise a Badhwa (collectively “Plaintiffs”) filed a lawsuit in district court in Hennepin County, Minnesota asserting that the Company breached the terms of a promissory note. Plaintiffs sought repayment on the principal of the promissory note, in the amount of $100,000, $10,000 of which Plaintiffs contend Veritec previously paid, plus interest, collection costs and attorney’s fees. As of May 15, 2018, the date of the last communication on the amount of recovery from Plaintiffs, the Plaintiffs sought an award or settlement in the amount of $162,990. As of June 30, 2019, the Company had recorded a promissory note payable of $166,921 related to this proceeding. On July 10, 2019, the Company and Plaintiffs entered into a Confidential Settlement Agreement and Mutual Release, whereas, both the Company and the Plaintiffs agreed to generally discharge and forever release each other from future claims, to pay their own legal fees, and the promissory note payable to the Plaintiffs was discharged. During the three months ended September 30, 2019, the Company recorded a gain on settlement and extinguishment of the promissory note payable of $166,921. On September 21, 2016, the Company entered into a settlement agreement with an individual who was a former officer of the Company. The individual in prior years 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. As of June 30, 2019, the 500,000 shares have not been relinquished. When the Company receives the shares, it will record a cancellation of shares.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Jun. 30, 2019
Commitments and Contingencies
Commitments and Contingencies	NOTE 10 – COMMITMENTS AND CONTINGENCIES 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 June 30, 2019, the Company had not achieved annual pre-tax earnings in excess of $3,000,000. On December 5, 2008, the Company entered into an employment agreement with Van Thuy Tran, its Chief Executive Officer, providing for an annual base salary of $150,000 and customary medical and other benefits. The agreement may be terminated by either party upon 30 days’ notice. In the event the Company terminates the agreement without cause, Ms. Tran will be entitled to $1,000,000 payable upon termination, and she will be entitled to severance equal to 12 months compensation and benefits. The Company has also agreed to indemnify Ms. Tran against any liability or damages incurred within the scope of her employment. During the year ended June 30, 2019 and 2018, salaries paid to Van Thuy Tran under this agreement totated $150,000 and $150,000.

Nature of Business and Summar_2

Nature of Business and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
The Company	The Company Veritec, Inc. (Veritec) was formed in the State of Nevada on September 8, 1982. Veritec is primarily engaged in the development, sales, and licensing of products and providing services related to its mobile banking solutions. 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. Veritec has a portfolio of five United States and eight foreign patents. In addition, we have seven U.S. and twenty-eight foreign pending patent applications. Veritec has had agreements with various banks in the past andis currently seeking a bank to sponsor its Prepaid Card programs.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries Veritec Financial Systems, Inc., Tangible Payment Systems, Inc., and Public Bell, Inc. (collectively the “Company”). Intercompany transactions and balances were eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Those estimates and assumptions include estimates for reserves of uncollectible accounts, analysis of impairments of long-lived assets, accruals for potential liabilities, assumptions made in valuing stock instruments issued for services, and valuation of deferred tax assets. Actual results could differ from those estimates.
Cash and cash equivalents	Cash and cash equivalents Investments with original maturities of three months or less are considered to be cash equivalents.
Accounts Receivable	Accounts Receivable The Company sells to domestic and foreign companies and grants uncollateralized credit to customers but requires deposits on unique orders. Management periodically reviews its accounts receivable and provides an allowance for doubtful accounts after analyzing the age of the receivable, payment history and prior experience with the customer. The estimated loss that management believes is probable is included in the allowance for doubtful accounts. While the ultimate loss may differ, management believes that any additional loss will not have a material impact on the Company's financial position. Due to uncertainties in the settlement process, however, it is at least reasonably possible that management's estimate will change during the near term. Based on management’s assessment, no allowance for doubtful accounts was considered necessary at June 30, 2019, or 2018.
Revenue Recognition	Revenue Recognition Revenues for the Company are classified into management fee revenue and mobile banking technology. Prior to July 1, 2018, the Company recognized its revenue in accordance with Accounting Standards Codification (ASC) 605 Revenue Recognition Effective July 1, 2018, the Company adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Mobile Banking Technology Revenue The Company, as a merchant payment processor and a distributor, recognizes revenue from transaction fees charged to cardholders for the use of its issued mobile debit cards. The fees are recognized on a monthly basis after all cardholder transactions have been summarized and reconciled with third party processors. The Company has entered into certain long term agreements to provide application development and support. Some customers paid the agreement in full at signing and the Company recorded the receipt of payment as deferred revenue. The Company records revenue relating to these agreements on a pro-rata basis over the term of the agreement and reduces its deferred revenue balance accordingly. Other Revenue, Management Fee - Related Party On September 30, 2015, the Company sold all of its assets of its Barcode Technology, which was comprised solely of its intellectual property, to The Matthews Group (a related party, see Note 9). The Company subsequently entered into a management services agreement with The Matthews Group to manage all facets of the barcode technology operations through June 30, 2019. The Company earned a fee of 20% of all revenues billed from the barcode technology operations up to May 31, 2017, and now earns a fee of 35% of all revenues billed up to June 30, 2020. The Company recognizes management fee revenue as services are performed. Disaggregation of Net Sales The following table shows the Company’s disaggregated net sales by product type: Fiscal years ended June 30, 2019 2018 Mobile banking technology revenue $ 120,009 $ 121,901 Other revenue, management fee - related party 186,520 376,580 Total revenue $ 306,529 $ 498,481 The following table shows the Company’s disaggregated net sales by customer type: Fiscal years ended June 30, 2019 Real Estate $ 186,520 $ 376,580 Medical 62,363 54,824 Associations 30,000 42,492 Education 12,000 12,000 Other 15,646 12,585 Total revenue $ 306,529 $ 498,481 During the years ended June 30, 2019 and 2018, all of the Company’s revenues were earned in the United States of America.
Income Taxes	Income Taxes The Company accounts for income taxes using the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
Research and Development	Research and Development Research and development costs are expensed as incurred.
Loss per Common Share	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 stock outstanding plus the number of additional common stock that would have been outstanding if all dilutive potential common stock had been issued, using the treasury stock method. For the years ended June 30, 2019 and 2018, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an anti-dilutive effect. As of June 30, 2019 and 2018, 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. June 30, 2019 2018 Series H Preferred Stock 10,000 10,000 Convertible Notes Payable 20,874,054 19,337,127 Options 3,650,000 2,500,000 Total 24,534,054 21,847,127
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company determines the fair value of its assets and liabilities based on the exchange price in U.S. dollars that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of financial instruments such as cash, accounts receivable, and accounts payable and accrued liabilities, approximate the related fair values due to the short-term maturities of these instruments.
Net Income (Loss) per Common Share	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 stock outstanding plus the number of additional common stock that would have been outstanding if all dilutive potential common stock had been issued, using the treasury stock method. For the years ended June 30, 2019 and 2018, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an anti-dilutive effect. As of June 30, 2019 and 2018, 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. June 30, 2019 2018 Series H Preferred Stock 10,000 10,000 Convertible Notes Payable 20,874,054 19,337,127 Options 3,650,000 2,500,000 Total 24,534,054 21,847,127
Stock-Based Compensation	Stock-Based Compensation The Company periodically issues stock options and warrants to employees and non-employees in non-capital raising transactions, for services and for financing costs. The Company accounts for share-based payments under the guidance as set forth in the Share-Based Payment Topic of the FASB Accounting Standards Codification (“ASC”), which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees, officers, directors, and consultants, including employee stock options, based on estimated fair values. The Company estimates the fair value of share-based payment awards to employees and directors on the date of grant using a Black-Scholes-Merton option-pricing model, and the value of the portion of the award that is ultimately expected to vest is recognized as expense over the required service period in the Company’s statements of operations. The Company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with the authoritative guidance whereas the value of the stock compensation is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) the date at which the necessary performance to earn the equity instruments is complete. Stock-based compensation is based on awards ultimately expected to vest and is reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, as necessary, in subsequent periods if actual forfeitures differ from those estimates.
Concentrations	Concentrations During the year ended June 30, 2019 and 2018, the Company had one customer, a related party that represented 61% and 76% of our revenues, respectively. No other customer represented more than 10% of our revenues.
Segments	Segments The Company operates in one segment, the mobile financial banking industry. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in: economic characteristics; nature of products and services; and procurement, manufacturing and distribution processes. Since the Company operates in one segment, all financial information required by “Segment Reporting” can be found in the accompanying consolidated financial statements
Recent Accounting Pronouncements	Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to nonemployee share-based payment accounting Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements.

Nature of Business and Summar_3

Nature of Business and Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Disaggregated net sales by product type	Fiscal years ended June 30, 2019 2018 Mobile banking technology revenue $ 120,009 $ 121,901 Other revenue, management fee - related party 186,520 376,580 Total revenue $ 306,529 $ 498,481
Disaggregated net sales by customer type	Fiscal years ended June 30, 2019 Real Estate $ 186,520 $ 376,580 Medical 62,363 54,824 Associations 30,000 42,492 Education 12,000 12,000 Other 15,646 12,585 Total revenue $ 306,529 $ 498,481
Summary of securities excluded from EPS calculation	June 30, 2019 2018 Series H Preferred Stock 10,000 10,000 Convertible Notes Payable 20,874,054 19,337,127 Options 3,650,000 2,500,000 Total 24,534,054 21,847,127

Convertible Notes and Notes P_2

Convertible Notes and Notes Payable (Tables)	12 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Convertible notes and notes payable - in default	June 30, June 30, (a) Convertible notes ($184,506 and $175,045 in default) $ 224,037 $ 214,576 (b) Notes payable (in default) 405,162 387,685 (c) Notes payable 25,153 — Total notes-third parties $ 654,352 $ 602,261
Convertible notes and notes payable- related party	June 30, 2019 June 30, 2018 (a) Convertible notes-The Matthews Group $ 1,452,621 $ 1,344,782 (b) Notes payable-The Matthews Group 1,914,618 1,384,088 (c) Convertible notes-other related parties ($206,124 and 197,124 in default) 279,728 265,729 Total notes-related parties $ 3,646,967 $ 2,994,599

Stock Options (Tables)

Stock Options (Tables)	12 Months Ended
	Jun. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Options	Number of Shares Weighted - Average Exercise Price Outstanding at June 30, 2017 2,500,000 $ 0.08 Granted — — Forfeited — $ 0.08 Outstanding at June 30, 2018 2,500,000 $ 0.08 Granted 1,150,000 0.03 Forfeited — $ — Outstanding at June 30, 2019 3,650,000 $ 0.06 Exercisable at June 30, 2019 3,075,000 $ 0.07
Fair value of options	2019 Exercise Price $ 0.03 Stock Price $ 0.03 Risk-free interest rate 2.63 % Expected volatility 121 % Expected life (in years) 2.0 Expected dividend yield 0 %
Additional information regarding outstanding options	Options Outstanding at June 30, 2019 Options Exercisable at June 30, 2019 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 $ 0.03 1,150,000 5.48 $ 0.03 575,000 $ 0.03 $ 0.08 2,500,000 0.61 $ 0.08 2,500,000 $ 0.08 3,650,000 3,075,000

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Reconciliation between the federal and actual tax rate	Year Ended June 30, 2019 2018 Federal statutory tax rate 21 % 28 % State tax, net of federal benefit 6 % 6 % Total tax rate 27 % 34 % Allowance (27 )% (34 )% Effective tax rate — % — %
Deferred tax assets	Year Ended June 30, 2019 2018 Net operating loss carryforwards $ 3,403,000 $ 2,580,000 Deferred tax assets before valuation allowance 3,403,000 2,580,000 Valuation allowance (3,403,000 ) (2,580,000 ) Net deferred tax asset $ — $ —

Disaggregated net sales by prod

Disaggregated net sales by product type (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Revenue	$ 306,529	$ 498,481
Mobile banking technology revenue
Revenue	120,009	121,901
Other revenue, management fee - related party
Revenue	$ 186,520	$ 376,580

Disaggregated net sales by cust

Disaggregated net sales by customer type (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Revenue	$ 306,529	$ 498,481
Real Estate
Revenue	186,520	376,580
Medical
Revenue	62,363	54,824
Associations
Revenue	30,000	42,492
Education
Revenue	12,000	12,000
Other
Revenue	$ 15,646	$ 12,585

Summary of securities excluded

Summary of securities excluded from EPS calculation (Details) - shares	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Accounting Policies [Abstract]
Series H Preferred Stock	10,000	10,000
Convertible Notes Payable	20,874,054	19,337,127
Options	3,650,000	2,500,000
Total	24,534,054	21,847,127

Nature of Business and Summar_4

Nature of Business and Summary of Significant Accounting Policies (Details Narrative)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Customer 1
Sales percentage from major customers	61.00%	76.00%

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ (849,403)	$ (18,210)
Cash used in operating activities	(450,101)	(506,919)
Stockholders' deficiency	(5,299,377)	$ (4,461,189)	$ (4,567,979)
Notes payable in default	$ 795,792

Intangible Assets and Contingen

Intangible Assets and Contingent Earnout Liability (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2015	Sep. 30, 2014
Amortization expense	$ 16,042
Tangible Payments LLC
Shares issued			250,000
Shares issued, value			$ 37,500
Aggregate purchase price		$ 192,500
Earnout Payment		$ 155,000

Convertible Notes and Notes P_3

Convertible Notes and Notes Payable - Convertible notes and notes payable in default (Details) - USD ($)		Jun. 30, 2019	Jun. 30, 2018
Debt Disclosure [Abstract]
Convertible notes payable - in default	[1]	$ 224,037	$ 214,576
Notes payable - in default	[2]	405,162	387,685
Notes payable	[3]	25,153
Total notes - third parties		$ 654,352	$ 602,261
[1]	(a) The notes are unsecured, convertible into common stock at amounts ranging from $0.08 to $0.30 per share, bear interest at rates ranging from 5% to 8% per annum, were due through 2011 and are in default or due on demand.
[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, were due in 2012, and are in default.
[3]	(c) The notes are unsecured and bear interest of 4% per annum and due on March 17, 2020.

Convertible Notes and Notes P_4

Convertible Notes and Notes Payable - Convertible notes and notes payable related party (Details) - USD ($)		Jun. 30, 2019		Jun. 30, 2018		Jun. 30, 2017
Notes Payable Related Party		$ 3,646,967		$ 2,994,599
The Matthews Group
Convertible Notes, Related Party		1,452,621	[1]	1,344,782	[1]	$ 1,236,943
Notes Payable Related Party	[2]	1,914,618		1,384,088
Other
Convertible Notes, Related Party	[3]	$ 279,728		$ 265,729
[1]	(a) 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.
[2]	(b) 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 8) dated September 30, 2015. At June 30, 2017, notes due to The Matthews Group totaled $805,195. During the year ended June 30, 2018, $599,312 of notes payable were issued, interest of $104,581 was added to principal, and an interest payment of $125,000 was made, leaving a balance owed of $1,384,088 at June 30, 2018. During the year ended June 30, 2019, $377,127 of notes payable were issued and interest of $153,403 was added to principal, leaving a balance owed of $1,914,618 at June 30, 2019.
[3]	(c) The notes are due to a current and a former director, are unsecured, convertible into common stock at per share amounts ranging from $0.10 to $0.30, and bear interest at rates ranging from 8% to 10% per annum.

Convertible Notes and Notes P_5

Convertible Notes and Notes Payable (Details Narrative) - USD ($)		12 Months Ended
		Jun. 30, 2019		Jun. 30, 2018		Jun. 06, 2019	Mar. 18, 2019	Jun. 30, 2017
Notes Payable Related Party		$ 3,646,967		$ 2,994,599
The Matthews Group
Accrued interest				$ 107,839
Interest rate				10.00%
Other
Conversion price				$ 0.08
Notes payable		279,728		$ 265,729				$ 251,728
Accrued interest		13,999		14,001
Notes in Default		201,624
Balance due on demand		73,604
Convertible Notes, Related Party	[1]	$ 279,728		$ 265,729
$0.30 per share
Conversion price		$ 0.30
Shares issued upon conversion		687,081
Convertible Notes, Related Party		$ 206,124
$0.10 per share
Conversion price		$ 0.10
Shares issued upon conversion		920,050
Convertible Notes, Related Party		$ 73,604
Convertible Notes Payable (In Default)
Conversion price				$ 0.30
Notes payable		224,037		$ 214,576
Accrued interest		7,096		9,461
Notes in Default		184,506
Balance due on demand		$ 39,531
Shares issued upon conversion		615,021
Notes Payable (In Default)
Notes payable		$ 405,162		387,685				370,208
Accrued interest		17,478		17,477
Unsecured Interest Bearing Notes
Notes payable		25,153
Unsecured Interest Bearing Notes
Notes payable		10,014				$ 15,000	$ 10,000
Accrued interest		$ 153
The Matthews Group
Conversion price		$ 0.08
Shares issued upon conversion		18,157,765
Interest rate		10.00%
Convertible Notes, Related Party		$ 1,452,621	[2]	1,344,782	[2]			1,236,943
Notes Payable Related Party	[3]	1,914,618		1,384,088
Notes Payable | The Matthews Group
Notes payable		1,914,618		1,384,088				$ 805,195
Accrued interest		154,403		104,581
Notes issued		$ 377,127		599,312
Interest Payment				$ 125,000
[1]	(c) The notes are due to a current and a former director, are unsecured, convertible into common stock at per share amounts ranging from $0.10 to $0.30, and bear interest at rates ranging from 8% to 10% per annum.
[2]	(a) 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.
[3]	(b) 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 8) dated September 30, 2015. At June 30, 2017, notes due to The Matthews Group totaled $805,195. During the year ended June 30, 2018, $599,312 of notes payable were issued, interest of $104,581 was added to principal, and an interest payment of $125,000 was made, leaving a balance owed of $1,384,088 at June 30, 2018. During the year ended June 30, 2019, $377,127 of notes payable were issued and interest of $153,403 was added to principal, leaving a balance owed of $1,914,618 at June 30, 2019.

Stockholders Deficiency (Detail

Stockholders Deficiency (Details Narrative) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
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)	12 Months Ended
	Jun. 30, 2019$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Beginning number of shares; outstanding | shares	2,500,000
Beginning weighted-average exercise price; outstanding | $ / shares	$ .08
Options Granted | shares	1,150,000
Options granted, weighted average exercise price | $ / shares	$ 0.03
Options Forfeited | shares
Options Forfeited, weighted average exercise price | $ / shares
Ending number of shares; outstanding | shares	3,650,000
Ending weighted-average exercise price; outstanding | $ / shares	$ 0.06
Number of Shares; exercisable | shares	3,075,000
Weighted-average exercise price; exercisable | $ / shares	$ 0.07

Stock Options - Fair value of o

Stock Options - Fair value of options (Details)	12 Months Ended
	Jun. 30, 2019$ / shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Exercise Price	$ 0.03
Stock Price	$ 0.03
Risk-free interest rate	2.63%
Expected volatility	121.00%
Expected life (in years)	2 years
Expected dividend yield	0.00%

Stock Options - Additional info

Stock Options - Additional information regarding outstanding options (Details)	12 Months Ended
	Jun. 30, 2019$ / sharesshares
Options outstanding, shares	3,650,000
Options excercisable	3,075,000
$0.03 per share
Options outstanding, shares	1,150,000
Weighted average remaining contractual life	5 years 6 months
Weighted average exercise price | $ / shares	$ 0.03
Options excercisable	575,000
Options exercisable, weighted average exercise price | $ / shares	$ 0.03
$0.08 per share
Options outstanding, shares	2,500,000
Weighted average remaining contractual life	7 months
Weighted average exercise price | $ / shares	$ 0.08
Options excercisable	2,500,000
Options exercisable, weighted average exercise price | $ / shares	$ 0.08

Stock Options (Details Narrativ

Stock Options (Details Narrative)	12 Months Ended
	Jun. 30, 2019USD ($)$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options granted | shares	1,150,000
Fair value of stock options granted	$ 21,285
Options granted, price per share | $ / shares	$ 0.03
Options granted, expected life	2 years
Options granted, volatility	121.00%
Options granted, dividend rate	0.00%
Options granted, discount rate	2.63%
Compensation expense	$ 11,215
Outstanding unvested options	10,070
Options outstanding intrinsic value	11,500
Options exercisable intrinsic value	$ 5,750

Income Taxes - Reconciliation b

Income Taxes - Reconciliation between the federal and actual tax rate (Details)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Federal Statutory tax rate	21.00%	28.00%
State tax, net of federal benefit	6.00%	6.00%
Change in valuation	27.00%	34.00%
Allowance	(27.00%)	(34.00%)
Effective tax rate

Income Taxes - Deferred tax ass

Income Taxes - Deferred tax assets (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Net operating loss carryforwards	$ 3,403,000	$ 2,580,000
Deferred tax assets before valuation allowance	3,403,000	2,580,000
Valuation allowance	(3,403,000)	(2,580,000)
Net deferred tax asset

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Net Loss	$ (849,403)	$ (18,210)
Net change in the valuation allowance	823,000	$ (111,000)
Net operating loss carryforwards	$ 12,602,000

Related Party Transactions (Det

Related Party Transactions (Details Narrative)		12 Months Ended		20 Months Ended	25 Months Ended
		Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	May 31, 2017	Jun. 30, 2019USD ($)
Accounts payable, related party		$ 100,360	$ 96,110		$ 100,360
Managament fee, percent of revenue				0.20	0.35
Other revenue, related party		186,520	376,580
Notes Payable Related Party		3,646,967	2,994,599		$ 3,646,967
Proceeds from notes payable - related party		377,127	599,312
The Matthews Group
Notes Payable Related Party	[1]	$ 1,914,618	1,384,088		$ 1,914,618
Unsecured related party note, interest		10.00%			10.00%
Unsecured related party note		$ 192,590			$ 192,590
Van Tran
Advances due to related party		100,360	96,110		$ 100,360
Rental Payments		$ 51,000	$ 51,000
Larry Johanns
Ownership of TMG		50.00%			50.00%
Van Tran
Ownership of TMG		50.00%			50.00%
[1]	(b) 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 8) dated September 30, 2015. At June 30, 2017, notes due to The Matthews Group totaled $805,195. During the year ended June 30, 2018, $599,312 of notes payable were issued, interest of $104,581 was added to principal, and an interest payment of $125,000 was made, leaving a balance owed of $1,384,088 at June 30, 2018. During the year ended June 30, 2019, $377,127 of notes payable were issued and interest of $153,403 was added to principal, leaving a balance owed of $1,914,618 at June 30, 2019.

Legal Proceedings (Details Narr

Legal Proceedings (Details Narrative) - USD ($)	1 Months Ended	12 Months Ended
	Jul. 30, 2019	Jun. 30, 2017	Nov. 13, 2017	Sep. 21, 2016
Commitments and Contingencies
Promissory Note			$ 100,000
Settlement amount			$ 162,990
Convertible note payable relinquished				$ 364,686
Shares to be returned				500,000
Gain on settlement of note payable to former officer	$ 166,921	$ 364,686

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 05, 2008
Incentive compensation plan percentage			10.00%
Incentive Compensation Bonus, Minimum Threshold			$ 3,000,000
Salaries paid	$ 150,000	$ 150,000
Van Tran
Annual base salary		$ 150,000