Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2019 | Feb. 10, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | IMAGING DIAGNOSTIC SYSTEMS INC /FL/ | |
Entity Central Index Key | 0000790652 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 122,876,549 | |
Entity File Number | 000-26028 | |
Entity Incorporation State Country Code | FL |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Current assets: | ||
Cash | $ 33,295 | $ 44,615 |
Accounts receivable, related party | 7,700 | 7,700 |
Due from related party | 11,965 | 11,965 |
Employee advances | 5,000 | |
Prepaid expenses | 10,623 | 11,566 |
Total current assets | 68,583 | 75,846 |
Property and equipment, net | 15,497 | 19,391 |
Operating lease right-of-use assets | 106,463 | |
Total assets | 190,543 | 95,237 |
Current liabilities: | ||
Accounts payable and accrued expenses | 194,853 | 34,943 |
Accrued payroll taxes and penalties | 314,019 | 314,019 |
Promissory notes, related party | 420,000 | 200,000 |
Current portion of operating lease liabilities | 102,783 | |
Total current liabilities | 1,031,655 | 548,962 |
Long-term liabilities | ||
Operating lease liabilities | 14,362 | |
Total liabilities | 1,046,017 | 548,962 |
Commitment and Contingencies (Note 16) | ||
Temporary equity | ||
Convertible Preferred Series L | 388,988 | 379,914 |
Total temporary equity | 388,988 | 379,914 |
Stockholders’ (Deficit): | ||
Preferred stock, no par, 2,000,000 authorized Convertible preferred stock, Series M, 600 designated 0 shares issued and outstanding at December 31, 2019 and June 30, 2019 | ||
Common stock, no par value, 500,000,000 authorized , 122,758,901 and 122,621,646 shares issued and outstanding December 31, 2019 and June 30, 2019, respectively | 132,359,666 | 132,228,967 |
Accumulated Deficit | (133,604,128) | (133,062,606) |
Total stockholders’ (Deficit) | (1,244,462) | (833,639) |
Total liabilities and stockholders’ (Deficit) | $ 190,543 | $ 95,237 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Jun. 30, 2019 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Common stock, par value | ||
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 122,758,901 | 122,621,646 |
Common stock, shares outstanding | 122,758,901 | 122,621,646 |
Series M preferred stock | ||
Preferred stock, designated | 600 | 600 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||
Sales, related party | $ 11,278 | $ 149,066 | ||
Total Revenue | 11,278 | 149,066 | ||
Cost of Sales | 1,308 | 64,734 | ||
Gross Profit | 9,970 | 84,332 | ||
Operating Expenses: | ||||
General and administrative | 71,883 | 128,529 | 168,341 | 296,640 |
Salaries and wages | 72,818 | 140,196 | 142,001 | 280,526 |
Research and development | 16,413 | 17,144 | 49,569 | |
Sales and marketing | 127 | 111 | 305 | 618 |
Depreciation and amortization | 1,947 | 1,947 | 3,894 | 3,893 |
Consulting expenses (including share-based compensation) | 116,199 | 93,908 | 175,699 | 222,116 |
Total Operating Expenses | 262,974 | 381,104 | 507,384 | 853,362 |
Operating Loss | (262,974) | (371,134) | (507,384) | (769,030) |
Other Income (expense) | ||||
Interest income | 7 | 7 | 13 | 22 |
Other Income | 27,837 | 27,867 | ||
Interest expense | (14,441) | (13,685) | (25,077) | (16,973) |
Total Other Income (Expense) | (14,434) | 14,159 | (25,064) | 10,916 |
Net Loss | (277,408) | (356,975) | (532,448) | (758,114) |
Preferred Stock Dividends | (4,537) | (4,537) | (9,074) | (9,074) |
Net Loss Available to Common Stockholders | $ (281,945) | $ (361,512) | $ (541,522) | $ (767,188) |
Net Loss per common share: | ||||
Basic and diluted | $ (0.01) | |||
Weighted average number of common shares outstanding: | ||||
Basic and diluted | 122,706,684 | 120,654,044 | 122,664,165 | 102,671,166 |
Statements of Changes in Stockh
Statements of Changes in Stockholders' (Deficit) (Unaudited) - USD ($) | Preferred Stock | Common Stock | Subscription Deposits | Accumulated Deficit | Total |
Balance at Jun. 30, 2018 | $ 7,589,173 | $ 125,108,179 | $ (133,064,117) | $ (366,765) | |
Balance, shares at Jun. 30, 2018 | 591 | 33,597,241 | |||
Conversion Viable Series M Cv Preferred to common stock | $ (5,910,000) | $ 5,910,000 | |||
Conversion Viable Series M Cv Preferred to common stock, shares | (591) | 87,044,089 | |||
Adjustment to correct number of common shares | |||||
Adjustment to correct number of common shares, shares | (80) | ||||
Cummulative Dividend on Series M CV Preferred | $ (1,679,173) | 1,679,173 | |||
Cummulative Dividend on Series L CV Preferred | (4,537) | (4,537) | |||
Net loss | (401,139) | (401,139) | |||
Balance at Sep. 30, 2018 | $ 131,018,179 | (131,790,620) | (772,441) | ||
Balance, shares at Sep. 30, 2018 | 120,641,250 | ||||
Adjustment to correct number of common shares, shares | 6 | ||||
Cummulative Dividend on Series L CV Preferred | (4,537) | (4,537) | |||
Shares Issued for Cash | $ 150,000 | 150,000 | |||
Shares Issued for Cash, shares | 294,117 | ||||
Subscription Deposit Received | $ 50,000 | 50,000 | |||
Net loss | (356,976) | (356,976) | |||
Balance at Dec. 31, 2018 | $ 131,168,179 | $ 50,000 | (132,152,133) | (933,954) | |
Balance, shares at Dec. 31, 2018 | 120,935,373 | ||||
Balance at Jun. 30, 2019 | $ 132,228,967 | (133,062,606) | (833,639) | ||
Balance, shares at Jun. 30, 2019 | 122,621,646 | ||||
Cummulative Dividend on Series L CV Preferred | (4,537) | (4,537) | |||
Net loss | (255,040) | (255,040) | |||
Balance at Sep. 30, 2019 | $ 132,228,967 | (133,322,183) | (1,093,216) | ||
Balance, shares at Sep. 30, 2019 | 122,621,646 | ||||
Cummulative Dividend on Series L CV Preferred | (4,537) | (4,537) | |||
Stock options expense | $ 60,699 | 60,699 | |||
Shares Issued for Cash | $ 70,000 | 70,000 | |||
Shares Issued for Cash, shares | 137,255 | ||||
Net loss | (277,408) | (277,408) | |||
Balance at Dec. 31, 2019 | $ 132,359,666 | $ (133,604,128) | $ (1,244,462) | ||
Balance, shares at Dec. 31, 2019 | 122,758,901 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Cash Flows [Abstract] | ||
Net loss | $ (532,448) | $ (758,114) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 3,894 | 3,893 |
Stock option expense | 60,699 | |
Changes in assets and liabilities and stockholders deficit: | ||
(Increase) decrease in due from related party | (99,165) | |
(Increase) decrease in employee advances | (5,000) | |
(Increase) decrease in royalty receivable | 21,753 | |
(Increase) decrease in other receivables | (11,115) | |
(Increase) decrease in prepaid expenses | 943 | 538 |
Increase (decrease) in accounts payable and accrued expenses | 159,910 | (13,426) |
Increase (decrease) in accrued payroll taxes and penalties | 1 | |
Change in right of use asset/lease obligation, net | 10,682 | |
Total adjustments | 231,128 | (97,521) |
Net cash used in operating activities | (301,320) | (855,635) |
Cash flows from financing activities: | ||
Proceeds from promissory notes, related party | 220,000 | 400,000 |
Proceeds from issuance of common stock | 70,000 | 150,000 |
Proceeds from common stock subscription deposits | 50,000 | |
Net cash provided by financing activities | 290,000 | 600,000 |
Net decrease in cash and cash equivalents | (11,320) | (255,635) |
Cash and cash equivalents at beginning of period | 44,615 | 271,540 |
Cash and cash equivalents at end of period | 33,295 | 15,905 |
Supplemental Disclosure of cash flow information: | ||
Cash paid for interest | $ 23,712 | $ 12,822 |
Organization and Nature of Busi
Organization and Nature of Business | 6 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF BUSINESS | (1) ORGANIZATION AND NATURE OF BUSINESS Imaging Diagnostic Systems, Inc. ("the Company" or "IDSI") is a medical technology company that has developed a new, non-invasive CT scanner called CTLM® that uses a laser beam in place of ionizing X-ray for breast imaging. This technology is called Diffuse Optical Tomography. The CTLM® will provide an adjunctive imaging modality to other methods of imaging the breast such as X-ray mammography, MRI and ultrasound. |
Going Concern and Management's
Going Concern and Management's Plans | 6 Months Ended |
Dec. 31, 2019 | |
Going Concern and Management's Plans [Abstract] | |
GOING CONCERN AND MANAGEMENT'S PLANS | (2) GOING CONCERN AND MANAGEMENT'S PLANS The accompanying financial statements are prepared assuming the Company will continue as a going concern. As of December 31, 2019, the Company had an accumulated deficit of $133,604,128, a stockholders' deficit of $1,244,462 and a working capital deficiency of $963,072. For the six months ended December 31, 2019, net loss totaled $532,448. The net cash used in operating activities for the six months ended December 31, 2019 totaled $301,320. These matters raise substantial doubt about the Company's ability to continue as a going concern for a period of twelve months from the date these financial statements are issued. The ability of the Company to continue as a going concern is dependent upon increasing sales and obtaining additional capital and financing. While the Company believes in the viability of its strategy to increase sales volume and in its ability to raise additional funds, there can be no assurances to that effect. The Company received CTLM® CFDA approval effective November 16, 2018 to November 15, 2023 as disclosed in the Company's Form 8-K filing on December 11, 2018. However, there can be no assurance that we will obtain U.S. Food and Drug Administration ("FDA") marketing or other new international marketing clearances, that the CTLM® will achieve market acceptance or that sufficient revenues will be generated from sales of the CTLM® to allow us to operate profitably. If our majority shareholder Viable International Investments, LLC ("Viable") fails to continue funding, the Company would be materially adversely affected and may have to cease operations due to a lack of funding. These matters affect the Company's liquidity profile, and management's plans in those regards are discussed in the paragraphs that follow. During fiscal year 2020, we anticipate that losses from operations will continue until we begin to generate revenues through the sales of CTLM® systems in China. These losses will be primarily due to an anticipated increase in marketing, manufacturing and operational expenses associated with the international commercialization of the CTLM®, expenses associated with FDA approval processes, and the costs associated with advanced product development activities. The Company's next focus, after having obtained CFDA approval in China, is on obtaining marketing clearance of its CTLM® Breast Imaging System through the FDA. The premarket approval ("PMA") process for U.S. marketing clearance is expected to take longer than the Chinese process and will resume after successful marketing and sales of CTLM® systems in China. Sales revenues in China are not expected to begin until the second or third quarter of fiscal 2020. No sales in other countries are expected in the near future and until after obtaining FDA marketing clearance. In analyzing the regulatory path forward, timeline, and costs associated with the level of effort required to upgrade the Company's Quality Management System, we have decided not to renew our CE mark (required for sales in the European Union) for this year and to consider reapplying in 2 to 3 years to avoid these regulatory fees. We will maintain our ISO 13485:2016 certification which will allow us to pursue FDA marketing clearance and the CE Mark in the future. On October 23, 2019, the Company entered into a consulting agreement ("the Agreement") effective as of November 1, 2019, with Dr. Huabei Jiang to serve as IDSI's Chief Scientific Consultant. Pursuant to the Agreement, Dr. Jiang is focusing on improving the technical performance and image quality of IDSI's Computed Tomography Laser Mammography (CTLM ® The Company's ability to continue as a going concern and its future success is dependent upon its ability to raise additional capital in the near term to: (1) satisfy its current obligations, (2) continue its research and development efforts, and (3) successfully develop, market, and sell its products. The Company believes that it will be able to complete the necessary steps in order to meet its cash flow requirements throughout fiscal 2020 and continue its development and commercialization efforts. However, there can be no assurance that IDSI will generate sufficient revenue to provide positive cash flows from operations or that sufficient capital will be available, when required, to permit the Company to realize its plans. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | (3) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation and use of estimates The financial statements are prepared in accordance with Generally Accepted Accounting Principles in the United States of America ("U.S. GAAP"). The preparation of financial statements in conformity with Generally Accepted Accounting Principles in the United States requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions also include the valuations of certain financial instruments, stock-based compensation, deferred tax assets, the outcome of litigation and tax matters, and other matters that affect the statements of financial condition and related disclosures. Actual results could differ materially from these estimates. These unaudited financial statements should be read in conjunction with the Company's audited financial statements for the year ended June 30, 2019, contained in our General Form for Registration of Securities of Form 10-K as filed with the Securities and Exchange Commission (the "Commission") on September 30, 2019. The results of operations for the six months ended December 31, 2019, are not necessarily indicative of results to be expected for any other interim period or the fiscal year ending June 30, 2020. (b) Revenue recognition As of July 1, 2018, the Company adopted Revenue from Contracts with Customers (Topic 606) ("ASC 606"). The Company sells medical imaging products, parts, and services where permitted to independent distributors and in certain unrepresented territories directly to end-users. The Company recognizes revenue when obligations under the terms of a contract with the customer are satisfied. Product sales occur once control is transferred upon delivery to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods. The amount of consideration the Company receives and revenue the Company recognizes varies with changes in customer incentives the Company offers to its customers and their customers. Any discounts, sales incentives or similar arrangements with the customer are estimated at time of sale and deducted from revenue. Sales taxes and other similar taxes are excluded from revenue (c) Allowance for doubtful accounts In the event that management determines that a receivable becomes uncollectible, or events or circumstances change, which result in a temporary cessation of payments from the distributor, we will make our best estimate of probable or potential losses in our accounts receivable balance using the allowance method for each quarterly period. Management will review the receivables at the end of each fiscal year and the appropriate allowance will be made based on current available evidence and historical experience. Our allowance for doubtful accounts was $-0- as of December 31, 2019 and June 30, 2019. (d) Cash and cash equivalents Holdings of highly liquid investments with original maturities of three months or less and investment in money market funds are considered to be cash equivalents by the Company. There were no cash equivalents at December 31, 2019 and June 30, 2019. (e) Concentration of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high-quality financial institutions. At times, balances in the Company's cash accounts may exceed the Federal Deposit Insurance Corporation limit of $250,000. At December 31, 2019 and June 30, 2019, the Company had $0 in excess of the federally insured limit. The Company did not have any revenue for the six months ended December 31, 2019. For the six months ended December 31, 2018, all of the revenues were from Xi'an IDI Laser Imaging Co. Ltd. (f) Inventory Inventories, consisting principally of raw materials, work-in-process (including completed units under testing), finished goods and units placed on consignment, are carried at the lower of cost and net realizable value. Cost is determined using the first-in, first-out (FIFO) method. Raw materials consist of purchased parts, components and supplies. Work-in-process includes completed units undergoing final inspection and testing. The Company periodically reviews the value of items in inventory and records write-downs or write-offs based on its assessment of slow moving or obsolete inventory. The Company maintains a reserve for obsolete inventory and generally makes inventory value adjustments against the reserve. (g) Property and equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using straight-line methods over the estimated useful lives of the related assets. Expenditures for renewals and betterments which increase the estimated useful life or capacity of the asset are capitalized; expenditures for repairs and maintenance are expensed when incurred. (h) Research and development Research and development expenses consist principally of expenditures for equipment and outside third-party consultants, raw materials which are used in testing and the development of the Company's CTLM® device or other products and product software. The non-payroll related expenses include testing at outside laboratories, parts associated with the design of initial components and tooling costs, and other costs which do not remain with the developed CTLM® device. (i) Net loss per share The Company relies on the guidance provided by ASC 260, ("Earnings per Share"), which requires the reporting of both basic and diluted earnings per share. Basic net loss per share is determined by dividing loss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted loss per share reflects the potential dilution that could occur if options or other contracts to issue common stock were exercised or converted into common stock, as long as the effect of their inclusion is not anti-dilutive. The Company had 8,217,136 and 7,717,136 options vested as of December 31, 2019 and June 30, 2019, respectively and 6,780,522 and 5,730,522 options not yet vested as of December 31, 2019 and June 30, 2019, respectively. (j) Stock-based compensation In July 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, an accounting standard update to improve non-employee share-based payment accounting. The accounting standard update more closely aligns the accounting for employee and non-employee share-based payments. The accounting standards update is effective as of the beginning of 2019 with early adoption permitted. We have elected to adopt this standard. The Company has elected to use the Black-Scholes-Merton, or BSM, option-pricing model to estimate the fair value of its options and similar awards, which incorporates various subjective assumptions including volatility, risk-free interest rate, expected life, and dividend yield to calculate the fair value of outstanding and vested stock option awards. Compensation expense recognized in the statements of operations is based on awards ultimately expected to vest and reflects estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The assumptions used in calculating the fair value of share-based payment awards represent management's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, the Company's stock-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. In estimating the Company's forfeiture rate, the Company analyzed its historical forfeiture rate, the remaining lives of unvested options, and the amount of vested options as a percentage of total options outstanding. If the Company's actual forfeiture rate is materially different from its estimate, or if the Company reevaluates the forfeiture rate in the future, the stock-based compensation expense could be significantly different from what we have recorded in the current period. For the six months ended December 31, 2019 and 2018, no stock options were granted to employees and consultants. Stock options are being expensed pursuant to ASC 718. The fair value concepts were not changed significantly in ASC 718; however, in adopting this Standard, companies were given the option to choose among alternative valuation models and amortization assumptions. We elected to continue to use the Black-Scholes option pricing model and expense the options as compensation over the requisite vesting period of the grant. We will reconsider use of the Black-Scholes model if additional information becomes available in the future that indicates another model would be more appropriate, or if grants issued in future periods have characteristics that cannot be reasonably estimated using this model. See (15) Stock Options. (k) Long-lived assets The Company relies on the guidance provided by ASC 360 ("Property, Plant & Equipment"). ASC 360 requires companies to write down to estimated fair value long-lived assets that are impaired. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. In performing the review of recoverability, the Company estimates the future cash flows expected to result from the use of the asset and its eventual disposition. If the sum of the expected future cash flows is less than the carrying amount of the assets, an impairment loss is recognized. The Company has determined that no impairment losses need to be recognized through the six months ended December 31, 2019 and 2018. (l) Income taxes The Company accounts for income taxes pursuant to the provisions of ASC 740-10, "Accounting for Income Taxes," which requires, among other things, an asset and liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized. The Company follows the provisions of the ASC 740 -10 related to, Accounting for Uncertain Income Tax Positions. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for uncertain tax positions. The Company has adopted ASC 740-10-25 Definition of Settlement, which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion of an examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open. As of the date these financials were available to be issued, tax years ended June 30, 2016-2019 are still potentially subject to audit by the taxing authorities. (m) Warranty reserve The Company warrants all products and parts supplied for a period of 12 months from the date of installation or 15 months from the date the products was/were shipped from IDSI, whichever occurs first. Although the Company tests its product in accordance with its quality programs and processes, its warranty obligation is affected by product failure rates and service delivery costs incurred in correcting a product failure. Based on the Company's experience, the warranty reserve was estimated based on the replacement cost of the laser and certain electronic parts. Should actual product failure rates or service costs differ from the Company's estimates, which are based on limited historical data, where applicable, revisions to the estimated warranty liability would be required. The Company had no warranty reserve balance as of December 31, 2019 or June 30, 2019. (n) Impact of recently issued accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13 and updated in Nov 2018 ASU 2018-19, Financial Instruments – Credit Losses (Topic 326) ("ASU 2016-13"), which requires the immediate recognition of management's estimates of current and expected credit losses. ASU 2016-13 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2019. Early adoption is permitted after fiscal years beginning December 15, 2018. The Company is currently evaluating the potential impact of adopting this guidance on our financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurements (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820. The ASU is effective for the Registrants for fiscal years beginning after December 15, 2019, and interim periods therein. Early adoption is permitted. The Company is currently assessing the impact of this standard on their financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on our financial statements upon adoption. (o) Fair Value of Financial Instruments The carrying values of cash and cash equivalents, receivables, accounts payable, short-term debt and accrued liabilities approximated their fair values due to the short maturity of these instruments. After a review of our accounts receivable, the Company has not recorded an allowance for doubtful accounts. The fair value of the Company's debt obligations is estimated based on the quoted market prices for the same or similar issues or on current rates offered to the Company for debt of the same remaining maturities. At December 31, 2019 and June 30, 2019, the aggregate fair value of the Company's debt obligations approximated its carrying value. The Company relies upon the guidance of ASC 820 ("Fair Value Measurements and Disclosures"). ASC 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly, transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed and is determined based on the lowest level input that is significant to the fair value measurement. |
Revenue
Revenue | 6 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | (4) REVENUE The Company recognizes revenue when obligations under the terms of a contract with the customer are satisfied. Product sales occur once control is transferred upon delivery to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods. The amount of consideration the Company receives and revenue the Company recognizes varies with changes in customer incentives the Company offers to its customers and their customers. Sales taxes and other similar taxes are excluded from revenue. As of July 1, 2018, the Company adopted Revenue from Contracts with Customers (Topic 606) ("ASC 606"). The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects to receive in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The Company adopted the standard using the modified retrospective method and the adoption did not have a material impact on its financial statements. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Information about the Company's net sales by reporting segment for the six months ended December 31, 2019 and 2018 is as follows: For the six months ended December 31, December 31, 2019 2018 Sales-parts, related party $ - $ 149,066 Net sales $ - $ 149,066 All sales-parts, related party are sales to a customer located in China. |
Due from Related Party
Due from Related Party | 6 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
DUE FROM RELATED PARTY | (5) DUE FROM RELATED PARTY On March 22, 2018, the Board of Directors approved the execution of two agreements with Xi'an of China, an affiliated Company of IDSI. The agreements are a Know How Transfer Contract and a CTLM Know How Confidentiality Agreement. The contract, having a term of 20 years, stipulates that Xi'an will pay IDSI a know how transfer fee of 25% of revenue for CTLM product sales in their territory. The Company also sells inventory parts or acquires parts from third parties on behalf of Xi'an. For the six months ended December 31, 2019 and 2018, such sales totaled $0 and $149,066, respectively. As of December 31, 2019 and June 30, 2019, the Company has receivables from related parties of $7,700 and $7,700, respectively as a result of sales of inventory parts or acquisition of parts from third parties on behalf of Xi'an. Xi'an and Viable have common ownership hence these transactions are considered related party transactions. Additionally, as of December 31, 2019 and June 30, 2019, the Company has amounts due from related parties of $11,965 and 11,965, respectively. The majority of the amount due is $11,115 due from Xi'an. This was for product that was purchased by Xi'an that IDSI paid for. Xi'an will reimburse IDSI for the amounts paid on their behalf. |
Royalty Receivable
Royalty Receivable | 6 Months Ended |
Dec. 31, 2019 | |
Royalty Receivable [Abstract] | |
ROYALTY RECEIVABLE | (6) ROYALTY RECEIVABLE On June 16, 2006, the Company entered into a Royalty Agreement with Bioscan Inc. whereby the Company established a licensing relationship with Bioscan which granted Bioscan an exclusive sublicensable, royalty-bearing license to make, use, offer for sale, import and otherwise develop and commercialize products in its territory. Bioscan Inc. was subsequently purchased by TriFoil Imaging. During the six months ended December 31, 2019 and 2018, there was no royalty income. As of December 31, 2019 and June 30, 2019, the Company had a royalty receivable balance of $0 and $0, respectively. |
Inventories
Inventories | 6 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | (7) INVENTORIES Inventories consisted of the following: December 31, June 30, Raw materials consisting of purchased parts, components and supplies $ 369,452 $ 369,747 Work-in process including units undergoing final inspection and testing 52,500 52,500 Finished goods 15,000 15,000 Total Inventory $ 436,952 $ 437,247 Inventory Reserve (436,952 ) (437,247 ) Net Inventory $ - $ - Due to the age of the inventory, lack of demand for parts and lack of sales the Company wrote off all inventory during the year ended June 30, 2017 and has booked a reserve for the entire value of its inventory as of December 31, 2019 and June 30, 2019. For the six months ended December 31, 2019, reduction of inventory represents physical count adjustments. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | (8) PROPERTY AND EQUIPMENT The following is a summary of property and equipment, less accumulated depreciation: December 31, June 30, Useful life Furniture and Fixtures $ 261,011 $ 261,011 5 years Computers and Equipment 370,704 370,704 5 years Third Party Software 10,291 10,291 5 years Clinical Equipment 15,000 15,000 5 years Total Property & Equipment $ 657,006 $ 657,006 Less: accumulated depreciation (641,509 ) (637,615 ) Total Property & Equipment - Net $ 15,497 $ 19,391 Depreciation expense for the six months ended December 31, 2019 and 2018 was $3,894 and $3,893 respectively. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 6 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | (9) ACCOUNTS PAYABLE AND ACCRUED EXPENSES As of December 31, 2019 and June 30, 2019, accounts payable and accrued expenses totaled $194,853 and $34,943 of which consists of accounts payable of $181,115 and $27,912 and other accrued expenses of $13,738 and $7,031. |
Accrued Payroll Taxes and Penal
Accrued Payroll Taxes and Penalties | 6 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED PAYROLL TAXES AND PENALTIES | (10) ACCRUED PAYROLL TAXES AND PENALTIES As of December 31, 2019 and June 30, 2019, the Company owes the IRS $314,019 and $314,019, respectively. Accrued payroll taxes represent outstanding interest and penalties based on prior management's failure to pay payroll taxes commencing with the quarter ending March 31, 2010. As part of new management's restructuring plan, the Company received funds from an accredited investor to be able to make a payment to pay off the payroll tax portion of the amount owed to the IRS. The Company engaged tax counsel to manage the settlement and payment. On June 27, 2018, the IRS provided counsel with a payoff calculation table indicating that the balance of taxes due was $381,224. On June 29, 2018, Viable International Investments LLC provided a bank check in that amount to counsel and they sent the check to the IRS with a letter requesting penalty and interest abatement. The amount due at December 31, 2019 of $314,019 represents the interest and penalties. The Company has formally asked the IRS to abate all remaining interest and penalties of $314,019. The Company had a telephone conference on April 18, 2019 with the office of appeals and is waiting for further communications from the appeals officer. |
Promissory Notes - Related Part
Promissory Notes - Related Party | 6 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
PROMISSORY NOTES - RELATED PARTY | (11) PROMISSORY NOTES – RELATED PARTY The following table is a summary of the outstanding note balances as of December 31, 2019 and June 30, 2019. Noteholder Interest Maturity December 31, June 30, Related Party Notes: Erhfort, LLC 15 % 4/30/20 $ 100,000 $ 100,000 Erhfort, LLC 15 % 4/30/20 100,000 100,000 JM One Holdings, LLC 15 % 8/31/20 20,000 - Erhfort, LLC 15 % 4/30/20 100,000 - Erhfort, LLC 15 % 4/30/20 100,000 Total Related Party Notes $ 420,000 $ 200,000 Each of Erhfort, LLC and JM One Holdings, LLC owns Company common stock directly or indirectly. Hence these debts are considered related party debt. During the six months ended December 31, 2019, the Company received loan proceeds of $200,000 from Erhfort, LLC and $20,000 from JM One Holdings, LLC, both of which are related parties. The loans from Erhfort have an annual interest rate of 15% and interest is being accrued and paid monthly. The loan from JM One Holdings, LLC will accrue interest monthly at an annual rate of 15%, but interest will not be paid until maturity. The maturity dates for all loans with original maturity dates prior to April 30, 2020 from Erhfort were extended to April 30, 2020. |
Leases
Leases | 6 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | (12) LEASES In February 2016, the FASB issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases (Topic 842). ASU 2016-02 requires lessees to recognize a right-of-use (ROU) asset and lease liability in the balance sheet for all leases, including operating leases, with terms of more than twelve months. Recognition, measurement, and presentation of expenses and cash flows from a lease by a lessee have not significantly changed from previous guidance. The amendments also require qualitative disclosures along with specific quantitative disclosures. We adopted this guidance using the cumulative-effect adjustment method on July 1, 2019, meaning we did not restate prior periods. Current year financial information is presented under the guidance in topic 842, while prior year information will continue to be presented under Topic 840. Adoption of the standard resulted in the recognition of an operating ROU asset and lease liability of approximately $147,000. We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, other current liabilities, and operating lease liabilities in our balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. For certain equipment leases, such as vehicles, we account for the lease and non-lease components as a single lease component. Additionally, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. Our leases have remaining lease terms of 12 to 25 months as of December 31, 2019. The components of lease expense were as follows: Six Months Ended December 31, Operating lease expense $ 51,108 Total lease expense $ 51,108 Supplemental cash flow information related to leases was as follows: Six Months Ended December 31, Cash paid for amounts included in measurement of lease liabilities Operating cash flows from operating leases $ 40,425 Right-of-use assets obtained in exchange for new lease obligation Operating leases $ 147,291 Supplemental balance sheet information related to leases was as follows: December 31, Operating leases Operating lease right-of-use assets $ 106,463 Current portion of operating lease liability 102,783 Operating lease liability, net of current portion 14,362 Total operating lease liability $ 117,145 Weighted Average Remaining Lease Term Operating leases 1.24 Years Weighted Average Discount Rate Operating leases 15 % As of December 31, 2019, maturities of lease liabilities were as follows: Operating Years Ended June 30, Leases 2020 $ 61,575 2021 58,546 2022 8,427 Total minimum lease payments 128,548 Less: amounts representing interest (11,403 ) Present value of capital lease liabilities $ 117,145 |
Convertible Preferred Stock
Convertible Preferred Stock | 6 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
CONVERTIBLE PREFERRED STOCK | (13) CONVERTIBLE PREFERRED STOCK The following schedule reflects the number of shares of preferred stock that have been issued, converted and are outstanding as of December 31, 2019: Security Date No. of Amount Date of No. of Amount Balance Series M Cv Pfd 8/1/2014 250 $ 2,500,000 4/18/2017 6 $ 60,000 11/21/2017 3 30,000 8/7/2018 241 2,410,000 Series M Cv Pfd 8/31/2015 200 2,000,000 8/7/2018 200 2,000,000 Series M Cv Pfd 4/22/2016 150 1,500,000 8/7/2018 150 1,500,000 Total Series M Cv Pfd 600 $ 6,000,000 600 $ 6,000,000 $ -0- Dividends -0- Total redemption value $ 0- Series L Cv Pfd 2/10/2010 35 $ 350,000 1/6/2011 15 $ 150,000 $ 200,000 Dividends 184,451 Total redemption value $ 388,988 Series L Convertible Preferred Stock On March 31, 2010, a private investor converted a $350,000 short-term promissory note into 35 shares of Series L Convertible Preferred Stock. The original purchase price/stated value is $10,000 per share and dividends accrue at an annual rate of 9%. The preferred stock is convertible into 474 shares of common stock for each share of preferred stock. On January 6, 2011, the private investor converted 15 shares of Series L Convertible Preferred Stock representing a principal value of $150,000. After the conversion, the private investor held 20 shares representing a principal value of $200,000. The remaining principal value of $200,000 is presented on the balance sheet as temporary equity, as the holder has the option to redeem for cash at any time. At December 31, 2019 and June 30, 2019, the balance of cumulative dividends owed to the investor which is included in redemption value was $188,988 and $179,914, respectively. The total presented on the balance sheet as temporary equity is $388,988 as of December 31, 2019 and $379,914 as of June 30, 2019. Series M Convertible Preferred Stock The Company, during the fiscal year ending June 30, 2015, sold Series M Convertible Preferred Stock to Viable International Investments, LLC, a Florida limited liability company, ("Viable"). Each share of the Series M Preferred Stock was convertible into 147,283 shares of Common Stock. In the event of a liquidation, the holders of the Series M Preferred Stock would have been entitled to receive, prior to any distribution of assets to holders of Common Stock or other class of capital stock or other equity securities of the Corporation, $10,000 per share of Series M Preferred Stock held plus accrued but unpaid dividends. The holders of the Series M Preferred Stock would have had identical voting rights as any holder of Common Stock and would have voted together, not as separate classes. The original purchase price/stated value of each share of Series M Preferred Stock was $10,000 and Viable was be entitled to receive cumulative dividends at the fixed rate of 9% of the stated value per share per annum. The first tranche of the private placement sale of 250 shares of convertible preferred stock was made pursuant to a Securities Purchase Agreement (the "Agreement") dated June 27, 2014 between the Company and Viable. The Agreement stipulated the payment of a $100,000 non-refundable deposit which was paid on June 27, 2014 and applied to the purchase price on the first closing date, August 4, 2014. At the first closing, $2,400,000 was paid by Viable to purchase 250 shares of convertible preferred stock which provided a 78.9% voting and economic interest in the Company's capital stock representing a change in control of the Company. Because of delays in restructuring the Company and executing its business plan, Viable was unable to convert its Series M Convertible Preferred Stock into Common Stock according to its timeline. On June 1, 2016, Viable presented the Company with a waiver that permanently waived its rights under Section 3 – Redemption at Holder's Option of the Certificate of Designations of the Series M Preferred Stock. Therefore, the Company reclassified the Series M Preferred Shares to permanent equity from temporary equity on June 1, 2016. Viable, at its option, deviated from the stipulated payment schedules and purchased 200 Series M shares for $2,000,000 on August 31, 2015, and 150 Series M shares for $1,500,000 on April 22, 2016, which completed all of the payments required pursuant to the Agreement. The Series M dividends were payable at the Company's option in cash or common stock. Accordingly, after the reclassification of Series M from temporary equity to permeant equity the Company has continued to accrue the dividend as a charge to retained earnings and a credit to preferred stock Series M in permanent equity. Upon conversion of the remaining 591 Series M shares to common stock on August 7, 2018, the accrued dividends were forfeited and reversed to retained earnings as the Company does not have any further obligations for payment of such accrued dividends. On November 21, 2017, Viable exercised its right to convert three shares of its Series M Convertible Preferred Stock valued at $30,000 into 441,848 shares of restricted common stock. Subsequent to the conversion, Viable sold a total of 392,157 restricted common shares to three accredited investors in China and retained 49,691 restricted common shares for its portfolio. The underlying Series M Convertible Preferred Stock held by Viable was issued with a restrictive legend pursuant to Rule 144 because the shares were not registered. Any conversions to common stock would also be issued with a restrictive legend pursuant to Rule 144. On April 18, 2017, Viable exercised its right to convert six shares of its Series M Convertible Preferred Stock valued at $60,000 into 883,696 shares of restricted common stock. Subsequent to the conversion, Viable sold a total of 872,787 restricted common shares to three accredited investors in China and retained 10,909 restricted common shares for its portfolio. The underlying Series M Convertible Preferred Stock held by Viable was issued with a restricted legend pursuant to Rule 144 because the shares were not registered. Any conversions to common stock would also be issued with a restricted legend pursuant to Rule 144. On August 7, 2018, Viable converted its remaining 591 shares Series M Convertible Preferred Stock into 87,044,089 shares of restricted common stock. |
Common Stock
Common Stock | 6 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
COMMON STOCK | (14) COMMON STOCK On July 12, 2018, the majority shareholder of the Company, Viable International Investments, LLC delivered a written request to effect a one-for-1000 reverse stock split in the form of a Written Consent of the Majority Shareholder of Imaging Diagnostic Systems, Inc. The Board of Directors of the Corporation believed it to be in the best interest of the Corporation and recommended that the stockholders approve a one-for-1000 reverse stock split of the Corporation's issued and outstanding shares of Common Stock and a decrease in the amount of shares of Common Stock authorized to be issued from 40,000,000,000 shares to 500,000,000 shares. After receiving stockholder approval by majority written consent, the Company filed amended and restated Articles of Incorporation with the Florida Secretary of State on July 12, 2018 to record this action. The reverse stock split became effective July 27, 2018. The Company has retroactively adjusted its financial statements for the effect of the reverse stock split. The Company has 500,000,000 of common shares no par value authorized and 2,000,000 of no par preferred shares authorized. During the six months ended December 31, 2019, the Company issued 137,255 shares of its common stock to a non-affiliated accredited investor pursuant to a subscription agreement for $70,000. The price per share was approximately $.51 per share. During the three months ended December 31, 2018, the Company issued 87,044,089 shares of its common stock as Viable exercised its right to convert the remaining 591 shares of its Series M Convertible Preferred Stock valued at $5,910,000 into 87,044,089 shares of restricted common stock on August 7, 2018. The Company also issued 294,117 shares of its common stock to non-affiliated accredited investors pursuant to subscription agreements for $150,000. The price per share was approximately $.51 per share. |
Stock Options
Stock Options | 6 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK OPTIONS | (15) STOCK OPTIONS On December 4, 2016, the Board of Directors adopted the Company's 2016 Equity Incentive Plan (the "2016 Plan") which was subsequently approved and adopted by majority written consent in lieu of an annual meeting. The purpose of the 2016 Plan is to encourage and enable the officers, employees, directors and other key persons (including consultants) of the Company, upon whose judgment, initiative and efforts the Company largely depends for the successful conduct of its business, to acquire a proprietary interest in the Company. It is anticipated that providing such persons with a direct stake in the Company's welfare will assure a closer identification of their interests with those of the Company and its stockholders, thereby stimulating their efforts on the Company's behalf and strengthening their desire to remain with the Company. On January 1, 2017, the Board granted options to purchase a total of 7,364,136 shares, all with an exercise price and fair value of $0.20 per share. Options were granted to nine employees to purchase 5,498,555 shares and to six consultants to purchase 1,865,581 shares. On January 1, 2018, the Board granted options to purchase 5,000,000 shares all with an exercise price and fair value of $0.20 per share to four consultants. On May 1, 2018, the Board granted options to purchase 500,000 shares all with an exercise price and fair value of $0.20 per share to an additional consultant. On January 1, 2019, the Board granted options to purchase 2,040,000 shares all with an exercise price of $.20 and fair value of $.51 per share to five consultants. On May 1, 2019, the Board granted options to purchase 360,000 shares all with an exercise price of $.20 and fair value of $.51 per share to one consultant. On November 1, 2019, the Board granted options to purchase 2,000,000 shares all with an exercise price of $.51 and fair value of $.51 per share to one consultant. In computing the impact of stock option grants, the fair value of each option is estimated on the date of grant based on the Black-Scholes options-pricing model utilizing certain assumptions for a risk-free interest rate; volatility of a comparable company; and expected remaining lives of the awards. The assumptions used in calculating the fair value of share-based payment awards represent management's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, the Company's stock-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. The Company cannot assess its forfeiture rate at this time. As of December 31, As of June 30, Expected volatility 23 to 24.00 % 24.00 % Expected term 4 to 5 Years 5 Years Risk-Free interest rate 1.55 to 2.49 % 2.49 % Forfeiture rate 0.00 % 0.00 % Expected dividend rate 0.00 % 0.00 % The following table summarizes information about all of the stock options granted, exercised and cancelled under the 2016 Plan at December 31, 2019 and June 30, 2019: Employees/Consultants Options Wtd. Avg. Exercise Price Outstanding at June 30, 2018 11,636,777 $ 0.20 Granted 2,400,000 $ 0.20 Exercised - $ - Cancelled (589,132 ) $ 0.20 Outstanding at June 30, 2019 13,447,645 $ 0.20 Granted 2,000,000 $ 0.51 Exercised - $ - Cancelled (450,000 ) $ 0.20 Outstanding at December 31, 2019 14,997,645 $ 0.24 The following table summarizes information about vested and unvested options under the 2016 Plan at December 31, 2019 and June 30, 2019: Employees/Consultants Unvested Vested Total Outstanding at June 30, 2018 6,825,181 4,811,596 11,636,777 Granted 1,800,000 600,000 2,400,000 Vested (2,305,527 ) 2,305,527 - Cancelled (589,132 ) - (589,132 ) Outstanding at June 30, 2019 5,730,522 7,717,123 13,447,645 Granted 1,500,000 500,000 2,000,000 Vested - - - Cancelled (450,000 ) - (450,000 ) Outstanding at December 31, 2019 6,780,522 8,217,123 14,997,645 Unvested options will be expensed under the Black-Scholes options-pricing model when they vest. At December 31, 2019, the Company has issued options pursuant to six different stock option plans, the most recent being the 2016 Plan. The previous five plans through and including the 2012 Non-Statutory Plan have a remaining total of options vested and exercisable to purchase 13 shares at exercise prices from a high of $13,500 to a low of $350 per share. The tables below summarize information about these five plans: Employees/Consultants Options Wtd. Avg. Exercise Price Outstanding at June 30, 2018 13 $ 1,210 Granted - $ - Exercised - $ - Cancelled (.31 ) $ 6,083 Outstanding at June 30, 2019 13 $ 976 Granted - $ - Exercised - $ - Cancelled - $ - Outstanding at December 31, 2019 13 $ 976 Vested & Exercisable Stock Options December 31, June 30, Employee 2016 Equity Plan - - Director 2016 Equity Plan - - Employee Other Plans 13 13 Directors and Consultants Other Plans - - Total 13 13 The Company's common stock, symbol IMDS, was quoted on OTCmarkets.com Pink until September 25, 2014 at which time IDSI's registration was revoked by the Securities and Exchange Commission (SEC) for failure to timely file its Quarterly and Annual Reports. The last quoted price was $0.1. Because the Company was de-registered and OTC markets did not provide a quote for IMDS, there is no public market for the Company's shares. Given the exercise prices adjusted for the reverse split, it is highly unlikely that any employee holding pre-2016 Plan options will exercise them. The Company has sufficient authorized shares available for all outstanding option; however, if exercised, the shares will be issued with a restrictive legend because the Company was not an SEC reporting company until October 2018. Further, given its recent return to SEC reporting status, the Company is unable to file an S-8 Registration Statement to register shares issued because of option exercise pursuant to various stock option agreements. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | (16) COMMITMENTS AND CONTINGENCIES The Company previously carried $3,000,000 in product liability insurance to cover both clinical sites and sales. As part of its cost savings initiatives, the Company cancelled the policy as it had not had any adverse experiences after conducting more than 25,000 patient scans worldwide. The Company is now self-insuring the risk of product liability. From May 2010 to June 2012, claims were made by the IRS for payment of the Company's accrued payroll taxes, interest and penalties, which as of June 30, 2012 was $1,489,640. The Company engaged tax counsel to handle this matter and intends to fully satisfy its payroll tax obligations. On August 4, 2014, Viable purchased 250 shares of convertible preferred stock for $2,500,000, which gave them a 78.9% voting and economic interest in the Company's capital stock representing a change in control of the Company. New management's tax counsel negotiated a new Installment Agreement which stipulated a lump sum payment of $250,000, which was paid on September 4, 2014 and monthly installment payments of $20,000 beginning in September 2014 due on the 18 th During fiscal 2018, as part of new management's restructuring plan, the Company received funds from an accredited investor to pay off the payroll tax portion of the amount owed to the IRS. The Company engaged tax counsel to manage the settlement and payment. On June 27, 2018, the IRS provided counsel with a payoff calculation table indicating that the balance of taxes due was $381,224. On June 29, 2018, Viable International Investments LLC provided a bank check in that amount to counsel and they sent the check to the IRS with a letter requesting abatement of penalties and interest totaling $314,019. The IRS is considering the request. The Company leases a commercial building from Isco Properties, LLC for its offices and warehouse in Fort Lauderdale, FL. The term of the lease is five years beginning February 2014 with a monthly base rent beginning at $6,360 and increasing at a rate of 3% per year. The total rent commitment for the five years is $405,031, which has been fully satisfied as of December 31, 2019. Total rent expense for operating leases for offices and manufacturing facilities amounted to $46,181 and $44,740 for the six months ended December 31, 2019 and the 2018, respectively. On October 31, 2018, the Company extended the lease for two years from February 1, 2019 to January 31, 2021. The monthly base rent is $7,150 for the 1 st nd |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | (17) SUBSEQUENT EVENTS On January 23, 2020, the Company issued 117,648 shares of restricted common stock to non-affiliated accredited investors pursuant to Subscription Agreements for $60,000. The price per share was approximately $0.51 per share. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation and use of estimates | (a) Basis of presentation and use of estimates The financial statements are prepared in accordance with Generally Accepted Accounting Principles in the United States of America ("U.S. GAAP"). The preparation of financial statements in conformity with Generally Accepted Accounting Principles in the United States requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions also include the valuations of certain financial instruments, stock-based compensation, deferred tax assets, the outcome of litigation and tax matters, and other matters that affect the statements of financial condition and related disclosures. Actual results could differ materially from these estimates. These unaudited financial statements should be read in conjunction with the Company's audited financial statements for the year ended June 30, 2019, contained in our General Form for Registration of Securities of Form 10-K as filed with the Securities and Exchange Commission (the "Commission") on September 30, 2019. The results of operations for the six months ended December 31, 2019, are not necessarily indicative of results to be expected for any other interim period or the fiscal year ending June 30, 2020. |
Revenue recognition | (b) Revenue recognition As of July 1, 2018, the Company adopted Revenue from Contracts with Customers (Topic 606) ("ASC 606"). The Company sells medical imaging products, parts, and services where permitted to independent distributors and in certain unrepresented territories directly to end-users. The Company recognizes revenue when obligations under the terms of a contract with the customer are satisfied. Product sales occur once control is transferred upon delivery to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods. The amount of consideration the Company receives and revenue the Company recognizes varies with changes in customer incentives the Company offers to its customers and their customers. Any discounts, sales incentives or similar arrangements with the customer are estimated at time of sale and deducted from revenue. Sales taxes and other similar taxes are excluded from revenue |
Allowance for doubtful accounts | (c) Allowance for doubtful accounts In the event that management determines that a receivable becomes uncollectible, or events or circumstances change, which result in a temporary cessation of payments from the distributor, we will make our best estimate of probable or potential losses in our accounts receivable balance using the allowance method for each quarterly period. Management will review the receivables at the end of each fiscal year and the appropriate allowance will be made based on current available evidence and historical experience. Our allowance for doubtful accounts was $-0- as of December 31, 2019 and June 30, 2019. |
Cash and cash equivalents | (d) Cash and cash equivalents Holdings of highly liquid investments with original maturities of three months or less and investment in money market funds are considered to be cash equivalents by the Company. There were no cash equivalents at December 31, 2019 and June 30, 2019. |
Concentration of Risk | (e) Concentration of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high-quality financial institutions. At times, balances in the Company's cash accounts may exceed the Federal Deposit Insurance Corporation limit of $250,000. At December 31, 2019 and June 30, 2019, the Company had $0 in excess of the federally insured limit. The Company did not have any revenue for the six months ended December 31, 2019. For the six months ended December 31, 2018, all of the revenues were from Xi'an IDI Laser Imaging Co. Ltd. |
Inventory | (f) Inventory Inventories, consisting principally of raw materials, work-in-process (including completed units under testing), finished goods and units placed on consignment, are carried at the lower of cost and net realizable value. Cost is determined using the first-in, first-out (FIFO) method. Raw materials consist of purchased parts, components and supplies. Work-in-process includes completed units undergoing final inspection and testing. The Company periodically reviews the value of items in inventory and records write-downs or write-offs based on its assessment of slow moving or obsolete inventory. The Company maintains a reserve for obsolete inventory and generally makes inventory value adjustments against the reserve. |
Property and equipment | (g) Property and equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using straight-line methods over the estimated useful lives of the related assets. Expenditures for renewals and betterments which increase the estimated useful life or capacity of the asset are capitalized; expenditures for repairs and maintenance are expensed when incurred. |
Research and development | (h) Research and development Research and development expenses consist principally of expenditures for equipment and outside third-party consultants, raw materials which are used in testing and the development of the Company's CTLM® device or other products and product software. The non-payroll related expenses include testing at outside laboratories, parts associated with the design of initial components and tooling costs, and other costs which do not remain with the developed CTLM® device. |
Net loss per share | (i) Net loss per share The Company relies on the guidance provided by ASC 260, ("Earnings per Share"), which requires the reporting of both basic and diluted earnings per share. Basic net loss per share is determined by dividing loss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted loss per share reflects the potential dilution that could occur if options or other contracts to issue common stock were exercised or converted into common stock, as long as the effect of their inclusion is not anti-dilutive. The Company had 8,217,136 and 7,717,136 options vested as of December 31, 2019 and June 30, 2019, respectively and 6,780,522 and 5,730,522 options not yet vested as of December 31, 2019 and June 30, 2019, respectively. |
Stock-based compensation | (j) Stock-based compensation In July 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, an accounting standard update to improve non-employee share-based payment accounting. The accounting standard update more closely aligns the accounting for employee and non-employee share-based payments. The accounting standards update is effective as of the beginning of 2019 with early adoption permitted. We have elected to adopt this standard. The Company has elected to use the Black-Scholes-Merton, or BSM, option-pricing model to estimate the fair value of its options and similar awards, which incorporates various subjective assumptions including volatility, risk-free interest rate, expected life, and dividend yield to calculate the fair value of outstanding and vested stock option awards. Compensation expense recognized in the statements of operations is based on awards ultimately expected to vest and reflects estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The assumptions used in calculating the fair value of share-based payment awards represent management's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, the Company's stock-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. In estimating the Company's forfeiture rate, the Company analyzed its historical forfeiture rate, the remaining lives of unvested options, and the amount of vested options as a percentage of total options outstanding. If the Company's actual forfeiture rate is materially different from its estimate, or if the Company reevaluates the forfeiture rate in the future, the stock-based compensation expense could be significantly different from what we have recorded in the current period. For the six months ended December 31, 2019 and 2018, no stock options were granted to employees and consultants. Stock options are being expensed pursuant to ASC 718. The fair value concepts were not changed significantly in ASC 718; however, in adopting this Standard, companies were given the option to choose among alternative valuation models and amortization assumptions. We elected to continue to use the Black-Scholes option pricing model and expense the options as compensation over the requisite vesting period of the grant. We will reconsider use of the Black-Scholes model if additional information becomes available in the future that indicates another model would be more appropriate, or if grants issued in future periods have characteristics that cannot be reasonably estimated using this model. See (15) Stock Options. |
Long-lived assets | (k) Long-lived assets The Company relies on the guidance provided by ASC 360 ("Property, Plant & Equipment"). ASC 360 requires companies to write down to estimated fair value long-lived assets that are impaired. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. In performing the review of recoverability, the Company estimates the future cash flows expected to result from the use of the asset and its eventual disposition. If the sum of the expected future cash flows is less than the carrying amount of the assets, an impairment loss is recognized. The Company has determined that no impairment losses need to be recognized through the six months ended December 31, 2019 and 2018. |
Income taxes | (l) Income taxes The Company accounts for income taxes pursuant to the provisions of ASC 740-10, "Accounting for Income Taxes," which requires, among other things, an asset and liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized. The Company follows the provisions of the ASC 740 -10 related to, Accounting for Uncertain Income Tax Positions. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for uncertain tax positions. The Company has adopted ASC 740-10-25 Definition of Settlement, which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion of an examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open. As of the date these financials were available to be issued, tax years ended June 30, 2016-2019 are still potentially subject to audit by the taxing authorities. |
Warranty reserve | (m) Warranty reserve The Company warrants all products and parts supplied for a period of 12 months from the date of installation or 15 months from the date the products was/were shipped from IDSI, whichever occurs first. Although the Company tests its product in accordance with its quality programs and processes, its warranty obligation is affected by product failure rates and service delivery costs incurred in correcting a product failure. Based on the Company's experience, the warranty reserve was estimated based on the replacement cost of the laser and certain electronic parts. Should actual product failure rates or service costs differ from the Company's estimates, which are based on limited historical data, where applicable, revisions to the estimated warranty liability would be required. The Company had no warranty reserve balance as of December 31, 2019 or June 30, 2019. |
Impact of recently issued accounting pronouncements | (n) Impact of recently issued accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13 and updated in Nov 2018 ASU 2018-19, Financial Instruments – Credit Losses (Topic 326) ("ASU 2016-13"), which requires the immediate recognition of management's estimates of current and expected credit losses. ASU 2016-13 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2019. Early adoption is permitted after fiscal years beginning December 15, 2018. The Company is currently evaluating the potential impact of adopting this guidance on our financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurements (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820. The ASU is effective for the Registrants for fiscal years beginning after December 15, 2019, and interim periods therein. Early adoption is permitted. The Company is currently assessing the impact of this standard on their financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on our financial statements upon adoption. |
Fair Value of Financial Instruments | (o) Fair Value of Financial Instruments The carrying values of cash and cash equivalents, receivables, accounts payable, short-term debt and accrued liabilities approximated their fair values due to the short maturity of these instruments. After a review of our accounts receivable, the Company has not recorded an allowance for doubtful accounts. The fair value of the Company's debt obligations is estimated based on the quoted market prices for the same or similar issues or on current rates offered to the Company for debt of the same remaining maturities. At December 31, 2019 and June 30, 2019, the aggregate fair value of the Company's debt obligations approximated its carrying value. The Company relies upon the guidance of ASC 820 ("Fair Value Measurements and Disclosures"). ASC 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly, transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed and is determined based on the lowest level input that is significant to the fair value measurement. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of net sales by reporting segment | For the six months ended December 31, December 31, 2019 2018 Sales-parts, related party $ - $ 149,066 Net sales $ - $ 149,066 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | December 31, June 30, Raw materials consisting of purchased parts, components and supplies $ 369,452 $ 369,747 Work-in process including units undergoing final inspection and testing 52,500 52,500 Finished goods 15,000 15,000 Total Inventory $ 436,952 $ 437,247 Inventory Reserve (436,952 ) (437,247 ) Net Inventory $ - $ - |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, less accumulated depreciation | December 31, June 30, Useful life Furniture and Fixtures $ 261,011 $ 261,011 5 years Computers and Equipment 370,704 370,704 5 years Third Party Software 10,291 10,291 5 years Clinical Equipment 15,000 15,000 5 years Total Property & Equipment $ 657,006 $ 657,006 Less: accumulated depreciation (641,509 ) (637,615 ) Total Property & Equipment - Net $ 15,497 $ 19,391 |
Promissory Notes - Related Pa_2
Promissory Notes - Related Party (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding note balances | Noteholder Interest Maturity December 31, June 30, Related Party Notes: Erhfort, LLC 15 % 4/30/20 $ 100,000 $ 100,000 Erhfort, LLC 15 % 4/30/20 100,000 100,000 JM One Holdings, LLC 15 % 8/31/20 20,000 - Erhfort, LLC 15 % 4/30/20 100,000 - Erhfort, LLC 15 % 4/30/20 100,000 Total Related Party Notes $ 420,000 $ 200,000 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of components of lease expense | Six Months Ended December 31, Operating lease expense $ 51,108 Total lease expense $ 51,108 |
Schedule of cash flow information related to leases | Six Months Ended December 31, Cash paid for amounts included in measurement of lease liabilities Operating cash flows from operating leases $ 40,425 Right-of-use assets obtained in exchange for new lease obligation Operating leases $ 147,291 |
Schedule of balance sheet information related to leases | December 31, Operating leases Operating lease right-of-use assets $ 106,463 Current portion of operating lease liability 102,783 Operating lease liability, net of current portion 14,362 Total operating lease liability $ 117,145 Weighted Average Remaining Lease Term Operating leases 1.24 Years Weighted Average Discount Rate Operating leases 15 % |
Schedule of maturities of lease liabilities | Operating Years Ended June 30, Leases 2020 $ 61,575 2021 58,546 2022 8,427 Total minimum lease payments 128,548 Less: amounts representing interest (11,403 ) Present value of capital lease liabilities $ 117,145 |
Convertible Preferred Stock (Ta
Convertible Preferred Stock (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of preferred stock | Security Date No. of Amount Date of No. of Amount Balance Series M Cv Pfd 8/1/2014 250 $ 2,500,000 4/18/2017 6 $ 60,000 11/21/2017 3 30,000 8/7/2018 241 2,410,000 Series M Cv Pfd 8/31/2015 200 2,000,000 8/7/2018 200 2,000,000 Series M Cv Pfd 4/22/2016 150 1,500,000 8/7/2018 150 1,500,000 Total Series M Cv Pfd 600 $ 6,000,000 600 $ 6,000,000 $ -0- Dividends -0- Total redemption value $ 0- Series L Cv Pfd 2/10/2010 35 $ 350,000 1/6/2011 15 $ 150,000 $ 200,000 Dividends 184,451 Total redemption value $ 388,988 |
Stock Options (Tables)
Stock Options (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Schedule of stock option grants fair value of each option | As of December 31, As of June 30, Expected volatility 23 to 24.00 % 24.00 % Expected term 4 to 5 Years 5 Years Risk-Free interest rate 1.55 to 2.49 % 2.49 % Forfeiture rate 0.00 % 0.00 % Expected dividend rate 0.00 % 0.00 % |
Schedule of vested and unvested options | Employees/Consultants Unvested Vested Total Outstanding at June 30, 2018 6,825,181 4,811,596 11,636,777 Granted 1,800,000 600,000 2,400,000 Vested (2,305,527 ) 2,305,527 - Cancelled (589,132 ) - (589,132 ) Outstanding at June 30, 2019 5,730,522 7,717,123 13,447,645 Granted 1,500,000 500,000 2,000,000 Vested - - - Cancelled (450,000 ) - (450,000 ) Outstanding at December 31, 2019 6,780,522 8,217,123 14,997,645 |
Schedule of vested & exercisable stock options | Vested & Exercisable Stock Options December 31, June 30, Employee 2016 Equity Plan - - Director 2016 Equity Plan - - Employee Other Plans 13 13 Directors and Consultants Other Plans - - Total 13 13 |
2016 Plan [Member] | |
Schedule of stock options granted, exercised and cancelled | Employees/Consultants Options Wtd. Avg. Exercise Price Outstanding at June 30, 2018 11,636,777 $ 0.20 Granted 2,400,000 $ 0.20 Exercised - $ - Cancelled (589,132 ) $ 0.20 Outstanding at June 30, 2019 13,447,645 $ 0.20 Granted 2,000,000 $ 0.51 Exercised - $ - Cancelled (450,000 ) $ 0.20 Outstanding at December 31, 2019 14,997,645 $ 0.24 |
2012 Non-Statutory Plan [Member] | |
Schedule of stock options granted, exercised and cancelled | Employees/Consultants Options Wtd. Avg. Exercise Price Outstanding at June 30, 2018 13 $ 1,210 Granted - $ - Exercised - $ - Cancelled (.31 ) $ 6,083 Outstanding at June 30, 2019 13 $ 976 Granted - $ - Exercised - $ - Cancelled - $ - Outstanding at December 31, 2019 13 $ 976 |
Going Concern and Management'_2
Going Concern and Management's Plans (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | |
Accounting Policies [Abstract] | ||||||||
Accumulated deficit | $ 133,604,128 | $ 133,604,128 | $ 133,062,606 | |||||
Stockholders' deficit | 1,244,462 | $ 933,954 | 1,244,462 | $ 933,954 | $ 1,093,216 | $ 833,639 | $ 772,441 | $ 366,765 |
Working capital deficiency | 963,072 | 963,072 | ||||||
Net loss | $ 277,408 | $ 356,975 | 532,448 | 758,114 | ||||
Net cash used in operating activities | $ 301,320 | $ 855,635 | ||||||
Going Concern and Management's Plans, description | European Union for this year and to consider reapplying in 2 to 3 years to avoid these regulatory fees. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies (Textual) | |||
Allowance for doubtful accounts | $ 0 | $ 0 | |
Cash equivalents | 0 | 0 | |
Federal deposit insurance corporation limit | 250,000 | ||
Excess of federally insured limit | $ 0 | $ 0 | |
Options vested | 7,717,136 | 8,217,136 | |
Options non vested | 5,730,522 | 6,780,522 | |
Impairment losses | |||
Warranty reserve, description | The Company warrants all products and parts supplied for a period of 12 months from the date of installation or 15 months from the date the products was/were shipped from IDSI, whichever occurs first. Although the Company tests its product in accordance with its quality programs and processes, its warranty obligation is affected by product failure rates and service delivery costs incurred in correcting a product failure. Based on the Company's experience, the warranty reserve was estimated based on the replacement cost of the laser and certain electronic parts. Should actual product failure rates or service costs differ from the Company's estimates, which are based on limited historical data, where applicable, revisions to the estimated warranty liability would be required. The Company had no warranty reserve balance as of December 31, 2019 or June 30, 2019. | ||
Tax position, description | Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. |
Revenue (Details)
Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net sales | $ 11,278 | $ 149,066 | ||
Sales-parts, related party [Member] | ||||
Net sales | $ 149,066 |
Due from Related Party (Details
Due from Related Party (Details) | 1 Months Ended | 6 Months Ended | ||
Mar. 22, 2018Agreements | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2019USD ($) | |
Due from Related Party (Textual) | ||||
Receivables from related parties | $ 11,965 | $ 11,965 | ||
Xi'an [Member] | ||||
Due from Related Party (Textual) | ||||
Number of agreements | Agreements | 2 | |||
Term of contract | 20 years | |||
Percentage of revenue for product sales | 25.00% | |||
Sales from related party | 0 | $ 149,066 | ||
Receivables from related parties | 7,700 | 7,700 | ||
Due from related parties | 11,965 | $ 11,965 | ||
Amount due | $ 11,115 |
Royalty Receivable (Details)
Royalty Receivable (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Royalty Receivable (Textual) | ||
Royalty receivable | $ 0 | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials consisting of purchased parts, components and supplies | $ 369,452 | $ 369,747 |
Work-in process including units undergoing final inspection and testing | 52,500 | 52,500 |
Finished goods | 15,000 | 15,000 |
Total Inventory | 436,952 | 437,247 |
Inventory Reserve | (436,952) | (437,247) |
Net Inventory |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Jun. 30, 2019 | |
Total Property & Equipment | $ 657,006 | $ 657,006 |
Less: accumulated depreciation | (641,509) | (637,615) |
Total Property & Equipment - Net | 15,497 | 19,391 |
Furniture and Fixtures [Member] | ||
Total Property & Equipment | $ 261,011 | $ 261,011 |
Useful life | 5 years | 5 years |
Computers and Equipment [Member] | ||
Total Property & Equipment | $ 370,704 | $ 370,704 |
Useful life | 5 years | 5 years |
Third Party Software [Member] | ||
Total Property & Equipment | $ 10,291 | $ 10,291 |
Useful life | 5 years | 5 years |
Clinical Equipment [Member] | ||
Total Property & Equipment | $ 15,000 | $ 15,000 |
Useful life | 5 years | 5 years |
Property and Equipment (Detai_2
Property and Equipment (Details Textual) - USD ($) | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property and Equipment (Textual) | ||
Depreciation expense | $ 3,894 | $ 3,893 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Accounts Payable and Accrued Expenses (Textual) | ||
Accounts payable and accrued expenses | $ 194,853 | $ 34,943 |
Accounts payable | 181,115 | 27,912 |
Other accrued expenses | $ 13,738 | $ 7,031 |
Accrued Payroll Taxes and Pen_2
Accrued Payroll Taxes and Penalties (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 | Jun. 27, 2018 |
Accrued Payroll Taxes and Penalties (Textual) | |||
Accrued payroll taxes and penalties | $ 314,019 | $ 314,019 | |
Balance of taxes due | $ 381,224 | ||
Amount of interest and penalty | 314,019 | ||
Remaining interest and penalties | $ 314,019 |
Promissory Notes - Related Pa_3
Promissory Notes - Related Party (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2019 | |
Total Related Party Notes | $ 420,000 | $ 200,000 |
Erhfort, LLC [Member] | ||
Noteholder | Erhfort, LLC | |
Interest Rate | 15.00% | |
Maturity Date | Apr. 30, 2020 | |
Total Related Party Notes | $ 100,000 | 100,000 |
Erhfort, LLC One [Member] | ||
Noteholder | Erhfort, LLC | |
Interest Rate | 15.00% | |
Maturity Date | Apr. 30, 2020 | |
Total Related Party Notes | $ 100,000 | 100,000 |
JM One Holdings, LLC [Member] | ||
Noteholder | JM One Holdings, LLC | |
Interest Rate | 15.00% | |
Maturity Date | Aug. 31, 2020 | |
Total Related Party Notes | $ 20,000 | |
Erhfort, LLC Two [Member] | ||
Noteholder | Erhfort, LLC | |
Interest Rate | 15.00% | |
Maturity Date | Apr. 30, 2020 | |
Total Related Party Notes | $ 100,000 | |
Erhfort LLC Three [Member] | ||
Noteholder | Erhfort, LLC | |
Interest Rate | 15.00% | |
Maturity Date | Apr. 30, 2020 | |
Total Related Party Notes | $ 100,000 |
Promissory Notes - Related Pa_4
Promissory Notes - Related Party (Details Textual) - USD ($) | 6 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2019 | |
Promissory Notes - Related Party (Textual) | ||
Total related party debt | $ 420,000 | $ 200,000 |
JM One Holdings, LLC [Member] | ||
Promissory Notes - Related Party (Textual) | ||
Total related party debt | $ 20,000 | |
Interest rate | 15.00% | |
Maturity date | Aug. 31, 2020 | |
Erhfort, LLC [Member] | ||
Promissory Notes - Related Party (Textual) | ||
Proceeds from loan received | $ 200,000 | |
Total related party debt | $ 100,000 | $ 100,000 |
Interest rate | 15.00% | |
Maturity date | Apr. 30, 2020 | |
Erhfort [Member] | ||
Promissory Notes - Related Party (Textual) | ||
Interest rate | 15.00% |
Leases (Details)
Leases (Details) | 6 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 51,108 |
Total lease expense | $ 51,108 |
Leases (Details 1)
Leases (Details 1) | 6 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in measurement of lease liabilities | |
Operating cash flows from operating leases | $ 40,425 |
Right-of-use assets obtained in exchange for new lease obligation | |
Operating leases | $ 147,291 |
Leases (Details 2)
Leases (Details 2) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Operating leases | ||
Operating lease right-of-use assets | $ 106,463 | |
Current portion of operating lease liability | 102,783 | |
Operating lease liability, net of current portion | 14,362 | |
Total operating lease liability | $ 117,145 | |
Weighted Average Remaining Lease Term | ||
Operating leases | 1 year 2 months 27 days | |
Weighted Average Discount Rate | ||
Operating leases | 15.00% |
Leases (Details 3)
Leases (Details 3) | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 61,575 |
2021 | 58,546 |
2022 | 8,427 |
Total minimum lease payments | 128,548 |
Less: amounts representing interest | (11,403) |
Present value of capital lease liabilities | $ 117,145 |
Leases (Details Textual)
Leases (Details Textual) | 6 Months Ended |
Dec. 31, 2019USD ($) | |
Leases (Textual) | |
ROU asset and lease liability | $ 147,000 |
Operating lease terms, description | Our leases have remaining lease terms of 12 to 25 months. |
Convertible Preferred Stock (De
Convertible Preferred Stock (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2019 | |
Dividends | $ 0 | |
Balance | $ 388,988 | $ 379,914 |
Series M Cv Pfd [Member] | ||
No. of shares | 600 | |
Amount of designated preferred shares | $ 6,000,000 | |
No. of Shares Converted | 600 | |
Amount Converted | $ 6,000,000 | |
Dividends | 0 | |
Balance | $ 0 | |
Series M Cv Pfd [Member] | 8/1/2014 One [Member] | ||
Date of Conversion. | Nov. 21, 2017 | |
No. of Shares Converted | 3 | |
Amount Converted | $ 30,000 | |
Series M Cv Pfd [Member] | 8/1/2014 Two [Member] | ||
Date of Conversion. | Aug. 7, 2018 | |
No. of Shares Converted | 241 | |
Amount Converted | $ 2,410,000 | |
Series M Cv Pfd [Member] | 8/31/2015 [Member] | ||
No. of shares | 200 | |
Amount of designated preferred shares | $ 2,000,000 | |
Date of Conversion. | Aug. 7, 2018 | |
No. of Shares Converted | 200 | |
Amount Converted | $ 2,000,000 | |
Series M Cv Pfd [Member] | 4/22/2016 [Member] | ||
No. of shares | 150 | |
Amount of designated preferred shares | $ 1,500,000 | |
Date of Conversion. | Aug. 7, 2018 | |
No. of Shares Converted | 150 | |
Amount Converted | $ 1,500,000 | |
Series M Cv Pfd [Member] | 8/1/2014 [Member] | ||
No. of shares | 250 | |
Amount of designated preferred shares | $ 2,500,000 | |
Date of Conversion. | Apr. 18, 2017 | |
No. of Shares Converted | 6 | |
Amount Converted | $ 60,000 | |
Series L Cv Pfd [Member] | ||
Dividends | $ 184,451 | |
Series L Cv Pfd [Member] | 2/10/2010 [Member] | ||
No. of shares | 35 | |
Amount of designated preferred shares | $ 350,000 | |
Date of Conversion. | Jan. 6, 2011 | |
No. of Shares Converted | 15 | |
Amount Converted | $ 150,000 | |
Balance | $ 200,000 |
Convertible Preferred Stock (_2
Convertible Preferred Stock (Details Textual) | Aug. 07, 2018shares | Nov. 21, 2017USD ($)Numbershares | Apr. 18, 2017USD ($)Numbershares | Apr. 22, 2016USD ($)shares | Aug. 31, 2015USD ($)shares | Jun. 30, 2015USD ($)$ / sharesshares | Mar. 31, 2010USD ($)shares | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 27, 2014USD ($)shares | Jan. 06, 2011USD ($)shares |
Convertible Preferred Stock (Textual) | |||||||||||
Redemption value | $ 188,988 | $ 179,914 | |||||||||
Total temporary equity | 388,988 | $ 379,914 | |||||||||
Series L Convertible Preferred Stock [Member] | |||||||||||
Convertible Preferred Stock (Textual) | |||||||||||
Converted short term promissory note | $ 350,000 | ||||||||||
Convertible preferred stock | shares | 35 | 15 | |||||||||
Original purchase price | $ 10,000 | ||||||||||
Annual rate | 9.00% | ||||||||||
Conversion of preferred stock to common stock | shares | 474 | ||||||||||
Conversion of preferred stock, description | The private investor held 20 shares representing a principal value of $200,000. The remaining principal value of $200,000 is presented on the balance sheet as temporary equity, as the holder has the option to redeem for cash at any time. | ||||||||||
Principal value | $ 150,000 | ||||||||||
Series M Convertible Preferred Stock [Member] | |||||||||||
Convertible Preferred Stock (Textual) | |||||||||||
Convertible preferred stock | shares | 591 | 150 | 200 | 147,283 | 250 | ||||||
Original purchase price | $ 10,000 | ||||||||||
Annual rate | 9.00% | ||||||||||
Redemption value | 0 | ||||||||||
Total temporary equity | $ 0 | ||||||||||
Non-refundable deposit | $ 100,000 | ||||||||||
Preferred stock voting rights | At the first closing, $2,400,000 was paid by Viable to purchase 250 shares of convertible preferred stock which provided a 78.9% voting and economic interest in the Company's capital stock representing a change in control of the Company. | ||||||||||
Issuance of convertible preferred stock | $ 30,000 | $ 60,000 | $ 1,500,000 | $ 2,000,000 | |||||||
Restricted common shares | shares | 87,044,089 | 441,848 | 883,696 | ||||||||
Number of investors | Number | 3 | 3 | |||||||||
Restricted common shares retained | shares | 49,691 | 10,909 | |||||||||
Other equity securities | $ / shares | $ 10,000 | ||||||||||
Series M Convertible Preferred Stock [Member] | Investor [Member] | |||||||||||
Convertible Preferred Stock (Textual) | |||||||||||
Restricted common shares | shares | 392,157 | 872,787 |
Common Stock (Details)
Common Stock (Details) - USD ($) | Aug. 07, 2018 | Jul. 12, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 |
Common Stock (Textual) | |||||
Description of reverse stock split | The majority shareholder of the Company, Viable International Investments, LLC delivered a written request to effect a one-for-1000 reverse stock split in the form of a Written Consent of the Majority Shareholder of Imaging Diagnostic Systems, Inc. The Board of Directors of the Corporation believed it to be in the best interest of the Corporation and recommended that the stockholders approve a one-for-1000 reverse stock split of the Corporation's issued and outstanding shares of Common Stock and a decrease in the amount of shares of Common Stock authorized to be issued from 40,000,000,000 shares to 500,000,000 shares. | ||||
Common stock, par value | |||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | |||
Preferred stock, par value | |||||
Preferred stock, shares authorized | 2,000,000 | 2,000,000 | |||
Issued total shares of common stock | 137,255 | 87,044,089 | |||
Issued value pursuant to subscription agreement | $ 70,000 | $ 150,000 | |||
Price per share | $ 0.51 | $ 0.51 | |||
Series M Convertible Preferred Stock [Member] | |||||
Common Stock (Textual) | |||||
Convert shares of convertible preferred stock | 591 | ||||
Convert value of convertible preferred stock | $ 5,910,000 | ||||
Convertible preferred stock shares converted into restricted common stock | 87,044,089 | ||||
Common Stock | |||||
Common Stock (Textual) | |||||
Issued total shares of common stock | 294,117 |
Stock Options (Details)
Stock Options (Details) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Jun. 30, 2019 | |
Expected volatility | 24.00% | |
Expected term | 5 years | |
Risk-Free interest rate | 2.49% | |
Forfeiture rate | 0.00% | 0.00% |
Expected dividend rate | 0.00% | 0.00% |
Minimum [Member] | ||
Expected volatility | 23.00% | |
Expected term | 4 years | |
Risk-Free interest rate | 1.55% | |
Maximum [Member] | ||
Expected volatility | 24.00% | |
Expected term | 5 years | |
Risk-Free interest rate | 2.49% |
Stock Options (Details 1)
Stock Options (Details 1) - $ / shares | 6 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Jun. 30, 2019 | |
Options | ||
Outstanding | 13,447,645 | 11,636,777 |
Granted | 2,000,000 | 2,400,000 |
Exercised | ||
Cancelled | (450,000) | (589,132) |
Outstanding | 14,997,645 | 13,447,645 |
2016 Plan [Member] | ||
Options | ||
Outstanding | 13,447,645 | 11,636,777 |
Granted | 2,000,000 | 2,400,000 |
Exercised | ||
Cancelled | (450,000) | (589,132) |
Outstanding | 14,997,645 | 13,447,645 |
Wtd. Avg. Exercise Price | ||
Outstanding | $ 0.20 | $ 0.20 |
Granted | 0.51 | 0.20 |
Exercised | ||
Cancelled | 0.20 | 0.20 |
Outstanding | $ 0.24 | $ 0.20 |
Stock Options (Details 2)
Stock Options (Details 2) - shares | 6 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Jun. 30, 2019 | |
Shares | ||
Outstanding | 13,447,645 | 11,636,777 |
Granted | 2,000,000 | 2,400,000 |
Exercised | ||
Cancelled | (450,000) | (589,132) |
Outstanding | 14,997,645 | 13,447,645 |
Unvested [Member] | ||
Shares | ||
Outstanding | 5,730,522 | 6,825,181 |
Granted | 1,500,000 | 1,800,000 |
Exercised | (2,305,527) | |
Cancelled | (450,000) | (589,132) |
Outstanding | 6,780,522 | 5,730,522 |
Vested [Member] | ||
Shares | ||
Outstanding | 7,717,123 | 4,811,596 |
Granted | 500,000 | 600,000 |
Exercised | 2,305,527 | |
Cancelled | ||
Outstanding | 8,217,123 | 7,717,123 |
Stock Options (Details 3)
Stock Options (Details 3) - $ / shares | 6 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Jun. 30, 2019 | |
Options | ||
Outstanding | 13,447,645 | 11,636,777 |
Granted | 2,000,000 | 2,400,000 |
Exercised | ||
Cancelled | (450,000) | (589,132) |
Outstanding | 14,997,645 | 13,447,645 |
2012 Non-Statutory Plan [Member] | ||
Options | ||
Outstanding | 13 | 13 |
Granted | ||
Exercised | ||
Cancelled | (0.31) | |
Outstanding | 13 | 13 |
Wtd. Avg. Exercise Price | ||
Outstanding | $ 976 | $ 1,210 |
Granted | ||
Exercised | ||
Cancelled | 6,083 | |
Outstanding | $ 976 | $ 976 |
Stock Options (Details 4)
Stock Options (Details 4) - shares | Dec. 31, 2019 | Jun. 30, 2019 |
Vested & Exercisable Stock Options | ||
Total | 13 | 13 |
Employee 2016 Equity Plan [Member] | ||
Vested & Exercisable Stock Options | ||
Total | ||
Director 2016 Equity Plan [Member] | ||
Vested & Exercisable Stock Options | ||
Total | ||
Employee Other Plans [Member] | ||
Vested & Exercisable Stock Options | ||
Total | 13 | 13 |
Directors and Consultants Other Plans [Member] | ||
Vested & Exercisable Stock Options | ||
Total |
Stock Options (Details Textual)
Stock Options (Details Textual) - USD ($) | Nov. 01, 2019 | May 01, 2019 | Jan. 01, 2019 | May 01, 2018 | Jan. 01, 2018 | Jan. 01, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 25, 2014 |
Stock Options (Textual) | |||||||||
Granted options to purchase shares | 7,364,136 | ||||||||
Purchase exercise price and fair value | $ 0.20 | ||||||||
Stock options, description | The previous five plans through and including the 2012 Non-Statutory Plan have a remaining total of options vested and exercisable to purchase 13 shares at exercise prices from a high of $13,500 to a low of $350 per share. | ||||||||
Quoted price | $ 0.1 | ||||||||
Stock option plan expense | $ 60,699 | ||||||||
Nine employees [Member] | |||||||||
Stock Options (Textual) | |||||||||
Granted options to purchase shares | 5,498,555 | ||||||||
Six Consultants [Member] | |||||||||
Stock Options (Textual) | |||||||||
Granted options to purchase shares | 1,865,581 | ||||||||
Four consultants [Member] | |||||||||
Stock Options (Textual) | |||||||||
Granted options to purchase shares | 5,000,000 | ||||||||
Purchase exercise price and fair value | $ 0.20 | ||||||||
Additional Consultant [Member] | |||||||||
Stock Options (Textual) | |||||||||
Granted options to purchase shares | 500,000 | ||||||||
Purchase exercise price and fair value | $ 0.20 | ||||||||
One Consultant [Member] | |||||||||
Stock Options (Textual) | |||||||||
Granted options to purchase shares | 2,000,000 | 360,000 | |||||||
Purchase exercise price and fair value | $ 51 | $ 0.20 | |||||||
Fair value price per share | $ 51 | $ 0.51 | |||||||
Five Consultants [Member] | |||||||||
Stock Options (Textual) | |||||||||
Granted options to purchase shares | 2,040,000 | ||||||||
Purchase exercise price and fair value | $ 0.20 | ||||||||
Fair value price per share | $ 0.51 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Jan. 08, 2019 | Aug. 04, 2014USD ($)shares | Oct. 31, 2018 | Feb. 28, 2014 | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 29, 2018USD ($) | Jun. 27, 2018USD ($) | Sep. 04, 2014USD ($) | Jun. 30, 2012USD ($) |
Commitments and Contingencies (Textual) | ||||||||||
Product liability insurance | $ 3,000,000 | |||||||||
Number of patents scans conducted worldwide | 25,000 | |||||||||
Accrued payroll taxes, interest and penalties | $ 1,489,640 | |||||||||
Purchase of convertible preferred stock | shares | 250 | |||||||||
Convertible preferred stock value | $ 2,500,000 | |||||||||
Voting and economic interest percentage | 78.90% | |||||||||
Lump sum payment | $ 250,000 | |||||||||
Monthly installment payments | $ 20,000 | |||||||||
Balance of taxes due | $ 381,224 | |||||||||
Penalties and interest totaling | $ 314,019 | |||||||||
Operating leasing, description | This was the result of an agreement to reduce the base rent from August through October of 2019 by $6,650 per month and increasing the base rent from November 2019 through April 2020 by $3,417.38 (which includes imputed interest of $92.38 per month) to make up the deficit. The rent commitment before sales tax for the two years is $174,554. On January 8, 2019, the Company entered into an auto lease agreement. The term of the lease is 3 years beginning January 8, 2019 with a monthly lease payment of $1,204 due on the 7th day of each month. The total lease commitment including sales tax for the 3 years is $43,338. | The Company extended the lease for two years from February 1, 2019 to January 31, 2021. The monthly base rent is $7,150 for the 1st year and $7,350 for the 2nd year. The lease agreement was amended on August 1, 2019 which changed the total base rent for year 1 to $76,102 and year 2 to $98,452 | The Company leases a commercial building from Isco Properties, LLC for its offices and warehouse in Fort Lauderdale, FL. The term of the lease is five years beginning February 2014 with a monthly base rent beginning at $6,360 and increasing at a rate of 3% per year. The total rent commitment for the five years is $405,031, which has been fully satisfied as of December 31, 2019. Total rent expense for operating leases for offices and manufacturing facilities amounted to $46,181 and $44,740 for the six months ended December 31, 2019 and the 2018, respectively. | |||||||
Rent expense for operating leases | $ 46,181 | $ 44,740 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | Jan. 23, 2020USD ($)$ / sharesshares |
Subsequent Events (Textual) | |
Price per share | $ / shares | $ 0.51 |
Shares of restricted common stock | shares | 117,648 |
Issued value pursuant to subscription agreement | $ | $ 60,000 |