Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Oct. 12, 2021 | Dec. 31, 2020 | |
Document Information Line Items | |||
Entity Registrant Name | IMAGING DIAGNOSTIC SYSTEMS INC /FL/ | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Common Stock, Shares Outstanding | 123,156,941 | ||
Entity Public Float | $ 0 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000790652 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Jun. 30, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity File Number | 000-26028 | ||
Entity Incorporation, State or Country Code | FL | ||
Entity Interactive Data Current | Yes |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Current assets: | ||
Cash | $ 2,473 | $ 45,960 |
Royalty receivable | 10,875 | |
Consultant advances | 5,000 | 5,000 |
Prepaid expenses | 12,951 | 9,479 |
Total current assets | 20,424 | 71,314 |
Property and equipment, net | 1,902 | |
Operating lease right-of-use assets | 62,266 | |
Total assets | 20,424 | 135,482 |
Current liabilities: | ||
Accounts payable and accrued expenses | 472,571 | 300,936 |
Accrued payroll taxes and penalties | 314,019 | 314,019 |
Promissory notes, related party | 581,276 | 520,000 |
Current portion of PPP loan payable | 10,595 | |
Current portion of operating lease liabilities | 54,461 | |
Total current liabilities | 1,378,461 | 1,189,416 |
Long-term liabilities | ||
PPP Loan Payable, less current portion | 69,005 | 79,600 |
Operating lease liabilities, less current portion | 8,021 | |
Total long-term liabilities | 69,005 | 87,621 |
Total liabilities | 1,447,466 | 1,277,037 |
Commitment and Contingencies (Note 18) | ||
Temporary equity | ||
Convertible Preferred Series L | 415,939 | 397,939 |
Total temporary equity | 415,939 | 397,939 |
Stockholders’ Deficit: | ||
Preferred stock, no par , 2,000,000 authorized Convertible preferred stock, Series M, 600 designated 0 shares issued and outstanding at June 30, 2021 and June 30, 2020 | ||
Common stock, no par value, 500,000,000 authorized , 123,156,941 and 122,876,549 shares issued and outstanding June 30, 2021 and June 30, 2020, respectively | 132,974,686 | 132,570,255 |
Accumulated Deficit | (134,817,667) | (134,109,749) |
Total stockholders’ deficit | (1,842,981) | (1,539,494) |
Total liabilities and stockholders’ deficit | $ 20,424 | $ 135,482 |
Balance Sheets (Parentheticals)
Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2021 | Jun. 30, 2020 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock share par value (in Dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common Stock, shares issued | 123,156,941 | 122,876,549 |
Common stock, shares outstanding | 123,156,941 | 122,876,549 |
Common stock share par value (in Dollars per share) | $ 0 | $ 0 |
Series M preferred stock | ||
Preferred stock, designated | 600 | 600 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||
Royalty Revenue | $ 10,875 | |
Total Revenue | 10,875 | |
Cost of Sales | ||
Gross Profit | 10,875 | |
Operating Expenses: | ||
General and administrative | 143,851 | 267,794 |
Salaries and wages | 246,754 | |
Research and development | 8,399 | 26,744 |
Sales and marketing | 822 | 527 |
Depreciation and amortization | 622 | 17,489 |
Consulting expenses (including share-based compensation) | 484,839 | 403,288 |
Bad debt expense (recovery) | (18,815) | 19,665 |
Total Operating Expenses | 619,718 | 982,261 |
Operating Loss | (619,718) | (971,386) |
Other Income (expense) | ||
Interest income | 1 | 19 |
Gain on termination of lease | 10,863 | |
Loss on disposal of fixed assets | (1,180) | |
Other Income | 1,000 | 4,000 |
Interest expense | (80,884) | (61,751) |
Total Other Expense | (70,200) | (57,732) |
Net Loss | (689,918) | (1,029,118) |
Preferred Stock Dividends | (18,000) | (18,025) |
Net Loss Available to Common Stockholders | $ (707,918) | $ (1,047,143) |
Net Loss per common share: | ||
Basic and diluted (in Dollars per share) | $ (0.01) | $ (0.01) |
Weighted average number of common shares outstanding: | ||
Basic and diluted (in Shares) | 122,963,645 | 122,768,170 |
Statements of Changes in Stockh
Statements of Changes in Stockholders’ Deficit - USD ($) | Common Stock | Accumulated Deficit | Total |
Balance at beginning at Jun. 30, 2019 | $ 132,228,967 | $ (133,062,606) | $ (833,639) |
Balance at beginning (in Shares) at Jun. 30, 2019 | 122,621,646 | ||
Cummulative Dividend on Series L CV Preferred | (18,025) | (18,025) | |
Shares issued for cash | $ 130,000 | 130,000 | |
Shares issued for cash (in Shares) | 254,903 | ||
Stock options expense | $ 211,288 | 211,288 | |
Net loss | (1,029,118) | (1,029,118) | |
Balance at ending at Jun. 30, 2020 | $ 132,570,255 | (134,109,749) | (1,539,494) |
Balance at ending (in Shares) at Jun. 30, 2020 | 122,876,549 | ||
Cummulative Dividend on Series L CV Preferred | (18,000) | (18,000) | |
Common stock issued on conversion of accounts payable | $ 143,000 | 143,000 | |
Common stock issued on conversion of accounts payable (in Shares) | 280,392 | ||
Stock options expense | $ 261,431 | 261,431 | |
Net loss | (689,918) | (689,918) | |
Balance at ending at Jun. 30, 2021 | $ 132,974,686 | $ (134,817,667) | $ (1,842,981) |
Balance at ending (in Shares) at Jun. 30, 2021 | 123,156,941 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Cash Flows [Abstract] | ||
Net loss | $ (689,918) | $ (1,029,118) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 622 | 17,489 |
Loss on abandonment of fixed assets | 1,180 | |
Gain on termination of lease | (10,863) | |
Stock option expense | 261,431 | 211,288 |
Bad debt expense | 19,665 | |
Changes in assets and liabilities: | ||
(Increase) decrease in employee advances | (5,000) | |
(Increase) decrease in royalty receivable | 10,875 | (10,875) |
(Increase) decrease in prepaid expenses | (9,472) | 2,087 |
Increase (decrease) in accounts payable and accrued expenses | 331,490 | 265,993 |
Change in right of use asset/lease obligation, net | (108) | 216 |
Total adjustments | 585,155 | 500,863 |
Net cash used in operating activities | (104,763) | (528,255) |
Cash flows from financing activities: | ||
Proceeds from promissory notes, related party | 61,276 | 320,000 |
Proceeds from Paycheck Protection Program Loan | 79,600 | |
Proceeds issuance of common stock | 130,000 | |
Net cash provided by financing activities | 61,276 | 529,600 |
Net increase (decrease) in cash and cash equivalents | (43,487) | 1,345 |
Cash and cash equivalents at beginning of period | 45,960 | 44,615 |
Cash and cash equivalents at end of period | 2,473 | 45,960 |
Supplemental Disclosure of cash flow information: | ||
Cash paid for interest | 52,603 | |
Cash paid for taxes | ||
Non-cash investing and financing activities: | ||
ROU assets and liabilities at inception | 147,291 | |
Common Stock issued on conversion of accounts payable | $ 143,000 |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [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 ® ® Since inception in December 1993 as a Florida corporation and subsequently its reverse merger with Alkan Corp., a New Jersey Corporation on April 14, 1994, we continued operations and changed our state of incorporation from New Jersey to Florida, effective July 1, 1995. |
Going Concern and Management's
Going Concern and Management's Plans | 12 Months Ended |
Jun. 30, 2021 | |
Going Concern and Managements 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 June 30, 2021, the Company had an accumulated deficit of $134,817,667 a stockholders’ deficit of $1,842,981, and a working capital deficiency of $1,358,037. For the year ended June 30, 2021, net loss totaled $689,918. The net cash used in operating activities for the year ended June 30, 2021 totaled $104,763. 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 generating sales and obtaining additional capital and financing. While the Company believes in the viability of its strategy to generate material sales volume and in its ability to raise additional funds, there can be no assurances to that effect. The Company received from the Chinese FDA (“CFDA”) marketing clearance for the CTLM ® ® ® During fiscal year 2022, we anticipate that losses from operations will continue until we begin to generate revenues through the sales of CTLM ® ® The Company’s next focus, after having obtained CFDA approval in China, is on obtaining marketing clearance of its CTLM ® ® In analyzing the regulatory path forward, timeline, and costs associated with the level of effort required to upgrade the Company’s Quality Management System (QMS), 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. Similarly, we will maintain our Quality Management System to be compliant to ISO 13485:2016 but not certify to ISO 13485:2016 by Underwriters Laboratories (UL) which will allow us to avoid fees associated with certification, travel, and hosting audits. Maintaining our QMS to be ISO 13485:2016 compliant will allow us to quickly schedule an audit with UL and become ISO 13485 certified when necessary. 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 focused on improving the technical performance and image quality of IDSI’s Computed Tomography Laser Mammography (CTLM ® Xi’an IDI has been working with Yiling Hospital Management Group based in Beijing, China (“Yiling”) to evaluate CTLM’s potential use and application. As of the date of this report, Xi’an IDI has loaned 3 CTLM systems to Yiling and Yiling is at the stage of testing and data validation. It is important that the effectiveness of the image quality improvements be established before Xi’an IDI can resume their sales and marketing efforts in China. Once the Company has substantial revenues and cash flow, it believes it will be able to raise the necessary funding to allow the Company to move forward with its various R&D and regulatory initiatives that have been put on hold due to the COVID-19 pandemic. The Company’s ability to continue as a going concern and its future success are 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. Due to the difficulty of raising additional capital during the current COVID-19 crisis, the Company has been taking aggressive measures to reduce its operating costs in order to preserve cash. The Company has applied for and received funding of $79,600 from the Paycheck Protection Program (“PPP”). The Company also applied for the Economic Injury Disaster Loan (“EIDL”) and was denied the loan, but received a grant of $4,000. Both the PPP and EIDL were both made available under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The Company’s ability to meet its cash flow requirements through fiscal 2021 and continue its development and commercialization efforts will be dependent on the length and severity of the COVID-19 crisis and the Company’s ability to secure additional funding. 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 execute its plan of operations. 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 | 12 Months Ended |
Jun. 30, 2021 | |
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. (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. The Company also receives royalties pursuant to a licensing relationship with Trifoil Imaging. Revenue is recognized in the reporting periods in which royalties are due to the Company. (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 $850 as of June 30, 2021 and $19,665 as of June 30, 2020. These amounts represent accounts receivable as well as other receivables that have been fully reserved. (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 June 30, 2021 and June 30, 2020. (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 June 30, 2021 and June 30, 2020, the Company had $0 in excess of the federally insured limit. The Company did not have any revenue for the year ended June 30, 2021. For the year ended June 30, 2020, all of the revenues were from TriFoil Imaging. (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 ® ® (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 13,922,657 and 10,972,662 options vested and as of June 30, 2021 and June 30, 2020, respectively and 2,830,290 and 4,123,184 options not yet vested as of June 30, 2021 and June 30, 2020, 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 year ended June 30, 2021, the Board granted options to purchase 157,102 shares with an exercise price of $.51 per share to an employee and 1,500,000 shares with an exercise price of $.51 per share to a consultant. For the year ended June 30, 2020, the Board granted options to purchase 2,000,000 shares with an exercise price of $.51 per share to a consultant and 98,188 shares with an exercise price of $.51 per share to an employee. 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 Note (17) 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 years ended June 30, 2021 and 2020. (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, 2018 to 2021 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 June 30, 2021 and 2020. (n) Impact of recently issued accounting pronouncements 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 June 30, 2021 and 2020, 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 | 12 Months Ended |
Jun. 30, 2021 | |
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 Company expects that the impact to net income of the new standard will be immaterial on an ongoing quarterly and annual basis. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company had no revenues during the year ended June 30, 2021. For the year ended June 30, 2020, all of the Company’s revenues consisted of $10,875 of royalty revenue based in the United States. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | (5) RELATED PARTY TRANSACTIONS Due from related parties 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 ® ® Additionally, as of June 30, 2021 and 2020, the Company has amounts due from related parties, net of allowance of $0. The original balance due from related parties was $11,965. $11,115 of this balance was for product that was purchased by Xi’an and paid for by IDSI. During the year ended June 30, 2020, the Company decided to reserve the full amount of $11,965 due from related parties due to its age as well as the ongoing COVID-19 crisis. During the year ended June 30, 2021, the Company had recovered $11,115 of the previously reserved amounts. Related party fees Erhfort, LLC was paid a consulting fee of $102,000 and $102,000 for the years ended June 30, 2021 and 2020, respectively. Erhfort, LLC regularly reviews the Company’s operations and reports to IDSI’s CEO, Chunming Zhang, who lives in China. Erhfort, LLC is a related party because it owns Company common stock directly and indirectly. During the year ended June 30, 2021, Erhfort, LLC converted $143,000 of its accounts payable to common stock (See Note 9). David Fong, serving as the Company’s CFO, was paid consulting fees of $102,000 and $102,000 for the years ended June 30, 2021 and 2020, respectively. These fees were paid to his affiliated business, Fong & Associates, LLC. Furthermore, there were promissory notes due to related parties totaling $581,276 and $520,000 at June 30, 2021 and June 30, 2020, respectively (See Note 11). |
Royalty Receivable
Royalty Receivable | 12 Months Ended |
Jun. 30, 2021 | |
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 year ended June 30, 2021 and 2020, there was royalty income of $0 and $10,875, respectively. As of June 30, 2021 and 2020, the Company had a royalty receivable balance of $0 and $10,875, respectively. |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | (7) INVENTORIES Inventories consisted of the following: June 30, June 30, Raw materials consisting of purchased parts, components and supplies $ 92,587 $ 369,452 Work-in process including units undergoing final inspection and testing - 52,500 Finished goods 7,500 15,000 Total Inventory $ 100,087 $ 436,952 Allowance for Obsolete Inventory (100,087 ) (436,952 ) 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 June 30, 2021 and 2020. During the year ended June 30, 2021, the Company made an adjustment to write-off the obsolete inventory against the inventory allowance in the amount of $336,865. This was done because the Company relocated its main office and disposed of much of its obsolete inventory at that time. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | (8) PROPERTY AND EQUIPMENT The following is a summary of property and equipment, less accumulated depreciation: June 30, June 30, Useful life Furniture and Fixtures $ - $ 261,011 5 years Computers and Equipment 12,612 370,704 5 years Third Party Software 10,291 10,291 5 years Clinical Equipment 15,000 15,000 5 years Total Property & Equipment $ 37,903 $ 657,006 Less: accumulated depreciation (37,903 ) (655,104 ) Total Property & Equipment - Net $ - $ 1,902 Depreciation expense for the years ended June 30, 2021 and 2020 was $622 and $17,489 respectively. During the year ended June 30, 2021, the Company disposed of much of its nonessential furniture and equipment pursuant to the relocation to a much smaller office and storage space. Most of the fixed assets were fully depreciated so that there was only a net loss of $1,180 on the disposal of fixed assets. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | (9) ACCOUNTS PAYABLE AND ACCRUED EXPENSES As of June 30, 2021 and 2020, accounts payable and accrued expenses totaled $472,571 and $300,936 consisting of accounts payable of $465,799 and $296,917, and other accrued expenses of $6,772 and $4,091, respectively. On October 1, 2020, the Company’s office and warehouse lease was terminated by its landlord due to nonpayment of rent. Pursuant to a settlement agreement, the Company reduced its accounts payable by $16,756 (See Note 13). On December 31, 2020, the Company converted $70,000 in accounts payable due to a related party to 137,255 shares of common stock. The conversion agreement was effective December 31, 2020 and share issuance occurred on January 13, 2021 (See Note 5). On December 31, 2020, the Company converted $73,000 in accounts payable due to a related party to 143,137 shares of common stock. The conversion agreement was effective April 20, 2021 and share issuance occurred on April 30, 2021 (See Note 5). |
Accrued Payroll Taxes and Penal
Accrued Payroll Taxes and Penalties | 12 Months Ended |
Jun. 30, 2021 | |
Accrued Payroll Taxes And Penalties Disclosure [Abstract] | |
ACCRUED PAYROLL TAXES AND PENALTIES | (10) ACCRUED PAYROLL TAXES AND PENALTIES As of June 30, 2021 and June 30, 2020, the Company owed 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 June 30, 2021 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. As of June 30, 2021, the Company’s tax counsel is in the process of reviewing recent IRS correspondence to determine appeals status and will work towards final resolutions with the IRS on all outstanding liabilities. The Company has decided to wait until all resolutions are final before making any adjustments to the balance of $314,019 owed to the IRS. |
Promissory Notes _ Related Part
Promissory Notes – Related Party | 12 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
PROMISSORY NOTES – RELATED PARTY | (11) PROMISSORY NOTES – RELATED PARTY The following table is a summary of the outstanding related party note balances as of June 30, 2021 and 2020. Noteholder Interest Maturity June 30, June 30, Related Party Notes: Erhfort, LLC 15% 12/31/21 $ 100,000 $ 100,000 Erhfort, LLC 15% 12/31/21 100,000 100,000 JM One Holdings, LLC 15% 12/31/21 20,000 20,000 Erhfort, LLC 15% 12/31/21 100,000 100,000 Erhfort, LLC 15% 12/31/21 100,000 100,000 Erhfort, LLC 15% 12/31/21 100,000 100,000 Erhfort, LLC 15% 12/31/21 10,000 - Erhfort, LLC 15% 12/31/21 10,000 - Viable International Investments, LLC 0% On Demand 7,865 - Viable International Investments, LLC 0% On Demand 5,000 - Viable International Investments, LLC 0% On Demand 5,000 - Viable International Investments, LLC 0% On Demand 5,000 - Viable International Investments, LLC 0% On Demand 5,000 - Viable International Investments, LLC 0% On Demand 3,000 - Xi’an IDI 0% On Demand 10,411 - Total Related Party Notes $ 581,276 $ 520,000 Erhfort, LLC owns Company common stock directly and indirectly. JM One Holdings, LLC is an entity affiliated with the Company’s CFO. Hence, these debts are considered related party debt. During the year ended June 30, 2021, the Company received loan proceeds of $20,000 from Erhfort, LLC, $30,865 from Viable International Investments, LLC, and $10,411 from Xi’an IDI. The loans from Erhfort, LLC have annual interest rates of 15% while the loans from Viable International Investments, LLC and Xi’an IDI have zero interest. During the year ended June 30, 2020, the Company received loan proceeds of $300,000 from Erhfort, LLC and $20,000 from JM One Holdings, LLC, both of which are related parties. The loans from Erhfort and JM One Holdings, LLC have annual interest rates of 15%. The maturity dates for all related party loans originally due on June 30, 2021, except those payable on demand, were extended to December 31, 2021 on June 30, 2021. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | (12) LONG-TERM DEBT The following table is a summary of the outstanding loan balances as of June 30, 2021 and 2020. Noteholder Interest Maturity June 30, June 30, Truist Bank 1% 5/11/25 $ 79,600 $ 79,600 Total Debt 79,600 79,600 Current Portion of Debt (10,595 ) - Total Long-term Debt $ 69,005 $ 79,600 Future maturities of long-term debt are as follows as of June 30, 2021: For the year ended June 30, 2022 $ 10,595 2023 15,707 2024 15,866 2025 37,432 $ 79,600 On May 9, 2020, the Company entered into a loan with Truist Bank, a lender pursuant to the Paycheck Protection Program of the CARES Act as administered by the SBA in the amount of $79,600. The loan, in the form of a promissory note, matures on May 11, 2025. No additional collateral or guarantees were provided by the Company for the loan. The PPP loan provides for customary events of default. Under the CARES Act, loan forgiveness is available for the sum of documented payroll costs, rent payments, mortgage interest and covered utilities during the 24-week period beginning on the date of loan disbursement. The Company may be required to repay any portion of the outstanding principal that is not forgiven, along with accrued interest, and it cannot provide any assurance that it will be eligible for loan forgiveness, or that any amount of the PPP Loan will ultimately be forgiven by the SBA. All aspects of the PPP loan are subject to review by the SBA, including without limitation, the Company’s eligibility for and the size of the loan. The review procedures have not been made public. The Company cannot predict the outcome of that review nor be assured that all or any part of the loan will be forgiven. To the extent that all or part of the PPP loan is not forgiven, the Company will be required to make payments, beginning October 2021, including interest accruing at an annual interest rate of 1.0% beginning on the date of disbursement. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
LEASES | (13) 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. As of June 30, 2021, the Company no longer had any leases with terms of more than twelve months. On October 1, 2020, the Company’s office and warehouse lease was terminated due to nonpayment of rent. The following summarizes the lease termination: Operating lease asset (office and warehouse lease) – termination date – October 1, 2020 $ 21,403 Operating lease liability (office and warehouse lease) – termination date – October 1, 2020 21,511 Operating lease asset and (liability) (office and warehouse lease) – net – termination date – October 1, 2020 (108 ) Gain on lease termination 10,863 Operating lease asset and (liability) (office and warehouse lease) – net – June 30, 2021 $ - The landlord also agreed in its termination agreement with the Company to settle the $31,755 outstanding balance of the rent due for $15,000, resulting in a gain in the reduction of $16,754 of rent payable that is part of accounts payable, and the loss on the forfeiture of the rent deposit of $6,000. The total amount of gain for the termination of this lease resulted in a total net gain on lease termination of $10,863. On March 10, 2021, the auto lease was terminated and the vehicle was returned to the dealership. Operating lease asset (auto) – termination date – March 10, 2021 $ 14,362 Operating lease liability (office and warehouse lease) – termination date – March 10, 2021 14,362 Operating lease asset and (liability) (office and warehouse lease) – net – termination date – March 10, 2021 - Gain on lease termination - Operating lease asset and (liability) (office and warehouse lease) – net – June 30, 2021 $ - |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | (14) INCOME TAXES The Company has net operating loss carryforwards for federal income taxes of approximately $63,500,000 at June 30, 2021, the unused portions of which expire in years 2022 through 2041. The Company accounts for income taxes under Accounting Standards Codification 740, Income Taxes “ASC 740”. ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial losses and the tax basis of assets and liabilities for both the expected future tax benefit to be derived from tax losses and tax credit carry forwards. ASC 740 additionally requires the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. Internal Revenue Code Section 382 “IRC 382” places a limitation on the amount of taxable income that can be offset by carry forwards after a change in control (generally greater than a 50% change in ownership). The issuance of the Company’s Series M Preferred Stock on August 4, 2014 resulted in a change of control as defined under IRC 382. As of the change of control date, the taxpayer’s net operating loss carryforwards from prior years was $72,478,914 and the pro rata share of pre-change losses in the tax year ended June 30, 2015 was $109,691. This resulted in total pre-change losses of $72,588,605 subject to limitation under IRC Section 382. On the change date the values of the old loss corporation was $3,168,568 and the AFR was 3.05% resulting in an annual limitation amount of $96,641. The pro rata share of post-change net operating loss incurred in the tax year ended June 30, 2015 and the net operating loss incurred in tax years ended June 30, 2016 through 2021 are not subject to limitation. Post change losses not subject to limitation through June 30, 2021 are $9,410,735. Approximately $6,000,000 of losses expire between 2022 and 2037. Approximately $4,700,000 have no expiration, but are subject to certain annual restrictions. The table below summarizes the differences between the Company’s effective tax rate and the statutory federal rate as follows for the periods ended June 30, 2021 and 2020: 2021 2020 Statutory federal rate (21.00 )% (21.00 )% State tax rate, net of federal effect (3.522 )% (3.522 )% Change in valuation allowance 24.522 % 24.522 % Effective Tax Rate - % - % Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for tax and financial reporting purposes. The components of the net deferred tax assets for the years ended June 30, 2021 and 2020 were as follows: 2021 2020 Deferred tax assets: Inventory Reserve $ 25,367 $ 110,745 Federal and state net operating loss carry forward 2,728,062 2,558,675 Total deferred tax asset 2,753,429 2,669,420 Less Valuation Allowance (2,753,429 ) (2,669,420 ) Net deferred Tax Asset $ - $ - The Company has fully reserved the deferred tax asset due to management’s determination that it is highly unlikely that the Company will generate taxable income in the future and realize the tax benefits of the net operating loss carryforwards and due to the limitation of income that can be offset by net operating loss carry forwards in future periods under IRC section 382 because of change in control that occurred on August 4, 2014. The valuation allowance increased $84,009 and $178,074 for the years June 30, 2021 and 2020, respectively. The increase in the valuation allowances for fiscal 2021 and 2020 is a result of the net operating losses incurred in those years exceeding the amount of net operating loss carryforward that expired in the same years. |
Convertible Preferred Stock
Convertible Preferred Stock | 12 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
CONVERTIBLE PREFERRED STOCK | (15) CONVERTIBLE PREFERRED STOCK The following schedule reflects the number of shares of preferred stock that have been issued, converted and are outstanding as of June 30, 2021: Security Date No. of Amount Date of No. of Shares Amount Balance 6/30/2021 Total Series M Cv Pfd Various 600 $ 6,000,000 Various 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 215,939 Total redemption value $ 415,939 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 June 30, 2021 and 2020, the balance of cumulative dividends owed to the investor which is included in redemption value was $215,939 and $197,939, respectively. The total presented on the balance sheet as temporary equity is $415,939 as of June 30, 2021 and $397,939 as of June 30, 2020. Series M Convertible Preferred Stock The Company had previously sold 600 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. As of June 30, 2021 and June 30, 2020, the balance of Series M Preferred stock was $0. |
Common Stock
Common Stock | 12 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCK | (16) COMMON STOCK 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 year ended June 30, 2021, the Company issued 280,392 shares of common stock pursuant to debt conversion agreements for $143,000 of accounts payable with Erhfort, LLC. The amount of debt converted per share was $.51. During the year ended June 30, 2020, the Company issued 254,903 shares of its common stock to non-affiliated accredited investors pursuant to subscription agreements for $130,000. The price per share was $.51. |
Stock Options
Stock Options | 12 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK OPTIONS | (17) 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 November 1, 2019, the Board granted an option to purchase 2,000,000 shares with an exercise price of $.51 and fair value of $.51 per share to a consultant. These options will vest over a three-year period. The options will be expensed as they vest. On March 1, 2020, the Board granted an option to purchase 98,188 shares with an exercise price of $.51 and fair value of $.51 to an employee. These options will vest when CTLM ® ® 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 due to the lack of historical data. As of As of Expected volatility 23% to 44 20% to 24% Expected term .5 to 4.83 Years .67 to 4.3 Years Risk-Free interest rate .05% to 3.09 .89% to 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 outstanding under the 2016 Plan at June 30, 2021 and 2020: Employees/Consultants Options Wtd. Avg. Wtd. Avg. Aggregate Outstanding at June 30, 2019 13,447,645 $ 0.20 3.29 Years $ - Granted 2,098,188 $ 0.51 Exercised - $ - Cancelled (450,000 ) $ 0.20 Outstanding at June 30, 2020 15,095,833 $ 0.24 2.43 Years $ - Granted 1,657,102 $ 0.51 Exercised - $ - Cancelled - $ - Outstanding at June 30, 2021 16,752,935 $ 0.25 1.76 Years $ - The following table summarizes information about vested and unvested options under the 2016 Plan at June 30, 2021 and June 30, 2020. The Company recognized an expense of $261,431 for the options vested during the year ended June 30, 2021: Employees/Consultants Unvested Vested and Total Outstanding at June 30, 2019 5,730,522 7,717,123 13,447,645 Granted 1,598,188 500,000 2,098,188 Vested and Exercisable (2,755,526 ) 2,755,526 - Cancelled (450,000 ) - (450,000 ) Outstanding at June 30, 2020 4,123,184 10,972,649 15,095,833 Granted 1,657,102 - 1,657,102 Vested and Exercisable (2,950,000 ) 2,950,000 - Cancelled - - - Rounding Adjustment 4 (4 ) - Outstanding at June 30, 2021 2,830,290 13,922,645 16,752,935 Unvested options will be expensed under the Black-Scholes options-pricing model when they vest. As of June 30, 2021, the remaining options to be expensed when vested are estimated to be $440,459. At June 30, 2020, 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 12 shares at an exercise price of $350 per share. The tables below summarize information about these five plans: Employees/Consultants Options Wtd. Avg. Wtd. Avg. Aggregate Outstanding at June 30, 2019 13 $ 976 3.02 Years $ - Granted - $ - Exercised - $ - Cancelled - $ - Outstanding at June 30, 2020 13 $ 976 2.01 Years $ - Granted - $ - Exercised - $ - Cancelled (1 ) $ 13,500 Outstanding at June 31, 2021 12 $ 350 1.11 Years $ - The table below summarizes information about all stock options outstanding as of June 30, 2021: Outstanding Options Vested Options Range of Exercise price Number Weighted Weighted Number Weighted Weighted $0.20 - $0.51 16,752,935 $ 0.27 1.76 13,922,645 $ 0.23 1.39 $350.00 12 $ 350 1.11 12 $ 350 1.11 Outstanding options 16,752,947 $ 0.27 1.76 13,922,657 $ 0.23 1.39 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 | 12 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | (18) 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. As of June 30, 2021, the Company’s tax counsel is in the process of reviewing recent IRS correspondence to determine appeals status and will work towards final resolutions with the IRS on all outstanding liabilities. The Company has decided to wait until all resolutions are final before making any adjustments to the balance of $314,019 owed to the IRS. The Company leased a commercial building from Isco Properties, LLC for its offices and warehouse in Fort Lauderdale, FL. The term of the lease was 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 was $405,031, which has been fully satisfied as of the date of this report. On October 31, 2018, the Company extended the lease for two years from February 1, 2019 to January 31, 2021. The monthly base rent was $7,150 for the 1 st nd 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. This lease was terminated on March 10, 2021 and the vehicle was returned to the dealership. No gain or loss resulted from the termination of the lease. 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 focused on improving the technical performance and image quality of IDSI’s CTLM ® |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | (19) SUBSEQUENT EVENTS On August 24, 2021, the Company received loan proceeds of $15,000 from Viable International Investments, LLC. Interest is 0% and the principal is payable on demand. On September 30, 2021, the Company received loan proceeds of $30,000 from Viable International Investments, LLC. Interest is 0% and the principal is payable on demand. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Jun. 30, 2021 | |
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. |
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. The Company also receives royalties pursuant to a licensing relationship with Trifoil Imaging. Revenue is recognized in the reporting periods in which royalties are due to the Company. |
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 $850 as of June 30, 2021 and $19,665 as of June 30, 2020. These amounts represent accounts receivable as well as other receivables that have been fully reserved. |
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 June 30, 2021 and June 30, 2020. |
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 June 30, 2021 and June 30, 2020, the Company had $0 in excess of the federally insured limit. The Company did not have any revenue for the year ended June 30, 2021. For the year ended June 30, 2020, all of the revenues were from TriFoil Imaging. |
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 ® ® |
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 13,922,657 and 10,972,662 options vested and as of June 30, 2021 and June 30, 2020, respectively and 2,830,290 and 4,123,184 options not yet vested as of June 30, 2021 and June 30, 2020, 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 year ended June 30, 2021, the Board granted options to purchase 157,102 shares with an exercise price of $.51 per share to an employee and 1,500,000 shares with an exercise price of $.51 per share to a consultant. For the year ended June 30, 2020, the Board granted options to purchase 2,000,000 shares with an exercise price of $.51 per share to a consultant and 98,188 shares with an exercise price of $.51 per share to an employee. 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 Note (17) 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 years ended June 30, 2021 and 2020. |
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, 2018 to 2021 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 June 30, 2021 and 2020. |
Impact of recently issued accounting pronouncements | (n) Impact of recently issued accounting pronouncements 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 June 30, 2021 and 2020, 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. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | June 30, June 30, Raw materials consisting of purchased parts, components and supplies $ 92,587 $ 369,452 Work-in process including units undergoing final inspection and testing - 52,500 Finished goods 7,500 15,000 Total Inventory $ 100,087 $ 436,952 Allowance for Obsolete Inventory (100,087 ) (436,952 ) Net Inventory $ - $ - |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, less accumulated depreciation | June 30, June 30, Useful life Furniture and Fixtures $ - $ 261,011 5 years Computers and Equipment 12,612 370,704 5 years Third Party Software 10,291 10,291 5 years Clinical Equipment 15,000 15,000 5 years Total Property & Equipment $ 37,903 $ 657,006 Less: accumulated depreciation (37,903 ) (655,104 ) Total Property & Equipment - Net $ - $ 1,902 |
Promissory Notes _ Related Pa_2
Promissory Notes – Related Party (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding related party note balances | Noteholder Interest Maturity June 30, June 30, Related Party Notes: Erhfort, LLC 15% 12/31/21 $ 100,000 $ 100,000 Erhfort, LLC 15% 12/31/21 100,000 100,000 JM One Holdings, LLC 15% 12/31/21 20,000 20,000 Erhfort, LLC 15% 12/31/21 100,000 100,000 Erhfort, LLC 15% 12/31/21 100,000 100,000 Erhfort, LLC 15% 12/31/21 100,000 100,000 Erhfort, LLC 15% 12/31/21 10,000 - Erhfort, LLC 15% 12/31/21 10,000 - Viable International Investments, LLC 0% On Demand 7,865 - Viable International Investments, LLC 0% On Demand 5,000 - Viable International Investments, LLC 0% On Demand 5,000 - Viable International Investments, LLC 0% On Demand 5,000 - Viable International Investments, LLC 0% On Demand 5,000 - Viable International Investments, LLC 0% On Demand 3,000 - Xi’an IDI 0% On Demand 10,411 - Total Related Party Notes $ 581,276 $ 520,000 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of the outstanding loan balances | Noteholder Interest Maturity June 30, June 30, Truist Bank 1% 5/11/25 $ 79,600 $ 79,600 Total Debt 79,600 79,600 Current Portion of Debt (10,595 ) - Total Long-term Debt $ 69,005 $ 79,600 |
Schedule of future maturities of long-term debt | For the year ended June 30, 2022 $ 10,595 2023 15,707 2024 15,866 2025 37,432 $ 79,600 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of lease termination | Operating lease asset (office and warehouse lease) – termination date – October 1, 2020 $ 21,403 Operating lease liability (office and warehouse lease) – termination date – October 1, 2020 21,511 Operating lease asset and (liability) (office and warehouse lease) – net – termination date – October 1, 2020 (108 ) Gain on lease termination 10,863 Operating lease asset and (liability) (office and warehouse lease) – net – June 30, 2021 $ - Operating lease asset (auto) – termination date – March 10, 2021 $ 14,362 Operating lease liability (office and warehouse lease) – termination date – March 10, 2021 14,362 Operating lease asset and (liability) (office and warehouse lease) – net – termination date – March 10, 2021 - Gain on lease termination - Operating lease asset and (liability) (office and warehouse lease) – net – June 30, 2021 $ - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective tax rate and the statutory federal rate | 2021 2020 Statutory federal rate (21.00 )% (21.00 )% State tax rate, net of federal effect (3.522 )% (3.522 )% Change in valuation allowance 24.522 % 24.522 % Effective Tax Rate - % - % |
Schedule of deferred tax assets and liabilities | 2021 2020 Deferred tax assets: Inventory Reserve $ 25,367 $ 110,745 Federal and state net operating loss carry forward 2,728,062 2,558,675 Total deferred tax asset 2,753,429 2,669,420 Less Valuation Allowance (2,753,429 ) (2,669,420 ) Net deferred Tax Asset $ - $ - |
Convertible Preferred Stock (Ta
Convertible Preferred Stock (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of preferred stock | Security Date No. of Amount Date of No. of Shares Amount Balance 6/30/2021 Total Series M Cv Pfd Various 600 $ 6,000,000 Various 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 215,939 Total redemption value $ 415,939 |
Stock Options (Tables)
Stock Options (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Stock Options (Tables) [Line Items] | |
Schedule of stock option grants fair value of each option | As of As of Expected volatility 23% to 44 20% to 24% Expected term .5 to 4.83 Years .67 to 4.3 Years Risk-Free interest rate .05% to 3.09 .89% to 2.49 Forfeiture rate 0.00 0.00 Expected dividend rate 0.00 0.00 |
Schedule of stock options outstanding | Outstanding Options Vested Options Range of Exercise price Number Weighted Weighted Number Weighted Weighted $0.20 - $0.51 16,752,935 $ 0.27 1.76 13,922,645 $ 0.23 1.39 $350.00 12 $ 350 1.11 12 $ 350 1.11 Outstanding options 16,752,947 $ 0.27 1.76 13,922,657 $ 0.23 1.39 |
Schedule of vested and unvested options | Employees/Consultants Unvested Vested and Total Outstanding at June 30, 2019 5,730,522 7,717,123 13,447,645 Granted 1,598,188 500,000 2,098,188 Vested and Exercisable (2,755,526 ) 2,755,526 - Cancelled (450,000 ) - (450,000 ) Outstanding at June 30, 2020 4,123,184 10,972,649 15,095,833 Granted 1,657,102 - 1,657,102 Vested and Exercisable (2,950,000 ) 2,950,000 - Cancelled - - - Rounding Adjustment 4 (4 ) - Outstanding at June 30, 2021 2,830,290 13,922,645 16,752,935 |
2016 Plan [Member] | |
Stock Options (Tables) [Line Items] | |
Schedule of stock options outstanding | Employees/Consultants Options Wtd. Avg. Wtd. Avg. Aggregate Outstanding at June 30, 2019 13,447,645 $ 0.20 3.29 Years $ - Granted 2,098,188 $ 0.51 Exercised - $ - Cancelled (450,000 ) $ 0.20 Outstanding at June 30, 2020 15,095,833 $ 0.24 2.43 Years $ - Granted 1,657,102 $ 0.51 Exercised - $ - Cancelled - $ - Outstanding at June 30, 2021 16,752,935 $ 0.25 1.76 Years $ - Employees/Consultants Options Wtd. Avg. Wtd. Avg. Aggregate Outstanding at June 30, 2019 13 $ 976 3.02 Years $ - Granted - $ - Exercised - $ - Cancelled - $ - Outstanding at June 30, 2020 13 $ 976 2.01 Years $ - Granted - $ - Exercised - $ - Cancelled (1 ) $ 13,500 Outstanding at June 31, 2021 12 $ 350 1.11 Years $ - |
Going Concern and Management'_2
Going Concern and Management's Plans (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accumulated deficit | $ (134,817,667) | $ (134,109,749) | |
Stockholders’ deficit | (1,842,981) | (1,539,494) | $ (833,639) |
Working capital deficiency | 1,358,037 | ||
Net loss | (689,918) | (1,029,118) | |
Net cash used in operating activities | $ (104,763) | $ (528,255) | |
Description of loans | (1) satisfy its current obligations, (2) continue its research and development efforts, and (3) successfully develop, market, and sell its products. Due to the difficulty of raising additional capital during the current COVID-19 crisis, the Company has been taking aggressive measures to reduce its operating costs in order to preserve cash. The Company has applied for and received funding of $79,600 from the Paycheck Protection Program (“PPP”). The Company also applied for the Economic Injury Disaster Loan (“EIDL”) and was denied the loan, but received a grant of $4,000. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts (in Dollars) | $ 850 | $ 19,665 |
Federal deposit insurance corporation limit (in Dollars) | 250,000 | |
Excess of federally insured limit (in Dollars) | $ 0 | $ 0 |
Options vested | 13,922,657 | 10,972,662 |
Options non vested | 2,830,290 | 4,123,184 |
Option to purchase | 157,102 | 98,188 |
Employee shares exercise price (in Dollars per share) | $ 51 | $ 51 |
Granted options to purchase | 1,500,000 | 2,000,000 |
Exercise price (in Dollars per share) | $ 51 | $ 51 |
Stock option, description | Stock options are being expensed pursuant to ASC 718. | |
Tax position, description | 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. | |
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. |
Revenue (Details)
Revenue (Details) | 12 Months Ended |
Jun. 30, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Royaly revenue | $ 10,875 |
Related Party Transactions (Det
Related Party Transactions (Details) | 1 Months Ended | 12 Months Ended | |
Mar. 22, 2018 | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | |
Related Party Transactions (Details) [Line Items] | |||
Number of agreements | 2 | ||
Contract term | 20 years | ||
Percentage of transfer fee | 25.00% | ||
Related party receivables, description | As of June 30, 2021 and 2020, the Company has receivables from related parties, net of allowance, of $0 as a result of sales of inventory parts or acquisition of parts from third parties on behalf of Xi’an. | ||
Accounts receivable, related parties | $ 7,700 | ||
Due from related parties, description | Additionally, as of June 30, 2021 and 2020, the Company has amounts due from related parties, net of allowance of $0. | ||
Due from affiliate | $ 11,965 | ||
Due from related party | $ 11,965 | ||
Reserved amount recovered | 11,115 | ||
Erhfort LLC [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Consulting fee | 102,000 | 102,000 | |
Accounts payable | 143,000 | ||
Xi' an [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Due from affiliate | 11,115 | ||
David Fong [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Consulting fee | 102,000 | 102,000 | |
Amount due to related party | $ 581,276 | $ 520,000 |
Royalty Receivable (Details)
Royalty Receivable (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Royalty Receivable [Abstract] | ||
Royalty income | $ 0 | $ 10,875 |
Royalty receivable balances | $ 0 | $ 10,875 |
Inventories (Details)
Inventories (Details) | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Inventory Disclosure [Abstract] | |
Inventory reserve amounts | $ 336,865 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule of inventories [Abstract] | ||
Raw materials consisting of purchased parts, components and supplies | $ 92,587 | $ 369,452 |
Work-in process including units undergoing final inspection and testing | 52,500 | |
Finished goods | 7,500 | 15,000 |
Total Inventory | 100,087 | 436,952 |
Allowance for Obsolete Inventory | (100,087) | (436,952) |
Net Inventory |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 622 | $ 17,489 |
Disposal of fixed assets | $ 1,180 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment, less accumulated depreciation - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Total Property & Equipment | $ 657,006 | $ 37,903 |
Less: accumulated depreciation | (655,104) | (37,903) |
Total Property & Equipment - Net | 1,902 | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Property & Equipment | $ 261,011 | |
Useful life | 5 years | |
Computers and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Property & Equipment | $ 370,704 | 12,612 |
Useful life | 5 years | |
Third Party Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Property & Equipment | $ 10,291 | 10,291 |
Useful life | 5 years | |
Clinical Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Property & Equipment | $ 15,000 | $ 15,000 |
Useful life | 5 years |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Jun. 30, 2021 | Oct. 01, 2020 | Jun. 30, 2020 | |
Payables and Accruals [Abstract] | ||||
Accounts payable and accrued expenses | $ 472,571 | $ 300,936 | ||
Accounts payable | 465,799 | 296,917 | ||
Other accrued expenses | $ 6,772 | $ 4,091 | ||
Reduction of accounts payable | $ 16,756 | |||
Accounts payable due to related party | $ 70,000 | |||
Stock issued for conversion of accounts payable (in Shares) | 137,255 | 280,392 | ||
Accounts payable related arties, description | On December 31, 2020, the Company converted $73,000 in accounts payable due to a related party to 143,137 shares of common stock. The conversion agreement was effective April 20, 2021 and share issuance occurred on April 30, 2021 (See Note 5). |
Accrued Payroll Taxes and Pen_2
Accrued Payroll Taxes and Penalties (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 27, 2018 |
Accrued Payroll Taxes And Penalties Disclosure [Abstract] | |||
Accrued payroll taxes | $ 314,019 | $ 314,019 | |
Balance of taxes due | $ 381,224 | ||
Interest and penalties | 314,019 | ||
Remaining interest and penalties | 314,019 | ||
Owed to the IRS | $ 314,019 |
Promissory Notes _ Related Pa_3
Promissory Notes – Related Party (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Promissory Notes – Related Party (Details) [Line Items] | ||
Promissory notes related party description | The maturity dates for all related party loans originally due on June 30, 2021, except those payable on demand, were extended to December 31, 2021 on June 30, 2021. | |
Erhfort, LLC [Member] | ||
Promissory Notes – Related Party (Details) [Line Items] | ||
Proceeds from loan received | $ 300,000 | |
Interest Rate | 15.00% | |
Interest rate | 15.00% | |
JM One Holdings, LLC [Member] | ||
Promissory Notes – Related Party (Details) [Line Items] | ||
Proceeds from loan received | $ 20,000 | |
Interest rate | 15.00% | |
Erhfort, LLC [Member] | ||
Promissory Notes – Related Party (Details) [Line Items] | ||
Proceeds from loan received | $ 20,000 | |
Interest Rate | 15.00% | |
Viable International Investments [Member] | ||
Promissory Notes – Related Party (Details) [Line Items] | ||
Proceeds from loan received | $ 30,865 | |
Interest rate | 0.00% | |
Xi’an ID [Member] | ||
Promissory Notes – Related Party (Details) [Line Items] | ||
Proceeds from loan received | $ 10,411 |
Promissory Notes _ Related Pa_4
Promissory Notes – Related Party (Details) - Schedule of outstanding related party note balances - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Promissory Notes – Related Party (Details) - Schedule of outstanding related party note balances [Line Items] | ||
Noteholder | Total Related Party Notes | |
Total Related Party Notes | $ 581,276 | $ 520,000 |
Erhfort, LLC [Member] | ||
Promissory Notes – Related Party (Details) - Schedule of outstanding related party note balances [Line Items] | ||
Noteholder | Erhfort, LLC | |
Interest Rate | 15.00% | |
Maturity Date | 12/31/21 | |
Total Related Party Notes | $ 100,000 | 100,000 |
Erhfort, LLC One [Member] | ||
Promissory Notes – Related Party (Details) - Schedule of outstanding related party note balances [Line Items] | ||
Noteholder | Erhfort, LLC | |
Interest Rate | 15.00% | |
Maturity Date | 12/31/21 | |
Total Related Party Notes | $ 100,000 | 100,000 |
JM One Holdings, LLC [Member] | ||
Promissory Notes – Related Party (Details) - Schedule of outstanding related party note balances [Line Items] | ||
Noteholder | JM One Holdings, LLC | |
Interest Rate | 15.00% | |
Maturity Date | 12/31/21 | |
Total Related Party Notes | $ 20,000 | 20,000 |
Erhfort, LLC Two [Member] | ||
Promissory Notes – Related Party (Details) - Schedule of outstanding related party note balances [Line Items] | ||
Noteholder | Erhfort, LLC | |
Interest Rate | 15.00% | |
Maturity Date | 12/31/21 | |
Total Related Party Notes | $ 100,000 | 100,000 |
Erhfort, LLC Three [Member] | ||
Promissory Notes – Related Party (Details) - Schedule of outstanding related party note balances [Line Items] | ||
Noteholder | Erhfort, LLC | |
Interest Rate | 15.00% | |
Maturity Date | 12/31/21 | |
Total Related Party Notes | $ 100,000 | 100,000 |
Erhfort, LLC Four [Member] | ||
Promissory Notes – Related Party (Details) - Schedule of outstanding related party note balances [Line Items] | ||
Noteholder | Erhfort, LLC | |
Interest Rate | 15.00% | |
Maturity Date | 12/31/21 | |
Total Related Party Notes | $ 100,000 | 100,000 |
Erhfort, LLC Five [Member] | ||
Promissory Notes – Related Party (Details) - Schedule of outstanding related party note balances [Line Items] | ||
Noteholder | Erhfort, LLC | |
Interest Rate | 15.00% | |
Maturity Date | 12/31/21 | |
Total Related Party Notes | $ 10,000 | |
Erhfort, LLC Six [Member] | ||
Promissory Notes – Related Party (Details) - Schedule of outstanding related party note balances [Line Items] | ||
Noteholder | Erhfort, LLC | |
Interest Rate | 15.00% | |
Maturity Date | 12/31/21 | |
Total Related Party Notes | $ 10,000 | |
Viable International Investments, LLC [Member] | ||
Promissory Notes – Related Party (Details) - Schedule of outstanding related party note balances [Line Items] | ||
Noteholder | Viable International Investments, LLC | |
Interest Rate | 0.00% | |
Maturity Date | On Demand | |
Total Related Party Notes | $ 7,865 | |
Viable International Investments, LLC One [Member] | ||
Promissory Notes – Related Party (Details) - Schedule of outstanding related party note balances [Line Items] | ||
Noteholder | Viable International Investments, LLC | |
Interest Rate | 0.00% | |
Maturity Date | On Demand | |
Total Related Party Notes | $ 5,000 | |
Viable International Investments, LLC Two [Member] | ||
Promissory Notes – Related Party (Details) - Schedule of outstanding related party note balances [Line Items] | ||
Noteholder | Viable International Investments, LLC | |
Interest Rate | 0.00% | |
Maturity Date | On Demand | |
Total Related Party Notes | $ 5,000 | |
Viable International Investments, LLC Three [Member] | ||
Promissory Notes – Related Party (Details) - Schedule of outstanding related party note balances [Line Items] | ||
Noteholder | Viable International Investments, LLC | |
Interest Rate | 0.00% | |
Maturity Date | On Demand | |
Total Related Party Notes | $ 5,000 | |
Viable International Investments, LLC Four [Member] | ||
Promissory Notes – Related Party (Details) - Schedule of outstanding related party note balances [Line Items] | ||
Noteholder | Viable International Investments, LLC | |
Interest Rate | 0.00% | |
Maturity Date | On Demand | |
Total Related Party Notes | $ 5,000 | |
Viable International Investments, LLC Five [Member] | ||
Promissory Notes – Related Party (Details) - Schedule of outstanding related party note balances [Line Items] | ||
Noteholder | Viable International Investments, LLC | |
Interest Rate | 0.00% | |
Maturity Date | On Demand | |
Total Related Party Notes | $ 3,000 | |
Xi’an IDI [Member] | ||
Promissory Notes – Related Party (Details) - Schedule of outstanding related party note balances [Line Items] | ||
Noteholder | Xi'an IDI | |
Interest Rate | 0.00% | |
Maturity Date | On Demand | |
Total Related Party Notes | $ 10,411 |
Long-Term Debt (Details)
Long-Term Debt (Details) | 1 Months Ended |
May 09, 2020USD ($) | |
Debt Disclosure [Abstract] | |
Loan amount | $ 79,600 |
Interest rate | 1.00% |
Long-Term Debt (Details) - Sche
Long-Term Debt (Details) - Schedule of the outstanding loan balances - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Instrument [Line Items] | ||
Total Debt | $ 79,600 | $ 79,600 |
Current Portion of Debt | (10,595) | |
Total Long-term Debt | $ 69,005 | 79,600 |
Truist Bank [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.00% | |
Maturity Date | May 11, 2025 | |
Total Debt | $ 79,600 | $ 79,600 |
Long-Term Debt (Details) - Sc_2
Long-Term Debt (Details) - Schedule of future maturities of long-term debt | Jun. 30, 2021USD ($) |
Schedule of future maturities of long-term debt [Abstract] | |
2022 | $ 10,595 |
2023 | 15,707 |
2024 | 15,866 |
2025 | 37,432 |
Total debt | $ 79,600 |
Leases (Details)
Leases (Details) | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Leases [Abstract] | |
ROU asset and lease liability | $ 147,000 |
Outstanding rent settlement | 31,755 |
Due amount | 15,000 |
Rent payable | 16,754 |
Forfeiture of the rent deposit | 6,000 |
Gain (Loss) on Termination of Lease | $ 10,863 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of lease termination | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Leases (Details) - Schedule of lease termination [Line Items] | |
Gain on lease termination | $ 10,863 |
Operating lease asset (auto) – termination date – March 10, 2021 | 14,362 |
Operating lease liability (office and warehouse lease) – termination date – March 10, 2021 | 14,362 |
Operating lease asset and (liability) (office and warehouse lease) – net – termination date – March 10, 2021 | |
Gain on lease termination | |
Operating lease asset and (liability) (office and warehouse lease) – net – June 30, 2021 | |
Office and Warehouse Lease [Member] | |
Leases (Details) - Schedule of lease termination [Line Items] | |
Operating lease asset (office and warehouse lease) – termination date – October 1, 2020 | 21,403 |
Operating lease liability (office and warehouse lease) – termination date – October 1, 2020 | 21,511 |
Operating lease asset and (liability) (office and warehouse lease) – net – termination date – October 1, 2020 | (108) |
Gain on lease termination | 10,863 |
Operating lease asset and (liability) (office and warehouse lease) – net – June 30, 2021 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Taxes (Details) [Line Items] | ||
Net operating loss, expires terms | The Company has net operating loss carryforwards for federal income taxes of approximately $63,500,000 at June 30, 2021, the unused portions of which expire in years 2022 through 2041. | |
Income tax ownership, percentage | 50.00% | |
valuation allowance increased | $ 84,009 | $ 178,074 |
Series M Preferred Stock [Member] | ||
Income Taxes (Details) [Line Items] | ||
Net operating loss, description | the taxpayer’s net operating loss carryforwards from prior years was $72,478,914 and the pro rata share of pre-change losses in the tax year ended June 30, 2015 was $109,691. This resulted in total pre-change losses of $72,588,605 subject to limitation under IRC Section 382. On the change date the values of the old loss corporation was $3,168,568 and the AFR was 3.05% resulting in an annual limitation amount of $96,641. The pro rata share of post-change net operating loss incurred in the tax year ended June 30, 2015 and the net operating loss incurred in tax years ended June 30, 2016 through 2021 are not subject to limitation. Post change losses not subject to limitation through June 30, 2021 are $9,410,735. Approximately $6,000,000 of losses expire between 2022 and 2037. Approximately $4,700,000 have no expiration, but are subject to certain annual restrictions. |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of effective tax rate and the statutory federal rate | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of effective tax rate and the statutory federal rate [Abstract] | ||
Statutory federal rate | (21.00%) | (21.00%) |
State tax rate, net of federal effect | (3.522%) | (3.522%) |
Change in valuation allowance | 24.522% | 24.522% |
Effective Tax Rate |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of deferred tax assets and liabilities - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Deferred tax assets: | ||
Inventory Reserve | $ 25,367 | $ 110,745 |
Federal and state net operating loss carry forward | 2,728,062 | 2,558,675 |
Total deferred tax asset | 2,753,429 | 2,669,420 |
Less Valuation Allowance | (2,753,429) | (2,669,420) |
Net deferred Tax Asset |
Convertible Preferred Stock (De
Convertible Preferred Stock (Details) - USD ($) | Jan. 06, 2011 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2010 |
Convertible Preferred Stock (Details) [Line Items] | ||||
Redemption value | $ 215,939 | $ 197,939 | ||
Total temporary equity | 415,939 | 397,939 | ||
Series L Convertible Preferred Stock [Member] | ||||
Convertible Preferred Stock (Details) [Line Items] | ||||
Converted short term promissory note | $ 350,000 | |||
Convertible preferred stock (in Shares) | 35 | |||
Original purchase price | $ 10,000 | |||
Annual rate | 9.00% | |||
Conversion of preferred stock to common stock (in Shares) | 474 | |||
Convertible preferred stock, terms of conversion | 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. | |||
Total temporary equity | $ 415,939 | |||
Series M Preferred Stock [Member] | ||||
Convertible Preferred Stock (Details) [Line Items] | ||||
Convertible preferred stock (in Shares) | 147,283 | |||
Original purchase price | $ 10,000 | |||
Annual rate | 9.00% | |||
Total temporary equity | $ 0 | $ 0 | ||
Other equity securities (in Dollars per share) | $ 10,000 | |||
Series M Preferred stock | As of June 30, 2021 and June 30, 2020, the balance of Series M Preferred stock was $0. |
Convertible Preferred Stock (_2
Convertible Preferred Stock (Details) - Schedule of preferred stock | 12 Months Ended |
Jun. 30, 2021USD ($)shares | |
Series M Cv Pfd [Member] | |
Auction Market Preferred Securities, Stock Series [Line Items] | |
Date Issued | |
No. of shares (in Shares) | shares | 600 |
Amount of designated preferred shares | $ 6,000,000 |
Date of Conversion | |
No. of Shares Converted (in Shares) | shares | 600 |
Amount converted | $ 6,000,000 |
Balance | 0 |
Dividends | 0 |
Balance | 0 |
Series L Cv Pfd [Member] | |
Auction Market Preferred Securities, Stock Series [Line Items] | |
Dividends | 215,939 |
Balance | $ 415,939 |
Series L Cv Pfd [Member] | 2/10/2010 [Member] | |
Auction Market Preferred Securities, Stock Series [Line Items] | |
Date Issued | Feb. 10, 2010 |
No. of shares (in Shares) | shares | 35 |
Amount of designated preferred shares | $ 350,000 |
Date of Conversion | Jan. 6, 2011 |
No. of Shares Converted (in Shares) | shares | 15 |
Amount converted | $ 150,000 |
Balance | $ 200,000 |
Common Stock (Details)
Common Stock (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Common Stock (Details) [Line Items] | |||
Common stock, shares authorized | 500,000,000 | 500,000,000 | |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 | |
Issued total shares of common stock | 137,255 | 280,392 | |
Account payable | $ 143,000 | ||
Price per share | $ 51 | $ 51 | |
Issued value pursuant to subscription agreement | $ 130,000 | ||
Common stock, par value | 0 | $ 0 | |
Preferred stock, par value | $ 0 | $ 0 | |
Common Stock [Member] | |||
Common Stock (Details) [Line Items] | |||
Issued total shares of common stock | 254,903 |
Stock Options (Details)
Stock Options (Details) - USD ($) | May 01, 2021 | Aug. 01, 2020 | Mar. 01, 2020 | Nov. 01, 2019 | Jun. 30, 2021 |
Stock Options (Details) [Line Items] | |||||
Granted options to purchase shares (in Shares) | 1,500,000 | 2,000,000 | |||
Purchase exercise price | $ 51 | $ 51 | $ 51 | $ 0.1 | |
Fair value per share | $ 51 | $ 51 | $ 51 | ||
Exercise price | $ 51 | ||||
Lower range of exercise price | $ 13 | ||||
Estimated vesting expense (in Dollars) | $ 440,459 | ||||
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 12 shares at an exercise price of $350 per share. | ||||
Employees [Member] | |||||
Stock Options (Details) [Line Items] | |||||
Granted options to purchase shares (in Shares) | 157,102 | 98,188 | |||
2016 Plan [Member] | |||||
Stock Options (Details) [Line Items] | |||||
Stock options Vested amount (in Dollars) | $ 261,431 |
Stock Options (Details) - Sched
Stock Options (Details) - Schedule of stock option grants fair value of each option | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Stock Options (Details) - Schedule of stock option grants fair value of each option [Line Items] | ||
Forfeiture rate | 0.00% | 0.00% |
Expected dividend rate | 0.00% | 0.00% |
Minimum [Member] | ||
Stock Options (Details) - Schedule of stock option grants fair value of each option [Line Items] | ||
Expected volatility | 23.00% | 20.00% |
Expected term | 5 years | 67 years |
Risk-Free interest rate | 5.00% | 89.00% |
Maximum [Member] | ||
Stock Options (Details) - Schedule of stock option grants fair value of each option [Line Items] | ||
Expected volatility | 44.00% | 24.00% |
Expected term | 4 years 302 days | 4 years 109 days |
Risk-Free interest rate | 3.09% | 2.49% |
Stock Options (Details) - Sch_2
Stock Options (Details) - Schedule of stock options granted, exercised and cancelled - 2016 Plan [Member] - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Stock Options (Details) - Schedule of stock options granted, exercised and cancelled [Line Items] | ||
Options, Outstanding | 15,095,833 | 13,447,645 |
Wtd. Avg. Exercise Price, Outstanding | $ 0.24 | $ 0.20 |
Wtd. Avg. Remaining Term, Outstanding | 2 years 156 days | 3 years 105 days |
Aggregate Intrinsic Value, Outstanding | ||
Options, Granted | 1,657,102 | 2,098,188 |
Wtd. Avg. Exercise Price, Granted | $ 0.51 | $ 0.51 |
Wtd. Avg. Remaining Term, Granted | ||
Options, Exercised | ||
Wtd. Avg. Exercise Price, Exercised | ||
Wtd. Avg. Remaining Term, Exercised | ||
Options, Cancelled | (450,000) | |
Wtd. Avg. Exercise Price, Cancelled | $ 0.20 | |
Wtd. Avg. Remaining Term, Cancelled | ||
Options, Outstanding | 16,752,935 | 15,095,833 |
Wtd. Avg. Exercise Price, Outstanding | $ 0.25 | $ 0.24 |
Wtd. Avg. Remaining Term, Outstanding | 1 year 277 days | |
Aggregate Intrinsic Value, Outstanding | ||
Vested and Unvested Options [Member] | ||
Stock Options (Details) - Schedule of stock options granted, exercised and cancelled [Line Items] | ||
Options, Outstanding | 13 | 13 |
Wtd. Avg. Exercise Price, Outstanding | $ 976 | $ 976 |
Wtd. Avg. Remaining Term, Outstanding | 2 years 3 days | 3 years 7 days |
Aggregate Intrinsic Value, Outstanding | ||
Options, Granted | ||
Wtd. Avg. Exercise Price, Granted | ||
Wtd. Avg. Remaining Term, Granted | ||
Options, Exercised | ||
Wtd. Avg. Exercise Price, Exercised | ||
Wtd. Avg. Remaining Term, Exercised | ||
Options, Cancelled | (1) | |
Wtd. Avg. Exercise Price, Cancelled | $ 13,500 | |
Wtd. Avg. Remaining Term, Cancelled | ||
Options, Outstanding | 12 | 13 |
Wtd. Avg. Exercise Price, Outstanding | $ 350 | $ 976 |
Wtd. Avg. Remaining Term, Outstanding | 1 year 40 days | |
Aggregate Intrinsic Value, Outstanding |
Stock Options (Details) - Sch_3
Stock Options (Details) - Schedule of vested and unvested options - shares | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Stock Options (Details) - Schedule of vested and unvested options [Line Items] | ||
Outstanding, at beginning | 15,095,833 | 13,447,645 |
Granted | 1,657,102 | 2,098,188 |
Vested and Exercisable | ||
Cancelled | (450,000) | |
Rounding Adjustment | ||
Outstanding at ending | 16,752,935 | 15,095,833 |
Unvested [Member] | ||
Stock Options (Details) - Schedule of vested and unvested options [Line Items] | ||
Outstanding, at beginning | 4,123,184 | 5,730,522 |
Granted | 1,657,102 | 1,598,188 |
Vested and Exercisable | (2,950,000) | (2,755,526) |
Cancelled | (450,000) | |
Rounding Adjustment | 4 | |
Outstanding at ending | 2,830,290 | 4,123,184 |
Vested and Exercisable [Member] | ||
Stock Options (Details) - Schedule of vested and unvested options [Line Items] | ||
Outstanding, at beginning | 10,972,649 | 7,717,123 |
Granted | 500,000 | |
Vested and Exercisable | 2,950,000 | 2,755,526 |
Cancelled | ||
Rounding Adjustment | (4) | |
Outstanding at ending | 13,922,645 | 10,972,649 |
Stock Options (Details) - Sch_4
Stock Options (Details) - Schedule of stock options outstanding | 12 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Outstanding Options [Member] | |
Stock Options (Details) - Schedule of stock options outstanding [Line Items] | |
Number Outstanding | shares | 16,752,947 |
Weighted Averaged Exercise Price (in Dollars per share) | $ / shares | $ 0.27 |
Weighted Averaged Remaining Life | 1 year 277 days |
Vested Options [Member] | |
Stock Options (Details) - Schedule of stock options outstanding [Line Items] | |
Weighted Averaged Exercise Price (in Dollars per share) | $ / shares | $ 0.23 |
Weighted Averaged Remaining Life | 1 year 142 days |
Number Exercisable | shares | 13,922,657 |
$0.20 - $0.51 [Member] | Outstanding Options [Member] | |
Stock Options (Details) - Schedule of stock options outstanding [Line Items] | |
Number Outstanding | shares | 16,752,935 |
Weighted Averaged Exercise Price (in Dollars per share) | $ / shares | $ 0.27 |
Weighted Averaged Remaining Life | 1 year 277 days |
$0.20 - $0.51 [Member] | Vested Options [Member] | |
Stock Options (Details) - Schedule of stock options outstanding [Line Items] | |
Weighted Averaged Exercise Price (in Dollars per share) | $ / shares | $ 0.23 |
Weighted Averaged Remaining Life | 1 year 142 days |
Number Exercisable | shares | 13,922,645 |
$350.00 [Member] | Outstanding Options [Member] | |
Stock Options (Details) - Schedule of stock options outstanding [Line Items] | |
Number Outstanding | shares | 12 |
Weighted Averaged Exercise Price (in Dollars per share) | $ / shares | $ 350 |
Weighted Averaged Remaining Life | 1 year 40 days |
$350.00 [Member] | Vested Options [Member] | |
Stock Options (Details) - Schedule of stock options outstanding [Line Items] | |
Weighted Averaged Exercise Price (in Dollars per share) | $ / shares | $ 350 |
Weighted Averaged Remaining Life | 1 year 40 days |
Number Exercisable | shares | 12 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Oct. 02, 2020 | Jan. 08, 2019 | Aug. 04, 2014 | Oct. 23, 2019 | Oct. 31, 2018 | Feb. 28, 2014 | Jun. 30, 2021 | Jun. 29, 2018 | Jun. 27, 2018 | Sep. 04, 2014 | Jun. 30, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||||||||||
Product liability insurance | $ 3,000,000 | ||||||||||
Accrued payroll taxes, interest and penalties | $ 1,489,640 | ||||||||||
Purchase of convertible preferred stock | shares (in 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 | ||||||||||
Balance owed to IRS | $ 314,019 | ||||||||||
Operating leasing, description | the Company’s office and warehouse lease was terminated by its landlord due to nonpayment of rent. The Company had an ROU asset related to the lease of $21,403 and a lease liability of $21,511 at termination, resulting in a gain on lease termination of $108. The landlord also agreed to settle the outstanding balance of the rent due for $15,000, pursuant to a settlement agreement, resulting in an additional net gain on lease termination of $10,755 (See Note 13). | 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 was $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. 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 was $174,554. | The Company leased a commercial building from Isco Properties, LLC for its offices and warehouse in Fort Lauderdale, FL. The term of the lease was 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 was $405,031, which has been fully satisfied as of the date of this report. | |||||||
Payment of satisfactory completion | $ 500,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) | Sep. 30, 2021 | Aug. 24, 2021 |
Subsequent Events (Details) [Line Items] | ||
Received proceeds | $ 30,000 | $ 15,000 |
Interest rate | 0.00% | 0.00% |