Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2015 | Nov. 12, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | AFTERMASTER, INC. | |
Entity Central Index Key | 836,809 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 98,293,122 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2015 | Jun. 30, 2015 |
Current Assets | ||
Cash | $ 1,031,179 | $ 2,185,702 |
Accounts receivable | 1,000 | 4,500 |
Prepaid expenses | 3,328,557 | 3,319,258 |
Total Current Assets | 4,360,736 | 5,509,460 |
Property and Equipment, net | 155,872 | 169,954 |
Intangible Assets, net | 35,311 | 22,853 |
Note receivable | 10,000 | 10,000 |
Deposits | 13,675 | 13,675 |
Available for sale securities | 1,200,000 | 0 |
Prepaid expenses, net of current | 293,375 | 1,092,038 |
Total Assets | 6,068,969 | 6,817,980 |
Current Liabilities | ||
Accounts payable and other accrued expenses | 428,827 | 344,451 |
Accrued interest | 74,902 | 93,762 |
Deferred revenue | 2,500 | 2,500 |
Consulting services - related party | 74,001 | 82,267 |
Lease Payable | 25,694 | 36,426 |
Derivative Liability | 0 | 12,814,941 |
Notes Payable - Related Party | 625,000 | 625,000 |
Notes Payable | 40,488 | 40,488 |
Convertible notes payable - related party, net of discount of $0 and $0 , repectively | 3,925,000 | 3,925,000 |
Convertible notes payable, net of discount of $0 and $0, repectively | 362,000 | 572,400 |
Total Current Liabilities | 5,558,412 | 18,537,235 |
Long-Term Liabilities | ||
Total Liabilities | 5,558,412 | 18,537,235 |
Stockholders' Deficit | ||
Convertible preferred stock, Series A; $0.001 par value; 100,000 shares authorized, 15,500 shares issued and outstanding | 16 | 16 |
Convertible preferred stock, Series A-1; $0.001 par value; 3,000,000 shares authorized, 685,000 and 616,000 shares issued and outstanding, respectively | 685 | 616 |
Convertible preferred stock, Series B; $0.001 par value; 200,000 shares authorized, 3,500 shares issued and outstanding | 3 | 3 |
Convertible preferred stock, Series C; $0.001 par value; 1,000,000 shares authorized, 13,404 shares issued and outstanding | 13 | 13 |
Convertible preferred stock, Series D; $0.001 par value; 375,000 shares authorized, 130,000 shares issued and outstanding | 130 | 130 |
Convertible preferred stock, Series E; $0.001 par value; 1,000,000 shares authorized, 275,000 shares issued and outstanding | 275 | 275 |
Convertible preferred stock, Series P; $0.001 par value; 600,000 shares authorized, 86,640 shares issued and outstanding | 87 | 87 |
Convertible preferred stock, Series S; $0.001 par value; 50,000 shares authorized, -0- shares issued and outstanding | 0 | 0 |
Common stock, authorized 250,000,000 shares, par value $0.001; 97,311,664 and 95,280,257 shares issued and outstanding, respectively | 97,318 | 95,287 |
Subscription payable | 0 | 35,000 |
Additional paid In capital | 55,344,764 | 46,314,765 |
Accumulated other comprehensive income | (600,000) | 0 |
Accumulated Deficit | (54,332,734) | (58,165,447) |
Total Stockholders' Equity (Deficit) | 510,557 | (11,719,255) |
Total Liabilities and Stockholders' Deficit | $ 6,068,969 | $ 6,817,980 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2015 | Jun. 30, 2015 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Discount on related party convertible notes payable, current | $ 0 | $ 0 |
Discount on convertible notes payable | $ 0 | $ 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 250,000,000 | 250,000,000 |
Common stock, issued shares | 97,311,664 | 95,280,257 |
Common stock, outstanding shares | 97,311,664 | 95,280,257 |
Series E Convertible Preferred stock | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Convertible preferred stock, par value | $ 0.001 | |
Convertible preferred stock, authorized shares | 1,000,000 | |
Convertible preferred stock, issued shares | 275,000 | |
Convertible preferred stock, outstanding shares | 275,000 | |
Series D Convertible Preferred stock | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Convertible preferred stock, par value | $ 0.001 | |
Convertible preferred stock, authorized shares | 375,000 | |
Convertible preferred stock, issued shares | 130,000 | |
Convertible preferred stock, outstanding shares | 130,000 | |
Series C Convertible Preferred stock | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Convertible preferred stock, par value | $ 0.001 | |
Convertible preferred stock, authorized shares | 1,000,000 | |
Convertible preferred stock, issued shares | 13,404 | |
Convertible preferred stock, outstanding shares | 13,404 | |
Series S Convertible Preferred stock | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Convertible preferred stock, par value | $ 0.001 | |
Convertible preferred stock, authorized shares | 50,000 | |
Convertible preferred stock, issued shares | 0 | |
Convertible preferred stock, outstanding shares | 0 | |
Series A Convertible Preferred stock | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Convertible preferred stock, par value | $ 0.001 | |
Convertible preferred stock, authorized shares | 100,000 | |
Convertible preferred stock, issued shares | 15,500 | |
Convertible preferred stock, outstanding shares | 15,500 | |
Series P Convertible Preferred stock | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Convertible preferred stock, par value | $ 0.001 | |
Convertible preferred stock, authorized shares | 600,000 | |
Convertible preferred stock, issued shares | 86,640 | |
Convertible preferred stock, outstanding shares | 86,640 | |
Series A-1 Convertible Preferred stock | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Convertible preferred stock, par value | $ 0.001 | |
Convertible preferred stock, authorized shares | 3,000,000 | |
Convertible preferred stock, issued shares | 685,000 | |
Convertible preferred stock, outstanding shares | 616,000 | |
Series B Convertible Preferred stock | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Convertible preferred stock, par value | $ 0.001 | |
Convertible preferred stock, authorized shares | 200,000 | |
Convertible preferred stock, issued shares | 3,500 | |
Convertible preferred stock, outstanding shares | 3,500 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
REVENUES | ||
Session Revenues | $ 0 | $ 1,420 |
AfterMaster Revenues | 19,780 | 27,740 |
Licensing Revenues | 1,800,000 | 200,000 |
Total Revenues | 1,819,780 | 229,160 |
COSTS AND EXPENSES | ||
Cost of Revenues (Exclusive of Depreciation and Amortization) | 93,134 | 83,177 |
Depreciation and Amortization Expense | 17,018 | 34,356 |
General and Administrative Expenses | 2,166,564 | 900,925 |
Total Costs and Expenses | 2,276,716 | 1,018,458 |
Loss from Operations | (456,936) | (789,298) |
Other Expense | ||
Interest Expense | (180,380) | (528,348) |
Derivative Expense | 0 | (59,745) |
Change in Fair Value of Derivative | 4,374,585 | (27,545) |
Gain (Loss) on Extinguishment of Debt | 95,447 | (28,517) |
Total Other Income (Expense) | 4,289,652 | (644,155) |
Income (Loss) Before Income Taxes | 3,832,716 | (1,433,453) |
Income Tax Expense | 0 | 0 |
NET INCOME (LOSS) | 3,832,716 | (1,433,453) |
Preferred Stock Accretion and Dividends | (16,789) | (17,016) |
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS | $ 3,815,927 | $ (1,450,469) |
Basic Income (Loss) Per Share of Common Stock | $ 0.04 | $ (0.02) |
Weighted Average Number of Shares Outstanding | 95,491,549 | 74,870,162 |
Diluted Income Per Share of Common Stock | $ 0.03 | $ (0.02) |
Diluted Weighted Average Number of Shares Outstanding | 119,351,785 | 74,870,162 |
Other Comprehensive Income, net of tax | ||
NET INCOME (LOSSES) | $ 3,832,716 | $ (1,433,453) |
Unrealized gains on AFS Securities | (600,000) | 0 |
COMPREHENSIVE INCOME (LOSS) | $ 3,215,927 | $ (1,450,469) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
OPERATING ACTIVITIES | ||
Net Profit (Loss) | $ 3,832,716 | $ (1,433,453) |
Adjustments to reconcile net loss to cash from operating activities: | ||
Depreciation and amortization | 17,018 | 33,072 |
Share-based compensation - Common Stock | 128,061 | 285,745 |
Share-based compensation - warrants | 0 | 510,662 |
Common stock issued for services and rent | 140,917 | 63,015 |
Common stock issued as incentive with Convertible debt | 0 | 10,261 |
Common stock issued for preferred dividends | 11,981 | 0 |
Common stock issued to extend the maturity dates on debt | 0 | 15,750 |
Amortization of debt discount and issuance costs | 0 | 221,860 |
(Gain)/Loss on extinguishment of debt | (95,447) | 28,517 |
Derivative Expense | 0 | 59,745 |
Gain (loss) on derivative | (4,374,585) | 27,545 |
Licensing Revenue paid for with AFS Securities | (1,800,000) | 0 |
Changes in Operating Assets and Liabilities: | ||
Other receivables | 3,500 | 2,615 |
Other assets | 789,364 | (182,770) |
Accounts payable and accrued expenses and deferred revenue | 221,489 | 3,226 |
Net Cash Used in Operating Activities | (1,124,986) | (354,210) |
INVESTING ACTIVITIES | ||
Purchase of property and equipment | (15,395) | (39,966) |
Net Cash Used in Investing Activities | (15,395) | (39,966) |
FINANCING ACTIVITIES | ||
Offering costs for Common shares sold | (104,910) | (9,500) |
Common Stock issued for cash | 0 | 300,000 |
Proceeds from convertible notes payable | 119,000 | 0 |
Repayments of convertible notes payable | 0 | 362,000 |
Repayments of notes payable | (17,500) | (8,520) |
Lease Payable | (10,732) | (4,000) |
Net Cash Provided by Financing Activities | (14,142) | 639,980 |
NET INCREASE (DECREASE) IN CASH | (1,154,523) | 245,804 |
CASH AT BEGINNING OF PERIOD | 2,185,702 | 77,876 |
CASH AT END OF PERIOD | 1,031,179 | 323,680 |
CASH PAID FOR: | ||
Interest | 0 | 918 |
NON CASH FINANCING ACTIVITIES: | ||
Conversion of Notes and Interest into common stock | 296,693 | 585,496 |
Conversion of preferred stock for common stock | 50 | 0 |
Common Stock and warrants issued for interest | $ 527,000 | $ 362,000 |
1. CONDENSED FINANCIAL STATEMEN
1. CONDENSED FINANCIAL STATEMENTS | 3 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
1. CONDENSED FINANCIAL STATEMENTS | The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at September 30, 2015, and for all periods presented herein, have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's June 30, 2015 audited financial statements. The results of operations for the periods ended September 30, 2015 and 2014 are not necessarily indicative of the operating results for the full years. |
2. GOING CONCERN
2. GOING CONCERN | 3 Months Ended |
Sep. 30, 2015 | |
Text Block [Abstract] | |
2. GOING CONCERN | The Company's financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has an accumulated deficit of $54,332,734, negative working capital of $1,197,676, and currently has revenues which are insufficient to cover its operating costs, which raises substantial doubt about its ability to continue as a going concern. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The future of the Company as an operating business will depend on its ability to (1) obtain sufficient capital contributions and/or financing as may be required to sustain its operations and (2) to achieve adequate revenues from its MyStudio and AfterMaster businesses. Management's plan to address these issues includes, (a) continued exercise of tight cost controls to conserve cash, (b) obtaining additional financing, (c) placing in service additional studios (d) more widely commercializing the AfterMaster and ProMaster products, and (e) identifying and executing on additional revenue generating opportunities. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. If the Company is unable to obtain adequate capital, it could be forced to cease operations. |
3. SUMMARY OF SIGNIFICANT ACCOU
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates are made in relation to the allowance for doubtful accounts and the fair value of certain financial instruments. Principles of Consolidation The consolidated financial statements include the accounts of AfterMaster, Inc. and its subsidiaries. All significant inter-company accounts and transactions have been eliminated. Investments Investment securities consist of readily marketable equity securities. Unrealized gains or losses on securities classified as available-for-sale are generally recorded in shareholders equity. If an available-for-sale security is other than temporarily impaired, the loss is charged to either earnings or shareholders equity depending on our intent and ability to retain the security until we recover the full cost basis and the extent of the loss attributable to the creditworthiness of the issuer. Investments in certain companies over which we exert significant influence, but do not control the financial and operating decisions, are accounted for as equity method investments. Notes and Other Receivables Notes and other receivables are stated at amounts management expects to collect. An allowance for doubtful accounts is provided for uncollectible receivables based upon management's evaluation of outstanding accounts receivable at each reporting period considering historical experience and customer credit quality and delinquency status. Delinquency status is determined by contractual terms. Bad debts are written off against the allowance when identified. Fair Value Instruments Cash is the Companys only financial asset or liability required to be recognized at fair value and is measured using quoted prices for active markets for identical assets (Level 1 fair value hierarchy). The carrying amounts reported in the balance sheets for notes receivable and accounts payable and accrued expenses approximate their fair market value based on the short-term maturity of these instruments. The fair value of the Companys notes payable at September 30, 2015 is approximately $4,952,488. Market prices are not available for the Companys loans due to related parties or its other notes payable, nor are market prices of similar loans available. The Company determined that the fair value of the notes payable based on its amortized cost basis due to the short term nature and current borrowing terms available to the Company for these instruments. Derivative Liabilities The Company has financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in the Companys balance sheet. The Company measures these instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change. The Company has a sequencing policy regarding share settlement wherein instruments with the earliest issuance date would be settled first. The sequencing policy also considers contingently issuable additional shares, such as those issuable upon a stock split, to have an issuance date to coincide with the event giving rise to the additional shares. Using this sequencing policy, all instruments convertible into common stock, including warrants and the conversion feature of notes payable, issued subsequent to August 14 2014 are derivative liabilities. The Company values these convertible notes payable using the multinomial lattice method that values the derivative liability within the notes based on a probability weighted discounted cash flow model. The resulting liability is valued at each reporting date and the change in the liability is reflected as change in derivative liability in the statement of operations. Income Taxes There is no income tax provision for the three months ended September 30, 2015 and 2014 due to net operating losses for which there is no benefit currently available. At September 30, 2015, the Company had deferred tax assets associated with state and federal net operating losses. The Company has recorded a corresponding full valuation allowance as it is more likely than not that some portion of all of the deferred tax assets will not be realized. Recent Accounting Pronouncements Management has considered all recent accounting pronouncements issued since the last audit of our consolidated financial statements. The Companys management believes that these recent pronouncements will not have a material effect on the Companys consolidated financial statements. |
4. SECURITIES AVAILABLE-FOR-SAL
4. SECURITIES AVAILABLE-FOR-SALE | 3 Months Ended |
Sep. 30, 2015 | |
Securities Available-for-sale | |
SECURITIES AVAILABLE-FOR-SALE | On November 10, 2014, the Company received 600,000 shares of b Booth stock as part of an Asset License agreement with b Booth. The following table presents the amortized cost, gross unrealized gains, gross unrealized losses, and fair market value of available-for-sale equity securities, nearly all of which are attributable to the Company's investment in b Booth stock, as follows: September 30, 2015 Amortized cost Unrealized losses Gross unrealized losses Fair value Equity securities $ 1,800,000 $ (600,000 ) $ - $ 1,200,000 June 30, 2015 Amortized cost Unrealized losses Gross unrealized losses Fair value Equity securities $ - $ - $ - $ - |
5. NOTES PAYABLE
5. NOTES PAYABLE | 3 Months Ended |
Sep. 30, 2015 | |
Notes Payable [Abstract] | |
5. NOTES PAYABLE | Convertible Notes Payable In accounting for its convertible notes payable, proceeds from the sale of a convertible debt instrument with Common Stock purchase warrants are allocated to the two elements based on the relative fair values of the debt instrument without the warrants and of the warrants themselves at time of issuance. The portions of the proceeds allocated to the warrants are accounted for as paid-in capital with an offset to debt discount. The remainder of the proceeds are allocated to the debt instrument portion of the transaction as prescribed by ASC 470-25-20. The Company then calculates the effective conversion price of the note based on the relative fair value allocated to the debt instrument to determine the fair value of any beneficial conversion feature (BCF) associated with the convertible note in accordance with ASC 470-20-30. The BCF is recorded to additional paid-in capital with an offset to debt discount. Both the debt discount related to the issuance of warrants and related to a BCF is amortized over the life of the note. Convertible Notes Payable Related Parties Convertible notes payable due to related parties consisted of the following as of September 30, 2015 and June 30, 2015, respectively: September 30, June 30, 2015 2015 Various term notes with total face value of $3,925,000 issued from February 2010 to April 2013, interest rates range from 10% to 15%, net of unamortized discount of $0 and $1,761 as of June 30, 2015 and 2014, respectively. $ 3,925,000 $ 3,925,000 Total convertible notes payable related parties 3,925,000 3,925,000 Less current portion 3,925,000 3,925,000 Convertible notes payable related parties, long-term $ - $ - The notes were amended on June 30, 2014 to extend the maturity date to September 30, 2014, amended again on September 30, 2014 to December 31, 2014, amended again on December 31, 2014 to June 30, 2015, amended again on June 30, 2015 to August 31, 2015, amended again on September 30, 2015 to October 15, 2015, and again on November 10, 2015 to November 30, 2015. The Company evaluated amendment under ASC 470-50, Debt - Modification and Extinguishment Convertible Notes Payable - Non-Related Parties Convertible notes payable due to non-related parties consisted of the following as of September 30, 2015 and June 30, 2015, respectively: September 30, June 30, 2015 2015 $15,000 face value, issued in October 2011, interest rate of 10%, matures in June 2012, net of unamortized discount of $0 and $0 as of September 30, 2015 and June 30, 2015, respectively. $ 15,000 $ 15,000 $50,000 face value, issued in August 2012, interest rate of 10%, matures in February 2013, net of unamortized discount of $0 and $0 as of September 30, 2015 and June 30, 2015, respectively. 50,000 50,000 $10,000 face value, issued in September 2012, interest rate of 10%, matures in March 2013, net of unamortized discount of $0 and $0 as of September 30, 2015 and June 30, 2015, respectively. 10,000 10,000 $50,000 face value of which $17,500 was paid, $9,600 was converted, and $22,900 was forgiven. - 40,400 $30,000 face value of which $30,000 was forgiven. - 30,000 $20,000 face value of which $20,000 was forgiven. - 20,000 $30,000 face value of which $30,000 was converted. - 30,000 $15,000 face value of which $15,000 was converted. - 15,000 $20,000 face value, issued in June 2014, interest rate of 6%, matures December 2014, net unamortized discount of $0 and $0 as of September 30, 2015 and June 30, 2015, respectively. 20,000 20,000 $20,000 face value of which $20,000 was converted. - 20,000 $25,000 face value, issued in June 2014, interest rate of 6%, matures September 2014, net unamortized discount of $0 and $0 as of September 30, 2015 and June 30, 2015, respectively. 25,000 25,000 $10,000 face value of which $10,000 was converted. - 10,000 $7,000 face value, issued in July 2014, interest rate of 6%, matures October 2014, net unamortized discount of $0 and $0 as of September 30, 2015 and June 30, 2015, respectively. 7,000 7,000 $5,000 face value of which $5,000 was converted. - 5,000 $100,000 face value, issued in August 2014, interest rate of 6%, matures December 2014, net unamortized discount of $0 and $0 as of September 30, 2015 and June 30, 2015, respectively. 100,000 100,000 $100,000 face value, issued in August 2014, interest rate of 6%, matures December 2014, net unamortized discount of $0 and $0 as of September 30, 2015 and June 30, 2015, respectively. 100,000 100,000 $40,000 face value of which $40,000 was converted. - 40,000 $35,000 face value, issued in November 2014, interest rate of 6%, matures January 2015, net unamortized discount of $0 and $0 as of September 30, 2015 and June 30, 2015, respectively. 35,000 35,000 Total convertible notes payable non-related parties 362,000 572,400 Less current portion 362,000 572,400 Convertible notes payable non-related parties, long-term $ - $ - On November 28, 2012, the Company issued a convertible note to a related party for $50,000 that matures in November 28, 2013, of which $9,600 was converted in the previous period. The note bears an interest rate of 10% per annum and is convertible, along with all accrued interest, after 180 days into shares of the Companys Common Stock at $0.50 per share. On August 3, 2015, the company settled the debt for $17,500 and recorded a gain on settlement of debt of $22,900 for the remaining principal and $9,670 for the accrued interest. On February 13, 2013, the Company issued a convertible note to a related party for $30,000 that matures in November 28, 2013. The note bears an interest rate of 10% per annum and is convertible, along with all accrued interest, after 180 days into shares of the Companys Common Stock at $0.50 per share. On August 3, 2015, the company settled the debt and recorded a gain on settlement of debt of $30,000 for the remaining principal and $12,707 for the accrued interest. On April 24, 2013, the Company issued a convertible note to a related party for $20,000 that matures in October 24, 2013. The note bears an interest rate of 10% per annum and is convertible after 180 days into shares of the Companys Common Stock at $0.10 per share. On August 3, 2015, the company settled the debt and recorded a gain on settlement of debt of $20,000 for the remaining principal and $170 for the accrued interest. On March 6, 2014, the Company issued a convertible note to an unrelated individual for $30,000 that matures on September 6, 2014. The note bears no interest rate and is convertible into shares of the Companys Common stock at $0.10 per share. On September 30, 2015, the note holder elected to convert the entire note of $30,000. On June 19, 2014, the Company issued a convertible note to an unrelated individual for $15,000 that matures on December 18, 2014. The note bears interest rate of 6% per annum and is convertible into shares of the Companys Common stock at $0.10 per share. On September 30, 2015, the note holder elected to convert the entire note of $15,000 and $1,154 in accrued interest. On June 19, 2014, the Company issued a convertible note to an unrelated individual for $20,000 that matures on December 19, 2014. The note bears interest rate of 6% per annum and is convertible into shares of the Companys Common stock at $0.10 per share. On September 30, 2015, the note holder elected to convert the entire note of $20,000 and $1,538 in accrued interest. On July 10, 2014, the Company issued a convertible note to an unrelated individual for $10,000 that matures on October 10, 2014. The note bears interest rate of 6% per annum and is convertible into shares of the Companys Common stock at $0.10 per share. On July 29, 2015, the note holder elected to convert the entire note of $10,000 and $633 in accrued interest. On July 18, 2014, the Company issued a convertible note to an unrelated individual for $5,000 that matures on October 18, 2014. The note bears interest rate of 6% per annum and is convertible into shares of the Companys Common stock at $0.10 per share. On July 30, 2015, the note holder elected to convert the entire note of $5,000 and $312 in accrued interest. On October 6, 2014, the Company issued a convertible note to an unrelated individual for $40,000 that matures on January 6, 2015. The note bears interest rate of 6% per annum and is convertible into shares of the Companys Common stock at $0.20 per share. The company valued a BCF related to the note valued at $40,000. On September 30, 2015, the note holder elected to convert the entire note of $40,000 and $2,361 in accrued interest. Notes Payable Related Parties Notes payable due to related parties consisted of the following as of September 30, 2015 and June 30, 2015, respectively: September 30, June 30, 2015 2015 Various term notes with total face value of $610,000 issued from April 2011 to January 2014, interest rates range from 0% to 15%, net of unamortized discount of $0 as of June 30, 2015 and June 30, 2014, respectively, of which $35,000 has been paid. $ 575,000 $ 575,000 Face value of $50,000, issued in December 2014, matures in January 2015, note bears interest at 0%. 50,000 50,000 Total notes payable related parties 625,000 625,000 Less current portion 625,000 625,000 Notes payable - related parties, long term $ - $ - Notes Payable Non-Related Parties Notes payable due to non-related parties consisted of the following as of September 30, 2015 and June 30, 2015, respectively: September 30, June 30, 2015 2015 Various term notes with total face value of $40,488 due upon demand, interest rates range from 0% to 14%. $ 40,488 $ 40,488 Total note payable non-related parties 40,488 40,488 Less current portion 40,488 40,488 Notes payable non-related parties, long-term $ - $ - |
6. CONVERTIBLE PREFERRED STOCK
6. CONVERTIBLE PREFERRED STOCK | 3 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
6. CONVERTIBLE PREFERRED STOCK | The Company has authorized 10,000,000 shares of $0.001 par value per share Preferred Stock, of which the following were issued outstanding: Shares Shares Liquidation Allocated Outstanding Preference Series A Convertible Preferred 100,000 15,500 - Series A-1 Convertible Preferred 3,000,000 685,000 760,896 Series B Convertible Preferred 200,000 3,500 79,099 Series C Convertible Preferred 1,000,000 13,404 - Series D Convertible Preferred 375,000 130,000 130,000 Series E Convertible Preferred 1,000,000 275,000 275,000 Series P Convertible Preferred 600,000 86,640 - Series S Convertible Preferred 50,000 - - Total Preferred Stock 6,325,000 1,209,044 $ 1,244,995 The Company's Series A Convertible Preferred Stock ("Series A Preferred") is convertible into Common Stock at the rate of 0.025 share of Common stock for each share of the Series A Preferred. Dividends of $0.50 per share annually from date of issue, are payable from retained earnings, but have not been declared or paid. The Companys Series A-1 Senior Convertible Redeemable Preferred Stock (Series A-1 Preferred) is convertible at the rate of 2 shares of Common Stock per share of Series A-1 Preferred. The dividend rate of the Series A-1 Senior Convertible Redeemable Preferred Stock is 6% per share per annum in cash, or commencing on June 30, 2009 in shares of the Companys Common Stock (at the option of the Company). Due to the fact that the Series A-1 Preferred has certain features of debt and is redeemable, the Company analyzed the Series A-1 Preferred in accordance with ASC 480 and ASC 815 to determine if classification within permanent equity was appropriate. Based on the fact that the redeemable nature of the stock and all cash payments are at the option of the Company, it is assumed that payments will be made in shares of the Companys Common Stock and therefore, the instruments are afforded permanent equity treatment. The Company's Series B Convertible 8% Preferred Stock ("Series B Preferred") is convertible at the rate of 0.067 share of Common Stock for each share of Series B Preferred. Dividends from date of issue are payable on June 30 from retained earnings at the rate of 8% per annum but have not been declared or paid. The Company's Series C Convertible Preferred Stock ("Series C Preferred") is convertible at a rate of 0.007 share of Common Stock per share of Series C Preferred. Holders are entitled to dividends only to the extent of the holders of the Companys Common Stock receive dividends. The Company's Series D Convertible Preferred Stock ("Series D Preferred") is convertible at a rate of 0.034 share of Common Stock per share of Series D Preferred. Holders are entitled to a proportionate share of any dividends paid as though they were holders of the number of shares of Common Stock of the Company into which their shares of are convertible as of the record date fixed for the determination of the holders of Common Stock of the Company entitled to receive such distribution. The Company's Series E Convertible Preferred Stock ("Series E Preferred") is convertible at a rate of 0.034 share of Common Stock per share of Series E Preferred. Holders are entitled to a proportionate share of any dividends paid as though they were holders of the number of shares of Common Stock of the Company into which their shares of are convertible as of the record date fixed for the determination of the holders of Common Stock of the Company entitled to receive such distribution. The Company's Series P Convertible Preferred Stock ("Series P Preferred") is convertible at a rate of 0.007 share of Common Stock for each share of Series P Preferred. Holders are entitled to dividends only to the extent of the holders of the Companys Common Stock receive dividends. In the event of a liquidation, dissolution or winding up of the affairs of the Company, holders of Series A Preferred Stock, Series P Convertible Preferred Stock, Series C Convertible Preferred Stock have no liquidation preference over holders of the Companys Common Stock. Holders of Second Series B Preferred Stock have a liquidation preference over holders of the Companys Common Stock and the Companys Series A Preferred Stock. Holders of Series D Preferred Stock are entitled to receive, before any distribution is made with respect to the Companys Common Stock, a preferential payment at a rate per each whole share of Series D Preferred Stock equal to $1.00. Holders of Series E Preferred Stock are entitled to receive, after the preferential payment in full to holders of outstanding shares of Series D Preferred Stock but before any distribution is made with respect to the Companys Common Stock, a preferential payment at a rate per each whole share of Series E Preferred Stock equal to $1.00. Holders of Series A-1 Preferred Stock are superior in rank to the Companys Common Stock and to all other series of Preferred Stock heretofore designated with respect to dividends and liquidation. The activity surrounding the issuances of the Preferred Stock is as follows: During the three months ended September 30, 2015 and the fiscal years ended June 30, 2015 the Company issued 119,000 and -0- shares of Series A-1 Preferred Stock for $119,000 and $-0- in cash, respectively. The Company had one conversion of 50,000 shares of Series A-1 Preferred Stock for 100,000 shares of Common Stock, and issued 27,863 shares of Common Stock of payment of $12,932 in accrued dividends. During the three months ended September 30, 2015 and 2014, the outstanding Preferred Stock accumulated $16,789 and $17,016 in dividends on outstanding Preferred Stock. The cumulative dividends in arrears as of September 30, 2015 were approximately $652,093. |
7. COMMON STOCK
7. COMMON STOCK | 3 Months Ended |
Sep. 30, 2015 | |
Text Block [Abstract] | |
7. COMMON STOCK | The Company has authorized 250,000,000 shares of $0.001 par value per share Common Stock, of which 97,311,664 and 95,280,257 were issued outstanding as of September 30, 2015 and June 30, 2015, respectively. The Company amended its articles of incorporation on August 28, 2015 to increase the number of authorized shares to 250,000,000. The activity surrounding the issuances of the Common Stock is as follows: For the Three Months Ended September 30, 2015 The Company issued 1,048,173 shares of Common Stock for the conversion of notes and accrued interest valued at $125,998. The Company also issued 100,000 shares of Common Stock for the conversion of 50,000 . The Company issued 301,949 shares of Common Stock as payment for services and rent valued at $140,917. As share-based compensation to employees and non-employees, the Company issued 156,458 shares of common stock valued at $67,277, based on the market price of the stock on the date of issuance. As interest expense on outstanding notes payable, the Company issued 396,964 shares of common stock valued at $170,695 based on the market price on the date of issuance. For the Three Months Ended September 30, 2014 The Company issued 2,752,000 common shares for net cash proceeds of $300,000. The Company paid as offering costs $9,500 in cash offering costs. Offering costs have been recorded as reductions to additional paid-in capital from common stock proceeds and an increase in professional fees. Attached to the Common Shares, the Company issued 196,804 warrants to purchase shares of the Companys Common Stock. The Company also issued 43,500 shares of Common Stock as incentive to notes valued at $10,261 to extend terms on two convertible notes payable and recorded $362,000 in beneficial conversion features related to new issuances of debt. The Company also issued 3,484,074 shares of Common Stock for the conversion of notes and accrued interest valued at $356,794. The Company issued 217,536 shares of Common Stock as payment for services and rent valued at $63,015. As share-based compensation to employees and non-employees, the Company issued 2,019,456 shares of common stock valued at $285,745, based on the market price of the stock on the date of issuance. As interest expense on outstanding notes payable, the Company issued 584,588 shares of common stock valued at $257,219 based on the market price on the date of issuance. |
8. STOCK PURCHASE OPTIONS AND W
8. STOCK PURCHASE OPTIONS AND WARRANTS | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
8. STOCK PURCHASE OPTIONS AND WARRANTS | The Board of Directors on June 10, 2009 approved the 2009 Long-Term Stock Incentive Plan. The purpose of the 2009 Long-term Stock Incentive Plan is to advance the interests of the Company by encouraging and enabling acquisition of a financial interest in the Company by employees and other key individuals. The 2009 Long-Term Stock Incentive Plan is intended to aid the Company in attracting and retaining key employees, to stimulate the efforts of such individuals and to strengthen their desire to remain with the Company. A maximum of 1,500,000 shares of the Company's Common Stock is reserved for issuance under stock options to be issued under the 2009 Long-Term Stock Incentive Plan. The Plan permits the grant of incentive stock options, nonstatutory stock options and restricted stock awards. The 2009 Long-Term Stock Incentive Plan is administered by the Board of Directors or, at its direction, a Compensation Committee comprised of officers of the Company. Stock Purchase Options During the three months ended September 30, 2015 and fiscal year ended June 30, 2015, the Company did not issue any stock purchase options. The following table summarizes the changes in options outstanding of the Company during the fiscal year ended September 30, 2015. Date Issued Number of Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Expiration Date (yrs) Value if Exercised Balance June 30, 2015 80,000 $ 0.66 $ 0.59 1.20 $ 52,900 Granted - - - - - Exercised - - - - - Cancelled/Expired (25,000 ) 0.85 - - (21,250 ) Outstanding as of September 30, 2015 55,000 $ 0.58 $ 0.55 1.44 $ 31,650 The following table summarizes the changes in options outstanding of the Company during the fiscal year ended June 30, 2015. Date Issued Number of Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Expiration Date (yrs) Value if Exercised Balance June 30, 2014 381,429 $ 0.55 $ 0.12 0.62 $ 209,643 Granted - - - - - Exercised - - - - - Cancelled/Expired (301,429 ) 0.52 - - (156,743 ) Outstanding as of June 30, 2015 80,000 $ 0.66 $ 0.59 1.20 $ 52,900 Stock Purchase Warrants During the three months ended September 30, 2015, the Company issued warrants to purchase a total of 338,000. The Company issued 100,000 warrants in conjunction to an employment agreement entered into in July 2015. The company also issued 238,000 warrants as part of a private placement. The warrants were valued using the Black-Scholes pricing model under the assumptions noted below. The Company apportioned value to the warrants based on the relative fair market value of the Common Stock and warrants. During the fiscal year ended June 30, 2015, the Company issued warrants to purchase a total of 26,434,199. The Company issued 50,000 warrants in conjunction to extended two convertible note payables and issued 5,876,133 warrants in conjunction to a consulting agreement entered into in July 2014 and 150,000 warrants issued in conjunction with a financial advisory agreement entered into on January 2015. The Company also issued 1,000,000 warrants related to the B Booth agreements which were expensed during the current year. The company also issued 8,657,701 warrants as part of a private placement to extend the terms during the period, which were converted for cash proceed of $75,000 in exchange for 750,000 shares of common stock. The warrants were valued using the Black-Scholes pricing model under the assumptions noted below. The Company apportioned value to the warrants based on the relative fair market value of the Common Stock and warrants. The following table presents the assumptions used to estimate the fair values of the stock warrants and options granted: September 30, June 30, 2015 2015 Expected volatility 109-110 % 71-142 % Expected dividends 0 % 0 % Expected term 3-5 Years .25-10 Years Risk-free interest rate 0.92-1.70 % 0.00-2.35 % The following table summarizes the changes in warrants outstanding issued to employees and non-employees of the Company during the three months ended September 30, 2015. Number of Warrants Weighted Average Exercise Price Weighted Average Grant Date Fair Value Expiration Date (yrs) Value if Exercised Outstanding as of June 30, 2015 31,951,778 $ 0.43 $ 0.50 4.98 $ 13,585,289 Granted 338,000 0.65 0.34 3.60 221,350 Exercised - - - - - Cancelled/Expired (95,000 ) - - - (46,400 ) Outstanding as of September 30, 2015 32,194,778 $ 0.43 $ 0.49 4.73 $ 13,760,239 The following table summarizes the changes in warrants outstanding issued to employees and non-employees of the Company during the fiscal year ended June 30, 2015. Number of Warrants Weighted Average Exercise Price Weighted Average Grant Date Fair Value Expiration Date (yrs) Value if Exercised Outstanding as of June 30, 2015 8,332,579 $ 0.76 $ 0.70 2.96 $ 6,370,432 Granted 26,434,199 0.24 0.25 5.56 9,821,607 Exercised (750,000 ) - - - (160,000 ) Cancelled/Expired (2,065,000 ) - - - (2,446,750 ) Outstanding as of June 30, 2015 31,951,778 $ 0.43 $ 0.50 4.98 $ 13,585,289 |
9. FINANCIAL INSTRUMENTS
9. FINANCIAL INSTRUMENTS | 3 Months Ended |
Sep. 30, 2015 | |
Financial Instruments | |
9. FINANCIAL INSTRUMENTS | The Company has financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in the Companys balance sheet. The Company measures these instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change. The Company has estimated the fair value of these embedded derivatives for convertible debentures and associated warrants using a multinomial lattice model as of September 30, 2015 and June 30, 2015. On August 28, 2015, the Company increased the number of authorized common shares from 100,000,000 to 250,000,000, which removed the derivative using the sequencing policy. The fair values of the derivative instruments are measured each quarter, which resulted in a gain (loss) of $4,374,585 and $(27,545), and derivative expense of $-0- and $59,745 during the three months ended September 30, 2015 and 2014, respectively. As of September 30, 2015 and June 30, 2015, the fair market value of the derivatives aggregated $-0- and $12,814,941, respectively, using the following assumptions: estimated 10-0.10 year term, estimated volatility of 142.75 -70.62%, and a discount rate of 2.35-0.00%. |
10. FAIR VALUE MEASUREMENTS
10. FAIR VALUE MEASUREMENTS | 3 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements | |
10. FAIR VALUE MEASUREMENTS | For asset and liabilities measured at fair value, the Company uses the following hierarchy of inputs: ● Level one Quoted market prices in active markets for identical assets or liabilities; ● Level two Inputs other than level one inputs that are either directly or indirectly observable; and ● Level three Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. Liabilities measured at fair value on a recurring basis at September 30, 2015, are summarized as follows: Level 1 Level 2 Level 3 Total Fair value of derivatives $ - $ - $ - $ - Securities available-for-sale $ 1,200,000 $ - $ - $ 1,200,000 Liabilities measured at fair value on a recurring basis at June 30, 2015, are summarized as follows: Level 1 Level 2 Level 3 Total Fair value of derivatives $ - $ 12,814,941 $ - $ 12,814,941 Securities available-for-sale $ - $ - $ - $ - |
11. COMMITMENTS AND CONTINGENCI
11. COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
10. COMMITMENTS AND CONTINGENCIES | Legal Proceedings The Company may become involved in certain legal proceedings and claims which arise in the normal course of business. The Company is not a party to any litigation. To the best of the knowledge of our management, there are no material litigation matters pending or threatened against us. Lease Agreements We lease offices in Hollywood, California for corporate, research, engineering and mastering services. The lease expires on December 31, 2017. The total lease expense for the facility is approximately $8,670 per month, and the total remaining obligations under these leases at September 30, 2015 were approximately $260,100. Pursuant to a lease originally dated January, 2006, we currently occupy approximately 11,800 square feet of office and warehouse space located at 7650 E. Evans Rd., Suite C, Scottsdale, Arizona on a month-by month basis. The total lease expense is approximately $9,609 per month, payable in cash and Common Stock of the Company. Rent expense for the three months ended September 30, 2015 was $57,023, of which $41,492 was paid in cash and $15,531 was paid in Common Stock. Rent expense for the three months ended September 30, 2014 was $74,847, of which $47,510 was paid in cash and $27,337 was paid in Common Stock. Below is a table summarizing the annual operating lease obligations over the next 5 years: Year Lease Payments 2015 $ 89,214 2016 110,877 Thereafter 56,430 Total $ 256,521 Other The Company has not declared dividends on Series A or B Convertible Preferred Stock or its Series A-1 Convertible Preferred Stock. The cumulative dividends in arrears through September 30, 2015 were approximately $652,093. As of the date of this filing, the Company has not filed its tax return for the fiscal year ended 2014 and 2015. |
12. SUBSEQUENT EVENTS
12. SUBSEQUENT EVENTS | 3 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
11. SUBSEQUENT EVENTS | In accordance with ASC 855, Companys management reviewed all material events through the date of this filing and determined that there were the following material subsequent events to report: On September 11, 2014, the Company issued a convertible note to an unrelated individual for $100,000 that matures on December 11, 2014. The note bears interest rate of 6% per annum and is convertible into shares of the Companys Common stock at $0.20 per share. The Company booked a debt discount related to the derivative liability of $100,000. On October 7, 2015, the note holder elected to convert the entire note of $100,000 and $6,427 in accrued interest. On June 30, 2014, the Company issued a convertible note to an unrelated individual for $25,000 that matures on September 30, 2014. The note bears interest rate of 6% per annum and is convertible into shares of the Companys Common stock at $0.10 per share. In conjunction with the note, the Company issued to the holder 25,000 shares of restricted Common Stock. The value of the BCF recorded was $20,325 and the debt discount related to the attached relative fair value of the restricted Common Stock was $4,675, for a total debt discount of $25,000. On November 24, 2014, the Company issued a convertible note to an unrelated individual for $35,000 that matures on May 24, 2015. The note bears interest rate of 6% per annum and is convertible into shares of the Companys Common stock at $0.35 per share. The company valued a BCF related to the note valued at $35,000. On October 8, 2015, the Company issued 25,000 shares of Common Stock as payment for services valued at $3,615. On October 27, 2015, the Company issued a convertible note to an unrelated individual for $100,000 that matures on February 27, 2016. The note bears an interest rate of 6% per annum and is convertible, along with all accrued interest, into shares of the Companys Common Stock at $0.50 per share. As additional compensation, the Company issued to the holder a warrant to purchase 50,000 shares of the Companys Common Stock. The warrant has an exercise price of $0.50 per share and a contractual life of 2 years from the issuance date. The value of the debt discount related to the attached warrants was $4,774. |
3. SUMMARY OF SIGNIFICANT ACC18
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Use of Estimates | The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates are made in relation to the allowance for doubtful accounts and the fair value of certain financial instruments. |
Principles of Consolidation | The consolidated financial statements include the accounts of AfterMaster, Inc. and its subsidiaries. All significant inter-company accounts and transactions have been eliminated. |
Investments | Investment securities consist of readily marketable equity securities. Unrealized gains or losses on securities classified as available-for-sale are generally recorded in shareholders equity. If an available-for-sale security is other than temporarily impaired, the loss is charged to either earnings or shareholders equity depending on our intent and ability to retain the security until we recover the full cost basis and the extent of the loss attributable to the creditworthiness of the issuer. Investments in certain companies over which we exert significant influence, but do not control the financial and operating decisions, are accounted for as equity method investments. |
Notes and Other Receivables | Notes and other receivables are stated at amounts management expects to collect. An allowance for doubtful accounts is provided for uncollectible receivables based upon management's evaluation of outstanding accounts receivable at each reporting period considering historical experience and customer credit quality and delinquency status. Delinquency status is determined by contractual terms. Bad debts are written off against the allowance when identified. |
Fair Value Instruments | Cash is the Companys only financial asset or liability required to be recognized at fair value and is measured using quoted prices for active markets for identical assets (Level 1 fair value hierarchy). The carrying amounts reported in the balance sheets for notes receivable and accounts payable and accrued expenses approximate their fair market value based on the short-term maturity of these instruments. The fair value of the Companys notes payable at September 30, 2015 is approximately $4,952,488. Market prices are not available for the Companys loans due to related parties or its other notes payable, nor are market prices of similar loans available. The Company determined that the fair value of the notes payable based on its amortized cost basis due to the short term nature and current borrowing terms available to the Company for these instruments. |
Derivative Liabilities | The Company has financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in the Companys balance sheet. The Company measures these instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change. The Company has a sequencing policy regarding share settlement wherein instruments with the earliest issuance date would be settled first. The sequencing policy also considers contingently issuable additional shares, such as those issuable upon a stock split, to have an issuance date to coincide with the event giving rise to the additional shares. Using this sequencing policy, all instruments convertible into common stock, including warrants and the conversion feature of notes payable, issued subsequent to August 14 2014 are derivative liabilities. The Company values these convertible notes payable using the multinomial lattice method that values the derivative liability within the notes based on a probability weighted discounted cash flow model. The resulting liability is valued at each reporting date and the change in the liability is reflected as change in derivative liability in the statement of operations. |
Income Taxes | There is no income tax provision for the three months ended September 30, 2015 and 2014 due to net operating losses for which there is no benefit currently available. At September 30, 2015, the Company had deferred tax assets associated with state and federal net operating losses. The Company has recorded a corresponding full valuation allowance as it is more likely than not that some portion of all of the deferred tax assets will not be realized. |
Recent Accounting Pronouncements | Management has considered all recent accounting pronouncements issued since the last audit of our consolidated financial statements. The Companys management believes that these recent pronouncements will not have a material effect on the Companys consolidated financial statements. |
4. SECURITIES AVAILABLE-FOR-S19
4. SECURITIES AVAILABLE-FOR-SALE (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Securities Available-for-sale | |
Securities Available-for-Sale | September 30, 2015 Amortized cost Unrealized losses Gross unrealized losses Fair value Equity securities $ 1,800,000 $ (600,000 ) $ - $ 1,200,000 June 30, 2015 Amortized cost Unrealized losses Gross unrealized losses Fair value Equity securities $ - $ - $ - $ - |
5. NOTES PAYABLE (Tables)
5. NOTES PAYABLE (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Notes Payable-Related Parties | September 30, June 30, 2015 2015 Various term notes with total face value of $3,925,000 issued from February 2010 to April 2013, interest rates range from 10% to 15%, net of unamortized discount of $0 and $1,761 as of June 30, 2015 and 2014, respectively. $ 3,925,000 $ 3,925,000 Total convertible notes payable related parties 3,925,000 3,925,000 Less current portion 3,925,000 3,925,000 Convertible notes payable related parties, long-term $ - $ - |
Schedule of Convertible Notes Payable-Non-Related Parties | September 30, June 30, 2015 2015 $15,000 face value, issued in October 2011, interest rate of 10%, matures in June 2012, net of unamortized discount of $0 and $0 as of September 30, 2015 and June 30, 2015, respectively. $ 15,000 $ 15,000 $50,000 face value, issued in August 2012, interest rate of 10%, matures in February 2013, net of unamortized discount of $0 and $0 as of September 30, 2015 and June 30, 2015, respectively. 50,000 50,000 $10,000 face value, issued in September 2012, interest rate of 10%, matures in March 2013, net of unamortized discount of $0 and $0 as of September 30, 2015 and June 30, 2015, respectively. 10,000 10,000 $50,000 face value of which $17,500 was paid, $9,600 was converted, and $22,900 was forgiven. - 40,400 $30,000 face value of which $30,000 was forgiven. - 30,000 $20,000 face value of which $20,000 was forgiven. - 20,000 $30,000 face value of which $30,000 was converted. - 30,000 $15,000 face value of which $15,000 was converted. - 15,000 $20,000 face value, issued in June 2014, interest rate of 6%, matures December 2014, net unamortized discount of $0 and $0 as of September 30, 2015 and June 30, 2015, respectively. 20,000 20,000 $20,000 face value of which $20,000 was converted. - 20,000 $25,000 face value, issued in June 2014, interest rate of 6%, matures September 2014, net unamortized discount of $0 and $0 as of September 30, 2015 and June 30, 2015, respectively. 25,000 25,000 $10,000 face value of which $10,000 was converted. - 10,000 $7,000 face value, issued in July 2014, interest rate of 6%, matures October 2014, net unamortized discount of $0 and $0 as of September 30, 2015 and June 30, 2015, respectively. 7,000 7,000 $5,000 face value of which $5,000 was converted. - 5,000 $100,000 face value, issued in August 2014, interest rate of 6%, matures December 2014, net unamortized discount of $0 and $0 as of September 30, 2015 and June 30, 2015, respectively. 100,000 100,000 $100,000 face value, issued in August 2014, interest rate of 6%, matures December 2014, net unamortized discount of $0 and $0 as of September 30, 2015 and June 30, 2015, respectively. 100,000 100,000 $40,000 face value of which $40,000 was converted. - 40,000 $35,000 face value, issued in November 2014, interest rate of 6%, matures January 2015, net unamortized discount of $0 and $0 as of September 30, 2015 and June 30, 2015, respectively. 35,000 35,000 Total convertible notes payable non-related parties 362,000 572,400 Less current portion 362,000 572,400 Convertible notes payable non-related parties, long-term $ - $ - |
Schedule of Non-Convertible Notes Payable-Related Parties | September 30, June 30, 2015 2015 Various term notes with total face value of $610,000 issued from April 2011 to January 2014, interest rates range from 0% to 15%, net of unamortized discount of $0 as of June 30, 2015 and June 30, 2014, respectively, of which $35,000 has been paid. $ 575,000 $ 575,000 Face value of $50,000, issued in December 2014, matures in January 2015, note bears interest at 0%. 50,000 50,000 Total notes payable related parties 625,000 625,000 Less current portion 625,000 625,000 Notes payable - related parties, long term $ - $ - |
Schedule of Non-Convertible Notes Payable-Non-Related Parties | September 30, June 30, 2015 2015 Various term notes with total face value of $40,488 due upon demand, interest rates range from 0% to 14%. $ 40,488 $ 40,488 Total note payable non-related parties 40,488 40,488 Less current portion 40,488 40,488 Notes payable non-related parties, long-term $ - $ - |
6. CONVERTIBLE PREFERRED STOCK
6. CONVERTIBLE PREFERRED STOCK (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Convertible Preferred Stock Tables | |
Schedule of Preferred Stock | Shares Shares Liquidation Allocated Outstanding Preference Series A Convertible Preferred 100,000 15,500 - Series A-1 Convertible Preferred 3,000,000 685,000 760,896 Series B Convertible Preferred 200,000 3,500 79,099 Series C Convertible Preferred 1,000,000 13,404 - Series D Convertible Preferred 375,000 130,000 130,000 Series E Convertible Preferred 1,000,000 275,000 275,000 Series P Convertible Preferred 600,000 86,640 - Series S Convertible Preferred 50,000 - - Total Preferred Stock 6,325,000 1,209,044 $ 1,244,995 |
8. STOCK PURCHASE OPTIONS AND22
8. STOCK PURCHASE OPTIONS AND WARRANTS (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Schedule of options activity | The following table summarizes the changes in options outstanding of the Company during the fiscal year ended September 30, 2015. Date Issued Number of Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Expiration Date (yrs) Value if Exercised Balance June 30, 2015 80,000 $ 0.66 $ 0.59 1.20 $ 52,900 Granted - - - - - Exercised - - - - - Cancelled/Expired (25,000 ) 0.85 - - (21,250 ) Outstanding as of September 30, 2015 55,000 $ 0.58 $ 0.55 1.44 $ 31,650 The following table summarizes the changes in options outstanding of the Company during the fiscal year ended June 30, 2015. Date Issued Number of Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Expiration Date (yrs) Value if Exercised Balance June 30, 2014 381,429 $ 0.55 $ 0.12 0.62 $ 209,643 Granted - - - - - Exercised - - - - - Cancelled/Expired (301,429 ) 0.52 - - (156,743 ) Outstanding as of June 30, 2015 80,000 $ 0.66 $ 0.59 1.20 $ 52,900 |
Schedule of Assumptions Used to Estimate Fair Value | September 30, June 30, 2015 2015 Expected volatility 109-110 % 71-142 % Expected dividends 0 % 0 % Expected term 3-5 Years .25-10 Years Risk-free interest rate 0.92-1.70 % 0.00-2.35 % |
Schedule of Warrants | The following table summarizes the changes in warrants outstanding issued to employees and non-employees of the Company during the three months ended September 30, 2015. Number of Warrants Weighted Average Exercise Price Weighted Average Grant Date Fair Value Expiration Date (yrs) Value if Exercised Outstanding as of June 30, 2015 31,951,778 $ 0.43 $ 0.50 4.98 $ 13,585,289 Granted 338,000 0.65 0.34 3.60 221,350 Exercised - - - - - Cancelled/Expired (95,000 ) - - - (46,400 ) Outstanding as of September 30, 2015 32,194,778 $ 0.43 $ 0.49 4.73 $ 13,760,239 The following table summarizes the changes in warrants outstanding issued to employees and non-employees of the Company during the fiscal year ended June 30, 2015. Number of Warrants Weighted Average Exercise Price Weighted Average Grant Date Fair Value Expiration Date (yrs) Value if Exercised Outstanding as of June 30, 2015 8,332,579 $ 0.76 $ 0.70 2.96 $ 6,370,432 Granted 26,434,199 0.24 0.25 5.56 9,821,607 Exercised (750,000 ) - - - (160,000 ) Cancelled/Expired (2,065,000 ) - - - (2,446,750 ) Outstanding as of June 30, 2015 31,951,778 $ 0.43 $ 0.50 4.98 $ 13,585,289 |
10. FAIR VALUE MEASUREMENTS (Ta
10. FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements Tables | |
Schedule or fair value measurements | Liabilities measured at fair value on a recurring basis at September 30, 2015, are summarized as follows: Level 1 Level 2 Level 3 Total Fair value of derivatives $ - $ - $ - $ - Securities available-for-sale $ 1,200,000 $ - $ - $ 1,200,000 Liabilities measured at fair value on a recurring basis at June 30, 2015, are summarized as follows: Level 1 Level 2 Level 3 Total Fair value of derivatives $ - $ 12,814,941 $ - $ 12,814,941 Securities available-for-sale $ - $ - $ - $ - |
11. COMMITMENTS AND CONTINGEN24
11. COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Annual operating lease obligations | Year Lease Payments 2015 $ 89,214 2016 110,877 Thereafter 56,430 Total $ 256,521 |
4. SUMMARY OF SIGNIFICANT ACCOU
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | |
Summary Of Significant Accounting Policies Details Narrative | |||
Deemed dividends on Preferred Stock | $ 16,789 | $ 17,016 | |
Fair value of notes payable | $ 5,418,236 | ||
Potentially dilutive Common Shares excluded from calculation | 12,200,097 | 21,174,420 |
5. NOTES PAYABLE (Details)
5. NOTES PAYABLE (Details) - USD ($) | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 |
Total convertible notes payable - related parties | $ 3,932,239 | $ 3,925,000 | |
Less current portion | $ 3,925,000 | $ 3,925,000 | |
Convertible related party notes payable, net of current portion | |||
Convertible Notes Payable One [Member] | |||
Total convertible notes payable - related parties | $ 7,800 | ||
Convertible Notes Payable [Member] | |||
Total convertible notes payable - related parties | $ 3,925,000 | $ 3,924,439 |
5. NOTES PAYABLE (Details 1)
5. NOTES PAYABLE (Details 1) - USD ($) | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 |
Total convertible notes payable - non-related parties | $ 764,705 | $ 827,748 | |
Less current portion | $ 362,000 | $ 572,400 | |
Convertible notes payable - non-related parties, long-term | |||
Convertible Notes Payable Eighteen [Member] | |||
Total convertible notes payable - non-related parties | 20,000 | $ 1,202 | |
Convertible Notes Payable Thirty Six [Member] | |||
Total convertible notes payable - non-related parties | $ 35,000 | ||
Convertible Notes Payable [Member] | |||
Total convertible notes payable - non-related parties | $ 100,000 | ||
Convertible Notes Payable Thirty Five [Member] | |||
Total convertible notes payable - non-related parties | $ 25,000 | ||
Convertible Notes Payable One [Member] | |||
Total convertible notes payable - non-related parties | $ 15,000 | $ 15,000 | |
Convertible Notes Payable Thirty Four [Member] | |||
Total convertible notes payable - non-related parties | |||
Convertible Notes Payable Two [Member] | |||
Total convertible notes payable - non-related parties | $ 75,000 | ||
Convertible Notes Payable Thirty Three [Member] | |||
Total convertible notes payable - non-related parties | $ 40,000 | ||
Convertible Notes Payable Three [Member] | |||
Total convertible notes payable - non-related parties | 50,000 | $ 50,000 | |
Convertible Notes Payable Thirty Two [Member] | |||
Total convertible notes payable - non-related parties | 40,000 | ||
Convertible Notes Payable Four [Member] | |||
Total convertible notes payable - non-related parties | 10,000 | $ 10,000 | |
Convertible Notes Payable Thirty One [Member] | |||
Total convertible notes payable - non-related parties | 40,000 | ||
Convertible Notes Payable Five [Member] | |||
Total convertible notes payable - non-related parties | 160,748 | $ 160,748 | |
Convertible Notes Payable Thirty [Member] | |||
Total convertible notes payable - non-related parties | 100,000 | ||
Convertible Notes Payable Six [Member] | |||
Total convertible notes payable - non-related parties | 30,000 | $ 30,000 | |
Convertible Notes Payable Twenty Nine [Member] | |||
Total convertible notes payable - non-related parties | 100,000 | ||
Convertible Notes Payable Seven [Member] | |||
Total convertible notes payable - non-related parties | 20,000 | $ 20,000 | |
Convertible Notes Payable Twenty Eight [Member] | |||
Total convertible notes payable - non-related parties | $ 30,000 | ||
Convertible Notes Payable Eight [Member] | |||
Total convertible notes payable - non-related parties | $ 100,000 | ||
Convertible Notes Payable Twenty Seven [Member] | |||
Total convertible notes payable - non-related parties | |||
Convertible Notes Payable Nine [Member] | |||
Total convertible notes payable - non-related parties | $ 50,000 | ||
Convertible Notes Payable Twenty Six [Member] | |||
Total convertible notes payable - non-related parties | |||
Convertible Notes Payable Ten [Member] | |||
Total convertible notes payable - non-related parties | $ 50,000 | ||
Convertible Notes Payable Twenty Five [Member] | |||
Total convertible notes payable - non-related parties | |||
Convertible Notes Payable Eleven [Member] | |||
Total convertible notes payable - non-related parties | $ 46,132 | ||
Convertible Notes Payable Twenty Four [Member] | |||
Total convertible notes payable - non-related parties | $ 5,000 | ||
Convertible Notes Payable Twelve [Member] | |||
Total convertible notes payable - non-related parties | 30,000 | $ 22,989 | |
Convertible Notes Payable Twenty Three [Member] | |||
Total convertible notes payable - non-related parties | $ 7,000 | ||
Convertible Notes Payable Thirteen [Member] | |||
Total convertible notes payable - non-related parties | $ 20,000 | ||
Convertible Notes Payable Twenty Two [Member] | |||
Total convertible notes payable - non-related parties | |||
Convertible Notes Payable Fourteen [Member] | |||
Total convertible notes payable - non-related parties | $ 9,563 | ||
Convertible Notes Payable Twenty One [Member] | |||
Total convertible notes payable - non-related parties | $ 10,000 | ||
Convertible Notes Payable Fifteen [Member] | |||
Total convertible notes payable - non-related parties | $ 15,000 | $ 902 | |
Convertible Notes Payable Twenty [Member] | |||
Total convertible notes payable - non-related parties | |||
Convertible Notes Payable Sixteen [Member] | |||
Total convertible notes payable - non-related parties | $ 20,000 | $ 1,202 | |
Convertible Notes Payable Nineteen [Member] | |||
Total convertible notes payable - non-related parties | $ 25,000 | ||
Convertible Notes Payable Seventeen [Member] | |||
Total convertible notes payable - non-related parties | $ 1,967 |
5. NOTES PAYABLE (Details 2)
5. NOTES PAYABLE (Details 2) - USD ($) | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 |
Notes payable - related parties | $ 610,000 | $ 625,000 | |
Less current portion | $ 625,000 | $ 625,000 | |
Notes payable - related parties, long term | |||
Convertible Notes Payable One [Member] | |||
Notes payable - related parties | 50,000 | ||
Convertible Notes Payable [Member] | |||
Notes payable - related parties | $ 575,000 | $ 610,000 |
5. NOTES PAYABLE (Details 3)
5. NOTES PAYABLE (Details 3) - USD ($) | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 |
Note payable - non-related parties | $ 40,488 | $ 40,488 | |
Less current portion | $ 40,488 | $ 40,488 | |
Notes payable - non-related parties, long-term | |||
Convertible Notes Payable [Member] | |||
Note payable - non-related parties | $ 40,488 | $ 40,488 |
6. CONVERTIBLE PREFERRED STOC30
6. CONVERTIBLE PREFERRED STOCK (Details) | Sep. 30, 2015shares |
Liquidation Preference | |
Series A Convertible Preferred | |
Series A-1 Convertible Preferred | 712,021 |
Series B Convertible Preferred | 79,099 |
Series C Convertible Preferred | |
Series D Convertible Preferred | 130,000 |
Series E Convertible Preferred | 275,000 |
Series P Convertible Preferred | |
Series S Convertible Preferred | |
Total Preferred Stock | 1,196,021 |
Shares Allocated | |
Series A Convertible Preferred | 100,000 |
Series A-1 Convertible Preferred | 2,762,931 |
Series B Convertible Preferred | 200,000 |
Series C Convertible Preferred | 1,000,000 |
Series D Convertible Preferred | 375,000 |
Series E Convertible Preferred | 1,000,000 |
Series P Convertible Preferred | 600,000 |
Series S Convertible Preferred | 50,000 |
Total Preferred Stock | 6,087,931 |
Shares Outstanding | |
Series A Convertible Preferred | 15,500 |
Series A-1 Convertible Preferred | 641,000 |
Series B Convertible Preferred | 3,500 |
Series C Convertible Preferred | 13,404 |
Series D Convertible Preferred | 130,000 |
Series E Convertible Preferred | 275,000 |
Series P Convertible Preferred | 86,640 |
Series S Convertible Preferred | |
Total Preferred Stock | 1,165,044 |
6. CONVERTIBLE PREFERRED STOC31
6. CONVERTIBLE PREFERRED STOCK (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Mar. 31, 2015 | |
Equity [Abstract] | ||
Devidends on preferred stock | $ 51,048 | $ 48,777 |
Devidends in arrears | $ 638,938 |
7. COMMON STOCK (Details Narrat
7. COMMON STOCK (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Mar. 31, 2015 | Jun. 30, 2014 | Sep. 30, 2015 | Jun. 30, 2015 | |
Text Block [Abstract] | |||||
Common stock, par value | $ 0.001 | $ 0.001 | |||
Common stock, authorized shares | 250,000,000 | 250,000,000 | |||
Common stock, issued shares | 97,311,664 | 95,280,257 | |||
Common stock, outstanding shares | 97,311,664 | 95,280,257 | |||
Common shares issue for cash, shares | 7,150,000 | 7,268,858 | |||
Common shares issue for cash, value | $ 699,065 | $ 1,876,025 | |||
Warrants issued to purchase common stock | 196,804 | 1,855,000 | |||
Stock option expense | $ 259,212 | $ 10,713 | |||
Employee stock option expense recognized including amortization of warrants issued in prior periods | $ 1,329,758 | ||||
Common stock issued for convertible note, shares | 612,500 | 43,500 | |||
Common stock issued for convertible note, value | $ 164,349 | $ 10,261 | |||
Beneficial conversion feature | $ 461,000 | $ 527,000 | |||
Share based compensation to employees and non-employees, shares issued | 2,033,349 | 2,760,221 | |||
Share based compensation to employees and non-employees, value of shares issued | $ 547,870 | $ 720,333 | |||
Shares issued for interest expense on outstanding notes payable | 2,199,095 | 2,424,563 | |||
Value of shares issued for interest expense on outstanding notes payable | $ 575,723 | $ 1,549,213 | |||
Common stock issued for services and rent | 356,375 | ||||
Common stock issued for services and rent value | $ 146,017 | ||||
Common Stock issued for the conversion of preferred stock | 110,000 | ||||
Common Stock issued for the conversion warrants | 50,000 | ||||
Common stock issued for conversion of note, shares | 5,190,947 | ||||
Common stock issued for conversion of note, value | $ 603,455 |
8. STOCK PURCHASE OPTIONS AND33
8. STOCK PURCHASE OPTIONS AND WARRANTS (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Jun. 30, 2014 | |
Number of Options/Warrants Outstanding | 8,332,579 | 7,530,063 |
Number of Options/Warrants Granted | 1,366,016 | |
Number of Options/Warrants Exercised | (65,000) | |
Number of Options/Warrants Canceled/Expired | (498,500) | |
Number of Options/Warrants Outstanding | 8,332,579 | |
Weighted Average Exercise Price Outstanding, Beginning | $ 0.75 | $ 0.67 |
Weighted Average Exercise Price Granted | 1.30 | |
Weighted Average Exercise Price Exercised | (0.25) | |
Weighted Average Exercise Price Canceled/Expired | (0.70) | |
Weighted Average Exercise Price Outstanding, Ending | 0.75 | |
Weighted Average Grant Date Fair Value Outstanding beginning | $ 0.70 | 2.45 |
Weighted Average Grant Date Fair Value Outstanding, granted | 0.23 | |
Weighted Average Grant Date Fair Value Outstanding, exercised | 0.14 | |
Weighted Average Grant Date Fair Value Outstanding, ending | $ 0.70 | |
Expiration Date outstanding, beginning | 4 years 2 months 1 day | |
Expiration Date, granted | 5 years | |
Expiration Date, ending | 2 years 11 months 16 days | |
Value if Exercised, Beginning | $ 4,770,713 | |
Value if Exercised, Granted | 1,774,467 | |
Value if Exercised | (16,250) | |
Value if Exercised, Cancelled/Expired | (158,498) | |
Value if Exercised, Ending | $ 6,370,432 | |
Stock Options | ||
Number of Options/Warrants Outstanding | 381,429 | 613,429 |
Number of Options/Warrants Granted | 25,000 | |
Number of Options/Warrants Exercised | ||
Number of Options/Warrants Canceled/Expired | (301,429) | (257,000) |
Number of Options/Warrants Outstanding | 80,000 | 381,429 |
Weighted Average Exercise Price Outstanding, Beginning | $ 0.55 | $ 0.85 |
Weighted Average Exercise Price Granted | 0.15 | |
Weighted Average Exercise Price Canceled/Expired | (0.52) | (1.23) |
Weighted Average Exercise Price Outstanding, Ending | 0.66 | 0.55 |
Weighted Average Grant Date Fair Value Outstanding beginning | 0.12 | 1.2 |
Weighted Average Grant Date Fair Value Outstanding, granted | 0.24 | |
Weighted Average Grant Date Fair Value Outstanding, ending | $ 0.59 | $ 0.12 |
Expiration Date outstanding, beginning | 7 months 13 days | 1 year 11 months 12 days |
Expiration Date, granted | 5 years | |
Expiration Date, ending | 1 year 11 months 9 days | 7 months 13 days |
Value if Exercised, Beginning | $ 209,643 | $ 522,843 |
Value if Exercised, Granted | 3,750 | |
Value if Exercised, Cancelled/Expired | (156,743) | (316,950) |
Value if Exercised, Ending | $ 52,900 | $ 209,643 |
8. STOCK PURCHASE OPTIONS AND34
8. STOCK PURCHASE OPTIONS AND WARRANTS (Details 1) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Jun. 30, 2014 | |
Stock Purchase Options And Warrants Details 1 | ||
Expected volatility, minimum | 103.00% | 113.00% |
Expected volatility, maximum | 125.00% | 132.00% |
Expected dividends | 0.00% | 0.00% |
Expected term, minimum | 3 months | 2 years |
Expected term, maximum | 5 years | 10 years |
Risk-free interest rate, minimum | 0.02% | 0.35% |
Risk-free interest rate, maximum | 1.75% | 1.75% |
8. STOCK PURCHASE OPTIONS AND35
8. STOCK PURCHASE OPTIONS AND WARRANTS (Details 2) | 12 Months Ended |
Jun. 30, 2014USD ($)$ / sharesshares | |
Stock Purchase Options And Warrants Details 2 | |
Number of Options/Warrants Outstanding | shares | 7,530,063 |
Number of Warrants Granted | shares | 1,366,016 |
Number of Warrants Exercised | shares | (65,000) |
Number of Warrants Canceled/Expired | shares | (498,500) |
Number of Options/Warrants Outstanding | shares | 8,332,579 |
Weighted Average Exercise Price Outstanding, Beginning | $ 0.67 |
Weighted Average Exercise Price Granted | 1.30 |
Weighted Average Exercise Price Exercised | (0.25) |
Weighted Average Exercise Price Canceled/Expired | (0.70) |
Weighted Average Exercise Price Outstanding, Ending | 0.75 |
Weighted Average Grant Date Fair Value Outstanding beginning | 2.45 |
Weighted Average Grant Date Fair Value Outstanding, granted | 0.23 |
Weighted Average Grant Date Fair Value Outstanding, exercised | 0.14 |
Weighted Average Grant Date Fair Value Outstanding, ending | $ 0.70 |
Expiration Date outstanding, beginning | 4 years 2 months 1 day |
Expiration Date, granted | 5 years |
Expiration Date, ending | 2 years 11 months 16 days |
Value if Exercised, Beginning | $ | $ 4,770,713 |
Value if Exercised, Granted | $ | 1,774,467 |
Value if Exercised | $ | (16,250) |
Value if Exercised, Cancelled | $ | (158,498) |
Value if Exercised, Ending | $ | $ 6,370,432 |
8. STOCK PURCHASE OPTIONS AND36
8. STOCK PURCHASE OPTIONS AND WARRANTS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Mar. 31, 2015 | Jun. 30, 2014 | |
Notes to Financial Statements | |||
Stock purchase options issued | 25,000 | ||
Stock purchase options issued, value | $ 6,045 | ||
Employee stock option expense | $ 259,212 | $ 10,713 | |
Warrants issued | 7,821,133 | 1,366,016 | |
Warrants expired | 498,500 |
9. FINANCIAL INSTRUMENTS (Detai
9. FINANCIAL INSTRUMENTS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Mar. 31, 2015 | Jun. 30, 2015 | |
Gain (loss) from derivative instruments | $ 0 | $ 200,190 | |
Fair market value of the derivatives | $ 2,211,701 | $ 0 | |
Minimum [Member] | |||
Estimated term | 29 days | ||
Estimated volatility | 61.11% | ||
Discount rate | 0.00% | ||
Maximum [Member] | |||
Estimated term | 5 years | ||
Estimated volatility | 141.46% | ||
Discount rate | 2.35% |
10. FAIR VALUE MEASUREMENTS (De
10. FAIR VALUE MEASUREMENTS (Details) - USD ($) | Sep. 30, 2015 | Jun. 30, 2015 |
Fair value of derivatives | $ 0 | $ 12,814,941 |
Level 3 [Member] | ||
Fair value of derivatives | ||
Level 1 [Member] | ||
Fair value of derivatives | ||
Level 2 [Member] | ||
Fair value of derivatives | $ 2,211,701 |
11. COMMITMENTS AND CONTINGEN39
11. COMMITMENTS AND CONTINGENCIES (Details) | Mar. 31, 2015USD ($) |
Commitments And Contingencies Details | |
2,015 | $ 89,539 |
2,016 | 96,235 |
Thereafter | 100,200 |
Total | $ 285,974 |
11. COMMITMENTS AND CONTINGEN40
11. COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Mar. 31, 2015 | |
Remaining obligations under lease | $ 285,975 | |
Rent expense | $ 205,934 | 195,200 |
Paid in Cash | ||
Rent expense | 146,275 | 131,371 |
Paid with Stock | ||
Rent expense | $ 59,659 | $ 63,829 |