Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Dec. 31, 2013 | Feb. 20, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Moller International Inc | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Common Stock, Shares Outstanding | ' | 52,294,482 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000871344 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
CURRENT ASSETS | ' | ' |
Cash | $29,476 | $5,015 |
Advances to employees | 551 | 1,038 |
Prepaid Expenses | 6,517 | 0 |
Total current assets | 36,544 | 6,053 |
PROPERTY AND EQUIPMENT, net | 7,246 | 7,846 |
43,790 | 13,899 | |
CURRENT LIABILITIES | ' | ' |
Accounts payable, trade | 640,330 | 701,798 |
Accrued liabilities | 878,746 | 805,528 |
Accrued liabilities-majority shareholder | 6,234,752 | 5,860,191 |
Notes payable-other | 1,261,182 | 1,333,682 |
Note payable - majority shareholder | 2,327,370 | 2,476,382 |
Convertible notes payable, net of discount of $53,569 and $46,575 | 277,089 | 234,805 |
Notes payable - minority shareholders | 208,591 | 208,591 |
Derivative Liability | 275,745 | 492,461 |
Deferred wages – employees | 964,956 | 881,886 |
Customer deposits | 384,767 | 387,767 |
Total current liabilities | 13,453,528 | 13,383,091 |
LONG TERM LIABILITIES | ' | ' |
Deferred wages and interest-majority shareholder | 1,229,868 | 1,073,080 |
Total liabilities | 14,683,396 | 14,456,171 |
DEFICIT IN STOCKHOLDERS' DEFICIT | ' | ' |
Common stock, authorized, 150,000,000 shares, no par value 52,208,529 and 49,094,675 issued and outstanding respectively | 38,541,504 | 38,039,975 |
Accumulated deficit | -53,181,110 | -52,482,247 |
Total stockholders' deficit | -14,639,606 | -14,442,272 |
$43,790 | $13,899 |
CONSOLIDATED_BALANCE_SHEETS_Un1
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parentheticals) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
Convertible Notes Payable, Discount (in Dollars) | $53,569 | $46,575 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares outstanding | 52,208,529 | 49,094,675 |
Common stock, shares issued | 52,208,529 | 49,094,675 |
Common stock, par value (in Dollars per share) | $0 | $0 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
REVENUE | ' | ' | ' | ' |
Other revenue | $3,732 | $0 | $3,756 | $0 |
OPERATING EXPENSES | ' | ' | ' | ' |
Selling, general and administrative | 142,349 | 159,115 | 275,850 | 312,206 |
Depreciation and Amortization Expense | 367 | 0 | 600 | 0 |
Legal, Accounting, & Professional Fees | 4,360 | 0 | 5,660 | 0 |
Research and Development | 0 | 0 | 3,290 | 0 |
Rent expense to majority shareholder | 132,652 | 91,252 | 120,001 | 121,304 |
Total expenses | 279,728 | 250,367 | 405,401 | 433,510 |
Operating Loss | -275,996 | -250,367 | -401,645 | -433,510 |
OTHER EXPENSE | ' | ' | ' | ' |
Derivative gain (loss) | -201,203 | 0 | 52,209 | -38,776 |
Interest expense | -115,438 | -37,098 | -196,641 | -141,856 |
Interest expense- majority shareholder | -74,610 | -80,033 | -149,498 | -157,875 |
Total other expense | -391,251 | -117,131 | -293,930 | -338,507 |
NET INCOME (LOSS) | ($667,247) | ($367,498) | ($695,575) | ($772,017) |
Loss per common share, basic (in Dollars per share) | ($0.01) | ($0.01) | ($0.01) | ($0.02) |
Loss per common share, diluted (in Dollars per share) | ($0.01) | ($0.01) | ($0.01) | ($0.02) |
Weighted average common shares outstanding - Basic (in Shares) | 51,153,091 | 49,074,522 | 50,219,311 | 49,057,799 |
Weighted average common shares outstanding - Diluted (in Shares) | 51,153,091 | 49,074,522 | 50,219,311 | 49,057,799 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 6 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Flows From Operating Activities | ' | ' |
Net loss | ($695,575) | ($772,017) |
Adjustments to reconcile net loss to net cash Provided by (used in) operating activities: | ' | ' |
Depreciation expense | 600 | 466 |
Derivative (gain)/loss | -52,209 | 38,776 |
Stock based compensation | 34,630 | 19,255 |
Debt discount amortization | 99,228 | 68,347 |
Change in assets and liabilities: | ' | ' |
Prepaid expenses | -6,030 | -4,088 |
Other assets | 0 | 319 |
Accounts payable | -21,308 | -29,509 |
Accrued liabilities - related parties | 531,349 | 529,275 |
Accrued liabilities and deferred wages | 153,288 | 158,739 |
Net Cash Provided By (Used in) Operating Activities | 43,973 | 9,563 |
Cash Flows Provided from Financing Activities | ' | ' |
Proceeds from convertible notes payable | 129,500 | 0 |
Payments on related party note payable | -149,012 | -11,173 |
Net Cash Provided by (Used in) Financing Activities | -19,512 | -11,173 |
Net Increase (Decrease) In Cash | 24,461 | -1,610 |
Cash, Beginning of Year | 5,015 | 2,123 |
Cash, End of Year | 29,476 | 513 |
Supplemental Cash Flow Information: | ' | ' |
Interest paid | 1,715 | 31,376 |
Supplemental Disclosure of Non-Cash Financing Activities: | ' | ' |
Write off of derivative liability to additional paid-in capital | 270,729 | 0 |
Shares issued as repayment customer deposit | 0 | 772,017 |
N/P converted to common stock | 147,222 | 0 |
Debt discount for derivative liability | 106,222 | 0 |
Shares issued to settle accounts payable | $47,538 | $0 |
NOTE_A_ORGANIZATION_AND_BASIS_
NOTE A - ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | ' |
NOTE A – ORGANIZATION AND BASIS OF PRESENTATION | |
The accompanying unaudited financial statements of Moller International, Inc. (“MI”) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q. Accordingly, these financial statements may not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. These financial statements should be read in conjunction with the audited financial statements and the notes thereto for the fiscal year ended June 30, 2013 filed on Form 10-K. In the opinion of management, the accompanying unaudited financial statements contain all adjustments necessary to fairly present MI’s financial position as of December 31, 2013, and its results of operations and its cash flows for the six months ended September 30, 2013 and 2012. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited consolidated financial statements for 2013 as reported in the 10-K have been omitted. | |
Embedded conversion features | |
The Company evaluates embedded conversion features within convertible debt and convertible preferred stock under ASC 815 “Derivatives and Hedging” to determine whether the embedded conversion features should be bifurcated from the host instrument and accounted for as a derivative at fair value with changes in fair value recorded in earnings. If the conversion feature does not require derivative treatment under ASC 815, the instrument is evaluated under ASC 470-20 “Debt with Conversion and Other Options” for consideration of any beneficial conversion feature. | |
NOTE_B_GOING_CONCERN
NOTE B - GOING CONCERN | 6 Months Ended |
Dec. 31, 2013 | |
Going Concern Disclosure [Abstract] | ' |
Going Concern Disclosure [Text Block] | ' |
NOTE B – GOING CONCERN | |
As of December 31, 2013, MI had an accumulated deficit and a working capital deficit. In addition, MI is currently in the development stage of the Skycar and Rotapower engine programs, and has no revenue producing products. Successful completion of product development activities for either or both of these programs will require significant additional sources of capital. These conditions raise substantial doubt as to our ability to continue as a going concern. Historically, funding was provided by certain shareholders, including the majority shareholder, in the form of short-term notes payable. In addition, the majority shareholder granted us a deferral on the payment of rent for our building. There is no assurance that we will continue to receive funding from shareholders, particularly our major shareholder given he has filed for protection under the federal Chapter 11 reorganization provisions of the federal bankruptcy law. Consequently, we are evaluating several alternatives to raise the additional capital through debt or equity transactions. There is no assurance that our efforts will be successful, however, and the financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern. | |
NOTE_C_ACCRUED_LIABILITIES_MAJ
NOTE C - ACCRUED LIABILITIES - MAJORITY SHAREHOLDER | 6 Months Ended |
Dec. 31, 2013 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | ' |
Other Liabilities Disclosure [Text Block] | ' |
NOTE C – ACCRUED LIABILITIES – MAJORITY SHAREHOLDER | |
As of December 31, 2013, MI had outstanding accrued liabilities consisting of accrued rent and accrued interest to our majority shareholder totaling $6,234,752. | |
NOTE_D_NOTES_PAYABLE_DERIVATIV
NOTE D - NOTES PAYABLE & DERIVATIVE LIABILITIES | 6 Months Ended | ||||
Dec. 31, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Debt Disclosure [Text Block] | ' | ||||
NOTE D – NOTES PAYABLE & DERIVATIVE LIABILITIES | |||||
Notes Payable | |||||
During the six months ended December 31, 2013 and 2012 MI made repayments on related party notes payable of $149,012 and $11,173, respectively. | |||||
Convertible Notes Payable & Derivative Liabilities | |||||
During the six months ended December 31, 2013 and 2012 MI received $129,500 related to convertible promissory notes. The borrowings are due nine to twelve months after issuance, carry an interest rate of 0% to 8% for 90 days, then increases to 12%, and is convertible into common stock at the lesser of $0.24 or 60% of the lowest trading price in the 25 trading days prior to conversion and for some instruments 53% and 58% of the average of the three lowest days in the ten trading days prior to conversion. During the six months ended December 31, 2013, promissory notes totaling $147,222 were converted to 2,651,874 shares of MI common stock. | |||||
The Company analyzed the conversion options for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that for the instruments immediately convertible, the embedded conversion features should be classified as liabilities due to their being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options. The embedded conversion features were measured at fair value at inception with the change in fair value recorded to earnings. Additionally, because there is no explicit limit to the number of shares to be issued upon conversion of the above instruments, the Company cannot determine if it will have sufficient authorized shares to settle all other share-settleable instruments, including the warrants granted above. As a result, all other share-settable instruments have also been classified as liabilities. | |||||
Derivative Liabilities | |||||
30-Jun-13 | $ | 492,461 | |||
Additions to derivatives | 106,222 | ||||
Write off of derivative liability to additional paid-in capital due to conversion of related notes payable | -270,729 | ||||
Change in fair value | -52,209 | ||||
31-Dec-13 | $ | 275,745 | |||
Discount amortization charged to interest expense during the six months ended December 31, 2013, totaled $99,228. | |||||
NOTE_E_STOCKBASED_COMPENSATION
NOTE E - STOCK-BASED COMPENSATION | 6 Months Ended |
Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' |
NOTE E – STOCK-BASED COMPENSATION | |
During the six months ended December 31, 2013, MI issued 396,326 shares of common stock for settlement of services and liabilities to outside consultants and certain employees. We valued these shares at the fair market value on the dates of issuance of $34,630 for the services and $47,538 for the accounts payable. | |
MI also issued 2,651,874 shares of commons stock in settlement of $147,222 convertible promissory notes. | |
NOTE_F_FAIR_VALUE_MEASUREMENTS
NOTE F - FAIR VALUE MEASUREMENTS | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||
NOTE F – FAIR VALUE MEASUREMENTS | |||||||||||||||||
The Company measures fair value in accordance with a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: | |||||||||||||||||
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||||||||||||||||
Level 2 | Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and | ||||||||||||||||
Level 3 | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). | ||||||||||||||||
The following table sets forth the Company's consolidated financial assets and liabilities measured at fair value by level within the fair value hierarchy as of September 30, 2013 and June 30, 2013. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
LIABILITIES: | |||||||||||||||||
Derivative liabilities- 12/31/2013 | 275,745 | - | - | 275,745 | |||||||||||||
Derivative liabilities – 6/30/2013 | 492,461 | 492,461 | |||||||||||||||
NOTE_G_SUBSEQUENT_EVENTS
NOTE G - SUBSEQUENT EVENTS | 6 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
NOTE G – SUBSEQUENT EVENTS | |
Subsequent to December 31, 2013, the Company issued a total of 40,104 shares of common stock and 3,356 shares of our subsidiary’s stock to convert a loan with a principal balance of $10,000. Additionally 15,994 shares were issued for services. | |
NOTE_D_NOTES_PAYABLE_DERIVATIV1
NOTE D - NOTES PAYABLE & DERIVATIVE LIABILITIES (Tables) | 6 Months Ended | ||||
Dec. 31, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Schedule of Derivative Liabilities at Fair Value [Table Text Block] | 'The Company analyzed the conversion options for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that for the instruments immediately convertible, the embedded conversion features should be classified as liabilities due to their being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options. The embedded conversion features were measured at fair value at inception with the change in fair value recorded to earnings. Additionally, because there is no explicit limit to the number of shares to be issued upon conversion of the above instruments, the Company cannot determine if it will have sufficient authorized shares to settle all other share-settleable instruments, including the warrants granted above. As a result, all other share-settable instruments have also been classified as liabilities. | ||||
Derivative Liabilities | |||||
30-Jun-13 | $ | 492,461 | |||
Additions to derivatives | 106,222 | ||||
Write off of derivative liability to additional paid-in capital due to conversion of related notes payable | -270,729 | ||||
Change in fair value | -52,209 | ||||
31-Dec-13 | $ | 275,745 |
NOTE_F_FAIR_VALUE_MEASUREMENTS1
NOTE F - FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block] | 'The following table sets forth the Company's consolidated financial assets and liabilities measured at fair value by level within the fair value hierarchy as of September 30, 2013 and June 30, 2013. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
LIABILITIES: | |||||||||||||||||
Derivative liabilities- 12/31/2013 | 275,745 | - | - | 275,745 | |||||||||||||
Derivative liabilities – 6/30/2013 | 492,461 | 492,461 |
NOTE_C_ACCRUED_LIABILITIES_MAJ1
NOTE C - ACCRUED LIABILITIES - MAJORITY SHAREHOLDER (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | ' | ' |
Due to Related Parties, Current | $6,234,752 | $5,860,191 |
NOTE_D_NOTES_PAYABLE_DERIVATIV2
NOTE D - NOTES PAYABLE & DERIVATIVE LIABILITIES (Details) (USD $) | 6 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
NOTE D - NOTES PAYABLE & DERIVATIVE LIABILITIES (Details) [Line Items] | ' | ' |
Repayments of Related Party Debt | $149,012 | $11,173 |
Proceeds from Convertible Debt | 129,500 | 0 |
Debt Conversion, Original Debt, Amount | 147,222 | 0 |
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | 2,651,874 | ' |
Amortization of Debt Discount (Premium) | 99,228 | 68,347 |
Convertible Notes Payable [Member] | ' | ' |
NOTE D - NOTES PAYABLE & DERIVATIVE LIABILITIES (Details) [Line Items] | ' | ' |
Proceeds from Convertible Debt | 129,500 | ' |
Debt Instrument, Maturity Date, Description | 'The borrowings are due nine to twelve months after issuance | ' |
Debt Instrument, Interest Rate Terms | 'interest rate of 0% to 8% for 90 days, then increases to 12% | ' |
Debt Instrument, Convertible, Terms of Conversion Feature | 'convertible into common stock at the lesser of $0.24 or 60% of the lowest trading price in the 25 trading days prior to conversion and for some instruments 53% and 58% of the average of the three lowest days in the ten trading days prior to conversion | ' |
Debt Conversion, Original Debt, Amount | $147,222 | ' |
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | 2,651,874 | ' |
Convertible Notes Payable [Member] | Minimum [Member] | ' | ' |
NOTE D - NOTES PAYABLE & DERIVATIVE LIABILITIES (Details) [Line Items] | ' | ' |
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $0.24 | ' |
NOTE_D_NOTES_PAYABLE_DERIVATIV3
NOTE D - NOTES PAYABLE & DERIVATIVE LIABILITIES (Details) - Schedule of Derivative Liabilities at Fair Value (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Derivative Liabilities at Fair Value [Abstract] | ' | ' | ' | ' |
30-Jun-13 | ' | ' | $492,461 | ' |
Additions to derivatives | ' | ' | 106,222 | 0 |
Write off of derivative liability to additional paid-in capital due to conversion of related notes payable | ' | ' | -270,729 | 0 |
Change in fair value | 201,203 | 0 | -52,209 | 38,776 |
31-Dec-13 | $275,745 | ' | $275,745 | ' |
NOTE_E_STOCKBASED_COMPENSATION1
NOTE E - STOCK-BASED COMPENSATION (Details) (USD $) | 6 Months Ended |
Dec. 31, 2013 | |
NOTE E - STOCK-BASED COMPENSATION (Details) [Line Items] | ' |
Stock Issued During Period, Shares, Issued for Services (in Shares) | 396,326 |
Stock Issued During Period, Value, Issued for Services | $34,630 |
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | 2,651,874 |
Debt Conversion, Converted Instrument, Amount | 147,222 |
Accounts Payable [Member] | ' |
NOTE E - STOCK-BASED COMPENSATION (Details) [Line Items] | ' |
Stock Issued During Period, Value, Issued for Services | $47,538 |
NOTE_F_FAIR_VALUE_MEASUREMENTS2
NOTE F - FAIR VALUE MEASUREMENTS (Details) - Fair Value, Liabilities Measured on Recurring Basis (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
LIABILITIES: | ' | ' |
Derivative liabilities | $275,745 | $492,461 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
LIABILITIES: | ' | ' |
Derivative liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
LIABILITIES: | ' | ' |
Derivative liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
LIABILITIES: | ' | ' |
Derivative liabilities | $275,745 | $492,461 |
NOTE_G_SUBSEQUENT_EVENTS_Detai
NOTE G - SUBSEQUENT EVENTS (Details) (USD $) | 6 Months Ended | 2 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Feb. 20, 2014 | Feb. 20, 2014 | |
Subsequent Event [Member] | Subsequent Event [Member] | |||
Subsidiary Shares [Member] | ||||
NOTE G - SUBSEQUENT EVENTS (Details) [Line Items] | ' | ' | ' | ' |
Stock Issued During Period, Shares, Conversion of Convertible Securities | ' | ' | 3,356 | 40,104 |
Debt Conversion, Original Debt, Amount (in Dollars) | $147,222 | $0 | ' | $10,000 |
Stock Issued During Period, Shares, Issued for Services | 396,326 | ' | ' | 15,994 |