Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Oct. 21, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Moller International Inc | ' |
Document Type | '10-K | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Common Stock, Shares Outstanding | ' | 56,734,116 |
Entity Public Float | ' | $1,878,641 |
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 | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'FY | ' |
Balance_Sheet
Balance Sheet (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
CURRENT ASSETS | ' | ' |
Cash | $97,846 | $5,015 |
Prepaid and other current assets | 3,613 | 1,038 |
Total current assets | 101,459 | 6,053 |
PROPERTY AND EQUIPMENT, net | 7,076 | 7,846 |
Total assets | 108,535 | 13,899 |
CURRENT LIABILITIES | ' | ' |
Accounts payable, trade | 643,090 | 701,798 |
Accrued liabilities | 935,966 | 805,528 |
Accrued liabilities-majority shareholder | 6,615,469 | 5,860,191 |
Notes payable-other | 1,383,682 | 1,333,682 |
Note payable - majority shareholder | 2,188,947 | 2,476,382 |
Convertible notes payable, net of discount of $123,640 and $46,575 | 213,240 | 234,805 |
Notes payable - minority shareholders | 208,068 | 208,591 |
Derivative Liability | 281,251 | 492,461 |
Deferred wages – employees | 1,035,335 | 881,886 |
Deferred other income | 24,598 | 0 |
Customer deposits | 384,767 | 387,767 |
Total current liabilities | 13,914,413 | 13,383,091 |
LONG TERM LIABILITIES | ' | ' |
Deferred wages and interest-majority shareholder | 1,328,830 | 1,073,080 |
Total liabilities | 15,243,243 | 14,456,171 |
STOCKHOLDERS' DEFICIT | ' | ' |
Common stock, authorized, 150,000,000 shares, no par value 54,876,990 and 49,094,675 issued and outstanding respectively | 39,082,892 | 38,039,975 |
Accumulated deficit | -54,217,600 | -52,482,247 |
Total stockholders' deficit | -15,134,708 | -14,442,272 |
$108,535 | $13,899 |
Balance_Sheet_Parentheticals
Balance Sheet (Parentheticals) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Convertible Notes Payable, Discount (in Dollars) | $123,640 | $46,575 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares outstanding | 54,876,990 | 49,094,675 |
Common stock, shares issued | 54,876,990 | 49,094,675 |
Common stock, no par value (in Dollars per share) | $0 | $0 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
REVENUE | ' | ' |
Other revenue | $0 | $0 |
OPERATING EXPENSES | ' | ' |
Selling, general and administrative | 413,179 | 663,998 |
Rent expense to majority shareholder | 385,304 | 362,750 |
Depreciation and amortization | 770 | 930 |
Total expenses | 799,253 | 1,027,678 |
Operating Loss | -799,253 | -1,027,678 |
OTHER INCOME (EXPENSE) | ' | ' |
Interest expense | -432,428 | -341,780 |
Interest expense- majority shareholder | -301,373 | -311,863 |
Derivative loss | -202,299 | -195,125 |
Total other income (expense) | -936,100 | -848,768 |
NET LOSS | ($1,735,353) | ($1,876,446) |
Loss per common share - Basic and diluted (in Dollars per share) | ($0.03) | ($0.04) |
Weighted average common shares outstanding - Basic and diluted (in Shares) | 51,542,291 | 48,933,070 |
Statements_of_Stockholders_Equ
Statements of Stockholders' Equity (Deficit) (USD $) | Common Stock [Member] | Retained Earnings [Member] | Total |
Balance at Jun. 30, 2012 | $38,018,888 | ($50,605,801) | ($12,586,913) |
Balance (in Shares) at Jun. 30, 2012 | 48,990,896 | ' | ' |
Shares issued for services | 11,244 | ' | 11,244 |
Shares issued for services (in Shares) | 103,779 | ' | 103,779 |
Reclassification of derivative liability to common stock | ' | ' | 0 |
Common stock options issued for services | 9,843 | ' | 9,843 |
Net loss for the year | ' | -1,876,446 | -1,876,446 |
Balance at Jun. 30, 2013 | 38,039,975 | -52,482,247 | -14,442,272 |
Balance (in Shares) at Jun. 30, 2013 | 49,094,675 | ' | 49,094,675 |
Shares issued for services | 34,275 | ' | 34,275 |
Shares issued for services (in Shares) | 288,207 | ' | 288,207 |
Shares issued for settlement of accounts payable | 67,280 | ' | 67,280 |
Shares issued for settlement of accounts payable (in Shares) | 305,818 | ' | 305,818 |
Reclassification of derivative liability to common stock | 666,009 | ' | 666,009 |
Common stock issued in conversion of notes payable and accrued interest | 275,353 | ' | 275,353 |
Common stock issued in conversion of notes payable and accrued interest (in Shares) | 5,188,290 | ' | 5,188,290 |
Net loss for the year | ' | -1,735,353 | -1,735,353 |
Balance at Jun. 30, 2014 | $39,082,892 | ($54,217,600) | ($15,134,708) |
Balance (in Shares) at Jun. 30, 2014 | 54,876,990 | ' | 54,876,990 |
Statement_of_Cash_Flows
Statement of Cash Flows (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash Flows From Operating Activities | ' | ' |
Net loss | ($1,735,353) | ($1,876,446) |
Adjustments to reconcile net loss to net cash Provided by (used in) operating activities: | ' | ' |
Depreciation expense | 770 | 930 |
Bad debt expense | 0 | 59,581 |
Derivative loss | 202,299 | 195,125 |
Stock based compensation | 34,275 | 21,087 |
Debt discount amortization | 175,435 | 176,781 |
Change in assets and liabilities: | ' | ' |
Prepaid expenses and other current assets | -2,575 | -1,038 |
Other assets | 0 | -59,262 |
Accounts payable | 8,572 | -26,733 |
Accrued liabilities - majority shareholder | 1,011,028 | 1,056,664 |
Deferred other income | 24,598 | 0 |
Accrued liabilities and deferred wages- majority shareholder | 306,740 | 314,995 |
Net Cash Provided By (Used in) Operating Activities | 25,789 | -138,316 |
Cash Flows Provided from Financing Activities | ' | ' |
Principal borrowings on convertible notes payable | 375,000 | 402,500 |
Principal borrowing on debt – shareholder | 0 | 35,037 |
Payments on note payable- majority shareholder | -287,958 | -296,329 |
Payments on note payable- other | -20,000 | 0 |
Net Cash Used in Financing Activities | 67,042 | 141,208 |
Net Increase (Decrease) In Cash | 92,831 | 2,892 |
Cash, Beginning of Year | 5,015 | 2,123 |
Cash, End of Year | 97,846 | 5,015 |
Supplemental Cash Flow Information: | ' | ' |
Interest paid | 1,715 | 0 |
Income taxes paid | 0 | 0 |
Supplemental Disclosure of Non-Cash Financing Activities: | ' | ' |
Discount on convertible notes payable from derivative liability | 252,500 | 155,009 |
Accounts payable settled with common shares | 67,280 | 0 |
Reclassification of derivative liability to common stock | 666,009 | 0 |
Conversion of convertible notes payable and accrued interest to common stock | $275,353 | $0 |
NOTE_A_ORGANIZATION_AND_SIGNIF
NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | ' | ||||||||||||||||
NOTE A – ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||
Since incorporation in 1983, Moller International, Inc. (“we”, “our”, “MI”, or “the Company”) has devoted most of its efforts to the design and development of a Vertical Takeoff and Landing (VTOL) vehicle known as the Skycar. One of the enabling technologies for the Skycar is the Rotapower® rotary engine, which has been the focus of our attention for over ten years. The Company is now attempting to attract a suitable manufacturer for its engine technology, although there is no assurance at this stage that the Company will be successful in these efforts. | |||||||||||||||||
Dr. Paul S. Moller is the majority shareholder of MI. | |||||||||||||||||
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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting periods. Actual results could differ from those estimates. | |||||||||||||||||
Cash and cash equivalents | |||||||||||||||||
For the purposes of the statements of cash flows, cash equivalents include all highly liquid investments with original maturities of three months or less. | |||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment is stated at cost net of accumulated depreciation. Depreciation is recorded utilizing the straight-line method over the estimated useful lives, ranging from five to fifteen years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. | |||||||||||||||||
Long-Lived Assets | |||||||||||||||||
In accordance with the guidance in FASB ASC 360-10, Property, Plant and Equipment, we periodically assess the impairment of long-lived assets when events or changes in circumstances indicate that the carrying value may not be recoverable. The guidance requires impairment losses to be recorded on long-lived assets used in operations when the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. As of June 30, 2014 and 2013, there were no impairments to our long-lived assets. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
Financial instruments are recorded at fair value in accordance with the standard for “Fair Value Measurements codified within ASC 820”, which defines fair values, establishes a three level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measurements: | |||||||||||||||||
• Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical asset or liabilities in active markets. | |||||||||||||||||
• Level 2 – inputs to the valuation methodology include closing prices for similar assets and liabilities in active markets, and inputs that are observable for the assets and liabilities, either directly, for substantially the full term of the financial instruments. | |||||||||||||||||
• Level 3 – inputs to the valuation methodology are observable and significant to the fair value. | |||||||||||||||||
The following table sets forth the Company’s financial assets and liabilities measured at fair value by level within the fair value hierarchy as of June 30, 2014 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. | |||||||||||||||||
30-Jun-14 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Derivative Liabilities | $ | 281,251 | - | - | $ | 281,251 | |||||||||||
30-Jun-13 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Derivative Liabilities | $ | 492,461 | - | - | $ | 492,461 | |||||||||||
The carrying value of short-term financial instruments, including cash, accounts receivables, accounts payable and accrued expenses and notes payable approximate fair value due to the relatively short period to maturity for these instruments. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
We recognize revenue when persuasive evidence of an arrangement exists, services have been rendered, the sales price is fixed or determinable, and collectability is reasonably assured. | |||||||||||||||||
Pursuant to the 1998 Technology Development and License Agreement, the Company bills for services provided to Freedom Motors, an affiliated entity and former subsidiary, which shares common ownership with some of the existing shareholders of MI. Under this agreement, we provide engineering services related to the scientific and engineering technical support for the rotary engine. Specifically, we provide personnel and facilities as required to adapt the Rotapower engine to applications where the potential exists for high volume production. In addition, we also provide bookkeeping and other administrative services. | |||||||||||||||||
Delivery is considered complete when a specific defined task or milestone is completed, as demonstrated by the issuance of engineering documents (procedures, drawings, models, prototypes, etc.) and provided to Freedom Motors or its assigns. The date the information or material is provided to Freedom Motors is considered the delivery date. | |||||||||||||||||
Because it is an affiliated entity, we offset our operating expense by the amounts invoiced to Freedom Motors. In addition, because Freedom Motors is a startup company, and has not been in a position to pay our invoices in the normal course of business, collection is not reasonably assured until Freedom Motors actually makes the payment. As a result, the final criterion is met when we receive the payment for services. At that point, we record a reduction in expense equal to the collections. Until collection is received we maintain a full allowance against any outstanding invoices. For years ended June 30, 2014 and 2013, total collections from Freedom Motors, which offset our operating expenses, amounted to $225,021 and $183,808, respectively. | |||||||||||||||||
The Company initiated a crowd funding campaign during the year ended June 30, 2014. The proceeds from the campaign were $24,598. Because some of the Company’s deliverables, including participation in a Skycar test flight, have not yet been delivered, the proceeds are classified as Deferred other income at June 30, 2014. | |||||||||||||||||
Other revenue derived from the sale of memorabilia, information packets and other items is recognized at the time of sale, which is when the merchandise is delivered. | |||||||||||||||||
Stock-based Compensation | |||||||||||||||||
We recognize stock-based compensation issued to employees in accordance with guidance on share-based payments which require measurement of all stock-based awards at fair value on the date of grant and recognition of compensation over the requisite service period, usually the vesting period, using the straight-line method. Share-based awards issued to non-employees are valued using the closing price of common stock at the performance commitment date or when services are complete when there is not a significant disincentive for nonperformance. | |||||||||||||||||
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 feature 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. | |||||||||||||||||
Income Taxes | |||||||||||||||||
We recognize deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement carrying amounts and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amount more likely than not to be realized. | |||||||||||||||||
We also recognize tax benefits only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon settlement. A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in our tax returns that do not meet these recognition and measurement standards. To date, we do not have any unrecognized tax benefits. | |||||||||||||||||
Loss Per Share (LPS) | |||||||||||||||||
Basic LPS excludes dilution and is computed by dividing the loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted LPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that shared in the earnings of the entity. Diluted LPS is the same as basic LPS for all periods presented because all potentially dilutive securities have an anti-dilutive effect on LPS due to the net losses incurred. At June 30, 2014, the total number of shares of common stock relating to outstanding stock options and other potentially dilutive securities that have been excluded from the LPS calculation because their effect would be anti-dilutive approximated 25,577,760. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
We do not expect the adoption of any recently issued accounting pronouncements to have a significant impact on our results of operations, financial position or cash flows. | |||||||||||||||||
NOTE_B_GOING_CONCERN
NOTE B - GOING CONCERN | 12 Months Ended |
Jun. 30, 2014 | |
Going Concern Disclosure [Abstract] | ' |
Going Concern Disclosure [Text Block] | ' |
NOTE B – GOING CONCERN | |
As shown in the accompanying financial statements, we have incurred net losses $1,735,353 and $1,876,446 for the years ended June 30, 2014 and 2013, respectively. In addition, at June 30, 2014, we have an accumulated deficit of $54,217,600 and a working capital deficit of $13,812,954. Furthermore, 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. Historically, funding was provided by certain creditors and 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 guarantee 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_Property_and_Equipment
NOTE C - Property and Equipment | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
NOTE C - Property and Equipment | |||||||||
Property and equipment consist of: | |||||||||
30-Jun-14 | 30-Jun-13 | ||||||||
Production and R&D Equipment | $ | 317,496 | $ | 317,496 | |||||
Computer equipment and software | 399,985 | 399,985 | |||||||
Furniture and fixtures | 75,650 | 75,650 | |||||||
Total property and equipment | 793,131 | 793,131 | |||||||
Less accumulated depreciation | (786,055 | ) | (785,285 | ) | |||||
Total property and equipment, net | $ | 7,076 | $ | 7,846 | |||||
NOTE_D_CUSTOMER_DEPOSITS
NOTE D - CUSTOMER DEPOSITS | 12 Months Ended |
Jun. 30, 2014 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | ' |
Other Liabilities Disclosure [Text Block] | ' |
NOTE D – CUSTOMER DEPOSITS | |
From time to time, we received advances from customers related to our Skycars product for the purpose of reserving specific delivery positions for Skycars when they become available for sale to the public. Deposits are refundable at any time upon request. At June 30, 2014 and 2013, we have received aggregate customer deposits of $384,767 and $387,767, respectively. | |
NOTE_E_DEFERRED_WAGES
NOTE E - DEFERRED WAGES | 12 Months Ended |
Jun. 30, 2014 | |
Compensation Related Costs [Abstract] | ' |
Compensation Related Costs, General [Text Block] | ' |
NOTE E – DEFERRED WAGES | |
Due to our cash flow constraints, the President, members of management and other employees have agreed to defer all or a portion of their annual salaries. At June 30, 2014 and 2013, members of management and other employees have deferred $732,626 and $646,233, respectively, of wages along with accrued interest of $302,709 and $235,633 respectively. These amounts are reflected as deferred wages, which is reported as a component of current liabilities. | |
However, the President’s annual salary of $125,000 is being deferred until we reach a consistent level of profitability, which is not expected to occur during the next twelve months. As a result, deferred wages related to the President’s salary is recorded as a component of long-term liabilities. As of June 30, 2014 and 2013, a liability of $762,500 and $575,000, respectively, along with the accrued interest of $566,330 and $498,080, respectively, were recorded as a component of non-current liabilities. | |
NOTE_F_NOTES_PAYABLE_AND_DERIV
NOTE F - NOTES PAYABLE AND DERIVATIVE LIABILITIES | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Debt Disclosure [Text Block] | ' | ||||
NOTE F – NOTES PAYABLE AND DERIVATIVE LIABILITIES | |||||
Majority Shareholder | |||||
At June 30, 2014 and 2013, the outstanding debt owed to our majority shareholder totaled $2,188,947 and $2,476,382 respectively. This debt is evidenced by two notes, one of which is non-interest bearing. Interest is imputed at 10% on this non-interest bearing note. The stated interest rate on the other note is also 10%. Both notes are unsecured and payable upon demand. Aggregate accrued interest on these notes was $2,598,923 and $2,365,801 at June 30, 2014 and 2013, respectively. | |||||
During the 12 months ended June 30, 2014, the Company repaid $287,958 of majority shareholder notes. During the 12 months ended June 30, 2013, the Company borrowed $5,037 and repaid $296,329 of majority shareholder notes. The borrowings are unsecured, carry an interest rate of 10%, and are payable upon demand. | |||||
Minority Shareholder | |||||
At June 30, 2014 and 2013, the outstanding debt owed to minority shareholders totaled $208,068 and $208,591, respectively. The Company repaid $523 of these notes during fiscal year June 30,2014. This debt is unsecured, payable upon demand and bears an annual interest rate of 10%. Aggregate accrued interest on these notes was $125,522 and $104,868 at June 30, 2014 and 2013, respectively | |||||
During the 12 months ended June 30, 2013, the Company borrowed $30,000 of minority shareholder notes. The borrowing is unsecured, carries an interest rate of 10%, and was due on October 2, 2013. | |||||
Non-Related Party | |||||
At June 30, 2014 and 2013, the outstanding debt owed to other parties totaled $1,383,682 and $1,333,682, respectively. During the 12 months ended the Company repaid $20,000 of these debts. | |||||
During the 12 months ended June 30, 2013, the Company borrowed $352,500 of non-related party notes. The borrowings are unsecured, carry an interest rate of 6% to 10%, and are due on demand. 400,000 options and 60,000 warrants were issued to two note holders in consideration for the notes payable. A debt discount of $99,454 was recorded as a result of these option and warrant issuances. Two notes are convertible 180 days after the effective date of the note at 53%-58% of the lowest 3 prices during the last 10 days prior to the conversion date. These notes were not convertible as of June 30, 2013. | |||||
Convertible Notes Payable and Derivative Liability | |||||
At June 30, 2014 and 2013, the Company owes $213,240 and $234,805, respectively, related to convertible notes payable, net of unamortized debt discount of $123,640 and $46,575, respectively. During the 12 months ended June 30, 2014 and 2013, the Company borrowed $375,000 and $50,000, respectively with convertible notes payable. The borrowings are unsecured, carry interest rates between 0%-11% for the first 90 days, then increases to 6%-12%, and mature from May 2, 2014 through June 23, 2015. $160,000 of the borrowings during June 30, 2014 are convertible on the issuance date at the lesser of $0.24/share or 60% of the lowest trading price in the last 25 trading days prior to conversion. $129,000 of the borrowings during June 30, 2014 are convertible 180 days from the issuance date at 53% of the lowest three trading price in the last 10 days prior to conversion. $32,500 of the borrowings during June 30, 2014 are convertible 180 days from the issuance date at 55% of the lowest closing trade price in the last 20 days prior to conversion. $28,500 of the borrowings during June 30, 2014 are convertible on the date of issuance at 55% of the lowest closing trade price in the last 20 days prior to conversion. $25,000 of the borrowings during June 30, 2014 are convertible on the issuance date at the lesser of $0.125/share or 60% of the lowest trading price in the last 25 trading days prior to conversion. A debt discount of $252,500 and $155,009 was recorded as a result of this convertible note during the fiscal year end June 30, 2014 and 2013, respectively. During the year ended June 30, 2014 and 2013, the Company amortized $175,435 and $176,781, respectively, of this discount to interest expense. | |||||
The Company analyzed the conversion options for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that 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-settable instruments, including the warrants granted above. As a result, all other share-settable instruments have also been classified as liabilities. | |||||
Derivative Liabilities | |||||
30-Jun-12 | $ | 142,327 | |||
Debt discount due to derivative liability | 155,009 | ||||
Loss on derivative liability over debt discount | 23,826 | ||||
Loss on change in fair value in derivative | 171,299 | ||||
30-Jun-13 | $ | 492,461 | |||
Addition of new conversion option derivative | 252,500 | ||||
Reclassification of derivative to common stock due to conversion of convertible note payable | (666,009 | ) | |||
Loss on change of fair value in derivative | 202,299 | ||||
30-Jun-14 | $ | 281,251 | |||
The fair value of the stock options granted during fiscal year June 30, 2014 were estimated using the Black Scholes method based on assumptions including (1) risk-free interest rates ranging from 0.02 % to 0.91%, (2) exercise prices ranging from $0.012 to $0.25, (3) an estimated expected term ranging from 0.1 to 4 years, (4) no dividend rate and (5) computed volatility rates ranging from 101.94% to 268.85% on the underlying stock. | |||||
The fair value of the stock options granted fiscal year June 30, 2013 were estimated using the Black Scholes method based on assumptions including (1) risk-free interest rates ranging from 0.11 % to 0.79%, (2) exercise prices ranging from $0.102 to $0.24, (3) an estimated expected term ranging from 0.07 to 4 years, (4) no dividend rate and (5) computed volatility rates ranging from 198.55% to 287.68% on the underlying stock. | |||||
NOTE_G_STOCK_BASED_COMPENSATIO
NOTE G - STOCK BASED COMPENSATION | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
NOTE G – STOCK BASED COMPENSATION | |||||||||||||||||
Shares of stock | |||||||||||||||||
During the year ended June 30, 2014, the Company issued 288,207 shares of common stock valued at $34,275 for services. In addition during the year ended June 30, 2014, the Company issued 5,188,290 shares of common stock in settlement of convertible promissory notes and accrued interest of $275,353 and 305,818 shares of common stock in settlement of $67,280 accounts payable. | |||||||||||||||||
During the year ended June 30, 2013, the Company issued 103,779 shares of common stock valued at $11,244 for services. | |||||||||||||||||
Stock options | |||||||||||||||||
On February 26, 2009, MI adopted its 2009 Stock Option and Restricted Stock Benefit Plan. The total shares available for grant under the plan aggregate 7,500,000. | |||||||||||||||||
Non-employee directors are entitled to standardized stock option grants on the first day of a directorship year, which begins on the date of election to the board. It is pro-rated for a new director appointed after a board year has begun. Non-employee directors receive a grant of 5,000 options to purchase common stock at an exercise price equal to the closing price on the date of appointment. | |||||||||||||||||
During the years ended June 30, 2014 and 2013, we issued the following stock options: | |||||||||||||||||
Fiscal year 2014 | |||||||||||||||||
· | The Company did not grant options during the fiscal year ended June 30, 2014. 7,097,740 options expired during the year ended June 30, 2014 and were forfeited. | ||||||||||||||||
Fiscal year 2013 | |||||||||||||||||
· | 100,000 options were granted to directors, the options vesting immediately, with an exercise price of $0.085 per share, and expire on November 29, 2017. | ||||||||||||||||
Compensation expense of $0 and $9,843 was recognized during the years ended June 30, 2014 and 2013, respectively. There were no unamortized compensation amounts at June 30, 2014 and 2013. | |||||||||||||||||
The fair value of the stock options granted were estimated using the Black Scholes method based on assumptions including (1) risk-free interest rates ranging of 0.63%, (2) exercise prices of $0.085, (3) an estimated expected term ranging from one to two years based on the “plain vanilla” method allowed under SAB 107, (4) no dividend rate and (5) computed volatility rates ranging of 212.85% on the underlying stock. | |||||||||||||||||
Option activity for the years ended June 30, 2014 and 2013 is as follows: | |||||||||||||||||
Weighted | |||||||||||||||||
Options | Range of Exercise Price | Total Vested | Average Exercise Price | ||||||||||||||
Balance at June 30, 2012 | 32,097,740 | 32,097,740 | $ | 0.13 | |||||||||||||
Granted | 100,000 | $ | 0.085 | 100,000 | $ | 0.085 | |||||||||||
Exercised | |||||||||||||||||
Forfeited | |||||||||||||||||
Balance at June 30, 2013 | 32,197,740 | 32,197,740 | $ | 0.13 | |||||||||||||
Granted | - | - | - | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited | (7,097,740 | ) | $ | 0.23 | -7,097,740 | $ | 0.23 | ||||||||||
Balance at June 30, 2014 | 25,100,000 | 25,100,00 | $ | 0.1 | |||||||||||||
Additional option information for the year ended June 30, 2014, is as follows: | |||||||||||||||||
Weighted | |||||||||||||||||
Average | |||||||||||||||||
Weighted | Remaining | ||||||||||||||||
Exercise | Average | Life in | |||||||||||||||
Price Range | Outstanding | Exercise Price | Years | Exercisable | |||||||||||||
$ | 0.1 | 25,000,000 | $ | 0.1 | 1.96 | 25,000,000 | |||||||||||
$ | 0.085 | 100,000 | $ | 0.085 | 3.42 | 100,000 | |||||||||||
25,100,000 | $ | 0.1 | 25,100,000 | ||||||||||||||
The outstanding options have a $500 and 4,119,512 intrinsic value at June 30, 2014 and 3013, respectively. | |||||||||||||||||
Warrants | |||||||||||||||||
The Company did not grant warrants during the fiscal year June 30, 2014. 20,000 warrants expired during the fiscal year June 30, 2014 and were forfeited. | |||||||||||||||||
For the year ended June 30, 2013, the Company issued 60,000 warrants with debt, respectively. See Note F Non-Related Party. These warrants had an exercise price between $.102 and $.24 and a term of 4 to 5 years. The fair value of these warrants were estimated using the Black Scholes method based on assumptions including (1) risk free interest rates ranging from 0.24% to 0.28%, (2) exercise price ranging from $0.15 to $0.25, (3) an estimated expected term ranging from 2.03 to 2.23 years, (4) no dividend rate and (5) computed volatility rates ranging from 174.72% to 177.23% on the underlying stock. | |||||||||||||||||
Warrant activity for the years ended June 30, 2014 and 2013 is as follows: | |||||||||||||||||
Weighted Average | |||||||||||||||||
Warrants | Ex Price | Remaining Life | |||||||||||||||
Balance at June 30, 2012 | 437,760 | 0.13 | 2.67 | ||||||||||||||
Granted | 60,000 | 0.1 | 4 | ||||||||||||||
Exercised | - | ||||||||||||||||
Forfeited | - | ||||||||||||||||
Balance at June 30, 2013 | 497,760 | $ | 0.13 | 2.78 | |||||||||||||
Granted | - | - | - | ||||||||||||||
Exercised | - | - | - | ||||||||||||||
Forfeited | -20,000 | $ | 0.15 | - | |||||||||||||
Balance at June 30, 2014 | 477,760 | $ | 0.13 | 1. 87 | |||||||||||||
The outstanding warrants have a $1,560 and $58,728 intrinsic value at June 30, 2014 and 2013, respectively. | |||||||||||||||||
NOTE_H_INCOME_TAXES
NOTE H - INCOME TAXES | 12 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
NOTE H – INCOME TAXES | |
At June 30, 2014, MI had $21,918,228 in federal net operating loss (NOL) carryforwards to offset future taxable income, resulting in a deferred tax asset of $7,671,380. MI also had $16,690,461 in state net operating loss (NOL) carryforwards to offset future state taxable income, resulting in a deferred tax asset of $1,475,437. | |
The combined federal and state deferred tax asset is $9,146,817. In view of the uncertainty over MI’s ability to generate sufficient taxable income in future years to utilize the NOLs, a full valuation allowance of $9,146,817 has been recorded to offset the deferred tax asset, resulting in no net deferred tax asset or liability. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations The valuation allowance also results in a difference between the statutory rate of 35% and the effective rate of 0%. The cumulative federal and state net operating losses are scheduled to expire through 2034. | |
NOTE_I_COMMITMENTS_AND_CONTING
NOTE I - COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
NOTE I – COMMITMENTS AND CONTINGENCIES | |||||
Lease commitment | |||||
MI’s operations are housed in one 34,500 square foot building, which is leased from Dr. Moller. The term of the current lease, which expires June 30, 2019 requires monthly payments of $41,400 per month. MI remains liable for all property taxes and insurance on the leased property. The minimum rental commitment remaining on the leased property is $496,800 per year. As of June 30, 2014 and 2013, unpaid rent for the above lease, including related interest, amounted to $4,016,546 and $3,494,390, respectively. | |||||
The office operating lease agreements require that the Company pays certain operating expenses applicable for the leased premises. Future minimum rental payments required under these operating leases are as follows: | |||||
Years Ending June 30, | Amount | ||||
2015 | 496,800 | ||||
2016 | 496,800 | ||||
2017 | 496,800 | ||||
2018 | 496,800 | ||||
Thereafter | $ | 248,400 | |||
Total | 2,235,600 | ||||
Rent expense charged to operations under this lease aggregated $496,800 and $496,800 for fiscal 2014 and 2013, respectively. | |||||
Moller International receives reimbursements for rent from Freedom Motors. Total reimbursements received for the years ended June 30, 2014 and 2013 amounted to $111,496 and $167,857, respectively. | |||||
Contingencies | |||||
J.F. Wilson & Associates Ltd. v. Estate of Percy Symens, et al. | |||||
Moller International (MI) is named as a defendant in a lawsuit pending in Yolo County, California Superior Court - J.F. Wilson & Associates Ltd. v. Estate of Percy Symens, et al. The complaint, filed in April 2005, alleges that MI unlawfully discharged solvents into the environment while doing business at 203 J Street and 920 Third Street in Davis, California during 1968 to 1980. The Company denied these allegations in its Answer. A number of the claims and cross-claims filed in this lawsuit have been settled, while for the remaining claims and cross-claims the parties have reached settlement and are in the process of finalizing the settlement agreement documents. | |||||
In a related administrative proceeding initiated on September 26, 2006, the California Central Valley Regional Water Quality Control Board (RWQCB) issued a draft Cleanup and Abatement Order (CAO) in connection with the property at 920 Third Street. The draft CAO has not been finalized, and the property owner is proceeding with work to investigate, characterize and remediate the soil and groundwater contamination at this property, with RWQCB oversight. | |||||
MI’s loss is estimated at this time in the range of $345,000 to $400,000. It is reasonably possible that these estimates may be significantly revised as the site investigation and other research and analysis proceeds. As of June 30, 2014 and 2013, there is $345,000 of liabilities accrued related to this estimate, respectively. | |||||
NOTE_J_SUBSEQUENT_EVENTS
NOTE J - SUBSEQUENT EVENTS | 12 Months Ended | |
Jun. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events [Text Block] | ' | |
NOTE J – SUBSEQUENT EVENTS | ||
The following events occurred subsequent to June 30, 2014: | ||
a) | The Company has issued 43,343 shares of common stock to employees as payment to wages. | |
b) | The Company has issued 1,359,783 shares of common stock to convert $47,450 of convertible notes payable. | |
c) | The Company issued 4,000 shares of common stock and 4,000 common stock warrants at an exercise price of $0.12 to a consultant for services provided. | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||||||||||
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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting periods. Actual results could differ from those estimates. | |||||||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||||||||||
Cash and cash equivalents | |||||||||||||||||
For the purposes of the statements of cash flows, cash equivalents include all highly liquid investments with original maturities of three months or less. | |||||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment is stated at cost net of accumulated depreciation. Depreciation is recorded utilizing the straight-line method over the estimated useful lives, ranging from five to fifteen years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. | |||||||||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | ||||||||||||||||
Long-Lived Assets | |||||||||||||||||
In accordance with the guidance in FASB ASC 360-10, Property, Plant and Equipment, we periodically assess the impairment of long-lived assets when events or changes in circumstances indicate that the carrying value may not be recoverable. The guidance requires impairment losses to be recorded on long-lived assets used in operations when the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. As of June 30, 2014 and 2013, there were no impairments to our long-lived assets. | |||||||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | ||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
Financial instruments are recorded at fair value in accordance with the standard for “Fair Value Measurements codified within ASC 820”, which defines fair values, establishes a three level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measurements: | |||||||||||||||||
• Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical asset or liabilities in active markets. | |||||||||||||||||
• Level 2 – inputs to the valuation methodology include closing prices for similar assets and liabilities in active markets, and inputs that are observable for the assets and liabilities, either directly, for substantially the full term of the financial instruments. | |||||||||||||||||
• Level 3 – inputs to the valuation methodology are observable and significant to the fair value. | |||||||||||||||||
The following table sets forth the Company’s financial assets and liabilities measured at fair value by level within the fair value hierarchy as of June 30, 2014 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. | |||||||||||||||||
30-Jun-14 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Derivative Liabilities | $ | 281,251 | - | - | $ | 281,251 | |||||||||||
30-Jun-13 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Derivative Liabilities | $ | 492,461 | - | - | $ | 492,461 | |||||||||||
The carrying value of short-term financial instruments, including cash, accounts receivables, accounts payable and accrued expenses and notes payable approximate fair value due to the relatively short period to maturity for these instruments. | |||||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||||||||||||||
Revenue Recognition | |||||||||||||||||
We recognize revenue when persuasive evidence of an arrangement exists, services have been rendered, the sales price is fixed or determinable, and collectability is reasonably assured. | |||||||||||||||||
Pursuant to the 1998 Technology Development and License Agreement, the Company bills for services provided to Freedom Motors, an affiliated entity and former subsidiary, which shares common ownership with some of the existing shareholders of MI. Under this agreement, we provide engineering services related to the scientific and engineering technical support for the rotary engine. Specifically, we provide personnel and facilities as required to adapt the Rotapower engine to applications where the potential exists for high volume production. In addition, we also provide bookkeeping and other administrative services. | |||||||||||||||||
Delivery is considered complete when a specific defined task or milestone is completed, as demonstrated by the issuance of engineering documents (procedures, drawings, models, prototypes, etc.) and provided to Freedom Motors or its assigns. The date the information or material is provided to Freedom Motors is considered the delivery date. | |||||||||||||||||
Because it is an affiliated entity, we offset our operating expense by the amounts invoiced to Freedom Motors. In addition, because Freedom Motors is a startup company, and has not been in a position to pay our invoices in the normal course of business, collection is not reasonably assured until Freedom Motors actually makes the payment. As a result, the final criterion is met when we receive the payment for services. At that point, we record a reduction in expense equal to the collections. Until collection is received we maintain a full allowance against any outstanding invoices. For years ended June 30, 2014 and 2013, total collections from Freedom Motors, which offset our operating expenses, amounted to $225,021 and $183,808, respectively. | |||||||||||||||||
The Company initiated a crowd funding campaign during the year ended June 30, 2014. The proceeds from the campaign were $24,598. Because some of the Company’s deliverables, including participation in a Skycar test flight, have not yet been delivered, the proceeds are classified as Deferred other income at June 30, 2014. | |||||||||||||||||
Other revenue derived from the sale of memorabilia, information packets and other items is recognized at the time of sale, which is when the merchandise is delivered. | |||||||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||||||||||||||||
Stock-based Compensation | |||||||||||||||||
We recognize stock-based compensation issued to employees in accordance with guidance on share-based payments which require measurement of all stock-based awards at fair value on the date of grant and recognition of compensation over the requisite service period, usually the vesting period, using the straight-line method. Share-based awards issued to non-employees are valued using the closing price of common stock at the performance commitment date or when services are complete when there is not a significant disincentive for nonperformance. | |||||||||||||||||
Derivatives, Embedded Derivatives [Policy Text Block] | ' | ||||||||||||||||
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 feature 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. | |||||||||||||||||
Income Tax, Policy [Policy Text Block] | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
We recognize deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement carrying amounts and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amount more likely than not to be realized. | |||||||||||||||||
We also recognize tax benefits only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon settlement. A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in our tax returns that do not meet these recognition and measurement standards. To date, we do not have any unrecognized tax benefits. | |||||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||||||||||
Loss Per Share (LPS) | |||||||||||||||||
Basic LPS excludes dilution and is computed by dividing the loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted LPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that shared in the earnings of the entity. Diluted LPS is the same as basic LPS for all periods presented because all potentially dilutive securities have an anti-dilutive effect on LPS due to the net losses incurred. At June 30, 2014, the total number of shares of common stock relating to outstanding stock options and other potentially dilutive securities that have been excluded from the LPS calculation because their effect would be anti-dilutive approximated 25,577,760. | |||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
We do not expect the adoption of any recently issued accounting pronouncements to have a significant impact on our results of operations, financial position or cash flows. |
NOTE_A_ORGANIZATION_AND_SIGNIF1
NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | 'The following table sets forth the Company’s financial assets and liabilities measured at fair value by level within the fair value hierarchy as of June 30, 2014 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 | ||||||||||||||
Derivative Liabilities | $ | 281,251 | - | - | $ | 281,251 | |||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Derivative Liabilities | $ | 492,461 | - | - | $ | 492,461 |
NOTE_C_Property_and_Equipment_
NOTE C - Property and Equipment (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | 'Property and equipment consist of: | ||||||||
30-Jun-14 | 30-Jun-13 | ||||||||
Production and R&D Equipment | $ | 317,496 | $ | 317,496 | |||||
Computer equipment and software | 399,985 | 399,985 | |||||||
Furniture and fixtures | 75,650 | 75,650 | |||||||
Total property and equipment | 793,131 | 793,131 | |||||||
Less accumulated depreciation | (786,055 | ) | (785,285 | ) | |||||
Total property and equipment, net | $ | 7,076 | $ | 7,846 |
NOTE_F_NOTES_PAYABLE_AND_DERIV1
NOTE F - NOTES PAYABLE AND DERIVATIVE LIABILITIES (Tables) | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | ||||
Derivative Liabilities | |||||
30-Jun-12 | $ | 142,327 | |||
Debt discount due to derivative liability | 155,009 | ||||
Loss on derivative liability over debt discount | 23,826 | ||||
Loss on change in fair value in derivative | 171,299 | ||||
30-Jun-13 | $ | 492,461 | |||
Addition of new conversion option derivative | 252,500 | ||||
Reclassification of derivative to common stock due to conversion of convertible note payable | (666,009 | ) | |||
Loss on change of fair value in derivative | 202,299 | ||||
30-Jun-14 | $ | 281,251 |
NOTE_G_STOCK_BASED_COMPENSATIO1
NOTE G - STOCK BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | 'Option activity for the years ended June 30, 2014 and 2013 is as follows: | ||||||||||||||||
Weighted | |||||||||||||||||
Options | Range of Exercise Price | Total Vested | Average Exercise Price | ||||||||||||||
Balance at June 30, 2012 | 32,097,740 | 32,097,740 | $ | 0.13 | |||||||||||||
Granted | 100,000 | $ | 0.085 | 100,000 | $ | 0.085 | |||||||||||
Exercised | |||||||||||||||||
Forfeited | |||||||||||||||||
Balance at June 30, 2013 | 32,197,740 | 32,197,740 | $ | 0.13 | |||||||||||||
Granted | - | - | - | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited | (7,097,740 | ) | $ | 0.23 | -7,097,740 | $ | 0.23 | ||||||||||
Balance at June 30, 2014 | 25,100,000 | 25,100,00 | $ | 0.1 | |||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | 'Additional option information for the year ended June 30, 2014, is as follows: | ||||||||||||||||
Weighted | |||||||||||||||||
Average | |||||||||||||||||
Weighted | Remaining | ||||||||||||||||
Exercise | Average | Life in | |||||||||||||||
Price Range | Outstanding | Exercise Price | Years | Exercisable | |||||||||||||
$ | 0.1 | 25,000,000 | $ | 0.1 | 1.96 | 25,000,000 | |||||||||||
$ | 0.085 | 100,000 | $ | 0.085 | 3.42 | 100,000 | |||||||||||
25,100,000 | $ | 0.1 | 25,100,000 | ||||||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | 'Warrant activity for the years ended June 30, 2014 and 2013 is as follows: | ||||||||||||||||
Weighted Average | |||||||||||||||||
Warrants | Ex Price | Remaining Life | |||||||||||||||
Balance at June 30, 2012 | 437,760 | 0.13 | 2.67 | ||||||||||||||
Granted | 60,000 | 0.1 | 4 | ||||||||||||||
Exercised | - | ||||||||||||||||
Forfeited | - | ||||||||||||||||
Balance at June 30, 2013 | 497,760 | $ | 0.13 | 2.78 | |||||||||||||
Granted | - | - | - | ||||||||||||||
Exercised | - | - | - | ||||||||||||||
Forfeited | -20,000 | $ | 0.15 | - | |||||||||||||
Balance at June 30, 2014 | 477,760 | $ | 0.13 | 1. 87 |
NOTE_I_COMMITMENTS_AND_CONTING1
NOTE I - COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 'The office operating lease agreements require that the Company pays certain operating expenses applicable for the leased premises. Future minimum rental payments required under these operating leases are as follows: | ||||
Years Ending June 30, | Amount | ||||
2015 | 496,800 | ||||
2016 | 496,800 | ||||
2017 | 496,800 | ||||
2018 | 496,800 | ||||
Thereafter | $ | 248,400 | |||
Total | 2,235,600 |
NOTE_A_ORGANIZATION_AND_SIGNIF2
NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' |
Other Deferred Credits, Current | $24,598 | $0 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 25,577,760 | ' |
Affiliated Entity [Member] | Collections Which Offset Operating Expenses [Member] | ' | ' |
NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' |
Related Party Transaction, Amounts of Transaction | $225,021 | $183,808 |
Minimum [Member] | ' | ' |
NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' |
Maximum [Member] | ' | ' |
NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '15 years | ' |
NOTE_A_ORGANIZATION_AND_SIGNIF3
NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Fair Value Measurments (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Fair Value Measurments [Line Items] | ' | ' |
Derivative Liabilities | $281,251 | $492,461 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Fair Value Measurments [Line Items] | ' | ' |
Derivative Liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Fair Value Measurments [Line Items] | ' | ' |
Derivative Liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Fair Value Measurments [Line Items] | ' | ' |
Derivative Liabilities | $281,251 | $492,461 |
NOTE_B_GOING_CONCERN_Details
NOTE B - GOING CONCERN (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Going Concern Disclosure [Abstract] | ' | ' |
Net Income (Loss) Attributable to Parent | ($1,735,353) | ($1,876,446) |
Retained Earnings (Accumulated Deficit) | -54,217,600 | -52,482,247 |
Working Capital (Deficit) | ($13,812,954) | ' |
NOTE_C_Property_and_Equipment_1
NOTE C - Property and Equipment (Details) - Schedule of Property, Plant and Equipment (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $793,131 | $793,131 |
Less accumulated depreciation | -786,055 | -785,285 |
Total property and equipment, net | 7,076 | 7,846 |
Production and R&D Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 317,496 | 317,496 |
Computer Equipment and Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 399,985 | 399,985 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $75,650 | $75,650 |
NOTE_D_CUSTOMER_DEPOSITS_Detai
NOTE D - CUSTOMER DEPOSITS (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | ' | ' |
Customer Deposits, Current | $384,767 | $387,767 |
NOTE_E_DEFERRED_WAGES_Details
NOTE E - DEFERRED WAGES (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
President [Member] | Deferred Wages [Member] | Deferred Wages [Member] | Accrued Interest on Deferred Wages [Member] | Accrued Interest on Deferred Wages [Member] | |||
NOTE E - DEFERRED WAGES (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Employee-related Liabilities, Current | $1,035,335 | $881,886 | ' | $732,626 | $646,233 | $302,709 | $235,633 |
Executive Salary | ' | ' | 125,000 | ' | ' | ' | ' |
Due to Related Parties, Noncurrent | $1,328,830 | $1,073,080 | ' | $762,500 | $575,000 | $566,330 | $498,080 |
NOTE_F_NOTES_PAYABLE_AND_DERIV2
NOTE F - NOTES PAYABLE AND DERIVATIVE LIABILITIES (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
NOTE F - NOTES PAYABLE AND DERIVATIVE LIABILITIES (Details) [Line Items] | ' | ' |
Notes Payable, Related Parties, Current | $2,188,947 | $2,476,382 |
Repayments of Related Party Debt | 287,958 | 296,329 |
Proceeds from Related Party Debt | 0 | 35,037 |
Due to Other Related Parties, Classified, Current | 208,068 | 208,591 |
Other Notes Payable, Current | 1,383,682 | 1,333,682 |
Repayments of Other Debt | 20,000 | ' |
Proceeds from Convertible Debt | 375,000 | 402,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 0 | 100,000 |
Class of Warrant or Rights, Granted (in Shares) | 0 | 60,000 |
Debt Instrument, Unamortized Discount | 123,640 | 46,575 |
Convertible Notes Payable, Current | 213,240 | 234,805 |
Debt Instrument, Convertible, Beneficial Conversion Feature | 252,500 | 155,009 |
Amortization of Debt Discount (Premium) | 175,435 | 176,781 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 0.02% | 0.11% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 0.91% | 0.79% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 101.94% | 198.55% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 268.85% | 287.68% |
Majority Shareholder [Member] | ' | ' |
NOTE F - NOTES PAYABLE AND DERIVATIVE LIABILITIES (Details) [Line Items] | ' | ' |
Notes Payable, Related Parties, Current | 2,188,947 | 2,476,382 |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ' |
Interest Payable | 2,598,923 | 2,365,801 |
Repayments of Related Party Debt | 287,958 | 296,329 |
Proceeds from Related Party Debt | ' | 5,037 |
Investor [Member] | ' | ' |
NOTE F - NOTES PAYABLE AND DERIVATIVE LIABILITIES (Details) [Line Items] | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ' |
Interest Payable | 125,522 | 104,868 |
Repayments of Related Party Debt | 523 | ' |
Proceeds from Related Party Debt | ' | 30,000 |
Due to Other Related Parties, Classified, Current | 208,068 | 208,591 |
Convertible Debt [Member] | Minimum [Member] | ' | ' |
NOTE F - NOTES PAYABLE AND DERIVATIVE LIABILITIES (Details) [Line Items] | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | 6.00% |
Convertible Debt [Member] | Maximum [Member] | ' | ' |
NOTE F - NOTES PAYABLE AND DERIVATIVE LIABILITIES (Details) [Line Items] | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | 10.00% |
Convertible Debt [Member] | ' | ' |
NOTE F - NOTES PAYABLE AND DERIVATIVE LIABILITIES (Details) [Line Items] | ' | ' |
Proceeds from Convertible Debt | ' | 352,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | ' | 400,000 |
Class of Warrant or Rights, Granted (in Shares) | ' | 60,000 |
Debt Instrument, Unamortized Discount | ' | 99,454 |
Debt Instrument, Convertible, Terms of Conversion Feature | ' | 'convertible 180 days after the effective date of the note at 53%-58% of the lowest 3 prices during the last 10 days prior to the conversion date. |
Convertible Notes Payable [Member] | Convertible Note One [Member] | ' | ' |
NOTE F - NOTES PAYABLE AND DERIVATIVE LIABILITIES (Details) [Line Items] | ' | ' |
Debt Instrument, Convertible, Terms of Conversion Feature | '$160,000 of the borrowings during June 30, 2014 are convertible on the issuance date at the lesser of $0.24/share or 60% of the lowest trading price in the last 25 trading days prior to conversion. | ' |
Debt Instrument, Face Amount | 160,000 | ' |
Convertible Notes Payable [Member] | Convertible Note Two [Member] | ' | ' |
NOTE F - NOTES PAYABLE AND DERIVATIVE LIABILITIES (Details) [Line Items] | ' | ' |
Debt Instrument, Convertible, Terms of Conversion Feature | '$129,000 of the borrowings during June 30, 2014 are convertible 180 days from the issuance date at 53% of the lowest three trading price in the last 10 days prior to conversion. | ' |
Debt Instrument, Face Amount | 129,000 | ' |
Convertible Notes Payable [Member] | Convertible Note Three [Member] | ' | ' |
NOTE F - NOTES PAYABLE AND DERIVATIVE LIABILITIES (Details) [Line Items] | ' | ' |
Debt Instrument, Convertible, Terms of Conversion Feature | '$32,500 of the borrowings during June 30, 2014 are convertible 180 days from the issuance date at 55% of the lowest closing trade price in the last 20 days prior to conversion. | ' |
Debt Instrument, Face Amount | 32,500 | ' |
Convertible Notes Payable [Member] | Convertible Note Four [Member] | ' | ' |
NOTE F - NOTES PAYABLE AND DERIVATIVE LIABILITIES (Details) [Line Items] | ' | ' |
Debt Instrument, Convertible, Terms of Conversion Feature | '$28,500 of the borrowings during June 30, 2014 are convertible on the date of issuance at 55% of the lowest closing trade price in the last 20 days prior to conversion. | ' |
Debt Instrument, Face Amount | 28,500 | ' |
Convertible Notes Payable [Member] | Convertible Note Six [Member] | ' | ' |
NOTE F - NOTES PAYABLE AND DERIVATIVE LIABILITIES (Details) [Line Items] | ' | ' |
Debt Instrument, Convertible, Terms of Conversion Feature | '$25,000 of the borrowings during June 30, 2014 are convertible on the issuance date at the lesser of $0.125/share or 60% of the lowest trading price in the last 25 trading days prior to conversion. | ' |
Debt Instrument, Face Amount | 25,000 | ' |
Convertible Notes Payable [Member] | ' | ' |
NOTE F - NOTES PAYABLE AND DERIVATIVE LIABILITIES (Details) [Line Items] | ' | ' |
Proceeds from Convertible Debt | 375,000 | 50,000 |
Debt Instrument, Unamortized Discount | 123,640 | 46,575 |
Convertible Notes Payable, Current | 213,240 | 234,805 |
Debt Instrument, Interest Rate Terms | 'interest rates between 0%-11% for the first 90 days, then increases to 6%-12%, and mature from May 2, 2014 through June 23, 2015. | ' |
Debt Instrument, Convertible, Beneficial Conversion Feature | 252,500 | 155,009 |
Amortization of Debt Discount (Premium) | $175,435 | $176,781 |
Minimum [Member] | ' | ' |
NOTE F - NOTES PAYABLE AND DERIVATIVE LIABILITIES (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price (in Dollars per share) | $0.01 | $0.10 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '36 days | '25 days |
Maximum [Member] | ' | ' |
NOTE F - NOTES PAYABLE AND DERIVATIVE LIABILITIES (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price (in Dollars per share) | $0.25 | $0.24 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '4 years | '4 years |
NOTE_F_NOTES_PAYABLE_AND_DERIV3
NOTE F - NOTES PAYABLE AND DERIVATIVE LIABILITIES (Details) - Derivative Liability Measured on Recurring Basis, Unobservable Input Reconciliation (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Derivative Liability Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ' | ' | ' |
Balance | $281,251 | $492,461 | $142,327 |
Addition of new conversion option derivative | 252,500 | 155,009 | ' |
Reclassification of derivative to common stock due to conversion of convertible note payable | -666,009 | ' | ' |
Debt discount due to derivative liability | 252,500 | 155,009 | ' |
Loss on derivative liability over debt discount | ' | 23,826 | ' |
Loss on change in fair value in derivative | $202,299 | $171,299 | ' |
NOTE_G_STOCK_BASED_COMPENSATIO2
NOTE G - STOCK BASED COMPENSATION (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Feb. 26, 2009 | |
NOTE G - STOCK BASED COMPENSATION (Details) [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Services (in Shares) | 288,207 | 103,779 | ' |
Stock Issued During Period, Value, Issued for Services | $34,275 | $11,244 | ' |
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares) | 5,188,290 | ' | ' |
Stock Issued During Period, Value, Conversion of Convertible Securities | 275,353 | ' | ' |
Stock Issued During Period, Shares, Other (in Shares) | 305,818 | ' | ' |
Stock Issued During Period, Value, Other | 67,280 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period (in Shares) | 7,097,740 | 0 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 0 | 100,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Exercise Price of Options Granted | ' | 0.085 | ' |
Share-based Compensation | 34,275 | 21,087 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | ' |
Class of Warrant or Rights, Forfeited | 20,000 | 0 | ' |
Class of Warrant or Rights, Granted (in Shares) | 0 | 60,000 | ' |
Class of Warrant or Rights Outstanding, Intrinsic Value | 1,560 | 58,728 | ' |
Warrant [Member] | Minimum [Member] | ' | ' | ' |
NOTE G - STOCK BASED COMPENSATION (Details) [Line Items] | ' | ' | ' |
Fair Value Assumptions, Risk Free Interest Rate | ' | 0.24% | ' |
Fair Value Assumptions, Exercise Price (in Dollars per share) | ' | $0.15 | ' |
Fair Value Assumptions, Expected Term | ' | '2 years 10 days | ' |
Fair Value Assumptions, Expected Volatility Rate | ' | 174.72% | ' |
Warrant [Member] | Maximum [Member] | ' | ' | ' |
NOTE G - STOCK BASED COMPENSATION (Details) [Line Items] | ' | ' | ' |
Fair Value Assumptions, Risk Free Interest Rate | ' | 0.28% | ' |
Fair Value Assumptions, Exercise Price (in Dollars per share) | ' | $0.25 | ' |
Fair Value Assumptions, Expected Term | ' | '2 years 83 days | ' |
Fair Value Assumptions, Expected Volatility Rate | ' | 177.23% | ' |
Warrant [Member] | ' | ' | ' |
NOTE G - STOCK BASED COMPENSATION (Details) [Line Items] | ' | ' | ' |
Fair Value Assumptions, Expected Dividend Rate | ' | 0.00% | ' |
Minimum [Member] | 2009 Stock Option and Restricted Stock Benefit Plan [Member] | ' | ' | ' |
NOTE G - STOCK BASED COMPENSATION (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | ' | '1 year | ' |
Minimum [Member] | ' | ' | ' |
NOTE G - STOCK BASED COMPENSATION (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price (in Dollars per share) | $0.01 | $0.10 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '36 days | '25 days | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | ' | $0.10 | ' |
Class of Warrant or Rights, Term | ' | '4 years | ' |
Maximum [Member] | 2009 Stock Option and Restricted Stock Benefit Plan [Member] | ' | ' | ' |
NOTE G - STOCK BASED COMPENSATION (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | ' | '2 years | ' |
Maximum [Member] | ' | ' | ' |
NOTE G - STOCK BASED COMPENSATION (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price (in Dollars per share) | $0.25 | $0.24 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '4 years | '4 years | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | ' | $0.24 | ' |
Class of Warrant or Rights, Term | ' | '5 years | ' |
2009 Stock Option and Restricted Stock Benefit Plan [Member] | ' | ' | ' |
NOTE G - STOCK BASED COMPENSATION (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | ' | ' | 7,500,000 |
Non-Employee Director, Options Granted (in Shares) | 5,000 | ' | ' |
Share-based Compensation | 0 | 9,843 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | ' | 0.63% | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price (in Dollars per share) | ' | $0.09 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | ' | 0.00% | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | ' | 212.85% | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $500 | $4,119,512 | ' |
NOTE_G_STOCK_BASED_COMPENSATIO3
NOTE G - STOCK BASED COMPENSATION (Details) - Schedule of Stock Option Activity (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Schedule of Stock Option Activity [Abstract] | ' | ' |
Options | 32,197,740 | 32,097,740 |
Options, Total Vested | 32,197,740 | 32,097,740 |
Options, Weighted Average Exercise Price (in Dollars per share) | $0.13 | $0.13 |
Options Granted | 0 | 100,000 |
Options Granted, Exercise Price (in Dollars) | ' | $0.09 |
Options Granted, Total Vested | 0 | 100,000 |
Options Granted, Weighted Average Exercise Price (in Dollars per share) | ' | $0.09 |
Options Exercised | 0 | 0 |
Options Forfeited | -7,097,740 | 0 |
Options Forfeited, Total Vested | -7,097,740 | 0 |
Options Forfeited, Weighted Average Exercise Price (in Dollars per share) | $0.23 | ' |
Options Forfeited, Exercise Price (in Dollars per share) | $0.23 | ' |
Options | 25,100,000 | 32,197,740 |
Options, Total Vested | 2,510,000 | 32,197,740 |
Options, Weighted Average Exercise Price (in Dollars per share) | $0.10 | $0.13 |
NOTE_G_STOCK_BASED_COMPENSATIO4
NOTE G - STOCK BASED COMPENSATION (Details) - Schedule of Additional Option Information (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
$0.10 Stock Options [Member] | $0.10 Stock Options [Member] | $0.10 Stock Options [Member] | $0.085 Stock Options [Member] | $0.085 Stock Options [Member] | $0.085 Stock Options [Member] | Maximum [Member] | ||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise Price (in Dollars per share) | ' | ' | ' | $0.10 | ' | ' | $0.09 | ' | ' | ' |
Options Outstanding | 25,100,000 | 32,197,740 | 32,097,740 | ' | ' | 25,000,000 | ' | ' | 100,000 | ' |
Weighted Average Exercise Price (in Dollars per share) | $0.10 | $0.13 | $0.13 | ' | $0.10 | ' | ' | $0.09 | ' | $0.10 |
Average Remaining Life (years) | ' | ' | ' | ' | ' | '1 year 350 days | ' | ' | '3 years 153 days | ' |
Options Exercisable | 25,100,000 | ' | ' | ' | ' | 25,000,000 | ' | ' | 100,000 | ' |
NOTE_G_STOCK_BASED_COMPENSATIO5
NOTE G - STOCK BASED COMPENSATION (Details) - Schedule of Warrants (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Schedule of Warrants [Abstract] | ' | ' | ' |
Warrants Granted | 0 | 60,000 | ' |
Warrants Granted, Weighted Average Exercise Price | $0 | $0.10 | ' |
Warrants Granted, Weighted Average Remaining Life | '0 years | '4 years | ' |
Warrants Exercised | 0 | 0 | ' |
Warrants Exercised, Weighted Average Exercise Price | $0 | $0 | ' |
Warrants Exercised, Weighted Average Remaining Life | '0 years | '0 years | ' |
Warrants Forfeited | ($20,000) | $0 | ' |
Warrants Forfeited, Weighted Average Exercise Price | $0.15 | $0 | ' |
Warrants Forfeited, Weighted Average Remaining Life | '0 years | '0 years | ' |
Warrants | 477,760 | 497,760 | 437,760 |
Warrants, Weighted Average Exercise Price | $0.13 | $0.13 | $0.13 |
Warrants, Weighted Average Remaining Life | '1 year 317 days | '2 years 284 days | '2 years 244 days |
NOTE_H_INCOME_TAXES_Details
NOTE H - INCOME TAXES (Details) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
NOTE H - INCOME TAXES (Details) [Line Items] | ' |
Deferred Tax Assets, Gross | $9,146,817 |
Deferred Tax Assets, Valuation Allowance | 9,146,817 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% |
Effective Income Tax Rate Reconciliation, Percent | 0.00% |
Operating Loss Carryforwards, Expiration Year | '2034 |
Domestic Tax Authority [Member] | ' |
NOTE H - INCOME TAXES (Details) [Line Items] | ' |
Operating Loss Carryforwards | 21,918,228 |
Deferred Tax Assets, Gross | 7,671,380 |
State and Local Jurisdiction [Member] | ' |
NOTE H - INCOME TAXES (Details) [Line Items] | ' |
Operating Loss Carryforwards | 16,690,461 |
Deferred Tax Assets, Gross | $1,475,437 |
NOTE_I_COMMITMENTS_AND_CONTING2
NOTE I - COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
NOTE I - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ' | ' |
Operating Leases, Rent Expense | $385,304 | $362,750 |
Accrued Liabilities, Current | 935,966 | 805,528 |
Building [Member] | Monthly Payment [Member] | ' | ' |
NOTE I - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ' | ' |
Operating Leases, Rent Expense, Minimum Rentals | 41,400 | ' |
Building [Member] | Yearly Payment [Member] | ' | ' |
NOTE I - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ' | ' |
Operating Leases, Rent Expense, Minimum Rentals | 496,800 | ' |
Building [Member] | ' | ' |
NOTE I - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ' | ' |
Number of Buildings Leased | 1 | ' |
Area of Real Estate Property (in Square Feet) | 34,500 | ' |
Lease Expiration Date | 30-Jun-19 | ' |
Accrued Rent, Current | 4,016,546 | 3,494,390 |
Operating Leases, Rent Expense | 496,800 | 496,800 |
Operating Leases, Rent Expense, Sublease Rentals | 111,496 | 167,857 |
Site Contingency [Member] | ' | ' |
NOTE I - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ' | ' |
Site Contingency, Loss Exposure, Low Estimate | 345,000 | ' |
Site Contingency, Loss Exposure, High Estimate | 400,000 | ' |
Accrued Liabilities, Current | $345,000 | ' |
NOTE_I_COMMITMENTS_AND_CONTING3
NOTE I - COMMITMENTS AND CONTINGENCIES (Details) - Schedule of Future Minimum Lease Payaments (USD $) | Jun. 30, 2014 |
Schedule of Future Minimum Lease Payaments [Abstract] | ' |
2015 | $496,800 |
2016 | 496,800 |
2017 | 496,800 |
2018 | 496,800 |
Thereafter | 248,400 |
Total | $2,235,600 |
NOTE_J_SUBSEQUENT_EVENTS_Detai
NOTE J - SUBSEQUENT EVENTS (Details) (USD $) | 12 Months Ended | 4 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | Oct. 23, 2014 | |
Subsequent Event [Member] | |||
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Share-based Compensation, Gross | ' | ' | 43,343 |
Debt Conversion, Converted Instrument, Shares Issued | ' | ' | 1,359,783 |
Debt Conversion, Original Debt, Amount (in Dollars) | $275,353 | $0 | $47,450 |
Stock Issued During Period, Shares, Issued for Services | 288,207 | 103,779 | 4,000 |
Class of Warrant or Rights, Granted | 0 | 60,000 | 4,000 |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | ' | ' | $0.12 |