International Barrier Technology (IBTGF) 10-Q 16 May 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2016	May. 16, 2016
Document and Entity Information
Entity Registrant Name	International Barrier Technology Inc
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Entity Central Index Key	890,543
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Entity Common Stock, Shares Outstanding		47,807,426
Trading Symbol	ibtgf

INTERNATIONAL BARRIER TECHNOLOG

INTERNATIONAL BARRIER TECHNOLOGY, INC. INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Interim period unaudited) - USD ($)		Mar. 31, 2016	Jun. 30, 2015
Current assets
Cash and cash equivalents		$ 1,089,615	$ 804,452
Accounts receivable		513,345	405,859
Inventory	[1]	503,652	640,219
Prepaid expenses and deposits		113,465	59,879
Total Current Assets		2,220,077	1,910,409
Property, plant and equipment	[2]	3,223,841	3,014,476
Total Assets		5,443,918	4,924,885
Current liabilities
Accounts payable and accrued liabilities		941,491	653,931
Obligation under capital leases		16,711	$ 48,740
Deferred Revenue		66,901
Convertible debentures, current	[3]	240,000
Total Current Liabilities		$ 1,265,103	$ 702,671
Convertible debentures, noncurrent	[3]		240,000
Obligation under capital leases		$ 26,629	40,139
Total Liabilities		1,291,732	982,810
STOCKHOLDERS' EQUITY
Common Stock authorized: 100,000,000 common shares without par value; issued: 47,807,426 common shares (June 30, 2015: 47,807,426)	[4]	15,934,256	15,934,256
Additional paid-in capital		1,509,283	1,509,283
Accumulated deficit		(13,291,353)	(13,501,464)
Total Stockholders' Equity		4,152,186	3,942,075
Total Liabilities and Stockholders' Equity		$ 5,443,918	$ 4,924,885
[1]	Note 4
[2]	Note 5
[3]	Note 6
[4]	Note 7

Statement of Financial Position

Statement of Financial Position - Parenthetical - $ / shares	Mar. 31, 2016	Jun. 30, 2015
Statement of financial position
Common Stock, Par Value	$ 0	$ 0
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares Issued	47,807,426	47,807,426
Common Stock, Shares Outstanding	47,807,426	47,807,426

INTERNATIONAL BARRIER TECHNOLO4

INTERNATIONAL BARRIER TECHNOLOGY, INC. INTERIM CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Income statement
Sales	$ 2,618,627	$ 1,964,711	$ 7,030,157	$ 6,268,469
License fee royalties	9,416		26,464	4,652
Cost of Sales	2,263,266	1,603,767	6,014,787	5,002,018
Gross Profit	364,777	360,944	1,041,834	1,271,103
Expenses
Accounting and audit fees	18,992	12,476	72,863	69,375
Filing Fees	10,670	3,353	24,369	21,355
Insurance	22,597	19,350	61,970	60,319
Bank charges and interest	83	40	152	112
Legal fees	5,818	9,147	52,393	60,488
Office and miscellaneous	13,627	13,842	54,338	56,771
Sales, marketing, and investor relations	7,972	15,496	26,814	37,106
Telephone	2,543	2,932	8,911	9,450
Transfer agent fees	1,153	1,966	2,926	4,563
Wages and management fees	170,081	117,260	504,039	338,225
Total Administrative Expenses	253,536	195,862	808,775	657,764
Operating Income	111,241	165,082	233,059	613,339
Other income	388	222	1,073	874
Interest on long-term obligations	(7,729)	(11,781)	(24,021)	(40,511)
Total Other Expense	(7,341)	(11,559)	(22,948)	(39,637)
Net income for the period	$ 103,900	$ 153,523	$ 210,111	$ 573,702
Basic and diluted income per share	$ 0	$ 0	$ 0	$ 0.01
Weighted average number of shares outstanding: Basic	47,807,426	44,554,926	47,807,426	44,554,926
Weighted average number of shares outstanding: Diluted	52,199,727	51,715,536	52,201,020	51,477,411

INTERNATIONAL BARRIER TECHNOLO5

INTERNATIONAL BARRIER TECHNOLOGY, INC. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Common Stock Shares Issued	Common Stock Par Value	Additional Paid-in Capital	Accumulated Deficit	Total
Beginning balance at Jun. 30, 2014		$ 15,478,926	$ 1,639,363	$ (14,203,045)	$ 2,915,244
Shares outstanding at Jun. 30, 2014	44,554,926
Exercise of options, value		325,250			325,250
Exercise of options, stock	3,252,500
Fair value of stock options exercised		130,080	(130,080)
Net income				701,581	701,581
Ending balance at Jun. 30, 2015		15,934,256	1,509,283	(13,501,464)	3,942,075
Shares outstanding at Jun. 30, 2015	47,807,426
Net income				210,111	210,111
Ending balance at Dec. 31, 2015		$ 15,934,256	$ 1,509,283	$ (13,291,353)	$ 4,152,186
Shares outstanding at Dec. 31, 2015	47,807,426

INTERNATIONAL BARRIER TECHNOLO6

INTERNATIONAL BARRIER TECHNOLOGY, INC. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating Activities
Net income for the period	$ 210,111	$ 573,702
Items not involving cash:
Depreciation - plant and equipment	267,905	250,647
Changes in non-cash working capital balances related to operations:
Accounts receivable	(107,486)	(204,951)
Inventory	136,567	(161,346)
Prepaid expenses and deposits	(53,586)	(5,927)
Accounts payable and accrued liabilities	287,560	(75,389)
Deferred Revenue	66,901
Net cash provided by operating activities	807,972	376,736
Cash Flows used in Financing Activities
Repayment of long term debt		(47,390)
Decrease in obligations under capital lease	(45,539)	(57,968)
Net cash used in financing activities	(45,539)	(105,358)
Cash Flows used in Investing Activities
Acquisition of equipment	(477,270)	(355,547)
Net cash used in investing activities	(477,270)	(355,547)
Change in cash and cash equivalents during the period	285,163	(84,169)
Cash and cash equivalents, beginning of the period	804,452	708,926
Cash and cash equivalents, end of the period	1,089,615	624,757
Supplemental Cash Flow Information
Cash paid for interest	24,021	40,511
Cash paid for income taxes	$ 1,800	$ 800

Note 1 Basis of Presentation

Note 1 Basis of Presentation	9 Months Ended
	Mar. 31, 2016
Notes
Note 1 Basis of Presentation	Note 1 Basis of Presentation The accompanying unaudited condensed financial statements of International Barrier Technology Inc. (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of the Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, they should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended June 30, 2015 included in the Annual Report on Form 10-K filed with the SEC on September 28, 2015. The unaudited condensed consolidated interim financial statements contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly the consolidated financial position of the Company at March 31, 2016, and the consolidated results of operations and cash flows for the three and nine months ended March 31, 2016. All intercompany accounts and transactions have been eliminated. It should be understood that accounting measures at interim dates inherently involve greater reliance on estimates than at year end. The results of operations for the three and nine months ended March 31, 2016 are not necessarily indicative of the results to be expected for the full year or any future interim periods.

Note 2 Significant Accounting P

Note 2 Significant Accounting Policies	9 Months Ended
	Mar. 31, 2016
Notes
Note 2 Significant Accounting Policies	Note 2 Significant Accounting Policies a) Earnings per Share Basic and diluted earnings per share (“EPS”) is computed using the weighted-average number of common shares outstanding during the period. Basic EPS is calculated by dividing the net income or loss by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted EPS is computed by dividing the net income or loss by the weighted-average number of common shares, plus the dilutive effect of common stock equivalents outstanding for the period. The treasury stock method is used in calculating diluted EPS for potentially dilutive stock options and share purchase warrants, which assumes that any proceeds received from the exercise of in-the-money stock options and share purchase warrants, would be used to purchase common shares at the average market price for the period. EPS for convertible debt is calculated under the “if-converted” method. Under the “if converted” method, EPS is calculated as the more dilutive of EPS (i) including all interest (both cash interest and non-cash discount amortization) and excluding all shares underlying the convertible debt or; (ii) excluding all interest (both cash interest and non-cash discount amortization) and including all shares underlying the convertible debt. b) Revenue Recognition The Company recognizes revenue in accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 605, “Revenue Recognition”, which requires that: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the sales price is fixed and determinable, and (iv) collection is reasonably assured. The Company recognizes revenue when the building supplies have been shipped. Revenue for LP® FlameBlock Fire-Rated OSB Sheathing includes only the charges for treatment services, not the underlying OSB substrate or outbound freight as the customer supplies its own OSB Substrate and contracts for its own outgoing freight. The Company periodically enters into arrangements that contain multiple deliverable elements requiring an evaluation of each deliverable to determine whether it represents a separate unit of accounting. Each delivered item constitutes a separate unit of accounting when it has stand-alone value to the customer obligating the Company to determine a selling price for each deliverable. License Fees Revenue from up-front license fees and milestone payments is recognized as performance occurs and the respective obligations are completed. Prior to the completion of performance obligations, up-front payments are recorded as deferred revenue. Royalty Revenue Royalty revenue from sales of our products is generally recognized when received or earned in accordance with the terms of the license fees agreements. c) Plant and Equipment, Trademark and Technology Rights and Depreciation Plant and equipment and trademark and technology rights are recorded at cost. Depreciation is provided as follows: Manufacturing equipment straight line over estimated useful lives ranging from 5 years to 30 years. Equipment and furniture 20%- declining balance Computer equipment 30% - declining balance Railway spur 4% - declining balance Equipment under capital lease 20% - declining balance Patent, trademark and technology rights straight line over 8 years Leasehold improvements are depreciated over their estimated useful economic life.

Note 3 Fair Value Measurements

Note 3 Fair Value Measurements	9 Months Ended
	Mar. 31, 2016
Notes
Note 3 Fair Value Measurements	Note 3 Fair Value Measurements The book value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to the short term maturity of those instruments. The fair value hierarchy under GAAP is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1- quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - observable inputs other than Level I, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and Level 3 - assets and liabilities whose significant value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities. Certain of the Company’s cash equivalents, consisting of short-term term deposits, are based on Level 2 inputs in the ASC 820 fair value hierarchy. The Company’s convertible debentures are based on Level 2 inputs in the ASC 820 fair value hierarchy. The Company calculated the fair value of these instruments by discounting future cash flows using rates representative of current borrowing rates. At March 31, 2016, the convertible debentures had a fair value of $788,385 (June 30, 2015: $790,630). The Company’s capital lease obligations are based on Level 2 inputs in the ASC 820 fair value hierarchy. The fair value of the capital lease obligations is $43,340 (June 30, 2015: $88,879). As at March 31, 2016, the Company has no assets or liabilities that have fair values measured using Level 3 inputs.

Note 4 Inventory

Note 4 Inventory	9 Months Ended
	Mar. 31, 2016
Notes
Note 4 Inventory	Note 4 Inventory March 31, 2016 June 30, 2015 Raw materials $ 351,235 $ 387,469 Finished goods 152,417 252,750 $ 503,652 $ 640,219

Note 5 Property, Plant and Equi

Note 5 Property, Plant and Equipment	9 Months Ended
	Mar. 31, 2016
Notes
Note 5 Property, Plant and Equipment	Note 5 Property, Plant and Equipment Cost March 31, 2016 Accumulated Depreciation Net Manufacturing Equipment $ 4,149,480 $ 2,261,223 $ 1,888,257 Equipment and Furniture 35,528 33,194 2,334 Computer Equipment 30,032 30,032 - Equipment 93,291 71,662 21,629 Land 54,498 - 54,498 Building 2,504,914 1,336,949 1,167,965 Railroad Spur 94,108 61,999 32,109 Subtotal Equipment and Property $ 6,961,851 $ 3,795,059 $ 3,166,792 Assets under Capital Lease Equipment $ 73,216 $ 16,167 $ 57,049 Subtotal Assets under Capital Lease 73,216 16,167 57,049 Total Property, Plant and Equipment $ 7,035,067 $ 3,811,226 $ 3,223,841 Cost June 30, 2015 Accumulated Depreciation Net Manufacturing Equipment $ 3,806,970 $ 2,093,596 $ 1,713,374 Equipment and Furniture 33,194 33,194 - Computer Equipment 30,032 30,032 - Equipment 93,291 64,642 28,649 Railroad Spur 94,108 59,173 34,935 Subtotal Equipment and Property $ 4,057,595 $ 2,280,637 $ 1,776,958 Assets under Capital Lease Equipment $ 73,216 $ 10,692 $ 62,524 Land 54,498 - 54,498 Building 2,372,488 1,251,992 1,120,496 Subtotal Assets under Capital Lease 2,500,202 1,262,684 $ 1,237,518 Total Property, Plant and Equipment $ 6,557,797 $ 3,543,321 $ 3,014,476

Note 6 Convertible Debt

Note 6 Convertible Debt	9 Months Ended
	Mar. 31, 2016
Notes
Note 6 Convertible Debt	Note 6 Convertible Debt During the year ended June 30, 2012, the Company approved the issuance of two convertible debentures to a director and a company controlled by a director in the amount of $300,000. The debentures are being issued in tranches from $10,000-$50,000 and as at March 31, 2016 the Company had received $240,000 (June 30, 2015: $240,000) in respect of these debentures. The debentures bear interest at 12% per annum, payable quarterly, and are collateralized by a third charge over the Company’s plant and equipment as well as a charge against the Company’s patents. At any time, the notes are convertible into units of the Company at a price of $0.10 per unit. Each unit will consist of one common share and one common share purchase warrant entitling the holder the right to purchase one additional share for $0.10 for a period of two years from the conversion date. During the nine month period ended March 31, 2016, the Company incurred interest charges of $21,600 (nine month period ended March 31, 2015: $21,600) on these convertible debentures.

Note 7 Common Stock

Note 7 Common Stock	9 Months Ended
	Mar. 31, 2016
Notes
Note 7 Common Stock	Note 7 Common Stock Escrow: At March 31, 2016, there are 48,922 (June 30, 2015 – 48,922) common shares held in escrow by the Company’s transfer agent, the release which is subject to the approval of the regulatory authorities. As at March 31, 2016 and June 30, 2015, all of these shares held in escrow are issuable but the Company has yet to request their release. Commitments: Stock-based Compensation Plan At March 31, 2016, the Company has outstanding options that were granted to directors, officers, and consultants to purchase 1,077,500 common shares of the Company. A summary of the status of the Company’s share purchase option plan for the nine months ended March 31, 2016 is presented below: Weighted Average Number of Exercise Shares Price Outstanding, June 30, 2015 1,077,500 $ 0.097 Outstanding, March 31, 2016 1,077,500 $ 0.097 Exercisable, March 31, 2016 1,077,500 $ 0.097 Exercisable, June 30, 2015 1,077,500 $ 0.097 The following summarizes information about the stock options outstanding at March 31, 2016: Number Exercise Remaining Price Expiry Date Contractual Life 1,077,500 $0.097 August 2, 2016 0.34 years 1,077,500

Note 8 Segmented Information an

Note 8 Segmented Information and Sales Concentration	9 Months Ended
	Mar. 31, 2016
Notes
Note 8 Segmented Information and Sales Concentration	Note 8 Segmented Information and Sales Concentration The Company operates in one industry segment being the manufacturing and marketing of fire resistant building materials. Substantially all of the Company’s revenues and long-term assets are located in the United States. During the three and nine months ended March 31, 2016, two customers accounted for 100% of total sales revenue: Three months ended Nine months ended March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015 Customer #1 83% 77% 76% 74% Customer #2 17% 23% 24% 26% The accounts receivable from each of these customers at March 31, 2016 were $342,561 and $141,230 respectively (June 30, 2015: $175,992 and $187,290, respectively). The loss of either of these customers or the curtailment of purchases by such customers could have material adverse effects on the Company’s financial condition and results of operations.

Note 2 Significant Accounting15

Note 2 Significant Accounting Policies: Earnings Per Share (Policies)	9 Months Ended
	Mar. 31, 2016
Policies
Earnings Per Share	a) Earnings per Share Basic and diluted earnings per share (“EPS”) is computed using the weighted-average number of common shares outstanding during the period. Basic EPS is calculated by dividing the net income or loss by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted EPS is computed by dividing the net income or loss by the weighted-average number of common shares, plus the dilutive effect of common stock equivalents outstanding for the period. The treasury stock method is used in calculating diluted EPS for potentially dilutive stock options and share purchase warrants, which assumes that any proceeds received from the exercise of in-the-money stock options and share purchase warrants, would be used to purchase common shares at the average market price for the period. EPS for convertible debt is calculated under the “if-converted” method. Under the “if converted” method, EPS is calculated as the more dilutive of EPS (i) including all interest (both cash interest and non-cash discount amortization) and excluding all shares underlying the convertible debt or; (ii) excluding all interest (both cash interest and non-cash discount amortization) and including all shares underlying the convertible debt.

Note 2 Significant Accounting16

Note 2 Significant Accounting Policies: b) Revenue Recognition (Policies)	9 Months Ended
	Mar. 31, 2016
Policies
b) Revenue Recognition	b) Revenue Recognition The Company recognizes revenue in accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 605, “Revenue Recognition”, which requires that: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the sales price is fixed and determinable, and (iv) collection is reasonably assured. The Company recognizes revenue when the building supplies have been shipped. Revenue for LP® FlameBlock Fire-Rated OSB Sheathing includes only the charges for treatment services, not the underlying OSB substrate or outbound freight as the customer supplies its own OSB Substrate and contracts for its own outgoing freight. The Company periodically enters into arrangements that contain multiple deliverable elements requiring an evaluation of each deliverable to determine whether it represents a separate unit of accounting. Each delivered item constitutes a separate unit of accounting when it has stand-alone value to the customer obligating the Company to determine a selling price for each deliverable.

Note 2 Significant Accounting17

Note 2 Significant Accounting Policies: Revenue Recognition, Services, Licensing Fees (Policies)	9 Months Ended
	Mar. 31, 2016
Policies
Revenue Recognition, Services, Licensing Fees	License Fees Revenue from up-front license fees and milestone payments is recognized as performance occurs and the respective obligations are completed. Prior to the completion of performance obligations, up-front payments are recorded as deferred revenue.

Note 2 Significant Accounting18

Note 2 Significant Accounting Policies: License Fees (Policies)	9 Months Ended
	Mar. 31, 2016
Policies
License Fees	Royalty Revenue Royalty revenue from sales of our products is generally recognized when received or earned in accordance with the terms of the license fees agreements.

Note 2 Significant Accounting19

Note 2 Significant Accounting Policies: c) Plant and Equipment, Trademark and Technology Rights and Depreciation (Policies)	9 Months Ended
	Mar. 31, 2016
Policies
c) Plant and Equipment, Trademark and Technology Rights and Depreciation	c) Plant and Equipment, Trademark and Technology Rights and Depreciation Plant and equipment and trademark and technology rights are recorded at cost. Depreciation is provided as follows: Manufacturing equipment straight line over estimated useful lives ranging from 5 years to 30 years. Equipment and furniture 20%- declining balance Computer equipment 30% - declining balance Railway spur 4% - declining balance Equipment under capital lease 20% - declining balance Patent, trademark and technology rights straight line over 8 years Leasehold improvements are depreciated over their estimated useful economic life.

Note 2 Significant Accounting20

Note 2 Significant Accounting Policies: c) Plant and Equipment, Trademark and Technology Rights and Depreciation: Schedule of Depreciation Provisions (Tables)	9 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Depreciation Provisions	Manufacturing equipment straight line over estimated useful lives ranging from 5 years to 30 years. Equipment and furniture 20%- declining balance Computer equipment 30% - declining balance Railway spur 4% - declining balance Equipment under capital lease 20% - declining balance Patent, trademark and technology rights straight line over 8 years

Note 4 Inventory_ Schedule of I

Note 4 Inventory: Schedule of Inventory, Current (Tables)	9 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Inventory, Current	March 31, 2016 June 30, 2015 Raw materials $ 351,235 $ 387,469 Finished goods 152,417 252,750 $ 503,652 $ 640,219

Note 5 Property, Plant and Eq22

Note 5 Property, Plant and Equipment: Property, Plant and Equipment (Tables)	9 Months Ended	12 Months Ended
	Mar. 31, 2016	Jun. 30, 2015
Tables/Schedules
Property, Plant and Equipment	Cost March 31, 2016 Accumulated Depreciation Net Manufacturing Equipment $ 4,149,480 $ 2,261,223 $ 1,888,257 Equipment and Furniture 35,528 33,194 2,334 Computer Equipment 30,032 30,032 - Equipment 93,291 71,662 21,629 Land 54,498 - 54,498 Building 2,504,914 1,336,949 1,167,965 Railroad Spur 94,108 61,999 32,109 Subtotal Equipment and Property $ 6,961,851 $ 3,795,059 $ 3,166,792 Assets under Capital Lease Equipment $ 73,216 $ 16,167 $ 57,049 Subtotal Assets under Capital Lease 73,216 16,167 57,049 Total Property, Plant and Equipment $ 7,035,067 $ 3,811,226 $ 3,223,841	Cost June 30, 2015 Accumulated Depreciation Net Manufacturing Equipment $ 3,806,970 $ 2,093,596 $ 1,713,374 Equipment and Furniture 33,194 33,194 - Computer Equipment 30,032 30,032 - Equipment 93,291 64,642 28,649 Railroad Spur 94,108 59,173 34,935 Subtotal Equipment and Property $ 4,057,595 $ 2,280,637 $ 1,776,958 Assets under Capital Lease Equipment $ 73,216 $ 10,692 $ 62,524 Land 54,498 - 54,498 Building 2,372,488 1,251,992 1,120,496 Subtotal Assets under Capital Lease 2,500,202 1,262,684 $ 1,237,518 Total Property, Plant and Equipment $ 6,557,797 $ 3,543,321 $ 3,014,476

Note 7 Common Stock_ Schedule o

Note 7 Common Stock: Schedule of Share-based Compensation, Activity (Tables)	9 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Share-based Compensation, Activity	Weighted Average Number of Exercise Shares Price Outstanding, June 30, 2015 1,077,500 $ 0.097 Outstanding, March 31, 2016 1,077,500 $ 0.097 Exercisable, March 31, 2016 1,077,500 $ 0.097 Exercisable, June 30, 2015 1,077,500 $ 0.097

Note 7 Common Stock_ Schedule24

Note 7 Common Stock: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables)	9 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Stockholders' Equity Note, Warrants or Rights	Number Exercise Remaining Price Expiry Date Contractual Life 1,077,500 $0.097 August 2, 2016 0.34 years 1,077,500

Note 8 Segmented Information 25

Note 8 Segmented Information and Sales Concentration: Schedule of Revenue by Major Customers by Reporting Segments (Tables)	9 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Revenue by Major Customers by Reporting Segments	Three months ended Nine months ended March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015 Customer #1 83% 77% 76% 74% Customer #2 17% 23% 24% 26%

Note 3 Fair Value Measurements

Note 3 Fair Value Measurements (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Details
Convertible Debt, Fair Value Disclosures	$ 788,385	$ 790,630
Capital Leased Assets, Noncurrent, Fair Value Disclosure	$ 43,340	$ 88,879

Note 4 Inventory_ Schedule of27

Note 4 Inventory: Schedule of Inventory, Current (Details) - USD ($)		Mar. 31, 2016	Jun. 30, 2015
Details
Inventory, Raw Materials, Gross		$ 351,235	$ 387,469
Inventory, Finished Goods, Gross		152,417	252,750
Inventory	[1]	$ 503,652	$ 640,219
[1]	Note 4

Note 5 Property, Plant and Eq28

Note 5 Property, Plant and Equipment: Property, Plant and Equipment (Details) - USD ($)		9 Months Ended	12 Months Ended
		Mar. 31, 2016	Jun. 30, 2015
Details
Manufacturing Equipment		$ 4,149,480	$ 3,806,970
Manufacturing Equipment, depreciation		2,261,223	2,093,596
Manufacturing Equipment, net		1,888,257	1,713,374
Furniture and Fixtures, Gross		35,528	33,194
Equipment and Furniture, depreciation		33,194	33,194
Equipment and furniture, net		2,334
Computer Equipment		30,032	30,032
Computer Equipment, depreciation		30,032	30,032
Equipment, gross		93,291	93,291
Equipment, depreciation		71,662	64,642
Equipment, net		21,629	28,649
Land		54,498	54,498
Land		54,498	54,498
Buildings and Improvements, Gross		2,504,914	2,372,488
Buildings and improvements, depreciation		1,336,949	1,251,992
Buildings and improvements, net		1,167,965
Railroad spur, gross		94,108	94,108
Railroad spur, depreciation		61,999	59,173
Railroad spur, net		32,109	34,935
Property, Plant, and Equipment, Owned, Gross		6,961,851	4,057,595
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Excluding Capital Leased Assets		3,795,059	2,280,637
Equipment and property, net		3,166,792	1,776,958
Equipment under lease, gross		73,216	73,216
Equipment under lease, depreciation		16,167	10,692
Equipment under lease, net		57,049	62,524
Capital Leased Assets, Gross, Total		73,216	2,500,202
Amortization of Leased Asset		16,167	1,262,684
Capital Leases, Balance Sheet, Assets by Major Class, Net		57,049	1,237,518
Property, Plant and Equipment, Gross		7,035,067	6,557,797
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment		3,811,226	3,543,321
Property, plant and equipment	[1]	$ 3,223,841	3,014,476
Building and improvements under lease, net			$ 1,120,496
[1]	Note 5

Note 6 Convertible Debt (Detail

Note 6 Convertible Debt (Details) - USD ($)	9 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Details
Proceeds from convertible debt, related party	$ 240,000
Proceeds from Related Party Debt			$ 240,000
Interest on Convertible Debt, Net of Tax	$ 21,600	$ 21,600

Note 7 Common Stock (Details)

Note 7 Common Stock (Details) - shares	Mar. 31, 2016	Jun. 30, 2015
Details
Shares held in escrow	48,922	48,922
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	1,077,500	1,077,500

Note 7 Common Stock_ Schedule31

Note 7 Common Stock: Schedule of Share-based Compensation, Activity (Details) - $ / shares	Mar. 31, 2016	Jun. 30, 2015
Details
Outstanding	1,077,500	1,077,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 0.097	$ 0.097
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	1,077,500	1,077,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 0.097	$ 0.097

Note 7 Common Stock_ Schedule32

Note 7 Common Stock: Schedule of Stockholders' Equity Note, Warrants or Rights (Details)	Mar. 31, 2016shares
Details
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	1,077,500

Note 8 Segmented Information 33

Note 8 Segmented Information and Sales Concentration: Schedule of Revenue by Major Customers by Reporting Segments (Details)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Details
Customer 1	83.00%	77.00%	76.00%	74.00%
Customer 2	17.00%	23.00%	24.00%	26.00%

Note 8 Segmented Information 34

Note 8 Segmented Information and Sales Concentration (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Details
Customer 1, amount receivable	$ 342,561	$ 175,992
Customer 2, Amount receivable	141,230	187,290