Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Dec. 31, 2014 | Feb. 13, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Amerityre Corp | |
Document Type | 10-Q | |
Current Fiscal Year End Date | -24 | |
Entity Common Stock, Shares Outstanding | 41,570,287 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 945828 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | 31-Dec-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
CURRENT ASSETS | ||
Cash | $372,963 | $728,585 |
Accounts receivable - net | 505,073 | 384,160 |
Accounts receivable - related party - net | 14,875 | 17,089 |
Inventory - net | 717,876 | 770,991 |
Prepaid and other current assets | 68,646 | 39,631 |
Total Current Assets | 1,679,433 | 1,940,456 |
PROPERTY AND EQUIPMENT | ||
Leasehold improvements | 162,683 | 162,683 |
Molds and models | 848,139 | 824,979 |
Equipment | 2,967,623 | 2,966,649 |
Furniture and fixtures | 114,184 | 105,622 |
Construction in progress | 0 | 975 |
Software | 311,632 | 311,632 |
Less - accumulated depreciation | -3,990,143 | -3,915,542 |
Total Property and Equipment | 414,118 | 456,998 |
OTHER ASSETS | ||
Patents and trademarks - net | 270,921 | 286,947 |
Deposits | 11,000 | 11,000 |
Total Other Assets | 281,921 | 297,947 |
TOTAL ASSETS | 2,375,472 | 2,695,401 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 586,608 | 617,678 |
Current portion of long-term debt | 14,553 | 16,013 |
Total Current Liabilities | 601,161 | 633,691 |
Long-term debt | 53,840 | 53,840 |
TOTAL LIABILITIES | 655,001 | 687,531 |
STOCKHOLDERS' EQUITY | ||
Preferred stock: 5,000,000 shares authorized of $0.001 par value, 2,000,000 shares issued and outstanding, respectively | 2,000 | 2,000 |
Common Stock: 75,000,000 shares authorized of $0.001 par value, 41,441,620 shares issued and outstanding, respectively | 41,441 | 41,441 |
Additional paid-in capital | 62,500,703 | 62,455,820 |
Common stock payable | 5,147 | 0 |
Accumulated deficit | -60,828,820 | -60,491,391 |
Total Stockholders' Equity | 1,720,471 | 2,007,870 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $2,375,472 | $2,695,401 |
Balance_Sheets_Parentheticals
Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
Preferred stock par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 2,000,000 | 2,000,000 |
Preferred stock, shares outstanding | 2,000,000 | 2,000,000 |
Common stock par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 41,441,620 | 41,441,620 |
Common stock, shares outstanding | 41,441,620 | 41,441,620 |
Statements_of_Operations_Unaud
Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
NET SALES | $1,349,336 | $1,260,800 | $2,381,060 | $2,298,125 |
COST OF GOODS SOLD | 1,035,209 | 1,064,624 | 1,836,865 | 1,880,143 |
GROSS PROFIT | 314,127 | 196,176 | 544,195 | 417,982 |
EXPENSES | ||||
Research and development | 57,646 | 40,455 | 97,490 | 76,368 |
Sales and marketing | 167,346 | 101,966 | 286,205 | 221,654 |
General and administrative | 217,759 | 207,889 | 448,295 | 435,083 |
Total Expenses | 442,751 | 350,310 | 831,990 | 733,105 |
LOSS FROM OPERATIONS | -128,624 | -154,134 | -287,795 | -315,123 |
OTHER INCOME/(EXPENSE) | ||||
Interest expense | 0 | -40,905 | 0 | -54,792 |
Interest income | 159 | 0 | 366 | 0 |
Loss on asset disposal | 0 | -1,585 | 0 | -1,585 |
Miscellaneous Income | 0 | 3,342 | 0 | 3,652 |
Total Other Income/(Expense) | 159 | -39,148 | 366 | -52,725 |
NET LOSS | -128,465 | -193,282 | -287,429 | -367,848 |
Preferred Stock Dividend | -25,000 | 0 | -50,000 | 0 |
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | ($153,465) | ($193,282) | ($337,429) | ($367,848) |
BASIC AND DILUTED LOSS PER SHARE (in Dollars per share) | $0 | $0 | ($0.01) | ($0.01) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING (in Shares) | 41,441,620 | 39,801,403 | 41,441,620 | 39,771,511 |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | ($287,429) | ($367,848) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation and amortization expense | 90,627 | 105,719 |
Amortization of discount on convertible note | 0 | 22,329 |
Change in allowance for bad debt expense (recovery) | -8,066 | -8,045 |
Stock based compensation related to consultant, employee, and director options | 13,571 | 35,790 |
Stock payable for services | 5,147 | 0 |
Gain/loss on disposal of assets | 0 | 1,585 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -110,633 | -216,516 |
Prepaid and other current assets | -29,015 | 25,128 |
Inventory and any change in inventory reserve | 53,115 | 47,625 |
Accounts payable and accrued expenses | -24,570 | 226,888 |
Net Cash Used by Operating Activities | -297,253 | -130,515 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | -31,721 | -22,319 |
Net Cash Used by Investing Activities | -31,721 | -22,319 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from the issuance of unsecured notes payable | 0 | 507,222 |
Redemption and payment of convertible and other notes payable | -1,460 | -275,374 |
Preferred stock offering costs | -188 | -14,373 |
Preferred stock dividends | -25,000 | 0 |
Net Cash (Used)/Provided by Financing Activities | -26,648 | 217,475 |
NET (DECREASE)/INCREASE IN CASH | -355,622 | 64,641 |
CASH AT BEGINNING OF PERIOD | 728,585 | 108,747 |
CASH AT END OF PERIOD | 372,963 | 173,388 |
NON-CASH FINANCING ACTIVITIES | ||
Interest paid | 0 | 8,154 |
Income taxes paid | 0 | 0 |
SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES | ||
Accrual of preferred share dividends | 25,000 | 0 |
Reversal of deferred financing costs | $31,500 | $0 |
NOTE_1_BASIS_OF_FINANCIAL_STAT
NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION | 6 Months Ended |
Dec. 31, 2014 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION |
The accompanying unaudited condensed financial statements have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in accordance with such rules and regulations. The information furnished in the interim condensed financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. We believe the disclosures and information presented are adequate to make the information not misleading. These interim condensed financial statements should be read in conjunction with our most recent audited financial statements and notes thereto included in our June 30, 2014 Annual Report on Form 10-K. Operating results for the quarter ended December 31, 2014 are not necessarily indicative of the results that may be expected for the current fiscal year ending June 30, 2015. | |
NOTE_2_SUMMARY_OF_SIGNIFICANT_
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Significant accounting policies disclosed therein have not changed since our audited financial statements and notes thereto included in our June 30, 2014 Annual Report on Form 10-K, except as noted below. | |
Trade Receivables | |
We generally charge-off trade receivables that are more than 120 days outstanding as bad-debt expense, unless management believes the amount to be collectable. The charge-off amounts are included in general and administrative expenses. As of December 31, 2014 and 2013, the reserve for uncollectible accounts was $7,296 and $-0-, respectively. | |
Stock Based-Compensation Expense | |
We account for stock-based compensation under the provisions of Accounting Standards Codification 718, Compensation – Stock Compensation (ASC 718). Our financial statements as of and for the quarters ended December 31, 2014 and 2013 reflect the impact of ASC 718. Stock-based compensation expense related to director, employee or consultant options recognized under ASC 718 for the six months ended December 31, 2014 and 2013 was $13,571 and $35,790, respectively. | |
ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our Statement of Operations. Stock-based compensation expense recognized in our Statements of Operations for the six months ended December 31, 2014 and 2013 assumes all awards will vest; therefore no reduction has been made for estimated forfeitures. We have awarded some options with a performance requirement and no amounts will be recorded until the requirement is met. | |
In fiscal year 2015 we modified our volatility analysis to represent a 2 year historical trend of our stock. This modification to our valuation analysis related to options results in an immaterial difference to previous methodology and is employed consistently with all new option grants. | |
Basic and Fully Diluted Net Loss Per Share | |
Basic and Fully Diluted net loss per share is computed using the weighted-average number of common shares outstanding during the period. | |
Our outstanding stock options and warrants and shares issuable upon conversion of outstanding convertible notes have been excluded from the basic and fully diluted net loss per share calculation. We excluded 2,834,000 and 2,532,571 common stock equivalents for the six months ended December 31, 2014 and 2013, respectively, because they are anti-dilutive. | |
Recent Accounting Pronouncements | |
Recently Adopted and Recently Issued Accounting Guidance | |
Issued | |
In August 2014, the FASB issued ASU 2014-15 Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company's financial statements. | |
In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20),” which eliminates the concept of extraordinary items. The new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015. The new guidance is to be applied prospectively but may also be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. We expect to adopt the provisions of this new guidance on July 1, 2016. We do not expect the adoption of the new provisions to have a material impact on our financial condition or results of operations. | |
Related Party Transactions | |
Amerityre’s Chairman of the Board and Chief Executive Officer, Timothy L. Ryan, is also the principal owner of Rhino Rubber LLC, a manufacturing and distribution company for solid industrial tires and wheels. During the six months ended December 31, 2014 and 2013, Rhino Rubber LLC purchased a total of $3,988 and $4,994, respectively, in tire products from Amerityre. As of December 31, 2014 and June 30, 2014, the accounts receivable balances for Rhino Rubber LLC were $14,875 and $17,089, respectively. | |
We currently distribute directly from our manufacturing facility in Boulder City, Nevada and in the past from an independent, contracted warehouse in Ravenna, Ohio. This contract distribution point was unable to support customer requirements, became ineffective and stopped operations in the second quarter of 2014. In order to keep commitments to customers and keep revenue growth positive, distribution and other related services were transferred to Rhino Rubber in Akron, Ohio. Costs for these services were limited to freight, shipping and labor for mounting services. Storage and other fees of $2,214 for the six months ended December 31, 2014 were charged to the Company by Rhino Rubber and used to offset the above accounts receivable balance. | |
NOTE_3_INVENTORY
NOTE 3 - INVENTORY | 6 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventory Disclosure [Text Block] | NOTE 3 - INVENTORY | ||||||||
Inventory is stated at the lower of cost (computed on a first-in, first-out basis) or market. The inventory consists primarily of chemicals, finished goods produced in our plant and products purchased for resale. | |||||||||
31-Dec-14 | 30-Jun-14 | ||||||||
(Unaudited) | |||||||||
Raw Materials | $ | 306,991 | $ | 358,725 | |||||
Finished Goods | 529,473 | 525,722 | |||||||
Inventory reserve | (118,588 | ) | (113,456 | ) | |||||
Total Inventory | $ | 717,876 | $ | 770,991 | |||||
Our inventory reserve reflects items that were deemed to be slow moving or obsolete based on an analysis of all inventories on hand. | |||||||||
NOTE_4_STOCK_TRANSACTIONS
NOTE 4 - STOCK TRANSACTIONS | 6 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 4 - STOCK TRANSACTIONS |
During the second quarter, we granted a consultant 128,667 common shares valued at $0.04 per share ($5,147) for work performed related to sales of our products in the three month period ending December 31, 2014. These shares were issued in January 2015. | |
Additionally, in a prior period we had accrued deferred financing costs related to a private placement stock campaign. Upon further investigation the accrual was in error and reversed in the second quarter of fiscal 2015, resulting in an increase to additional paid in capital. | |
NOTE_5_STOCK_OPTIONS_AND_WARRA
NOTE 5 - STOCK OPTIONS AND WARRANTS | 6 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||||||||||||||||
Shareholders' Equity and Share-based Payments [Text Block] | NOTE 5 - STOCK OPTIONS AND WARRANTS | ||||||||||||||||||||||
General Option Information | |||||||||||||||||||||||
On July 6, 2011, the Board of Directors cancelled the “2004 Non-Employee Directors’ Stock Incentive Plan” and approved the “Directors’ 2011 Stock Option and Award Plan”. The Company also maintains the 2005 Stock Option and Award Plan, which was previously approved by stockholders, for the purpose of granting option awards to its employees and consultants. Under the 2005 Plan, a total of 3,000,000 shares are authorized for issuance, and under the 2011 Plan, a total of 3,300,000 shares are authorized for issuance. | |||||||||||||||||||||||
During the six months ended December 31, 2014, 100,000 options were granted. Additionally 140,000 options related to this transaction vested (20,000 options monthly May – November 2014 at $0.10); these options were granted to a consultant pursuant to a consulting agreement. Year to date expense related to these options is $12,022 as of December 31, 2014. | |||||||||||||||||||||||
On December 1, 2014, 480,000 options were granted to the Company’s Chief Operating Officer as part of his employment offer. The options have a strike price of $0.10, vest December 1, 2015 and expire December 1, 2020. Year to date expense related to these options is $1,549 as of December 31, 2014. | |||||||||||||||||||||||
We estimated the fair value of the stock options at the grant date based on the following weighted average assumptions: | |||||||||||||||||||||||
Risk-free interest rate | 1.19 | – | 1.345 | % | |||||||||||||||||||
Expected life | 3.8 | – | 4.5 | years | |||||||||||||||||||
Expected volatility | 147.43 | % | – | 152.4 | % | ||||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||||||||
A summary of the status of our outstanding stock options as of December 31, 2014 and June 30, 2014 and changes during the periods then ended is presented below: | |||||||||||||||||||||||
December 31, 2014 | June 30, 2014 | ||||||||||||||||||||||
Shares | Weighted Average | Shares | Weighted Average | ||||||||||||||||||||
Exercise Price | Exercise Price | ||||||||||||||||||||||
Outstanding beginning of period | 1,754,000 | $ | 0.17 | 1,904,000 | $ | 0.23 | |||||||||||||||||
Granted | 620,000 | $ | 0.1 | 150,000 | 0.08 | ||||||||||||||||||
Expired/Cancelled | - | $ | - | (300,000 | ) | 0.5 | |||||||||||||||||
Exercised | - | $ | - | - | - | ||||||||||||||||||
Outstanding end of period | 2,374,000 | $ | 0.15 | 1,754,000 | $ | 0.17 | |||||||||||||||||
Exercisable | 1,894,000 | $ | 0.17 | 1,604,000 | $ | 0.18 | |||||||||||||||||
The following table summarizes the range of outstanding and exercisable options as of December 31, 2014: | |||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||
Range of | Number Outstanding at | Average | Weighted | Number | Average Remaining | ||||||||||||||||||
Exercise Prices | 31-Dec-14 | Remaining | Average | Exercisable at | Contractual Life | ||||||||||||||||||
Contractual Life | Exercise Price | 31-Dec-14 | |||||||||||||||||||||
$ | 0.08 | 150,000 | 6.92 | $ | 0.08 | 150,000 | 6.92 | ||||||||||||||||
$ | 0.1 | 620,000 | 4.96 | $ | 0.1 | 140,000 | 4.96 | ||||||||||||||||
$ | 0.17 | 650,000 | 4.92 | $ | 0.17 | 650,000 | 4.92 | ||||||||||||||||
$ | 0.17 | 400,000 | 5.92 | $ | 0.17 | 400,000 | 5.92 | ||||||||||||||||
$ | 0.17 | 400,000 | 5.92 | $ | 0.17 | 400,000 | 5.92 | ||||||||||||||||
$ | 0.29 | 154,000 | 0.5 | $ | 0.29 | 154,000 | 0.5 | ||||||||||||||||
2,374,000 | 1,894,000 | ||||||||||||||||||||||
General Warrant Information | |||||||||||||||||||||||
In September 2013, the Company obtained an extension on the remaining $100,000 secured convertible promissory note that was issued in the private placement that closed in September 2010. This note was paid off as of June 30, 2014. In exchange for the extension, the note holder received 500,000 common stock warrants and $6,500 in accrued interest and fees. The common stock warrants expire three years from the date of issuance, are exercisable at $0.13 per share, and vest on the next date the value of Amerityre common stock reaches $0.25 per share. As of December 31, 2014 the warrants have not vested. | |||||||||||||||||||||||
NOTE_6_LIQUIDITY
NOTE 6 - LIQUIDITY | 6 Months Ended |
Dec. 31, 2014 | |
Going Concern Disclosure [Abstract] | |
Going Concern Disclosure [Text Block] | NOTE 6 – LIQUIDITY |
At December 31, 2014, our total cash was $372,963, none of which was restricted and our total indebtedness was $655,001, compared to total cash of $173,388 and total indebtedness of $1,715,797 at December 31, 2013. Our total indebtedness at December 31, 2014 includes $586,608 of accounts payable and accrued expenses and $68,393 of long-term debt (of which $14,553 is current). | |
In the second quarter fiscal 2015, our revenue fell short of expectations primarily due to a large long term customer not placing their customary order in the second quarter. The lack of this customary order was a significant factor in the Company not achieving the expected milestone of achieving positive cash flows from operations. As a result, operations for the first two quarters of fiscal 2015 consumed $355,622 of the Company’s limited cash resources. | |
To help address our limited cash resources, we are in discussions with various opportunities to license our technology to third parties which we believe will bring in additional cash flows without diluting our common stock or requiring the addition of debt. Additionally, we are in discussions with banks and other lenders regarding establishing a line of credit for short term cash needs, however at this time we have not succeeded in establishing such a line of credit. | |
At the Annual Stockholder’s Meeting held on December 4, 2014, management presented a plan focusing on “Profitability as a Mindset”. To that end, management continues to sharpen our sales model continue to add sales resources. We have purchased a customer list and placed advertisements in trade magazines to our target customer base and will further utilize the customer list through a more robust customer relationship management process through our the remainder of fiscal year 2015. | |
In connection with the preparation of our financial statements for the three and six months ended December 31, 2014, we have analyzed our cash needs for the next twelve months. We have concluded that our available cash and accounts receivables are sufficient to meet our current minimum working capital, capital expenditure and other cash requirements for this period. | |
NOTE_7_SUBSEQUENT_EVENTS
NOTE 7 - SUBSEQUENT EVENTS | 6 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 7 – SUBSEQUENT EVENTS |
As disclosed above in Note 4, 128,667 common shares were issued in January 2015 pursuant to services rendered in the second quarter. | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Trade Receivables |
We generally charge-off trade receivables that are more than 120 days outstanding as bad-debt expense, unless management believes the amount to be collectable. The charge-off amounts are included in general and administrative expenses. As of December 31, 2014 and 2013, the reserve for uncollectible accounts was $7,296 and $-0-, respectively. | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock Based-Compensation Expense |
We account for stock-based compensation under the provisions of Accounting Standards Codification 718, Compensation – Stock Compensation (ASC 718). Our financial statements as of and for the quarters ended December 31, 2014 and 2013 reflect the impact of ASC 718. Stock-based compensation expense related to director, employee or consultant options recognized under ASC 718 for the six months ended December 31, 2014 and 2013 was $13,571 and $35,790, respectively. | |
ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our Statement of Operations. Stock-based compensation expense recognized in our Statements of Operations for the six months ended December 31, 2014 and 2013 assumes all awards will vest; therefore no reduction has been made for estimated forfeitures. We have awarded some options with a performance requirement and no amounts will be recorded until the requirement is met. | |
In fiscal year 2015 we modified our volatility analysis to represent a 2 year historical trend of our stock. This modification to our valuation analysis related to options results in an immaterial difference to previous methodology and is employed consistently with all new option grants. | |
Earnings Per Share, Policy [Policy Text Block] | Basic and Fully Diluted Net Loss Per Share |
Basic and Fully Diluted net loss per share is computed using the weighted-average number of common shares outstanding during the period. | |
Our outstanding stock options and warrants and shares issuable upon conversion of outstanding convertible notes have been excluded from the basic and fully diluted net loss per share calculation. We excluded 2,834,000 and 2,532,571 common stock equivalents for the six months ended December 31, 2014 and 2013, respectively, because they are anti-dilutive. | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements |
Recently Adopted and Recently Issued Accounting Guidance | |
Issued | |
In August 2014, the FASB issued ASU 2014-15 Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company's financial statements. | |
In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20),” which eliminates the concept of extraordinary items. The new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015. The new guidance is to be applied prospectively but may also be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. We expect to adopt the provisions of this new guidance on July 1, 2016. We do not expect the adoption of the new provisions to have a material impact on our financial condition or results of operations. | |
Related Party Transactions Policy [Policy Text Block] | Related Party Transactions |
Amerityre’s Chairman of the Board and Chief Executive Officer, Timothy L. Ryan, is also the principal owner of Rhino Rubber LLC, a manufacturing and distribution company for solid industrial tires and wheels. During the six months ended December 31, 2014 and 2013, Rhino Rubber LLC purchased a total of $3,988 and $4,994, respectively, in tire products from Amerityre. As of December 31, 2014 and June 30, 2014, the accounts receivable balances for Rhino Rubber LLC were $14,875 and $17,089, respectively. | |
We currently distribute directly from our manufacturing facility in Boulder City, Nevada and in the past from an independent, contracted warehouse in Ravenna, Ohio. This contract distribution point was unable to support customer requirements, became ineffective and stopped operations in the second quarter of 2014. In order to keep commitments to customers and keep revenue growth positive, distribution and other related services were transferred to Rhino Rubber in Akron, Ohio. Costs for these services were limited to freight, shipping and labor for mounting services. Storage and other fees of $2,214 for the six months ended December 31, 2014 were charged to the Company by Rhino Rubber and used to offset the above accounts receivable balance. |
NOTE_3_INVENTORY_Tables
NOTE 3 - INVENTORY (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of Inventory, Current [Table Text Block] | Inventory is stated at the lower of cost (computed on a first-in, first-out basis) or market. The inventory consists primarily of chemicals, finished goods produced in our plant and products purchased for resale. | ||||||||
31-Dec-14 | 30-Jun-14 | ||||||||
(Unaudited) | |||||||||
Raw Materials | $ | 306,991 | $ | 358,725 | |||||
Finished Goods | 529,473 | 525,722 | |||||||
Inventory reserve | (118,588 | ) | (113,456 | ) | |||||
Total Inventory | $ | 717,876 | $ | 770,991 |
NOTE_5_STOCK_OPTIONS_AND_WARRA1
NOTE 5 - STOCK OPTIONS AND WARRANTS (Tables) | 6 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | We estimated the fair value of the stock options at the grant date based on the following weighted average assumptions: | ||||||||||||||||||||||
Risk-free interest rate | 1.19 | – | 1.345 | % | |||||||||||||||||||
Expected life | 3.8 | – | 4.5 | years | |||||||||||||||||||
Expected volatility | 147.43 | % | – | 152.4 | % | ||||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the status of our outstanding stock options as of December 31, 2014 and June 30, 2014 and changes during the periods then ended is presented below: | ||||||||||||||||||||||
December 31, 2014 | June 30, 2014 | ||||||||||||||||||||||
Shares | Weighted Average | Shares | Weighted Average | ||||||||||||||||||||
Exercise Price | Exercise Price | ||||||||||||||||||||||
Outstanding beginning of period | 1,754,000 | $ | 0.17 | 1,904,000 | $ | 0.23 | |||||||||||||||||
Granted | 620,000 | $ | 0.1 | 150,000 | 0.08 | ||||||||||||||||||
Expired/Cancelled | - | $ | - | (300,000 | ) | 0.5 | |||||||||||||||||
Exercised | - | $ | - | - | - | ||||||||||||||||||
Outstanding end of period | 2,374,000 | $ | 0.15 | 1,754,000 | $ | 0.17 | |||||||||||||||||
Exercisable | 1,894,000 | $ | 0.17 | 1,604,000 | $ | 0.18 | |||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following table summarizes the range of outstanding and exercisable options as of December 31, 2014: | ||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||
Range of | Number Outstanding at | Average | Weighted | Number | Average Remaining | ||||||||||||||||||
Exercise Prices | 31-Dec-14 | Remaining | Average | Exercisable at | Contractual Life | ||||||||||||||||||
Contractual Life | Exercise Price | 31-Dec-14 | |||||||||||||||||||||
$ | 0.08 | 150,000 | 6.92 | $ | 0.08 | 150,000 | 6.92 | ||||||||||||||||
$ | 0.1 | 620,000 | 4.96 | $ | 0.1 | 140,000 | 4.96 | ||||||||||||||||
$ | 0.17 | 650,000 | 4.92 | $ | 0.17 | 650,000 | 4.92 | ||||||||||||||||
$ | 0.17 | 400,000 | 5.92 | $ | 0.17 | 400,000 | 5.92 | ||||||||||||||||
$ | 0.17 | 400,000 | 5.92 | $ | 0.17 | 400,000 | 5.92 | ||||||||||||||||
$ | 0.29 | 154,000 | 0.5 | $ | 0.29 | 154,000 | 0.5 | ||||||||||||||||
2,374,000 | 1,894,000 |
NOTE_2_SUMMARY_OF_SIGNIFICANT_1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 6 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Allowance for Doubtful Accounts Receivable | $7,296 | $0 | |
Share-based Compensation | 13,571 | 35,790 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 2,834,000 | 2,532,571 | |
Accounts Receivable, Related Parties, Current | 14,875 | 17,089 | |
Chief Executive Officer [Member] | |||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Revenue from Related Parties | 3,988 | 4,994 | |
Related Party Transaction, Amounts of Transaction | $2,214 |
NOTE_3_INVENTORY_Details_Sched
NOTE 3 - INVENTORY (Details) - Schedule of Inventory, Current (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
Schedule of Inventory, Current [Abstract] | ||
Raw Materials | $306,991 | $358,725 |
Finished Goods | 529,473 | 525,722 |
Inventory reserve | -118,588 | -113,456 |
Total Inventory | $717,876 | $770,991 |
NOTE_4_STOCK_TRANSACTIONS_Deta
NOTE 4 - STOCK TRANSACTIONS (Details) (Subsequent Event [Member], USD $) | 1 Months Ended |
Jan. 31, 2015 | |
Subsequent Event [Member] | |
NOTE 4 - STOCK TRANSACTIONS (Details) [Line Items] | |
Stock Issued During Period, Shares, Issued for Services | 128,667 |
Shares Issued, Price Per Share | $0.04 |
Stock Issued During Period, Value, Issued for Services | $5,147 |
NOTE_5_STOCK_OPTIONS_AND_WARRA2
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) (USD $) | 6 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||
Dec. 31, 2014 | Jun. 30, 2014 | Dec. 01, 2014 | Nov. 30, 2014 | Oct. 31, 2014 | Sep. 30, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Jun. 30, 2014 | 31-May-14 | Sep. 30, 2013 | Dec. 31, 2005 | Jul. 06, 2011 | |
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 620,000 | 150,000 | |||||||||||
Chief Operating Officer [Member] | |||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 480,000 | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Option Exercise Price (in Dollars per share) | $0.10 | ||||||||||||
Allocated Share-based Compensation Expense (in Dollars) | 1,549 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Date | 1-Dec-15 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | 1-Dec-20 | ||||||||||||
Consulting Agreement [Member] | |||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 100,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 140,000 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Option Exercise Price (in Dollars per share) | 0.1 | ||||||||||||
Allocated Share-based Compensation Expense (in Dollars) | 12,022 | ||||||||||||
Convertible Debt [Member] | |||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||
Convertible Notes Payable, Current (in Dollars) | 100,000 | ||||||||||||
Class of Warrant or Rights, Granted | 500,000 | ||||||||||||
Debt Issuance Cost (in Dollars) | $6,500 | ||||||||||||
Warrants, Term of Warrants | 3 years | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $0.13 | ||||||||||||
Share Price (in Dollars per share) | $0.25 | ||||||||||||
2005 Stock Option and Award Plan [Member] | |||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,000,000 | ||||||||||||
Directors' 2011 Stock Option and Award Plan [Member] | |||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,300,000 |
NOTE_5_STOCK_OPTIONS_AND_WARRA3
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Valuation Assumptions | 6 Months Ended |
Dec. 31, 2014 | |
Minimum [Member] | |
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Valuation Assumptions [Line Items] | |
Risk-free interest rate | 1.19% |
Expected life | 3 years 292 days |
Expected volatility | 147.43% |
Maximum [Member] | |
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Valuation Assumptions [Line Items] | |
Risk-free interest rate | 1.35% |
Expected life | 4 years 6 months |
Expected volatility | 152.40% |
Dividend yield | 0.00% |
NOTE_5_STOCK_OPTIONS_AND_WARRA4
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Share-based Compensation, Stock Options, Activity (USD $) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Jun. 30, 2014 | |
Schedule of Share-based Compensation, Stock Options, Activity [Abstract] | ||
Outstanding beginning of period | 1,754,000 | 1,904,000 |
Outstanding beginning of period | $0.17 | $0.23 |
Granted | 620,000 | 150,000 |
Granted | $0.10 | $0.08 |
Expired/Cancelled | 0 | -300,000 |
Expired/Cancelled | $0 | $0.50 |
Exercised | 0 | 0 |
Exercised | $0 | $0 |
Outstanding end of period | 2,374,000 | 1,754,000 |
Outstanding end of period | $0.15 | $0.17 |
Exercisable | 1,894,000 | 1,604,000 |
Exercisable | $0.17 | $0.18 |
NOTE_5_STOCK_OPTIONS_AND_WARRA5
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range (USD $) | 6 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number of Options Outstanding | 2,374,000 | 1,754,000 | 1,904,000 |
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $0.15 | $0.17 | $0.23 |
Number of Exercisable Options | 1,894,000 | 1,604,000 | |
Options at $0.08 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Price of Options (in Dollars per share) | $0.08 | ||
Number of Options Outstanding | 150,000 | ||
Weighted Average Remaining Contractual Life of Outstanding Options | 6 years 335 days | ||
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $0.08 | ||
Number of Exercisable Options | 150,000 | ||
Weighted Average Remaining Contractual Life of Exercisable Options | 6 years 335 days | ||
Options at $0.10 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Price of Options (in Dollars per share) | $0.10 | ||
Number of Options Outstanding | 620,000 | ||
Weighted Average Remaining Contractual Life of Outstanding Options | 4 years 350 days | ||
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $0.10 | ||
Number of Exercisable Options | 140,000 | ||
Weighted Average Remaining Contractual Life of Exercisable Options | 4 years 350 days | ||
Options at $0.17 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Price of Options (in Dollars per share) | $0.17 | ||
Number of Options Outstanding | 650,000 | ||
Weighted Average Remaining Contractual Life of Outstanding Options | 4 years 335 days | ||
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $0.17 | ||
Number of Exercisable Options | 650,000 | ||
Weighted Average Remaining Contractual Life of Exercisable Options | 4 years 335 days | ||
Options at $0.17 #2 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Price of Options (in Dollars per share) | $0.17 | ||
Number of Options Outstanding | 400,000 | ||
Weighted Average Remaining Contractual Life of Outstanding Options | 5 years 335 days | ||
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $0.17 | ||
Number of Exercisable Options | 400,000 | ||
Weighted Average Remaining Contractual Life of Exercisable Options | 5 years 335 days | ||
Options at $0.17 #3 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Price of Options (in Dollars per share) | $0.17 | ||
Number of Options Outstanding | 400,000 | ||
Weighted Average Remaining Contractual Life of Outstanding Options | 5 years 335 days | ||
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $0.17 | ||
Number of Exercisable Options | 400,000 | ||
Weighted Average Remaining Contractual Life of Exercisable Options | 5 years 335 days | ||
Options at $0.29 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Price of Options (in Dollars per share) | $0.29 | ||
Number of Options Outstanding | 154,000 | ||
Weighted Average Remaining Contractual Life of Outstanding Options | 6 months | ||
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $0.29 | ||
Number of Exercisable Options | 154,000 | ||
Weighted Average Remaining Contractual Life of Exercisable Options | 6 months |
NOTE_6_LIQUIDITY_Details
NOTE 6 - LIQUIDITY (Details) (USD $) | 6 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Going Concern Disclosure [Abstract] | ||||
Cash and Cash Equivalents, at Carrying Value | $372,963 | $173,388 | $728,585 | $108,747 |
Liabilities | 655,001 | 1,715,797 | 687,531 | |
Accounts Payable and Accrued Liabilities, Current | 586,608 | 617,678 | ||
Long-term Debt | 68,393 | |||
Long-term Debt, Current Maturities | 14,553 | 16,013 | ||
Cash and Cash Equivalents, Period Increase (Decrease) | ($355,622) | $64,641 |
NOTE_7_SUBSEQUENT_EVENTS_Detai
NOTE 7 - SUBSEQUENT EVENTS (Details) (Subsequent Event [Member]) | 1 Months Ended |
Jan. 31, 2015 | |
Subsequent Event [Member] | |
NOTE 7 - SUBSEQUENT EVENTS (Details) [Line Items] | |
Stock Issued During Period, Shares, Issued for Services | 128,667 |