Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Sep. 13, 2017 | Dec. 31, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Amerityre Corp | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Common Stock, Shares Outstanding | 43,312,107 | ||
Entity Public Float | $ 414,928 | ||
Amendment Flag | false | ||
Entity Central Index Key | 945,828 | ||
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 | Jun. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
CURRENT ASSETS | ||
Cash | $ 340,256 | $ 267,302 |
Accounts receivable | 284,004 | 293,358 |
Current inventory - net | 576,191 | 614,895 |
Prepaid and other current assets | 112,368 | 103,803 |
Total Current Assets | 1,312,819 | 1,279,358 |
PROPERTY AND EQUIPMENT | ||
Leasehold improvements | 196,223 | 153,543 |
Molds and models | 577,549 | 577,549 |
Equipment | 2,982,218 | 2,960,246 |
Furniture and fixtures | 74,921 | 74,921 |
Construction in progress | 17,351 | 10,198 |
Software | 339,009 | 305,924 |
Less – accumulated depreciation | (3,914,142) | (3,849,937) |
Total Property and Equipment - net | 273,129 | 232,444 |
OTHER ASSETS | ||
Patents and trademarks – net | 155,952 | 175,379 |
Non-current inventory | 228,403 | 180,050 |
Deposits | 11,000 | 11,000 |
Total Other Assets | 395,355 | 366,429 |
TOTAL ASSETS | 1,981,303 | 1,878,231 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 468,489 | 348,499 |
Current portion of long-term debt | 19,382 | 20,518 |
Current portion of lease liability | 6,967 | 6,249 |
Total Current Liabilities | 494,838 | 375,266 |
Long-term debt | 124,482 | 100,142 |
Long-term lease liability | 1,426 | 8,394 |
TOTAL LIABILITIES | 620,746 | 483,802 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock: 5,000,000 shares authorized of $0.001 par value, 2,000,000 and 2,000,000 shares issued and outstanding, respectively | 2,000 | 2,000 |
Common stock: 75,000,000 shares authorized of $0.001 par value, 43,312,107 and 42,175,287 shares issued and outstanding, respectively | 43,312 | 42,175 |
Additional paid-in capital | 62,615,728 | 62,579,558 |
Stock payable | 0 | 4,500 |
Accumulated deficit | (61,300,483) | (61,233,804) |
Total Stockholders’ Equity | 1,360,557 | 1,394,429 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,981,303 | $ 1,878,231 |
Balance Sheets (Parentheticals)
Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2017 | Jun. 30, 2016 |
Preferred stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
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) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 43,312,107 | 42,175,287 |
Common stock, shares outstanding | 43,312,107 | 42,175,287 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
NET SALES | $ 3,628,566 | $ 3,781,199 |
COST OF REVENUES | 2,444,102 | 2,670,442 |
GROSS PROFIT | 1,184,464 | 1,110,757 |
EXPENSES | ||
Research and development | 227,092 | 222,094 |
Sales and marketing | 248,290 | 285,831 |
General and administrative | 661,245 | 842,859 |
Total Expenses | 1,136,627 | 1,350,784 |
INCOME (LOSS) FROM OPERATIONS | 47,837 | (240,027) |
OTHER INCOME/(EXPENSE) | ||
Interest expense | (8,468) | (3,206) |
Loss on assets, due to write down or disposal | (6,331) | 0 |
Other income (expense) | 283 | 181 |
Total Other Expense | (14,516) | (3,025) |
NET INCOME (LOSS) | 33,321 | (243,052) |
Preferred Stock Dividend | (100,000) | (100,000) |
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (66,679) | $ (343,052) |
BASIC AND DILUTED LOSS PER SHARE (in Dollars per share) | $ 0 | $ (0.01) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING (in Shares) | 42,417,601 | 41,868,634 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Stock Payable [Member] | Retained Earnings [Member] | Total |
Balance at Jun. 30, 2015 | $ 2,000 | $ 41,570 | $ 62,515,857 | $ (60,890,752) | ||
Balance (in Shares) at Jun. 30, 2015 | 2,000,000 | 41,570,287 | ||||
Preferred stock dividends | (100,000) | $ 0 | ||||
Stock option based compensation expense – options | 47,731 | |||||
Stock option based compensation expense | $ 605 | 15,970 | $ 4,500 | |||
Stock option based compensation expense (in Shares) | 605,000 | |||||
Net loss | (243,052) | (243,052) | ||||
Balance at Jun. 30, 2016 | $ 2,000 | $ 42,175 | 62,579,558 | 4,500 | (61,233,804) | 1,394,429 |
Balance (in Shares) at Jun. 30, 2016 | 2,000,000 | 42,175,287 | ||||
Preferred stock dividends | (100,000) | 100,000 | ||||
Stock option based compensation expense – options | 16,097 | |||||
Stock option based compensation expense | $ 1,137 | 20,072 | $ (4,500) | |||
Stock option based compensation expense (in Shares) | 1,136,820 | |||||
Net loss | 33,321 | 33,321 | ||||
Balance at Jun. 30, 2017 | $ 2,000 | $ 43,312 | $ 62,615,728 | $ (61,300,483) | $ 1,360,557 | |
Balance (in Shares) at Jun. 30, 2017 | 2,000,000 | 43,312,107 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ 33,321 | $ (243,052) |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | ||
Depreciation and amortization expense | 102,495 | 141,524 |
Change in allowance for bad debt recovery | 0 | (289) |
Stock based compensation, employee and Board of Directors | 27,807 | 68,805 |
Loss on assets, due to write down or disposal | 6,331 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 9,354 | 27,297 |
Prepaid and other current assets | (66,756) | (20,456) |
Inventory and change in inventory reserve | (15,042) | 41,929 |
Accounts payable and accrued expenses | 24,990 | (89,981) |
Net Cash Provided (Used) by Operating Activities | 122,500 | (74,223) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | (20,868) | (7,642) |
Cash paid for patents and trademarks | (8,000) | 0 |
Net Cash Used by Investing Activities | (28,868) | (7,642) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payment on lease liability | (6,250) | (4,694) |
Payments on notes payable | (14,428) | (1,856) |
Preferred stock dividends | 0 | (100,000) |
Net Cash Used by Financing Activities | (20,678) | (106,550) |
NET INCREASE (DECREASE) IN CASH | 72,954 | (188,415) |
CASH AT BEGINNING OF YEAR | 267,302 | 455,717 |
CASH AT END OF YEAR | 340,256 | 267,302 |
NON-CASH FINANCING ACTIVITIES | ||
Interest paid | 8,468 | 3,206 |
Income taxes paid | 0 | 0 |
SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES | ||
Capitalized lease | 0 | 19,337 |
Reclassification of accounts receivable – related party to accounts receivable | 0 | 6,312 |
Write off of previously reserved forklift tires | 81,224 | 0 |
Property and equipment, Transfers and Changes | 95,823 | 0 |
Accrued preferred stock dividends | 100,000 | 0 |
Issuance of stock for stock payable | 4,500 | 0 |
Issuance of stock for accrued expense | $ 5,000 | $ 0 |
NOTE 1 - ORGANIZATION AND SUMMA
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Amerityre Corporation (the “Company”) incorporated as a Nevada corporation on January 30, 1995 under the name American Tire Corporation and changed its name to Amerityre Corporation in December 1999. The Company was organized to take advantage of existing proprietary and non-proprietary technology available for the manufacturing of specialty tires. The Company engages in the manufacturing, marketing, distribution and sales of “flat free” specialty tires and tire-wheel assemblies and currently is manufacturing these tires at its manufacturing facility located in Boulder City, Nevada. The Company’s financial statements are prepared using the accrual method of accounting. The Company has elected a June 30 year-end. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management routinely makes judgments on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. Concentrations of Risk The Company places its cash accounts with high credit quality financial institutions and generally limits the amount of credit exposure to the amount in excess of the FDIC insurance coverage limit of $250,000 for interest bearing accounts. As of June 30, 2017 and 2016, the Company had funds exceeding this limit. The Company has not experienced losses in such accounts and believes it is not exposed to any significant credit risk to cash. Credit losses, if any, have been provided for in the financial statements and are based on management’s expectations. The Company’s accounts receivable are subject to potential concentrations of credit risk. The Company does not believe that it is subject to any unusual risks or significant risks in the normal course of its business. We have two customers who accounted for 31% of our sales for the year ended June 30, 2017 and three customers who accounted for 21% of our sales for the year ended June 30, 2016 Cash and Cash Equivalents We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. As of June 30, 2017 and 2016, respectively, we had no cash equivalents. 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 June 30, 2017 and 2016, the reserve for uncollectible accounts was $0, respectively. 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. 2017 2016 Raw materials $ 262,187 $ 257,260 Finished goods 595,910 663,666 Inventory reserve (53,503 ) (125,981 ) Inventory – net (current and long term) $ 804,594 $ 794,945 Our inventory reserve reflects items that were deemed to be defective or obsolete based on an analysis of all inventories on hand. In fiscal years 2017 and 2016, the Company critically reviewed all slow moving inventory to determine if defective or obsolete. If not defective or obsolete we presented these items as non-current inventory, although all inventory is ready and available for sale at any moment. For those items that are spare maintenance materials or parts kept on hand as backup components of major production lines, or “store inventories”, the Company capitalizes the amount if above our capitalization policy for property and equipment. Property and Equipment Property and equipment are stated at cost, generally with a cost of $2,500 or greater. Expenditures for small tools, ordinary maintenance and repairs are charged to operations as incurred. Major additions and improvements are capitalized. When we retire or dispose of assets, the costs and accumulated depreciation or amortization are removed from the respective accounts and we recognize any related gain or loss. Major replacements that substantially extend the useful life of an asset are capitalized and depreciated. Assets which qualify for capital lease treatment and follow our property and equipment capitalization policy are also capitalized. Depreciation and amortization, collectively depreciation expense, is computed using the straight-line method over estimated useful lives as follows: Leasehold improvements 5 years, or over lease term Equipment 5 to 10 years Furniture and fixtures 7 years Software 2 years Depreciation expense for the years ended June 30, 2017 and 2016 was $75,068 and $114,193, respectively. Patents and Trademarks Patent and trademark costs have been capitalized at June 30, 2017, totaling $487,633 with accumulated amortization of $331,681 for a net book value of $155,952. Patent and trademark costs capitalized at June 30, 2016, totaled $479,633 with accumulated amortization of $304,254 for a net book value of $175,379. The patents which have been granted are being amortized over a period of 20 years. Patents which are pending or are being developed are not amortized. Amortization begins once the patents have been issued. As of June 30, 2017 and 2016, respectively, there were no pending patents. Annually, pending or expired patents are inventoried and analyzed, which resulted in the recognition of a loss on abandonment, expiration or retirement of patents and trademarks of $-0- for the years ended June 30, 2017 and 2016, respectively. Amortization expense for the years ended June 30, 2017 and 2016 was $27,427 and $27,331 respectively. The Company evaluates the recoverability of intangibles and reviews the amortization period on a continual basis utilizing the guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Intangibles – Goodwill and Other · any changes in the market relating to the patents that would decrease the life of the asset; · any adverse change in the extent or manner in which the patents are being used; · any significant adverse change in legal factors relating to the use of the patents; · current period operating or cash flow loss combined with our history of operating or cash flow losses; · future cash flow values based on the expectation of commercialization through licensing; and · current expectations that, more likely than not, the patents will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The estimated amortization expense, based on current intangible balances, for the next five fiscal years beginning July 1, 2017 is as follows: 2018 $ 31,086 2019 $ 33,033 2020 $ 26,427 2021 $ 16,928 2022 $ 17,763 Thereafter $ 30,715 Financial and Derivative Instruments The Company periodically enters into financial instruments. Upon entry, each instrument is reviewed for debt or equity treatment. In the event that the debt or equity treatment is not readily apparent, FASB ASC 480-10-S99 is consulted for temporary treatment. Once an event takes place that removes the temporary element the Company appropriately reclassifies the instrument to debt or equity. The Company periodically assesses its financial and equity instruments to determine if they require derivative accounting. Instruments which may potentially require derivative accounting are conversion features of debt, equity, and common stock equivalents in excess of available authorized common shares, and contracts with variable share settlements. In the event of derivative treatment, we mark the instrument to market. Stock-Based Compensation We account for stock-based compensation under the provisions of FASB ASC 718, Compensation – Stock Compensation FASB 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 fiscal years ended June 30, 2017 and 2016 assume all awards will vest; therefore no reduction has been made for estimated forfeitures. 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. The Company’s outstanding stock options, warrants, and shares issuable upon conversion of outstanding convertible notes have been excluded from the diluted net loss per share calculation. The Company excluded a total of 4,280,000 and 4,300,000 common stock equivalents for the years ended June 30, 2017 and 2016, respectively because they are anti-dilutive. Income Taxes FASB ASC 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. As a result of the implementation of FASB ASC 740, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by FASB ASC 740. Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry-forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Net deferred tax assets consist of the following components as of June 30, 2017 and 2016: 2017 2016 Deferred tax assets: NOL carryover $ 17,064,900 $ 17,050,100 Section 1231 loss carryover 59,900 24,300 Inventory reserve 18,700 44,100 R & D carryover 198,400 221,600 Accrued vacation (12,700 ) (11,700 ) Deferred tax liabilities: Depreciation (16,000 ) 15,500 Valuation allowance (17,313,200 ) (17,343,900 ) Net deferred tax asset $ - $ - The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended June 30, 2017 and 2016 due to the following: 2017 2016 Book income (loss) $ 11,700 $ (85,100 ) Depreciation 18,000 9,100 Meals & entertainment - 700 Nondeductible expenses 8,000 24,100 Accrued vacation 11,500 11,300 Inventory reserve (25,400 ) 5,300 Receivable reserve - (100 ) Loss on asset disposal (300 ) - Valuation allowance (23,500 ) 34,700 $ - $ - At June 30, 2017, the Company had net operating loss carry-forwards of approximately $43,756,000 that may be offset against future taxable income from the year 2017 through 2036. No tax benefit has been reported in the June 30, 2017 financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry-forwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry-forwards may be limited as to use in future years. The Company’s policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. As of June 30, 2017 the Company had no accrued interest or penalties related to uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2014. Fair Value Accounting As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The three levels of the fair value hierarchy are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Revenue Recognition Revenue for products is recognized when the sales amount is determined, shipment of goods to the customer has occurred and collection is reasonably assured. Generally, we ship all of our products FOB origination. License fee revenue is recognized as earned, and no revenue is recognized until the inception of the license term. The FASB has issued a comprehensive new revenue recognition standard which supersedes existing revenue recognition guidance, including industry-specific guidance under generally accepted accounting principles and will be effective for us starting fiscal year 2018. Shipping and Handling Shipping and Handling Fees require that freight costs charged to customers be classified as revenues. Freight expenses are included in costs of sales. Product Warranties The Company’s standard sales terms include a limited warranty on workmanship and materials to the original purchaser if items sold are used in the service for which they are intended. Specifically the Company warrants wheels, bearings, and bushings for one year from the date of purchase. In the past the Company estimated its warranty reserve based on historical experience with warranty claims and returns for defective items. Because the Company has experienced limited items through the warranty process, in fiscal year 2016 the Company changed to actual, instead of estimated, warranty recognition. This change in accounting principle did not have a material impact on the Company’s financial statements and as of June 30, 2017 and 2016, the Company had no estimated warranty reserves accrued. Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. Advertising expense for the years ended June 30, 2017 and 2016 was $3,776 and $5,329, respectively. Sales Tax In accordance with FASB ASC 605-45, formerly EITF Issue No. 06-3, How Taxes Collected from Customers and Remitted to Government Authorities Should Be Presented in the Income Statement Recent Accounting Pronouncements Issued In February 2016, the FASB issued ASU No. 2016-02, "Leases", ("ASU 2016-02") which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 will become effective for public companies during interim and annual reporting periods beginning after December 15, 2018 with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on the Company's financial statements. In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 amends several aspects of the accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. If early adopted, an entity must adopt all of the amendments in the same period. The Company is currently evaluating the impact of the adoption of ASU 2016-09 on the Company's financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board (IASB) to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards (IFRS). In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” ASU 2016-10 clarifies the implementation guidance on identifying performance obligations. These ASUs apply to all companies that enter into contracts with customers to transfer goods or services. These ASUs are effective for public entities for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before interim and annual reporting periods beginning after December 15, 2016. Entities have the choice to apply these ASUs either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying these standards at the date of initial application and not adjusting comparative information. In May 2016, the FASB issued ASU No. 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients" ASU 2016-12 amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company is adopting these new revenue recognition standards in its first quarter of fiscal year 2018 and expects there to be timing differences in revenue recognition solely due to when product is shipped versus when the customer take control of the product. In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (consensus of Emerging Issues Task Force) This Accounting Standards Update addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. In May 2017, the FASB issued ASU No. 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting” Issued to provide clarity and reduce diversity on practice and the cost and complexity to a change in the terms and conditions of a share-based payment award. ASU 2017-09 is effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company is currently evaluating the impact of the adoption of ASU 2016-09 on the Company's financial statements. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC, did not, or are not believed by management to, have a material impact on the Company's present or future financial position, results of operations or cash flows. |
NOTE 2 - DEBT
NOTE 2 - DEBT | 12 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 2 – DEBT A former board member, Silas O. Kines, who passed away on January 11, 2012, was also the principal owner of Forklift Tire of Florida and K-2 Industrial Tire, Inc. In accordance with the Commission Agreement with Forklift Tire of Florida, dated February 2, 2011, between Amerityre Corporation and K-2 Industrial Tire, Inc., K-2 is due a five percent (5%) commission on all forklift tire sales. In exchange for the forklift models transferred to Amerityre under that agreement, the first $96,000 in commission payments will be used to extinguish the long term liability recorded on the transaction. As of June 30, 2017, $2,000 and $62,940 (2016, $11,752 and $53,840) were recorded for the current and long-term portion, respectively, of the related liability. In June 2016, the Company executed a term note with U.S. Bank to finance critical manufacturing equipment and operating enhancements. Manufacturing equipment of approximately $29,000 was placed into service in July 2016. The majority of the remaining operating enhancements were placed in service in fiscal year 2017. Total amount financed was $55,068, at 5.59% interest, with payments of $1,059 due for 60 months starting July 2016. In July 2016, the Company executed a term note with U.S. Bank to finance critical plant facility equipment which was placed into service in July 2016. The total amount financed was $37,666 at 5.59% interest, with payments of $720 due for 60 months starting October 2016. Payments due by period Total Less than 1 year 1 to 3 years 3 to 5 years After 5 years Bank debt (both US Bank facilities above) $ 88,614 $ 21,349 $ 67,265 $ - $ - Total cash obligations $ 88,614 $ 21,349 $ 67,265 $ - $ - |
NOTE 3 - CAPITAL LEASE
NOTE 3 - CAPITAL LEASE | 12 Months Ended |
Jun. 30, 2017 | |
Leases, Capital [Abstract] | |
Capital Leases in Financial Statements of Lessee Disclosure [Text Block] | NOTE 3 - CAPITAL LEASE In July 2015 the Company entered into a capital lease for research and development equipment for $19,337 (which has accumulated depreciation of $7,574). The following is a schedule by years of future minimum lease payments under capital leases together with present value of the net minimum lease payments as of June 30, 2017: 2018 $ 8,697 2019 739 2020 - Total minimum lease payments 9,436 Less: executory costs - Net minimum lease payments 9,436 Less: amount representing interest (1,042 ) Present value of net minimum payments $ 8,394 |
NOTE 4 - COMMITMENTS AND CONTIN
NOTE 4 - COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 4 – COMMITMENTS AND CONTINGENCIES In May 2015, we negotiated a five (5) year extension of the lease on our executive office and manufacturing facility located at 1501 Industrial Road, Boulder City, Nevada. The property consists of a 49,200 square foot building. We currently occupy all 49,200, inclusive of approximately 5,500 square feet of office space, situated on approximately 4.15 acres. All other terms and conditions of the building lease remain in effect. Payments due by period Total Less than 1 year 1 to 3 years 3 to 5 years After 5 years Facility lease $ 414,000 $ 138,000 $ 276,000 $ - $ - Total contractual cash obligations $ 414,000 $ 138,000 $ 276,000 $ - $ - Rent expense for the years ended June 30, 2017 and 2016 was $136,800 and $135,600, respectively. |
NOTE 5 - STOCK TRANSACTIONS
NOTE 5 - STOCK TRANSACTIONS | 12 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 5 – STOCK TRANSACTIONS During the years ended June 30, 2017 and 2016, the Company had the following stock transactions: On December 13, 2013, the Board of Directors approved a resolution designating 2,000,000 shares of preferred stock, $0.001 par value, as 2013 Series Convertible Preferred Stock (the “2013 Series Shares”). On December 18, 2013, the Company filed a Certificate of Designation with the Nevada Secretary of State for the 2013 Series Convertible Preferred Stock, which was approved by the Nevada Secretary of State on December 19, 2013. The 2013 Series Shares have voting rights only on any matters directly affecting the rights and privileges of the 2013 Series Shares. The 2013 Series Shares have a liquidation preference amounting to a return of the initial par value per share only, with no further participation in any distributions to other shareholders. Any issued 2013 Series Shares will convert to the Company’s common stock at a ratio of ten shares of common stock for each share of the 2013 Series Shares (1) at any time at the election of the holder; or (2) automatically on the date that is six years after the date of original issuance of the shares. Lastly, the 2013 Series Shares contain a quarterly cash dividend rate of 1.25% of the original issuance price of $1.00 per share or $100,000 per year as of June 30, 2017 and 2016, respectively. In 2016, management notified our preferred shareholder that we are suspending future payments of their preferred cash dividend payments, so the Company can increase its working capital levels. To all non-officer employees of the Company on record as of July 22, 2015, a one-time stock bonus award of 5,000 shares of the Company’s restricted common stock was granted, per employee, valued at $0.015 a share (fair value on the date of grant with a 50% discount pursuant to U.S. Internal Revenue Service, revenue Ruling 77-287). As of July 22, 2015 there were 16 non-officer employees resulting in 80,000 shares, which were issued in July 2015. To the officers of Amerityre, 600,000 shares were granted on July 20, 2015 (valued at $0.03) with 75% of the grant allocated to the CEO and 25% of the grant allocated to the CFO. The shares of stock vest ratably each quarter end during fiscal year 2016 and are payable immediately after the vesting date. For the year ended June 30, 2016 the Company recognized $18,000 of compensation expense for these grants; $4,500 of which was a stock payable. The final 150,000 shares under this stock award were issued in July 2016. In February 2016, the Board approved 75,000 shares of stock be issued to a senior management employee in connection with his employment agreement, valued at $0.025 a share (fair value on the date of grant with a 50% discount pursuant to U.S. Internal Revenue Service, revenue Ruling 77-287). These shares were issued in March 2016. On January 21, 2017, 60,000 shares were granted to the Company’s Chief Financial Officer as part of her employment renewal. The shares are valued as of January 20, 2017 ($0.04) and vest ratably through December 2017. As of June 30, 2017, 30,000 of these shares have been earned and issued. As of January 31, 2017, 225,000 shares were granted to the Company’s Board of Director’s as Board compensation for the term ending November 2017. Each non-executive Board member receives 50,000 shares, with the Audit Committee Chair receiving 75,000 shares. The shares vest ratably January – December 2017, valued at a fixed rate of $0.0155, the closing stock price on January 31, 2017. As of June 30, 2017, 112,500 of these shares have been earned and issued. On March 23, 2017, the Company’s Chief Executive Officer, finalized the negotiation of the replacement and extension of his employment contract. While all material compensation terms were finalized February 23, 2017 other items within the agreement, filed via Form 8-k on March 27, 2017, were finalized as of March 23, 2017. The Agreement replaces the current employment agreement and extends his term of employment to December 31, 2018. Inclusive in this new agreement is a stock award of 2.4 million shares of the Company’s common stock vesting ratably over twenty-three months (February 2017 – December 2018), valued at a fixed rate of $0.0168, the closing stock price on February 22, 2017. As of June 30, 2017, 521,739 of these shares have been earned and issued. On February 23, 2017 the Board of Director’s approved a partial payment of Mr. Sullivan’s 2016 bonus in stock. This partial payment of $5,000 resulted in the issuance of 322,581 shares of stock. |
NOTE 6 - STOCK OPTIONS AND WARR
NOTE 6 - STOCK OPTIONS AND WARRANTS | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Shareholders' Equity and Share-based Payments [Text Block] | NOTE 6 – STOCK OPTIONS AND WARRANTS General Option Information On August 10, 2015, the Board of Directors cancelled the “Directors’ 2011 Stock Option and Award Plan” as all options under this plan had been granted and adopted the “2015 Omnibus Stock Option and Award Plan” which contains provisions for up to 3,000,000 stock options to be granted to employees, consultants and directors. The 2015 Omnibus Stock Option and Award Plan did not obtain the necessary shareholder approval in the Company’s annual proxy process, resulting in certain U.S. Internal Revenue Service provisions to be ineffective. On April 25, 2017, the Board of Directors cancelled the “2015 Omnibus Stock Option and Award Plan” as all options and stock awards under this plan had been granted and adopted the “2017 Omnibus Stock Option and Award Plan” which contains provisions for up to 3,000,000 stock options to be granted to employees, consultants and directors. Prior Issuances of options In the October 2015 Board meeting, the Board granted all non-executive Board members 100,000 options, with the audit committee chair receiving an additional 50,000 options, for Board services rendered for the fiscal year ended June 30, 2015. The options have a strike price of $0.10, vest at the end of the Board term on December 3, 2015 and expire December 3, 2017. On December 1, 2015, 480,000 options were granted to the Company’s Chief Executive Officer (then our Chief Operating Officer) as part of his employment offer. The options have a strike price of $0.10, vest December 1, 2016 and expire December 1, 2020. On January 19, 2016, the Board granted all non-executive Board members 100,000 options, with the audit committee chair receiving an additional 50,000 options, for Board services rendered for the Board term ending December 2016. The options have a strike price of $0.10, vest at the end of the Board term in December 2016 and expire December 2019. On January 19, 2016, 50,000 options were granted to the Company’s Chief Financial Officer as part of renewal of her employment agreement. The options have a strike price of $0.10, vest ratably January 21, 2016 to December 1, 2016 and expire December 1, 2019. In addition to the option renewal $550 a month in health insurance reimbursement was included in the renewal. All other terms remain the same. Expense related to the above options was $47,731 as of June 30, 2016. Option issuances and vesting during the period ending June 30, 2017 On December 1, 2016, 480,000 options were granted to the Company’s Chief Executive Officer as part of his employment offer. The options have a strike price of $0.10, vest December 1, 2017 and expire December 1, 2020. Year to date expense related to these options is $1,021 as of June 30, 2017. Expense related to the above options is $16,097 as of June 30, 2017. As of June 30, 2017, there was $729 of unrecognized stock-based compensation expense related to stock options that will be recognized over the vest period (December 2017) of the underlying option. We estimated the fair value of the stock options above at the grant date based on the following weighted average assumptions: Risk-free interest rate 1.450 % Expected life 3.0 years Expected volatility 126.36 % Dividend yield 0.00 % A summary of the status of our outstanding stock options as of June 30, 2017 and June 30, 2016 and changes during the periods then ended is presented below: June 30, 2017 June 30, 2016 Weight Average Intrinsic Weight Average Intrinsic Shares Exercise Price Value Shares Exercise Price Value Outstanding beginning of period 3,800,000 $ 0.13 2,270,000 $ 0.14 Granted 480,000 $ 0.10 1,530,000 $ 0.10 Expired/Cancelled - $ 0.00 - $ 0.00 Exercised - $ 0.00 - $ 0.00 Outstanding end of period 4,280,000 $ 0.12 $ - 3,800,000 $ 0.13 $ - Exercisable 4,080,000 $ 0.12 $ - 3,070,000 $ 0.13 $ - The following table summarizes the range of outstanding and exercisable options as of June 30, 2017: Outstanding Exercisable Range of Exercise Prices Number Outstanding at June 30, 2017 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at June 30, 2017 Weighted Average Remaining Contractual Life $ 0.08 150,000 4.42 $ 0.08 150,000 4.42 $ 0.10 2,680,000 2.10 $ 0.10 2,480,000 2.10 $ 0.17 1,450,000 3.42 $ 0.17 1,450,000 3.42 4,280,000 4,080,000 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, 2015. 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 September 30, 2016 the warrants expired. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Organization Amerityre Corporation (the “Company”) incorporated as a Nevada corporation on January 30, 1995 under the name American Tire Corporation and changed its name to Amerityre Corporation in December 1999. The Company was organized to take advantage of existing proprietary and non-proprietary technology available for the manufacturing of specialty tires. The Company engages in the manufacturing, marketing, distribution and sales of “flat free” specialty tires and tire-wheel assemblies and currently is manufacturing these tires at its manufacturing facility located in Boulder City, Nevada. The Company’s financial statements are prepared using the accrual method of accounting. The Company has elected a June 30 year-end. |
Use of Estimates, Policy [Policy Text Block] | Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management routinely makes judgments on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Risk The Company places its cash accounts with high credit quality financial institutions and generally limits the amount of credit exposure to the amount in excess of the FDIC insurance coverage limit of $250,000 for interest bearing accounts. As of June 30, 2017 and 2016, the Company had funds exceeding this limit. The Company has not experienced losses in such accounts and believes it is not exposed to any significant credit risk to cash. Credit losses, if any, have been provided for in the financial statements and are based on management’s expectations. The Company’s accounts receivable are subject to potential concentrations of credit risk. The Company does not believe that it is subject to any unusual risks or significant risks in the normal course of its business. We have two customers who accounted for 31% of our sales for the year ended June 30, 2017 and three customers who accounted for 21% of our sales for the year ended June 30, 2016 |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. As of June 30, 2017 and 2016, respectively, we had no cash equivalents. |
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 June 30, 2017 and 2016, the reserve for uncollectible accounts was $0, respectively. |
Inventory, Policy [Policy Text Block] | 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. 2017 2016 Raw materials $ 262,187 $ 257,260 Finished goods 595,910 663,666 Inventory reserve (53,503 ) (125,981 ) Inventory – net (current and long term) $ 804,594 $ 794,945 Our inventory reserve reflects items that were deemed to be defective or obsolete based on an analysis of all inventories on hand. In fiscal years 2017 and 2016, the Company critically reviewed all slow moving inventory to determine if defective or obsolete. If not defective or obsolete we presented these items as non-current inventory, although all inventory is ready and available for sale at any moment. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost, generally with a cost of $2,500 or greater. Expenditures for small tools, ordinary maintenance and repairs are charged to operations as incurred. Major additions and improvements are capitalized. When we retire or dispose of assets, the costs and accumulated depreciation or amortization are removed from the respective accounts and we recognize any related gain or loss. Major replacements that substantially extend the useful life of an asset are capitalized and depreciated. Assets which qualify for capital lease treatment and follow our property and equipment capitalization policy are also capitalized. Depreciation and amortization, collectively depreciation expense, is computed using the straight-line method over estimated useful lives as follows: Leasehold improvements 5 years, or over lease term Equipment 5 to 10 years Furniture and fixtures 7 years Software 2 years Depreciation expense for the years ended June 30, 2017 and 2016 was $75,068 and $114,193, respectively. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Patents and Trademarks Patent and trademark costs have been capitalized at June 30, 2017, totaling $487,633 with accumulated amortization of $331,681 for a net book value of $155,952. Patent and trademark costs capitalized at June 30, 2016, totaled $479,633 with accumulated amortization of $304,254 for a net book value of $175,379. The patents which have been granted are being amortized over a period of 20 years. Patents which are pending or are being developed are not amortized. Amortization begins once the patents have been issued. As of June 30, 2017 and 2016, respectively, there were no pending patents. Annually, pending or expired patents are inventoried and analyzed, which resulted in the recognition of a loss on abandonment, expiration or retirement of patents and trademarks of $-0- for the years ended June 30, 2017 and 2016, respectively. Amortization expense for the years ended June 30, 2017 and 2016 was $27,427 and $27,331 respectively. The Company evaluates the recoverability of intangibles and reviews the amortization period on a continual basis utilizing the guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Intangibles – Goodwill and Other · any changes in the market relating to the patents that would decrease the life of the asset; · any adverse change in the extent or manner in which the patents are being used; · any significant adverse change in legal factors relating to the use of the patents; · current period operating or cash flow loss combined with our history of operating or cash flow losses; · future cash flow values based on the expectation of commercialization through licensing; and · current expectations that, more likely than not, the patents will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The estimated amortization expense, based on current intangible balances, for the next five fiscal years beginning July 1, 2017 is as follows: 2018 $ 31,086 2019 $ 33,033 2020 $ 26,427 2021 $ 16,928 2022 $ 17,763 Thereafter $ 30,715 |
Derivatives, Policy [Policy Text Block] | Financial and Derivative Instruments The Company periodically enters into financial instruments. Upon entry, each instrument is reviewed for debt or equity treatment. In the event that the debt or equity treatment is not readily apparent, FASB ASC 480-10-S99 is consulted for temporary treatment. Once an event takes place that removes the temporary element the Company appropriately reclassifies the instrument to debt or equity. The Company periodically assesses its financial and equity instruments to determine if they require derivative accounting. Instruments which may potentially require derivative accounting are conversion features of debt, equity, and common stock equivalents in excess of available authorized common shares, and contracts with variable share settlements. In the event of derivative treatment, we mark the instrument to market. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation We account for stock-based compensation under the provisions of FASB ASC 718, Compensation – Stock Compensation FASB 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 fiscal years ended June 30, 2017 and 2016 assume all awards will vest; therefore no reduction has been made for estimated forfeitures. |
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. The Company’s outstanding stock options, warrants, and shares issuable upon conversion of outstanding convertible notes have been excluded from the diluted net loss per share calculation. The Company excluded a total of 4,280,000 and 4,300,000 common stock equivalents for the years ended June 30, 2017 and 2016, respectively because they are anti-dilutive. |
Income Tax, Policy [Policy Text Block] | Income Taxes FASB ASC 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. As a result of the implementation of FASB ASC 740, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by FASB ASC 740. Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry-forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Net deferred tax assets consist of the following components as of June 30, 2017 and 2016: 2017 2016 Deferred tax assets: NOL carryover $ 17,064,900 $ 17,050,100 Section 1231 loss carryover 59,900 24,300 Inventory reserve 18,700 44,100 R & D carryover 198,400 221,600 Accrued vacation (12,700 ) (11,700 ) Deferred tax liabilities: Depreciation (16,000 ) 15,500 Valuation allowance (17,313,200 ) (17,343,900 ) Net deferred tax asset $ - $ - The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended June 30, 2017 and 2016 due to the following: 2017 2016 Book income (loss) $ 11,700 $ (85,100 ) Depreciation 18,000 9,100 Meals & entertainment - 700 Nondeductible expenses 8,000 24,100 Accrued vacation 11,500 11,300 Inventory reserve (25,400 ) 5,300 Receivable reserve - (100 ) Loss on asset disposal (300 ) - Valuation allowance (23,500 ) 34,700 $ - $ - At June 30, 2017, the Company had net operating loss carry-forwards of approximately $43,756,000 that may be offset against future taxable income from the year 2017 through 2036. No tax benefit has been reported in the June 30, 2017 financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry-forwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry-forwards may be limited as to use in future years. The Company’s policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. As of June 30, 2017 the Company had no accrued interest or penalties related to uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2014. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Accounting As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The three levels of the fair value hierarchy are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Revenue for products is recognized when the sales amount is determined, shipment of goods to the customer has occurred and collection is reasonably assured. Generally, we ship all of our products FOB origination. License fee revenue is recognized as earned, and no revenue is recognized until the inception of the license term. The FASB has issued a comprehensive new revenue recognition standard which supersedes existing revenue recognition guidance, including industry-specific guidance under generally accepted accounting principles and will be effective for us starting fiscal year 2018. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Shipping and Handling Fees require that freight costs charged to customers be classified as revenues. Freight expenses are included in costs of sales. |
Standard Product Warranty, Policy [Policy Text Block] | Product Warranties The Company’s standard sales terms include a limited warranty on workmanship and materials to the original purchaser if items sold are used in the service for which they are intended. Specifically the Company warrants wheels, bearings, and bushings for one year from the date of purchase. In the past the Company estimated its warranty reserve based on historical experience with warranty claims and returns for defective items. Because the Company has experienced limited items through the warranty process, in fiscal year 2016 the Company changed to actual, instead of estimated, warranty recognition. This change in accounting principle did not have a material impact on the Company’s financial statements and as of June 30, 2017 and 2016, the Company had no estimated warranty reserves accrued. |
Advertising Costs, Policy [Policy Text Block] | Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. Advertising expense for the years ended June 30, 2017 and 2016 was $3,776 and $5,329, respectively. |
Sales Tax Policy [Policy Text Block] | Sales Tax In accordance with FASB ASC 605-45, formerly EITF Issue No. 06-3, How Taxes Collected from Customers and Remitted to Government Authorities Should Be Presented in the Income Statement |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Issued In February 2016, the FASB issued ASU No. 2016-02, "Leases", ("ASU 2016-02") which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 will become effective for public companies during interim and annual reporting periods beginning after December 15, 2018 with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on the Company's financial statements. In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 amends several aspects of the accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. If early adopted, an entity must adopt all of the amendments in the same period. The Company is currently evaluating the impact of the adoption of ASU 2016-09 on the Company's financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board (IASB) to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards (IFRS). In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” ASU 2016-10 clarifies the implementation guidance on identifying performance obligations. These ASUs apply to all companies that enter into contracts with customers to transfer goods or services. These ASUs are effective for public entities for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before interim and annual reporting periods beginning after December 15, 2016. Entities have the choice to apply these ASUs either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying these standards at the date of initial application and not adjusting comparative information. In May 2016, the FASB issued ASU No. 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients" ASU 2016-12 amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company is adopting these new revenue recognition standards in its first quarter of fiscal year 2018 and expects there to be timing differences in revenue recognition solely due to when product is shipped versus when the customer take control of the product. In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (consensus of Emerging Issues Task Force) This Accounting Standards Update addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. In May 2017, the FASB issued ASU No. 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting” Issued to provide clarity and reduce diversity on practice and the cost and complexity to a change in the terms and conditions of a share-based payment award. ASU 2017-09 is effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company is currently evaluating the impact of the adoption of ASU 2016-09 on the Company's financial statements. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC, did not, or are not believed by management to, have a material impact on the Company's present or future financial position, results of operations or cash flows. |
NOTE 1 - ORGANIZATION AND SUM14
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [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. 2017 2016 Raw materials $ 262,187 $ 257,260 Finished goods 595,910 663,666 Inventory reserve (53,503 ) (125,981 ) Inventory – net (current and long term) $ 804,594 $ 794,945 |
Property, Plant and Equipment [Table Text Block] | Depreciation and amortization, collectively depreciation expense, is computed using the straight-line method over estimated useful lives as follows: Leasehold improvements 5 years, or over lease term Equipment 5 to 10 years Furniture and fixtures 7 years Software 2 years |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated amortization expense, based on current intangible balances, for the next five fiscal years beginning July 1, 2017 is as follows: 2018 $ 31,086 2019 $ 33,033 2020 $ 26,427 2021 $ 16,928 2022 $ 17,763 Thereafter $ 30,715 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Net deferred tax assets consist of the following components as of June 30, 2017 and 2016: 2017 2016 Deferred tax assets: NOL carryover $ 17,064,900 $ 17,050,100 Section 1231 loss carryover 59,900 24,300 Inventory reserve 18,700 44,100 R & D carryover 198,400 221,600 Accrued vacation (12,700 ) (11,700 ) Deferred tax liabilities: Depreciation (16,000 ) 15,500 Valuation allowance (17,313,200 ) (17,343,900 ) Net deferred tax asset $ - $ - |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended June 30, 2017 and 2016 due to the following: 2017 2016 Book income (loss) $ 11,700 $ (85,100 ) Depreciation 18,000 9,100 Meals & entertainment - 700 Nondeductible expenses 8,000 24,100 Accrued vacation 11,500 11,300 Inventory reserve (25,400 ) 5,300 Receivable reserve - (100 ) Loss on asset disposal (300 ) - Valuation allowance (23,500 ) 34,700 $ - $ - |
NOTE 2 - DEBT (Tables)
NOTE 2 - DEBT (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Payments due by period Total Less than 1 year 1 to 3 years 3 to 5 years After 5 years Bank debt (both US Bank facilities above) $ 88,614 $ 21,349 $ 67,265 $ - $ - Total cash obligations $ 88,614 $ 21,349 $ 67,265 $ - $ - |
NOTE 3 - CAPITAL LEASE (Tables)
NOTE 3 - CAPITAL LEASE (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Leases, Capital [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | The following is a schedule by years of future minimum lease payments under capital leases together with present value of the net minimum lease payments as of June 30, 2017: 2018 $ 8,697 2019 739 2020 - Total minimum lease payments 9,436 Less: executory costs - Net minimum lease payments 9,436 Less: amount representing interest (1,042 ) Present value of net minimum payments $ 8,394 |
NOTE 4 - COMMITMENTS AND CONT17
NOTE 4 - COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Payments due by period Total Less than 1 year 1 to 3 years 3 to 5 years After 5 years Facility lease $ 414,000 $ 138,000 $ 276,000 $ - $ - Total contractual cash obligations $ 414,000 $ 138,000 $ 276,000 $ - $ - |
NOTE 6 - STOCK OPTIONS AND WA18
NOTE 6 - STOCK OPTIONS AND WARRANTS (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
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 above at the grant date based on the following weighted average assumptions: Risk-free interest rate 1.450 % Expected life 3.0 years Expected volatility 126.36 % Dividend yield 0.00 % |
Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the status of our outstanding stock options as of June 30, 2017 and June 30, 2016 and changes during the periods then ended is presented below: June 30, 2017 June 30, 2016 Weight Average Intrinsic Weight Average Intrinsic Shares Exercise Price Value Shares Exercise Price Value Outstanding beginning of period 3,800,000 $ 0.13 2,270,000 $ 0.14 Granted 480,000 $ 0.10 1,530,000 $ 0.10 Expired/Cancelled - $ 0.00 - $ 0.00 Exercised - $ 0.00 - $ 0.00 Outstanding end of period 4,280,000 $ 0.12 $ - 3,800,000 $ 0.13 $ - Exercisable 4,080,000 $ 0.12 $ - 3,070,000 $ 0.13 $ - |
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 June 30, 2017: Outstanding Exercisable Range of Exercise Prices Number Outstanding at June 30, 2017 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at June 30, 2017 Weighted Average Remaining Contractual Life $ 0.08 150,000 4.42 $ 0.08 150,000 4.42 $ 0.10 2,680,000 2.10 $ 0.10 2,480,000 2.10 $ 0.17 1,450,000 3.42 $ 0.17 1,450,000 3.42 4,280,000 4,080,000 |
NOTE 1 - ORGANIZATION AND SUM19
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Cash, FDIC Insured Amount | $ 250,000 | |
Allowance for Doubtful Accounts Receivable | 0 | $ 0 |
Depreciation | 75,068 | 114,193 |
Intangible Assets, Gross (Excluding Goodwill) | 487,633 | 479,633 |
Finite-Lived Intangible Assets, Accumulated Amortization | 331,681 | 304,254 |
Intangible Assets, Net (Excluding Goodwill) | $ 155,952 | 175,379 |
Finite-Lived Intangible Asset, Useful Life | 20 years | |
Amortization of Intangible Assets | $ 27,427 | 27,331 |
Share-based Compensation | $ 27,807 | $ 68,805 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 4,280,000 | 4,300,000 |
Operating Loss Carryforwards | $ 43,756,000 | |
Operating Loss Carryforwards, Expiration Date 1 | 2,036 | |
Advertising Expense | $ 3,776 | $ 5,329 |
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | ||
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Concentration Risk, Percentage | 31.00% | 21.00% |
NOTE 1 - ORGANIZATION AND SUM20
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Inventory - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Schedule of Inventory [Abstract] | ||
Raw materials | $ 262,187 | $ 257,260 |
Finished goods | 595,910 | 663,666 |
Inventory reserve | (53,503) | (125,981) |
Inventory – net (current and long term) | $ 804,594 | $ 794,945 |
NOTE 1 - ORGANIZATION AND SUM21
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2017 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 5 |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 5 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 10 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 7 years |
Software and Software Development Costs [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 2 years |
NOTE 1 - ORGANIZATION AND SUM22
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Jun. 30, 2017USD ($) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |
2,018 | $ 31,086 |
2,019 | 33,033 |
2,020 | 26,427 |
2,021 | 16,928 |
2,022 | 17,763 |
Thereafter | $ 30,715 |
NOTE 1 - ORGANIZATION AND SUM23
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Deferred tax assets: | ||
NOL carryover | $ 17,064,900 | $ 17,050,100 |
Section 1231 loss carryover | 59,900 | 24,300 |
Inventory reserve | 18,700 | 44,100 |
R & D carryover | 198,400 | 221,600 |
Accrued vacation | (12,700) | (11,700) |
Deferred tax liabilities: | ||
Depreciation | (16,000) | 15,500 |
Valuation allowance | (17,313,200) | (17,343,900) |
Net deferred tax asset | $ 0 | $ 0 |
NOTE 1 - ORGANIZATION AND SUM24
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||
Book income (loss) | $ 11,700 | $ (85,100) |
Depreciation | 18,000 | 9,100 |
Meals & entertainment | 0 | 700 |
Nondeductible expenses | 8,000 | 24,100 |
Accrued vacation | 11,500 | 11,300 |
Inventory reserve | (25,400) | 5,300 |
Receivable reserve | 0 | (100) |
Loss on asset disposal | (300) | 0 |
Valuation allowance | (23,500) | 34,700 |
$ 0 | $ 0 |
NOTE 2 - DEBT (Details)
NOTE 2 - DEBT (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
NOTE 2 - DEBT (Details) [Line Items] | |||
Long-term Debt, Current Maturities | $ 19,382 | $ 20,518 | |
Long-term Debt, Excluding Current Maturities | 124,482 | 100,142 | |
Property, Plant and Equipment, Transfers and Changes | $ 29,000 | $ 95,823 | 0 |
Notes Payable, Other Payables [Member] | |||
NOTE 2 - DEBT (Details) [Line Items] | |||
Sales Commission, Percentage | 5.00% | ||
Debt Instrument, Face Amount | $ 96,000 | ||
Long-term Debt, Current Maturities | 2,000 | 11,752 | |
Long-term Debt, Excluding Current Maturities | $ 62,940 | 53,840 | |
Notes Payable to Banks [Member] | |||
NOTE 2 - DEBT (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 37,666 | $ 55,068 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.59% | 5.59% | |
Debt Instrument, Periodic Payment | $ 720 | $ 1,059 | |
Debt Instrument, Term | 60 months | 60 months |
NOTE 2 - DEBT (Details) - Sched
NOTE 2 - DEBT (Details) - Schedule of Maturities of Long-term Debt | Jun. 30, 2017USD ($) |
NOTE 2 - DEBT (Details) - Schedule of Maturities of Long-term Debt [Line Items] | |
Total | $ 88,614 |
Less than 1 year | 21,349 |
1 to 3 years | 67,265 |
After 5 years | 0 |
3 to 5 years | 0 |
Notes Payable to Banks [Member] | |
NOTE 2 - DEBT (Details) - Schedule of Maturities of Long-term Debt [Line Items] | |
Total | 88,614 |
Less than 1 year | 21,349 |
1 to 3 years | 67,265 |
After 5 years | 0 |
3 to 5 years | $ 0 |
NOTE 3 - CAPITAL LEASE (Details
NOTE 3 - CAPITAL LEASE (Details) | Jun. 30, 2017USD ($) |
Leases, Capital [Abstract] | |
Capital Leases, Balance Sheet, Assets by Major Class, Net | $ 19,337 |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | $ 7,574 |
NOTE 3 - CAPITAL LEASE (Detai28
NOTE 3 - CAPITAL LEASE (Details) - Schedule of Future Minimum Lease Payments for Capital Leases | Jun. 30, 2017USD ($) |
Schedule of Future Minimum Lease Payments for Capital Leases [Abstract] | |
2,018 | $ 8,697 |
2,019 | 739 |
2,020 | 0 |
Total minimum lease payments | 9,436 |
Less: executory costs | 0 |
Net minimum lease payments | 9,436 |
Less: amount representing interest | (1,042) |
Present value of net minimum payments | $ 8,394 |
NOTE 4 - COMMITMENTS AND CONT29
NOTE 4 - COMMITMENTS AND CONTINGENCIES (Details) | May 01, 2015ft²a | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |||
Lessee, Operating Lease, Renewal Term | 5 years | ||
Area of Real Estate Property (in Square Feet) | ft² | 49,200 | ||
Area of Land (in Acres) | a | 4.15 | ||
Operating Leases, Rent Expense | $ | $ 136,800 | $ 135,600 |
NOTE 4 - COMMITMENTS AND CONT30
NOTE 4 - COMMITMENTS AND CONTINGENCIES (Details) - Schedule of Future Minimum Rental Payments for Operating Leases | Jun. 30, 2017USD ($) |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | |
Operating Lease, Future Minimum Payments, Total | $ 414,000 |
Operating Lease, Future Minimum Payments, Due Less than 1 year | 138,000 |
Operating Lease, Future Minimum Payments, Due 1 to 3 years | 276,000 |
Operating Lease, Future Minimum Payments, Due 3-5 years | 0 |
Operating Lease, Future Minimum Payments, Due After 5 years | $ 0 |
NOTE 5 - STOCK TRANSACTIONS (De
NOTE 5 - STOCK TRANSACTIONS (Details) - USD ($) | Mar. 23, 2017 | Feb. 23, 2017 | Jan. 31, 2017 | Jan. 21, 2017 | Jul. 22, 2015 | Jul. 20, 2015 | Dec. 13, 2013 | Jul. 31, 2016 | Feb. 29, 2016 | Jul. 31, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Feb. 22, 2017 |
NOTE 5 - STOCK TRANSACTIONS (Details) [Line Items] | |||||||||||||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | |||||||||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ 0.001 | $ 0.001 | |||||||||||
Shares Issued, Price Per Share (in Dollars per share) | $ 0.0155 | $ 0.015 | $ 0.03 | $ 0.025 | |||||||||
Dividends Payable, Current (in Dollars) | $ 100,000 | $ 100,000 | |||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 322,581 | 5,000 | 600,000 | 150,000 | 75,000 | 80,000 | 112,500 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date | 50.00% | 50.00% | |||||||||||
Number of Employees | 16 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | vest ratably each quarter end during fiscal year 2016 and are payable immediately after the vesting date | ||||||||||||
Share-based Compensation (in Dollars) | $ 27,807 | 68,805 | |||||||||||
Common Stock, Value, Subscriptions (in Dollars) | $ 0 | 4,500 | |||||||||||
Stock Granted, Value, Share-based Compensation, Gross (in Dollars) | $ 225,000 | ||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Gross (in Dollars) | $ 5,000 | ||||||||||||
Convertible Preferred Stock [Member] | |||||||||||||
NOTE 5 - STOCK TRANSACTIONS (Details) [Line Items] | |||||||||||||
Preferred Stock, Shares Authorized | 2,000,000 | ||||||||||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ 0.001 | ||||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 10 | ||||||||||||
Convertible Preferred Stock, Terms of Conversion | (1) at any time at the election of the holder; or (2) automatically on the date that is six years after the date of original issuance of the shares. | ||||||||||||
Preferred Stock, Dividend Rate, Percentage | 1.25% | ||||||||||||
Shares Issued, Price Per Share (in Dollars per share) | $ 1 | ||||||||||||
Restricted Stock [Member] | |||||||||||||
NOTE 5 - STOCK TRANSACTIONS (Details) [Line Items] | |||||||||||||
Share-based Compensation (in Dollars) | $ 18,000 | ||||||||||||
Chief Executive Officer [Member] | |||||||||||||
NOTE 5 - STOCK TRANSACTIONS (Details) [Line Items] | |||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 521,739 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Grants, Percentage | 75.00% | ||||||||||||
Stock Granted, Value, Share-based Compensation, Gross (in Dollars) | $ 2,400,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 23 months | ||||||||||||
Share Price (in Dollars per share) | $ 0.0168 | ||||||||||||
Chief Financial Officer [Member] | |||||||||||||
NOTE 5 - STOCK TRANSACTIONS (Details) [Line Items] | |||||||||||||
Shares Issued, Price Per Share (in Dollars per share) | $ 0.04 | ||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 30,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Grants, Percentage | 25.00% | ||||||||||||
Stock Granted, Value, Share-based Compensation, Gross (in Dollars) | $ 60,000 | ||||||||||||
Board Member [Member] | |||||||||||||
NOTE 5 - STOCK TRANSACTIONS (Details) [Line Items] | |||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 50,000 | ||||||||||||
Board Members And Audito Committe Chair [Member] | |||||||||||||
NOTE 5 - STOCK TRANSACTIONS (Details) [Line Items] | |||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 75,000 |
NOTE 6 - STOCK OPTIONS AND WA32
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) - USD ($) | Dec. 01, 2016 | Jan. 19, 2016 | Dec. 01, 2015 | Oct. 31, 2015 | Sep. 30, 2013 | Jun. 30, 2017 | Jun. 30, 2016 | Apr. 25, 2017 | Feb. 22, 2017 | Aug. 10, 2015 |
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 480,000 | 1,530,000 | ||||||||
Share-based Compensation (in Dollars) | $ 27,807 | $ 68,805 | ||||||||
Allocated Share-based Compensation Expense (in Dollars) | 16,097 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options (in Dollars) | 729 | |||||||||
2015 Omnibus Stock Option and Award Plan [Member] | ||||||||||
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,000,000 | |||||||||
2017 Omnibus Stock Option and Award Plan [Member] | ||||||||||
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,000,000 | |||||||||
Employee Stock Option [Member] | ||||||||||
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | ||||||||||
Share-based Compensation (in Dollars) | $ 1,021 | $ 47,731 | ||||||||
Director [Member] | ||||||||||
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 100,000 | 100,000 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Option Exercise Price (in Dollars per share) | $ 0.10 | $ 0.10 | ||||||||
Audit Committee Chair [Member] | ||||||||||
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 50,000 | 50,000 | ||||||||
Chief Executive Officer [Member] | ||||||||||
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 480,000 | 480,000 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Option Exercise Price (in Dollars per share) | $ 0.10 | $ 0.10 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Date | Dec. 1, 2017 | Dec. 1, 2016 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Dec. 1, 2020 | Dec. 1, 2020 | ||||||||
Share Price (in Dollars per share) | $ 0.0168 | |||||||||
Chief Financial Officer [Member] | ||||||||||
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 50,000 | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Option Exercise Price (in Dollars per share) | $ 0.10 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Dec. 1, 2019 | |||||||||
Salaries, Wages and Officers' Compensation (in Dollars) | $ 550 | |||||||||
Chief Financial Officer [Member] | Minimum [Member] | ||||||||||
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Date | Jan. 21, 2016 | |||||||||
Chief Financial Officer [Member] | Maximum [Member] | ||||||||||
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Date | Dec. 1, 2016 | |||||||||
Convertible Debt [Member] | ||||||||||
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | ||||||||||
Convertible Notes Payable, Current (in Dollars) | $ 100,000 | |||||||||
Class of Warrant or Rights, Granted | 500,000 | |||||||||
Payments of Debt Issuance Costs (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 |
NOTE 6 - STOCK OPTIONS AND WA33
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Valuation Assumptions - Minimum [Member] | 12 Months Ended |
Jun. 30, 2017 | |
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Valuation Assumptions [Line Items] | |
Risk-free interest rate | 1.45% |
Expected life | 3 years |
Expected volatility | 126.36% |
Dividend yield | 0.00% |
NOTE 6 - STOCK OPTIONS AND WA34
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Share-based Compensation, Stock Options, Activity - $ / shares | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Schedule of Share-based Compensation, Stock Options, Activity [Abstract] | ||
Outstanding beginning of period (in Shares) | 3,800,000 | 2,270,000 |
Outstanding beginning of period | $ 0.13 | $ 0.14 |
Granted (in Shares) | 480,000 | 1,530,000 |
Granted | $ 0.10 | $ 0.10 |
Expired/Cancelled (in Shares) | 0 | |
Expired/Cancelled | $ 0 | 0 |
Exercised (in Shares) | 0 | |
Exercised | $ 0 | $ 0 |
Outstanding end of period (in Shares) | 4,280,000 | 3,800,000 |
Outstanding end of period | $ 0.12 | $ 0.13 |
Exercisable (in Shares) | 4,080,000 | 3,070,000 |
Exercisable | $ 0.12 | $ 0.13 |
NOTE 6 - STOCK OPTIONS AND WA35
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range - $ / shares | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number of Options Outstanding | 4,280,000 | 3,800,000 | 2,270,000 |
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $ 0.12 | $ 0.13 | $ 0.14 |
Number of Exercisable Options | 4,080,000 | 3,070,000 | |
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 | 4 years 5 months 1 day | ||
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 | 4 years 5 months 1 day | ||
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 | 2,680,000 | ||
Weighted Average Remaining Contractual Life of Outstanding Options | 2 years 1 month 6 days | ||
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $ 0.10 | ||
Number of Exercisable Options | 2,480,000 | ||
Weighted Average Remaining Contractual Life of Exercisable Options | 2 years 1 month 6 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 | 1,450,000 | ||
Weighted Average Remaining Contractual Life of Outstanding Options | 3 years 5 months 1 day | ||
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $ 0.17 | ||
Number of Exercisable Options | 1,450,000 | ||
Weighted Average Remaining Contractual Life of Exercisable Options | 3 years 5 months 1 day |