Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Sep. 30, 2017 | Nov. 09, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Amerityre Corp | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --06-30 | |
Entity Common Stock, Shares Outstanding | 43,312,107 | |
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 | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 |
Balance Sheets
Balance Sheets - USD ($) | Sep. 30, 2017 | Jun. 30, 2017 |
CURRENT ASSETS | ||
Cash | $ 302,468 | $ 340,256 |
Accounts receivable | 350,935 | 284,004 |
Inventory - net | 603,355 | 576,191 |
Prepaid and other current assets | 125,602 | 112,368 |
Total Current Assets | 1,382,360 | 1,312,819 |
PROPERTY AND EQUIPMENT | ||
Leasehold improvements | 195,808 | 196,223 |
Molds and models | 577,549 | 577,549 |
Equipment | 2,982,218 | 2,982,218 |
Furniture and fixtures | 59,057 | 74,921 |
Construction in progress | 0 | 17,351 |
Software | 339,009 | 339,009 |
Less - accumulated depreciation | (3,915,220) | (3,914,142) |
Total Property and Equipment | 238,421 | 273,129 |
OTHER ASSETS | ||
Patents and trademarks - net | 149,751 | 155,952 |
Non-current inventory | 228,463 | 228,403 |
Deposits | 11,000 | 11,000 |
Total Other Assets | 389,214 | 395,355 |
TOTAL ASSETS | 2,009,995 | 1,981,303 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 575,119 | 468,489 |
Current portion of long-term debt | 19,625 | 19,382 |
Current portion of lease liability | 6,621 | 6,967 |
Deferred revenue | 9,637 | 0 |
Total Current Liabilities | 611,002 | 494,838 |
LONG-TERM LIABILITIES | ||
Long-term debt | 119,923 | 124,482 |
Long-term lease liability | 0 | 1,426 |
Total Long Term Liability | 119,923 | 125,908 |
Total Liabilities | 730,925 | 620,746 |
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, 43,312,107 and 43,312,107 shares issued and outstanding, respectively | 43,312 | 43,312 |
Additional paid-in capital | 62,616,165 | 62,615,728 |
Stock payable | 6,731 | 0 |
Accumulated deficit | (61,389,138) | (61,300,483) |
Total Stockholders’ Equity | 1,279,070 | 1,360,557 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 2,009,995 | $ 1,981,303 |
Balance Sheets (Parentheticals)
Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2017 | Jun. 30, 2017 |
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 | 43,312,107 |
Common stock, shares outstanding | 43,312,107 | 43,312,107 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
NET SALES | $ 925,716 | $ 836,153 |
COST OF REVENUES | 651,816 | 555,452 |
GROSS PROFIT | 273,900 | 280,701 |
EXPENSES | ||
Research and development | 58,141 | 52,859 |
Sales and marketing | 65,735 | 67,230 |
General and administrative | 194,951 | 192,306 |
Total Expenses | 318,827 | 312,395 |
LOSS FROM OPERATIONS | (44,927) | (31,694) |
OTHER EXPENSE | ||
Interest income | 108 | 53 |
Interest expense | (1,484) | (3,185) |
Loss on asset abandonment | (17,352) | 0 |
Total Other Expense | (18,728) | (3,132) |
NET LOSS | (63,655) | (34,826) |
Preferred Stock Dividend | (25,000) | (25,000) |
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (88,655) | $ (59,826) |
BASIC AND DILUTED LOSS PER SHARE (in Dollars per share) | $ 0 | $ 0 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING (in Shares) | 43,312,107 | 42,302,461 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (63,655) | $ (34,826) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation and amortization expense | 23,559 | 26,000 |
Stock based compensation | 7,168 | 8,068 |
Loss on asset abandonment | 17,352 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (66,931) | (79,134) |
Prepaid and other current assets | (13,234) | (28,665) |
Inventory and any change in inventory reserve | (27,224) | (15,387) |
Accounts payable and accrued expenses | 81,628 | 66,101 |
Deferred revenue | 9,637 | 0 |
Net Cash Used by Operating Activities | (31,700) | (57,843) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | 0 | (5,048) |
Net Cash Used by Investing Activities | 0 | (5,048) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payment on lease liability | (1,772) | (1,444) |
Payments on notes payable | (4,316) | (1,497) |
Net Cash Used by Financing Activities | (6,088) | (2,941) |
NET DECREASE IN CASH | (37,788) | (65,832) |
CASH AT BEGINNING OF PERIOD | 340,256 | 267,302 |
CASH AT END OF PERIOD | 302,468 | 201,470 |
NON-CASH FINANCING ACTIVITIES | ||
Interest paid | 1,484 | 3,185 |
Income taxes paid | 0 | 0 |
SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES | ||
Purchase of fixed assets through debt | 0 | 95,625 |
Accrued preferred stock dividends | 25,000 | 25,000 |
Issuance of stock for stock payable | 0 | 4,500 |
Write off of Previously Reserved Forklift Tires [Member] | ||
SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES | ||
Write off of assets | 0 | 81,224 |
Write off of Fully Depreciated Fixed Assets No Longer in Use [Member] | ||
SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES | ||
Write off of assets | $ 16,280 | $ 0 |
NOTE 1 - BASIS OF FINANCIAL STA
NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION | 3 Months Ended |
Sep. 30, 2017 | |
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, 2017 Annual Report on Form 10-K. Operating results for the quarter ended September 30, 2017 are not necessarily indicative of the results that may be expected for the current fiscal year ending June 30, 2018. |
NOTE 2 - SUMMARY OF SIGNIFICANT
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2017 | |
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, 2017 Annual Report on Form 10-K, except as noted below. Revenue Recognition The majority of our revenue is derived from short-term sales contracts. We account for revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers”, which we adopted on July 1, 2017, using the modified retrospective method. Revenue for our products is recognized at the time in which our performance obligation is satisfied which we have defined as “control” of the product by the customer. “Control” is defined as a customer having “rights/obligations of physical control over the product or has the rights and intention to control the product.” Based on the terms of our contracts, a customer’s “control” is based on analysis of the following; (i) when a customer arranges their own shipping, and once the product has left our dock, Amerityre recognizes revenue for the product. In effect by arranging their own shipping the customer is “taking control” of the product when it leaves our warehouse; or (ii) when a customer does not arrange their own shipping we cannot recognize revenue until it is delivered and the customer takes “control” of the product. This establishes a “deferred revenue” event until such time as delivery of the product has been completed and we have proof from the shipper of the delivery (and change in control). We invoice the customer at shipping, starting the accounts receivable process. Our Company collection policies on products does not change (this includes any prepayment and credit establishment processes). Nor do our refund and return policies change where credit is provided on account for the next purchase as no refunds are given. The result of this accounting change is $9,637 of deferred revenue, inclusive of $1,532 of shipping and handling revenue (see below), as of September 30, 2017. The related deferred cost of sales, included within our inventory accounts was $1,664 as of September 30, 2017. 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 and are recognized as incurred. However, due to our adoption of ASC 606 as discussed above, we defer the revenues of shipping and handling until the related revenue is also recognized. The result of this accounting change is a deferral of $1,532 as of September 30, 2017. 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 3,800,000 and 3,800,000 common stock equivalents for the quarters ended September 30, 2017 and 2016, respectively, because they are anti-dilutive. Recent Accounting Pronouncements Recently Adopted and Recently Issued Accounting Guidance 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 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 3 - INVENTORY
NOTE 3 - INVENTORY | 3 Months Ended |
Sep. 30, 2017 | |
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. September 30, 2017 June 30, 2017 (Unaudited) Raw Materials $ 316,590 $ 262,187 Finished Goods 576,547 595,910 Inventory reserve (61,319 ) (53,503 ) Inventory – net (current and long term) $ 831,818 $ 804,594 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 2018 and 2017, 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. |
NOTE 4 - DEBT
NOTE 4 - DEBT | 3 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 4 – 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 September 30, 2017, $2,000 and $62,880 (June 30, 2017, $2,000 and $62,940) 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 place in service in July 2016. Various operating enhancement, inclusive of a website redesign, were implemented in fiscal 2017. In the first quarter of fiscal 2018 the last operational enhancement related to a sales customer relation management (“CRM”) system was abandoned due to challenges with the selected implementation vendor. The Company is pursuing other options to address its CRM system needs and the amount we financed through this debt instrument remains the Company’s liability to pay. 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 2017. 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) $ 74,669 $ 17,626 $ 57,043 $ - $ - Total cash obligations $ 74,669 $ 17,626 $ 57,043 $ - $ - |
NOTE 5 - CAPITAL LEASE
NOTE 5 - CAPITAL LEASE | 3 Months Ended |
Sep. 30, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Debt and Capital Leases Disclosures [Text Block] | NOTE 5 - 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 $4,673). 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 September 30, 2017: 2018 $ 6,523 2019 725 2020 - Total minimum lease payments 7,248 Less: executory costs - Net minimum lease payments 7,248 Less: amount representing interest (627 ) Present value of net minimum payments $ 6,621 |
NOTE 6 - STOCK OPTIONS AND WARR
NOTE 6 - STOCK OPTIONS AND WARRANTS | 3 Months Ended |
Sep. 30, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Shareholders' Equity and Share-based Payments [Text Block] | NOTE 6 - STOCK OPTIONS AND WARRANTS Prior Issuances of options 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 $437 as of September 30, 2017. As of September 30, 2017, there was $292 of unrecognized stock-based compensation expense related to stock options that will be recognized over the vest period (December 2017) of the underlying option. A summary of the status of our outstanding stock options as of September 30, 2017 and June 30, 2017 and changes during the periods then ended is presented below: September 30, 2017 June 30, 2017 Weighted Average Intrinsic Weighted Average Intrinsic Shares Exercise Price Value Shares Exercise Price Value Outstanding beginning of period 4,280,000 $ 0.12 3,800,000 $ 0.13 Granted - $ 0.00 480,000 $ 0.10 Expired/Cancelled - $ 0.00 - $ 0.00 Exercised - $ 0.00 - $ 0.00 Outstanding end of period 4,280,000 $ 0.12 $ - 4,280,000 $ 0.12 $ - Exercisable 4,200,000 $ 0.12 $ - 4,080,000 $ 0.12 $ - Outstanding Exercisable Range of Exercise Prices Number Outstanding at September 30, 2017 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at September 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 2,600,000 2.10 $ 0.17 1,450,000 3.42 $ 0.17 1,450,000 3.42 4,280,000 4,200,000 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The majority of our revenue is derived from short-term sales contracts. We account for revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers”, which we adopted on July 1, 2017, using the modified retrospective method. Revenue for our products is recognized at the time in which our performance obligation is satisfied which we have defined as “control” of the product by the customer. “Control” is defined as a customer having “rights/obligations of physical control over the product or has the rights and intention to control the product.” Based on the terms of our contracts, a customer’s “control” is based on analysis of the following; (i) when a customer arranges their own shipping, and once the product has left our dock, Amerityre recognizes revenue for the product. In effect by arranging their own shipping the customer is “taking control” of the product when it leaves our warehouse; or (ii) when a customer does not arrange their own shipping we cannot recognize revenue until it is delivered and the customer takes “control” of the product. This establishes a “deferred revenue” event until such time as delivery of the product has been completed and we have proof from the shipper of the delivery (and change in control). We invoice the customer at shipping, starting the accounts receivable process. Our Company collection policies on products does not change (this includes any prepayment and credit establishment processes). Nor do our refund and return policies change where credit is provided on account for the next purchase as no refunds are given. The result of this accounting change is $9,637 of deferred revenue, inclusive of $1,532 of shipping and handling revenue (see below), as of September 30, 2017. The related deferred cost of sales, included within our inventory accounts was $1,664 as of September 30, 2017. |
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 and are recognized as incurred. However, due to our adoption of ASC 606 as discussed above, we defer the revenues of shipping and handling until the related revenue is also recognized. The result of this accounting change is a deferral of $1,532 as of September 30, 2017. |
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 3,800,000 and 3,800,000 common stock equivalents for the quarters ended September 30, 2017 and 2016, 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 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 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 3 - INVENTORY (Tables)
NOTE 3 - INVENTORY (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory [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. September 30, 2017 June 30, 2017 (Unaudited) Raw Materials $ 316,590 $ 262,187 Finished Goods 576,547 595,910 Inventory reserve (61,319 ) (53,503 ) Inventory – net (current and long term) $ 831,818 $ 804,594 |
NOTE 4 - DEBT (Tables)
NOTE 4 - DEBT (Tables) | 3 Months Ended |
Sep. 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) $ 74,669 $ 17,626 $ 57,043 $ - $ - Total cash obligations $ 74,669 $ 17,626 $ 57,043 $ - $ - |
NOTE 5 - CAPITAL LEASE (Tables)
NOTE 5 - CAPITAL LEASE (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Capital Leased Assets [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 September 30, 2017: 2018 $ 6,523 2019 725 2020 - Total minimum lease payments 7,248 Less: executory costs - Net minimum lease payments 7,248 Less: amount representing interest (627 ) Present value of net minimum payments $ 6,621 |
NOTE 6 - STOCK OPTIONS AND WA16
NOTE 6 - STOCK OPTIONS AND WARRANTS (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the status of our outstanding stock options as of September 30, 2017 and June 30, 2017 and changes during the periods then ended is presented below: September 30, 2017 June 30, 2017 Weighted Average Intrinsic Weighted Average Intrinsic Shares Exercise Price Value Shares Exercise Price Value Outstanding beginning of period 4,280,000 $ 0.12 3,800,000 $ 0.13 Granted - $ 0.00 480,000 $ 0.10 Expired/Cancelled - $ 0.00 - $ 0.00 Exercised - $ 0.00 - $ 0.00 Outstanding end of period 4,280,000 $ 0.12 $ - 4,280,000 $ 0.12 $ - Exercisable 4,200,000 $ 0.12 $ - 4,080,000 $ 0.12 $ - |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Outstanding Exercisable Range of Exercise Prices Number Outstanding at September 30, 2017 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at September 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 2,600,000 2.10 $ 0.17 1,450,000 3.42 $ 0.17 1,450,000 3.42 4,280,000 4,200,000 |
NOTE 2 - SUMMARY OF SIGNIFICA17
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 3,800,000 | 3,800,000 |
Adjustments for New Accounting Pronouncement [Member] | ||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Deferred Revenue, Additions | $ 9,637 | |
Deferred Cost of Sales Included in Inventory | 1,664 | |
Shipping and Handling Revenue [Member] | Adjustments for New Accounting Pronouncement [Member] | ||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Deferred Revenue, Additions | $ 1,532 |
NOTE 3 - INVENTORY (Details) -
NOTE 3 - INVENTORY (Details) - Schedule of Inventory - USD ($) | Sep. 30, 2017 | Jun. 30, 2017 |
Schedule of Inventory [Abstract] | ||
Raw Materials | $ 316,590 | $ 262,187 |
Finished Goods | 576,547 | 595,910 |
Inventory reserve | (61,319) | (53,503) |
Inventory – net (current and long term) | $ 831,818 | $ 804,594 |
NOTE 4 - DEBT (Details)
NOTE 4 - DEBT (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jul. 31, 2016 | Jun. 30, 2016 | Sep. 30, 2017 | Jun. 30, 2017 | |
NOTE 4 - DEBT (Details) [Line Items] | ||||
Long-term Debt, Current Maturities | $ 19,625 | $ 19,382 | ||
Long-term Debt, Excluding Current Maturities | $ 119,923 | 124,482 | ||
Property, Plant and Equipment, Transfers and Changes | $ 29,000 | |||
Notes Payable, Other Payables [Member] | ||||
NOTE 4 - DEBT (Details) [Line Items] | ||||
Sales Commission, Percentage | 5.00% | |||
Debt Instrument, Face Amount | $ 96,000 | |||
Long-term Debt, Current Maturities | 2,000 | 2,000 | ||
Long-term Debt, Excluding Current Maturities | $ 62,880 | $ 62,940 | ||
Notes Payable to Banks [Member] | ||||
NOTE 4 - 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 4 - DEBT (Details) - Sched
NOTE 4 - DEBT (Details) - Schedule of Maturities of Long-term Debt | Sep. 30, 2017USD ($) |
NOTE 4 - DEBT (Details) - Schedule of Maturities of Long-term Debt [Line Items] | |
Total | $ 74,669 |
Less than 1 year | 17,626 |
1 to 3 years | 57,043 |
3 to 5 years | 0 |
After 5 years | 0 |
Notes Payable to Banks [Member] | |
NOTE 4 - DEBT (Details) - Schedule of Maturities of Long-term Debt [Line Items] | |
Total | 74,669 |
Less than 1 year | 17,626 |
1 to 3 years | 57,043 |
3 to 5 years | 0 |
After 5 years | $ 0 |
NOTE 5 - CAPITAL LEASE (Details
NOTE 5 - CAPITAL LEASE (Details) - USD ($) | Sep. 30, 2017 | Jul. 31, 2015 |
Disclosure Text Block Supplement [Abstract] | ||
Capital Leases, Future Minimum Payments Due | $ 7,248 | $ 19,337 |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | $ 4,673 |
NOTE 5 - CAPITAL LEASE (Detai22
NOTE 5 - CAPITAL LEASE (Details) - Schedule of Capital Leased Assets - USD ($) | Sep. 30, 2017 | Jul. 31, 2015 |
Schedule of Capital Leased Assets [Abstract] | ||
2,018 | $ 6,523 | |
2,019 | 725 | |
2,020 | 0 | |
Total minimum lease payments | 7,248 | $ 19,337 |
Less: executory costs | 0 | |
Net minimum lease payments | 7,248 | |
Less: amount representing interest | (627) | |
Present value of net minimum payments | $ 6,621 |
NOTE 6 - STOCK OPTIONS AND WA23
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) - USD ($) | Dec. 01, 2016 | Sep. 30, 2017 | Jun. 30, 2017 |
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 480,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 292 | ||
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 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Option Exercise Price | $ 0.10 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Date | Dec. 1, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Dec. 1, 2020 | ||
Options Granted January 19, 2016 [Member] | Chief Financial Officer [Member] | |||
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||
Allocated Share-based Compensation Expense | $ 437 |
NOTE 6 - STOCK OPTIONS AND WA24
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Share-based Compensation, Stock Options, Activity - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Jun. 30, 2017 | |
Schedule of Share-based Compensation, Stock Options, Activity [Abstract] | ||
Outstanding beginning of period | 4,280,000 | 3,800,000 |
Outstanding beginning of period | $ 0.12 | $ 0.13 |
Granted | 0 | 480,000 |
Granted | $ 0 | $ 0.10 |
Expired/Cancelled | 0 | 0 |
Expired/Cancelled | $ 0 | $ 0 |
Exercised | 0 | 0 |
Exercised | $ 0 | $ 0 |
Outstanding end of period | 4,280,000 | 4,280,000 |
Outstanding end of period | $ 0.12 | $ 0.12 |
Outstanding end of period | $ 0 | $ 0 |
Exercisable | 4,200,000 | 4,080,000 |
Exercisable | $ 0.12 | $ 0.12 |
Exercisable | $ 0 | $ 0 |
NOTE 6 - STOCK OPTIONS AND WA25
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range - $ / shares | 3 Months Ended | ||
Sep. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number of Options Outstanding | 4,280,000 | 4,280,000 | 3,800,000 |
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $ 0.12 | $ 0.12 | $ 0.13 |
Number of Exercisable Options | 4,200,000 | 4,080,000 | |
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 | 2,600,000 | ||
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 |