Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Sep. 14, 2018 | Dec. 31, 2017 | |
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 | 44,476,346 | ||
Entity Public Float | $ 866,242 | ||
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, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
CURRENT ASSETS | ||
Cash | $ 213,854 | $ 340,256 |
Accounts receivable | 410,425 | 284,004 |
Current inventory - net | 516,334 | 576,191 |
Prepaid and other current assets | 84,892 | 112,368 |
Total Current Assets | 1,225,505 | 1,312,819 |
PROPERTY AND EQUIPMENT | ||
Leasehold improvements | 201,074 | 196,223 |
Molds and models | 583,611 | 577,549 |
Equipment | 2,989,297 | 2,982,218 |
Furniture and fixtures | 59,057 | 74,921 |
Construction in progress | 1,000 | 17,351 |
Software | 247,610 | 339,009 |
Less – accumulated depreciation | (3,870,155) | (3,914,142) |
Total Property and Equipment - net | 211,494 | 273,129 |
OTHER ASSETS | ||
Patents and trademarks – net | 132,605 | 155,952 |
Non-current inventory | 206,842 | 228,403 |
Deposits | 11,000 | 11,000 |
Total Other Assets | 350,447 | 395,355 |
TOTAL ASSETS | 1,787,446 | 1,981,303 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 379,086 | 468,489 |
Current portion of long-term debt | 20,377 | 19,382 |
Current portion of lease liability | 726 | 6,967 |
Deferred revenue | 20,712 | 0 |
Total Current Liabilities | 420,901 | 494,838 |
Long-term debt | 105,633 | 124,482 |
Long-term lease liability | 0 | 1,426 |
TOTAL LIABILITIES | 526,534 | 620,746 |
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, 44,476,346 and 43,312,107 shares issued and outstanding, respectively | 44,476 | 43,312 |
Additional paid-in capital | 62,638,754 | 62,615,728 |
Stock payable | 14,601 | 0 |
Accumulated deficit | (61,438,919) | (61,300,483) |
Total Stockholders’ Equity | 1,260,912 | 1,360,557 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,787,446 | $ 1,981,303 |
Balance Sheets (Parentheticals)
Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2018 | 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 | 44,476,346 | 43,312,107 |
Common stock, shares outstanding | 44,476,346 | 43,312,107 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
NET SALES | $ 3,620,427 | $ 3,628,566 |
COST OF REVENUES | 2,520,799 | 2,444,102 |
GROSS PROFIT | 1,099,628 | 1,184,464 |
EXPENSES | ||
Research and development | 183,566 | 227,092 |
Sales and marketing | 225,424 | 248,290 |
General and administrative | 709,633 | 661,245 |
Total Expenses | 1,118,623 | 1,136,627 |
(LOSS) INCOME FROM OPERATIONS | (18,995) | 47,837 |
OTHER INCOME/(EXPENSE) | ||
Interest expense | (4,997) | (8,468) |
Loss on assets, due to write down or disposal | (17,351) | (6,331) |
Other income | 2,907 | 283 |
Total Other Expense | (19,441) | (14,516) |
NET (LOSS) INCOME | (38,436) | 33,321 |
Preferred Stock Dividend | (100,000) | (100,000) |
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (138,436) | $ (66,679) |
BASIC AND DILUTED LOSS PER SHARE (in Dollars per share) | $ 0 | $ 0 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING (in Shares) | 43,629,328 | 42,417,601 |
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, 2016 | $ 2,000 | $ 42,175 | $ 62,579,558 | $ 4,500 | $ (61,233,804) | |
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 | ||||
Preferred stock dividends | (100,000) | 100,000 | ||||
Stock option based compensation expense – options | 729 | 729 | ||||
Stock option based compensation expense | $ 1,164 | 22,298 | 14,601 | |||
Stock option based compensation expense (in Shares) | 1,164,239 | |||||
Net loss | (38,436) | (38,436) | ||||
Balance at Jun. 30, 2018 | $ 2,000 | $ 44,476 | $ 62,638,754 | $ 14,601 | $ (61,438,919) | $ 1,260,912 |
Balance (in Shares) at Jun. 30, 2018 | 2,000,000 | 44,476,346 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net (loss) income | $ (38,436) | $ 33,321 |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | ||
Depreciation and amortization expense | 87,039 | 102,495 |
Stock based compensation, employee and Board of Directors | 28,792 | 27,807 |
Loss on assets, due to write down, disposal or abandonment | 17,351 | 6,331 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (126,421) | 9,354 |
Prepaid and other current assets | 27,476 | (66,756) |
Inventory and change in inventory reserve | 81,418 | (15,042) |
Accounts payable and accrued expenses | (179,405) | 24,990 |
Deferred revenue | 20,712 | 0 |
Net Cash Provided (Used) by Operating Activities | (81,474) | 122,500 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | (19,407) | (20,868) |
Cash paid for patents and trademarks | 0 | (8,000) |
Net Cash Used by Investing Activities | (19,407) | (28,868) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payment on lease liability | (7,667) | (6,250) |
Payments on notes payable | (17,854) | (14,428) |
Net Cash Used by Financing Activities | (25,521) | (20,678) |
NET (DECREASE) INCREASE IN CASH | (126,402) | 72,954 |
CASH AT BEGINNING OF YEAR | 340,256 | 267,302 |
CASH AT END OF YEAR | 213,854 | 340,256 |
NON-CASH FINANCING ACTIVITIES | ||
Interest paid | 4,997 | 8,468 |
Income taxes paid | 0 | 0 |
SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES | ||
Write off of previously reserved forklift tires | 0 | 81,224 |
Property and equipment, Transfers and Changes | 0 | 95,823 |
Accrued preferred stock dividends | 100,000 | 100,000 |
Issuance of stock for stock payable | 0 | 4,500 |
Issuance of stock for accrued expense | 10,000 | 5,000 |
Write off fully depreciated fixed assets no longer in use | $ 107,678 | $ 0 |
NOTE 1 - ORGANIZATION AND SUMMA
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2018 | |
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 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, 2018, the Company had no funds exceeding this amount; as of 2017, 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 one customer who accounted for 25% of our sales for the year ended June 30, 2018 and two customers who accounted for 31% of our sales for the year ended June 30, 2017. 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, 2018 and 2017, 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, 2018 and 2017, 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. 2018 2017 Raw materials $ 214,787 $ 262,187 Finished goods 569,294 595,910 Inventory reserve (60,905 ) (53,503 ) Inventory – net (current and long term) $ 723,176 $ 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. 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, 2018 and 2017 was $63,692 and $75,068, respectively. Patents and Trademarks Patent and trademark costs have been capitalized at June 30, 2018, totaling $487,633 with accumulated amortization of $355,028 for a net book value of $132,605. Patent and trademark costs capitalized at June 30, 2017, totaled $487,633 with accumulated amortization of $331,681 for a net book value of $155,952. 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, 2018 and 2017, 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, 2018 and 2017, respectively. Amortization expense for the years ended June 30, 2018 and 2017 was $23,347 and $27,427 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, 2018 is as follows: 2019 $ 33,033 2020 $ 26,427 2021 $ 16,928 2022 $ 17,763 2023 $ 13,896 Thereafter $ 24,558 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, 2018 and 2017 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 3,730,000 and 4,280,000 common stock equivalents for the years ended June 30, 2018 and 2017, 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, 2018 and 2017: 2018 2017 Deferred tax assets: NOL carryover $ 9,180,100 $ 17,064,900 Section 1231 loss carryover 32,200 59,900 Inventory reserve 12,800 18,700 R & D carryover 207,100 198,400 Accrued vacation and compensated absences - (12,700 ) Deferred revenue 4,400 - Deferred tax liabilities: Depreciation (8,600 ) (16,000 ) Statutory rate change adjustment (6,147,000 ) - Decrease of valuation allowance due to rate change 6,147,000 - Valuation allowance (9,428,000 ) (17,313,200 ) 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, 2018 and 2017 due to the following: 2018 2017 Book (loss) income tax effected $ (10,800 ) $ 11,700 Depreciation 8,300 18,000 Nondeductible expenses 10,900 8,000 Accrued vacation and compensated absences - 11,500 Inventory reserve 2,100 (25,400 ) Deferred revenue 5,800 - R&D Section 6765 Addback 100 - Loss on asset disposal - (300 ) Valuation allowance (16,400 ) (23,500 ) $ - $ - At June 30, 2018, the Company had net operating loss carry-forwards of approximately $43,715,000 that may be offset against future taxable income from the year 2017 through 2036. No tax benefit has been reported in the June 30, 2018 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, 2018 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 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. This change in revenue principle was applied to all contracts effective on the adoption date above. 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. Due to a very robust process to determine when control, as described above, occurs, there is limited judgement applied in the above process. In cases where we enter into sales arrangements with customers for non-standard products, such as custom formulation materials, revenue items are recognized as separate and distinct contracts with revenue recognition occurring upon acceptance by the customer. These types of transactions have been historically rare and non-routine in nature. We had no revenue from these types of transactions in either fiscal year 2018 or 2017. 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). As filed Adjusted June 30, 2017 Adjustment June 30, 2017 Current inventory - net $ 576,191 $ 8,325 $ 584,516 Total assets $ 1,981,303 $ 8,325 $ 1,989,629 Deferred revenue $ - $ 14,889 $ 14,889 Total liabilities $ 620,746 $ 14,889 $ 635,635 Accumulated deficit $ (61,300,483 ) $ (6,564 ) $ (61,307,047 ) Total stockholders’ equity $ 1,360,557 $ (6,564 ) $ 1,353,993 Total liabilities and stockholders' equity $ 1,981,303 $ 8,325 $ 1,989,628 Net revenue $ 3,628,566 $ (14,889 ) $ 3,613,677 Cost of revenue $ 2,444,102 $ 8,325 $ 2,435,777 Gross margin $ 1,184,464 $ (6,564 ) $ 1,177,900 Net income $ 33,321 $ (6,564 ) $ 26,757 Basic and diluted income per share $ (0.00 ) $ (0.00 ) 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 $20,712 of deferred revenue, inclusive of $2,552 of shipping and handling revenue (see below), as of June 30, 2018. The related deferred cost of sales, included within our inventory accounts was $4,874 as of June 30, 2018. If we had applied this new accounting method in fiscal year 2017, our financial results would have changed as follows: 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 product revenue is also recognized. The result of this accounting change is a deferral of $2,552 as of June 30, 2018. 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. Due to historical warranty results, we recognize warranty expense based on actual warranty recognition. Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. Advertising expense for the years ended June 30, 2018 and 2017 was $2,492 and $3,776, 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 and this accounting standard is the Company’s focus in early fiscal year 2019. 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, 2018 | |
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, 2018, $2,000 and $62,468 (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 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) $ 72,602 $ 21,349 $ 51,253 $ - $ - Total cash obligations $ 72,602 $ 21,349 $ 51,253 $ - $ - |
NOTE 3 - CAPITAL LEASE
NOTE 3 - CAPITAL LEASE | 12 Months Ended |
Jun. 30, 2018 | |
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: 2019 $ 726 2020 - Total minimum lease payments 726 Less: executory costs - Net minimum lease payments 726 Less: amount representing interest (50 ) Present value of net minimum payments $ 676 |
NOTE 4 - COMMITMENTS AND CONTIN
NOTE 4 - COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2018 | |
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 $ 276,000 $ 138,000 $ 138,000 $ - $ - Total contractual cash obligations $ 276,000 $ 138,000 $ 138,000 $ - $ - Rent expense for the years ended June 30, 2018 and 2017 was $138,000 and $136,800, respectively. |
NOTE 5 - STOCK TRANSACTIONS
NOTE 5 - STOCK TRANSACTIONS | 12 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 5 – STOCK TRANSACTIONS During the years ended June 30, 2018 and 2017, 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, 2018 and 2017, 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. Accrued preferred shareholder dividends were $225,000 as of June 30, 2018 and $125,000 as of June 30, 2017. 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. All of these shares have been issued, 30,000 in our fiscal year 2018, 30,000 in fiscal year 2019. 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. All of these shares have been issued, 112,500 in our fiscal year 2018, 112,500 in fiscal year 2017. 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, 2018, 1,773,913 of these shares have been earned: 521,739 shares issued in fiscal year 2018; 521,739 issued in fiscal year 2017; and, 730,435 or $12,271 as part of our stock payable at June 30, 2018. 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. On November 30, 2017, 265,000 shares were granted to the Company’s Board of Directors as Board compensation for the term ending November 2018. Each non-executive Board member receives 60,000 shares, with the Audit Committee Chair receiving 85,000 shares. The shares vest ratably December 2017 – November 2018, valued at a fixed rate of $0.02, the closing stock price on November 30, 2017. As of June 30, 2018, 132,500 shares of stock have been issued. On January 21, 2018, 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 21, 2018 and vest ratably through December 2018. In addition to the stock, her base compensation was adjusted to $36,000 per annum. As of June 30, 2018, 30,000 shares of stock have been issued. On May 24, 2018 the Board of Director’s approved a partial payment of Mr. Sullivan’s 2017 bonus in stock. This partial payment of $10,000 resulted in the issuance of 500,000 shares of stock. |
NOTE 6 - STOCK OPTIONS AND WARR
NOTE 6 - STOCK OPTIONS AND WARRANTS | 12 Months Ended |
Jun. 30, 2018 | |
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 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. As of June 30, 2018, $729 in expense was related to this issuance. 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. Option issuances and vesting during the period ending June 30, 201 8 and 2017 No stock options were issued in fiscal year 2018. A summary of the status of our outstanding stock options as of June 30, 2018 and June 30, 2017 and changes during the periods then ended is presented below: June 30, 2018 June 30, 2017 Weight Average Intrinsic Weight 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 (550,000 ) $ 0.10 - $ 0.00 Exercised - $ 0.00 - $ 0.00 Outstanding end of period 3,730,000 $ 0.13 $ - 4,280,000 $ 0.12 $ - Exercisable 3,730,000 $ 0.13 $ - 4,080,000 $ 0.12 $ - The following table summarizes the range of outstanding and exercisable options as of June 30, 2018: Outstanding Exercisable Range of Exercise Prices Number Outstanding at June 30, 2018 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at June 30, 2018 Weighted Average Remaining Contractual Life $ 0.08 150,000 2.42 $ 0.08 150,000 2.42 $ 0.10 2,130,000 1.20 $ 0.10 2,130,000 1.20 $ 0.17 1,450,000 2.42 $ 0.17 1,450,000 2.42 3,730,000 3,730,000 |
NOTE 7 - SUBSEQUENT EVENTS
NOTE 7 - SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2018 | |
Table Text Block [Abstract] | |
Schedule of Subsequent Events [Table Text Block] | NOTE 7 – SUBSEQUENT EVENTS In July 2018, the Company was approved for funding to replace the entire lighting system in our Boulder City facility. This funding comes from a federal grant and a federal guaranteed loan, both of which were being finalized as of the date of this filing. Due to the capital improvement to the building, management is also negotiating an extension to our building lease. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
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 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, 2018, the Company had no funds exceeding this amount; as of 2017, 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. |
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, 2018 and 2017, 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, 2018 and 2017, 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. 2018 2017 Raw materials $ 214,787 $ 262,187 Finished goods 569,294 595,910 Inventory reserve (60,905 ) (53,503 ) Inventory – net (current and long term) $ 723,176 $ 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. |
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, 2018 and 2017 was $63,692 and $75,068, respectively. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Patents and Trademarks Patent and trademark costs have been capitalized at June 30, 2018, totaling $487,633 with accumulated amortization of $355,028 for a net book value of $132,605. Patent and trademark costs capitalized at June 30, 2017, totaled $487,633 with accumulated amortization of $331,681 for a net book value of $155,952. 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, 2018 and 2017, 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, 2018 and 2017, respectively. Amortization expense for the years ended June 30, 2018 and 2017 was $23,347 and $27,427 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, 2018 is as follows: |
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, 2018 and 2017 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 3,730,000 and 4,280,000 common stock equivalents for the years ended June 30, 2018 and 2017, 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, 2018 and 2017: 2018 2017 Deferred tax assets: NOL carryover $ 9,180,100 $ 17,064,900 Section 1231 loss carryover 32,200 59,900 Inventory reserve 12,800 18,700 R & D carryover 207,100 198,400 Accrued vacation and compensated absences - (12,700 ) Deferred revenue 4,400 - Deferred tax liabilities: Depreciation (8,600 ) (16,000 ) Statutory rate change adjustment (6,147,000 ) - Decrease of valuation allowance due to rate change 6,147,000 - Valuation allowance (9,428,000 ) (17,313,200 ) 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, 2018 and 2017 due to the following: 2018 2017 Book (loss) income tax effected $ (10,800 ) $ 11,700 Depreciation 8,300 18,000 Nondeductible expenses 10,900 8,000 Accrued vacation and compensated absences - 11,500 Inventory reserve 2,100 (25,400 ) Deferred revenue 5,800 - R&D Section 6765 Addback 100 - Loss on asset disposal - (300 ) Valuation allowance (16,400 ) (23,500 ) $ - $ - At June 30, 2018, the Company had net operating loss carry-forwards of approximately $43,715,000 that may be offset against future taxable income from the year 2017 through 2036. No tax benefit has been reported in the June 30, 2018 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, 2018 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 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. This change in revenue principle was applied to all contracts effective on the adoption date above. 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. Due to a very robust process to determine when control, as described above, occurs, there is limited judgement applied in the above process. In cases where we enter into sales arrangements with customers for non-standard products, such as custom formulation materials, revenue items are recognized as separate and distinct contracts with revenue recognition occurring upon acceptance by the customer. These types of transactions have been historically rare and non-routine in nature. We had no revenue from these types of transactions in either fiscal year 2018 or 2017. 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). As filed Adjusted June 30, 2017 Adjustment June 30, 2017 Current inventory - net $ 576,191 $ 8,325 $ 584,516 Total assets $ 1,981,303 $ 8,325 $ 1,989,629 Deferred revenue $ - $ 14,889 $ 14,889 Total liabilities $ 620,746 $ 14,889 $ 635,635 Accumulated deficit $ (61,300,483 ) $ (6,564 ) $ (61,307,047 ) Total stockholders’ equity $ 1,360,557 $ (6,564 ) $ 1,353,993 Total liabilities and stockholders' equity $ 1,981,303 $ 8,325 $ 1,989,628 Net revenue $ 3,628,566 $ (14,889 ) $ 3,613,677 Cost of revenue $ 2,444,102 $ 8,325 $ 2,435,777 Gross margin $ 1,184,464 $ (6,564 ) $ 1,177,900 Net income $ 33,321 $ (6,564 ) $ 26,757 Basic and diluted income per share $ (0.00 ) $ (0.00 ) 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 $20,712 of deferred revenue, inclusive of $2,552 of shipping and handling revenue (see below), as of June 30, 2018. The related deferred cost of sales, included within our inventory accounts was $4,874 as of June 30, 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 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 product revenue is also recognized. The result of this accounting change is a deferral of $2,552 as of June 30, 2018. |
Standard Product Warranty, Policy [Policy Text Block] | Product Warranties |
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, 2018 and 2017 was $2,492 and $3,776, 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 and this accounting standard is the Company’s focus in early fiscal year 2019. 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 SUM15
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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. 2018 2017 Raw materials $ 214,787 $ 262,187 Finished goods 569,294 595,910 Inventory reserve (60,905 ) (53,503 ) Inventory – net (current and long term) $ 723,176 $ 804,594 |
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, 2018 is as follows: 2019 $ 33,033 2020 $ 26,427 2021 $ 16,928 2022 $ 17,763 2023 $ 13,896 Thereafter $ 24,558 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Net deferred tax assets consist of the following components as of June 30, 2018 and 2017: 2018 2017 Deferred tax assets: NOL carryover $ 9,180,100 $ 17,064,900 Section 1231 loss carryover 32,200 59,900 Inventory reserve 12,800 18,700 R & D carryover 207,100 198,400 Accrued vacation and compensated absences - (12,700 ) Deferred revenue 4,400 - Deferred tax liabilities: Depreciation (8,600 ) (16,000 ) Statutory rate change adjustment (6,147,000 ) - Decrease of valuation allowance due to rate change 6,147,000 - Valuation allowance (9,428,000 ) (17,313,200 ) 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, 2018 and 2017 due to the following: 2018 2017 Book (loss) income tax effected $ (10,800 ) $ 11,700 Depreciation 8,300 18,000 Nondeductible expenses 10,900 8,000 Accrued vacation and compensated absences - 11,500 Inventory reserve 2,100 (25,400 ) Deferred revenue 5,800 - R&D Section 6765 Addback 100 - Loss on asset disposal - (300 ) Valuation allowance (16,400 ) (23,500 ) $ - $ - |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | 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). As filed Adjusted June 30, 2017 Adjustment June 30, 2017 Current inventory - net $ 576,191 $ 8,325 $ 584,516 Total assets $ 1,981,303 $ 8,325 $ 1,989,629 Deferred revenue $ - $ 14,889 $ 14,889 Total liabilities $ 620,746 $ 14,889 $ 635,635 Accumulated deficit $ (61,300,483 ) $ (6,564 ) $ (61,307,047 ) Total stockholders’ equity $ 1,360,557 $ (6,564 ) $ 1,353,993 Total liabilities and stockholders' equity $ 1,981,303 $ 8,325 $ 1,989,628 Net revenue $ 3,628,566 $ (14,889 ) $ 3,613,677 Cost of revenue $ 2,444,102 $ 8,325 $ 2,435,777 Gross margin $ 1,184,464 $ (6,564 ) $ 1,177,900 Net income $ 33,321 $ (6,564 ) $ 26,757 Basic and diluted income per share $ (0.00 ) $ (0.00 ) |
NOTE 2 - DEBT (Tables)
NOTE 2 - DEBT (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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) $ 72,602 $ 21,349 $ 51,253 $ - $ - Total cash obligations $ 72,602 $ 21,349 $ 51,253 $ - $ - |
NOTE 3 - CAPITAL LEASE (Tables)
NOTE 3 - CAPITAL LEASE (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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: 2019 $ 726 2020 - Total minimum lease payments 726 Less: executory costs - Net minimum lease payments 726 Less: amount representing interest (50 ) Present value of net minimum payments $ 676 |
NOTE 4 - COMMITMENTS AND CONT18
NOTE 4 - COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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 $ 276,000 $ 138,000 $ 138,000 $ - $ - Total contractual cash obligations $ 276,000 $ 138,000 $ 138,000 $ - $ - |
NOTE 6 - STOCK OPTIONS AND WA19
NOTE 6 - STOCK OPTIONS AND WARRANTS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and June 30, 2017 and changes during the periods then ended is presented below: June 30, 2018 June 30, 2017 Weight Average Intrinsic Weight 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 (550,000 ) $ 0.10 - $ 0.00 Exercised - $ 0.00 - $ 0.00 Outstanding end of period 3,730,000 $ 0.13 $ - 4,280,000 $ 0.12 $ - Exercisable 3,730,000 $ 0.13 $ - 4,080,000 $ 0.12 $ - |
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, 2018: Outstanding Exercisable Range of Exercise Prices Number Outstanding at June 30, 2018 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at June 30, 2018 Weighted Average Remaining Contractual Life $ 0.08 150,000 2.42 $ 0.08 150,000 2.42 $ 0.10 2,130,000 1.20 $ 0.10 2,130,000 1.20 $ 0.17 1,450,000 2.42 $ 0.17 1,450,000 2.42 3,730,000 3,730,000 |
NOTE 1 - ORGANIZATION AND SUM20
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
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 | 63,692 | 75,068 |
Intangible Assets, Gross (Excluding Goodwill) | 487,633 | 487,633 |
Finite-Lived Intangible Assets, Accumulated Amortization | 355,028 | 331,681 |
Intangible Assets, Net (Excluding Goodwill) | $ 132,605 | 155,952 |
Finite-Lived Intangible Asset, Useful Life | 20 years | |
Amortization of Intangible Assets | $ 23,347 | 27,427 |
Share-based Compensation | $ 28,792 | $ 27,807 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 3,730,000 | 4,280,000 |
Operating Loss Carryforwards | $ 43,715,000 | |
Operating Loss Carryforwards, Expiration Date 1 | 2,036 | |
Deferred Revenue | $ 20,712 | |
Revenues | 3,620,427 | $ 3,628,566 |
Deferred Costs | 4,874 | |
Advertising Expense | 2,492 | $ 3,776 |
Shipping and Handling [Member] | ||
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Revenues | $ 2,552 | |
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | ||
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Concentration Risk, Percentage | 25.00% | 31.00% |
NOTE 1 - ORGANIZATION AND SUM21
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Inventory - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Schedule of Inventory [Abstract] | ||
Raw materials | $ 214,787 | $ 262,187 |
Finished goods | 569,294 | 595,910 |
Inventory reserve | (60,905) | (53,503) |
Inventory – net (current and long term) | $ 723,176 | $ 804,594 |
NOTE 1 - ORGANIZATION AND SUM22
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2018 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 5 |
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 |
Minimum [Member] | Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 5 years |
Maximum [Member] | Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 10 years |
NOTE 1 - ORGANIZATION AND SUM23
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Jun. 30, 2018USD ($) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |
2,019 | $ 33,033 |
2,020 | 26,427 |
2,021 | 16,928 |
2,022 | 17,763 |
2,023 | 13,896 |
Thereafter | $ 24,558 |
NOTE 1 - ORGANIZATION AND SUM24
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Schedule of Deferred Tax Assets and Liabilities [Abstract] | ||
NOL carryover | $ 9,180,100 | $ 17,064,900 |
Section 1231 loss carryover | 32,200 | 59,900 |
Inventory reserve | 12,800 | 18,700 |
R & D carryover | 207,100 | 198,400 |
Accrued vacation and compensated absences | 0 | (12,700) |
Deferred revenue | 4,400 | 0 |
Depreciation | (8,600) | (16,000) |
Statutory rate change adjustment | (6,147,000) | 0 |
Decrease of valuation allowance due to rate change | 6,147,000 | 0 |
Valuation allowance | (9,428,000) | (17,313,200) |
Net deferred tax asset | $ 0 | $ 0 |
NOTE 1 - ORGANIZATION AND SUM25
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||
Book (loss) income tax effected | $ (10,800) | $ 11,700 |
Depreciation | 8,300 | 18,000 |
Nondeductible expenses | 10,900 | 8,000 |
Accrued vacation and compensated absences | 0 | 11,500 |
Inventory reserve | 2,100 | (25,400) |
Deferred revenue | 5,800 | 0 |
R&D Section 6765 Addback | 100 | 0 |
Loss on asset disposal | 0 | (300) |
Valuation allowance | (16,400) | (23,500) |
$ 0 | $ 0 |
NOTE 1 - ORGANIZATION AND SUM26
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of New Accounting Pronouncements and Changes in Accounting Principles - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Current inventory - net | $ 516,334 | $ 576,191 |
Total assets | 1,787,446 | 1,981,303 |
Deferred revenue | 20,712 | 0 |
Total liabilities | 526,534 | 620,746 |
Accumulated deficit | (61,438,919) | (61,300,483) |
Total stockholders’ equity | 1,260,912 | 1,360,557 |
Total liabilities and stockholders' equity | 1,787,446 | 1,981,303 |
Net revenue | 3,620,427 | 3,628,566 |
Cost of revenue | 2,520,799 | 2,444,102 |
Gross margin | 1,099,628 | 1,184,464 |
Net income | $ (38,436) | $ 33,321 |
Basic and diluted income per share (in Dollars per share) | $ 0 | $ 0 |
Restatement Adjustment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Current inventory - net | $ 8,325 | |
Total assets | 8,325 | |
Deferred revenue | 14,889 | |
Total liabilities | 14,889 | |
Accumulated deficit | (6,564) | |
Total stockholders’ equity | (6,564) | |
Total liabilities and stockholders' equity | 8,325 | |
Net revenue | (14,889) | |
Cost of revenue | 8,325 | |
Gross margin | (6,564) | |
Net income | (6,564) | |
Adjusted [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Current inventory - net | 584,516 | |
Total assets | 1,989,629 | |
Deferred revenue | 14,889 | |
Total liabilities | 635,635 | |
Accumulated deficit | (61,307,047) | |
Total stockholders’ equity | 1,353,993 | |
Total liabilities and stockholders' equity | 1,989,628 | |
Net revenue | 3,613,677 | |
Cost of revenue | 2,435,777 | |
Gross margin | 1,177,900 | |
Net income | $ 26,757 | |
Basic and diluted income per share (in Dollars per share) | $ 0 |
NOTE 2 - DEBT (Details)
NOTE 2 - DEBT (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
NOTE 2 - DEBT (Details) [Line Items] | ||||
Long-term Debt, Current Maturities | $ 20,377 | $ 19,382 | ||
Long-term Debt, Excluding Current Maturities | 105,633 | 124,482 | ||
Property, Plant and Equipment, Transfers and Changes | $ 29,000 | $ 0 | 95,823 | |
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 | 2,000 | ||
Long-term Debt, Excluding Current Maturities | $ 62,468 | $ 62,940 | ||
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, 2018USD ($) |
NOTE 2 - DEBT (Details) - Schedule of Maturities of Long-term Debt [Line Items] | |
Total | $ 72,602 |
Less than 1 year | 21,349 |
1 to 3 years | 51,253 |
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 | 72,602 |
Less than 1 year | 21,349 |
1 to 3 years | 51,253 |
After 5 years | 0 |
3 to 5 years | $ 0 |
NOTE 3 - CAPITAL LEASE (Details
NOTE 3 - CAPITAL LEASE (Details) | Jun. 30, 2018USD ($) |
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 (Detai30
NOTE 3 - CAPITAL LEASE (Details) - Schedule of Future Minimum Lease Payments for Capital Leases | Jun. 30, 2018USD ($) |
Schedule of Future Minimum Lease Payments for Capital Leases [Abstract] | |
2,019 | $ 726 |
2,020 | 0 |
Total minimum lease payments | 726 |
Less: executory costs | 0 |
Net minimum lease payments | 726 |
Less: amount representing interest | (50) |
Present value of net minimum payments | $ 676 |
NOTE 4 - COMMITMENTS AND CONT31
NOTE 4 - COMMITMENTS AND CONTINGENCIES (Details) | 12 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | May 01, 2015ft²a | |
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 | $ | $ 138,000 | $ 136,800 |
NOTE 4 - COMMITMENTS AND CONT32
NOTE 4 - COMMITMENTS AND CONTINGENCIES (Details) - Schedule of Future Minimum Rental Payments for Operating Leases | Jun. 30, 2018USD ($) |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | |
Operating Lease, Future Minimum Payments, Total | $ 276,000 |
Operating Lease, Future Minimum Payments, Due Less than 1 year | 138,000 |
Operating Lease, Future Minimum Payments, Due 1 to 3 years | 138,000 |
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 ($) | May 24, 2018 | Jan. 21, 2018 | Nov. 30, 2017 | Mar. 23, 2017 | Feb. 23, 2017 | Jan. 31, 2017 | Jan. 21, 2017 | Jul. 20, 2015 | Dec. 13, 2013 | Jun. 30, 2018 | Jun. 30, 2017 | 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 | |||||||||||
Dividends, Preferred Stock, Cash (in Dollars) | $ 100,000 | $ 100,000 | ||||||||||
Dividends Payable, Current (in Dollars) | $ 225,000 | $ 125,000 | ||||||||||
Stock Granted, Value, Share-based Compensation, Gross (in Dollars) | $ 225,000 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | The shares vest ratably January – December 2017 | |||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 322,581 | 112,500 | 112,500 | |||||||||
Common Stock, Value, Subscriptions (in Dollars) | $ 14,601 | $ 0 | ||||||||||
Chief Financial Officer [Member] | ||||||||||||
NOTE 5 - STOCK TRANSACTIONS (Details) [Line Items] | ||||||||||||
Shares Issued, Price Per Share (in Dollars per share) | $ 0.04 | |||||||||||
Stock Granted, Value, Share-based Compensation, Gross (in Dollars) | $ 60,000 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | vest ratably through December 2018 | vest ratably through December 2017 | ||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 521,739 | 521,739 | ||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 60,000 | 30,000 | ||||||||||
Stock Paybale, Shares to be Issued | 730,435 | |||||||||||
Common Stock, Value, Subscriptions (in Dollars) | $ 12,271 | |||||||||||
Stock Issued During Period, Value, Share-based Compensation, Gross (in Dollars) | $ 5,000 | |||||||||||
Salary and Wage, Officer, Excluding Cost of Good and Service Sold (in Dollars) | $ 36,000 | |||||||||||
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 | |||||||||||
Chief Executive Officer [Member] | ||||||||||||
NOTE 5 - STOCK TRANSACTIONS (Details) [Line Items] | ||||||||||||
Stock Granted, Value, Share-based Compensation, Gross (in Dollars) | $ 2,400,000 | |||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 500,000 | |||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 1,773,913 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 23 months | |||||||||||
Share Price (in Dollars per share) | $ 0.0168 | |||||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures (in Dollars) | $ 10,000 | |||||||||||
Director [Member] | ||||||||||||
NOTE 5 - STOCK TRANSACTIONS (Details) [Line Items] | ||||||||||||
Shares Issued, Price Per Share (in Dollars per share) | $ 0.02 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | The shares vest ratably December 2017 – November 2018 | |||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 132,500 | |||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 265,000 | |||||||||||
Non-Executive Board Member [Member] | ||||||||||||
NOTE 5 - STOCK TRANSACTIONS (Details) [Line Items] | ||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 85,000 | |||||||||||
January 21, 2017 [Member] | Chief Financial Officer [Member] | ||||||||||||
NOTE 5 - STOCK TRANSACTIONS (Details) [Line Items] | ||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 30,000 | 30,000 | ||||||||||
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 |
NOTE 6 - STOCK OPTIONS AND WA34
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) - USD ($) | Dec. 01, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Apr. 25, 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 (in Shares) | 0 | 480,000 | |||
Share-based Compensation | $ 28,792 | $ 27,807 | |||
Adjustments to Additional Paid in Capital, Share-based Compensation, Stock Options, Requisite Service Period Recognition | $ 729 | ||||
Allocated Share-based Compensation Expense | 16,097 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 729 | ||||
Employee Stock Option [Member] | |||||
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||
Share-based Compensation | $ 1,021 | ||||
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 (in Shares) | 480,000 | ||||
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, Vesting Date | Dec. 1, 2017 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Dec. 1, 2020 | ||||
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 (in Shares) | 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 (in Shares) | 3,000,000 |
NOTE 6 - STOCK OPTIONS AND WA35
NOTE 6 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Share-based Compensation, Stock Options, Activity - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | 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 | (550,000) | 0 |
Expired/Cancelled | $ 0.10 | $ 0 |
Exercised | 0 | 0 |
Exercised | $ 0 | $ 0 |
Outstanding end of period | 3,730,000 | 4,280,000 |
Outstanding end of period | $ 0.13 | $ 0.12 |
Outstanding end of period | $ 0 | $ 0 |
Exercisable | 3,730,000 | 4,080,000 |
Exercisable | $ 0.13 | $ 0.12 |
Exercisable | $ 0 | $ 0 |
NOTE 6 - STOCK OPTIONS AND WA36
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, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number of Options Outstanding | 3,730,000 | 4,280,000 | 3,800,000 |
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $ 0.13 | $ 0.12 | $ 0.13 |
Number of Exercisable Options | 3,730,000 | 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 | 2 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 | 2 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 | 2,130,000 | ||
Weighted Average Remaining Contractual Life of Outstanding Options | 1 year 2 months 12 days | ||
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $ 0.10 | ||
Number of Exercisable Options | 2,130,000 | ||
Weighted Average Remaining Contractual Life of Exercisable Options | 1 year 2 months 12 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 | 2 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 | 2 years 5 months 1 day |