Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Mar. 31, 2021 | May 14, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | AMERITYRE CORPORATION | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --06-30 | |
Entity Common Stock, Shares Outstanding | 71,422,868 | |
Amendment Flag | false | |
Entity Central Index Key | 0000945828 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-50053 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 87-0535207 | |
Entity Address, Address Line One | 1501 INDUSTRIAL ROAD | |
Entity Address, City or Town | BOULDER CITY | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89005 | |
City Area Code | 702 | |
Local Phone Number | 293-1930 | |
Entity Interactive Data Current | Yes |
Balance Sheets
Balance Sheets - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
CURRENT ASSETS | ||
Cash | $ 708,796 | $ 666,756 |
Accounts receivable | 343,674 | 292,642 |
Inventory - net | 543,176 | 493,892 |
Prepaid and other current assets | 222,997 | 86,467 |
Total Current Assets | 1,818,643 | 1,539,757 |
RIGHT TO USE LEASE ASSETS, OPERATING, NET | 583,852 | 692,007 |
PROPERTY AND EQUIPMENT | ||
Molds and models | 583,611 | 583,611 |
Equipment | 2,927,269 | 3,037,474 |
Furniture and fixtures | 73,423 | 73,423 |
Software | 233,528 | 247,610 |
Less - accumulated depreciation | (3,717,899) | (3,816,004) |
Property and Equipment - net | 99,932 | 126,114 |
OTHER ASSETS | ||
Patents and trademarks - net | 80,107 | 92,905 |
Non-current inventory | 222,999 | 300,778 |
Deposits | 11,000 | 11,000 |
Total Other Assets | 314,106 | 404,683 |
TOTAL ASSETS | 2,816,533 | 2,762,561 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 641,646 | 691,962 |
Current portion of long-term debt | 2,000 | 59,440 |
Current portion of lease liability | 147,150 | 145,800 |
Deferred revenue | 9,049 | 12,192 |
Total Current Liabilities | 799,845 | 909,394 |
Long-term debt | 61,531 | 153,996 |
Long-term lease liability | 337,500 | 448,200 |
TOTAL LIABILITIES | 1,198,876 | 1,511,590 |
STOCKHOLDERS’ EQUITY | ||
Common Stock: 100,000,000 shares authorized of $0.001 par value, 71,422,868 and 70,172,868 shares issued and outstanding, respectively | 71,423 | 70,173 |
Additional paid-in capital | 62,742,033 | 62,719,473 |
Stock payable | 31,590 | 0 |
Accumulated deficit | (61,227,389) | (61,538,675) |
Total Stockholders’ Equity | 1,617,657 | 1,250,971 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 2,816,533 | $ 2,762,561 |
Balance Sheets (Parentheticals)
Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2021 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 71,422,868 | 70,172,868 |
Common stock, shares outstanding | 71,422,868 | 70,172,868 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||||
NET SALES | $ 1,240,997 | $ 1,121,805 | $ 3,497,273 | $ 3,168,542 |
COST OF GOODS SOLD | 883,946 | 768,943 | 2,495,055 | 2,228,300 |
GROSS PROFIT | 357,051 | 352,862 | 1,002,218 | 940,242 |
EXPENSES | ||||
Research and development | 26,192 | 26,614 | 77,170 | 88,527 |
Sales and marketing | 59,068 | 52,652 | 169,970 | 147,432 |
General and administrative | 191,589 | 173,297 | 588,089 | 539,663 |
Total Expenses | 276,849 | 252,563 | 835,229 | 775,622 |
INCOME FROM OPERATIONS | 80,202 | 100,299 | 166,989 | 164,620 |
OTHER INCOME/(EXPENSE) | ||||
Interest expense | 0 | (785) | 0 | (1,223) |
Interest income | 449 | 286 | 1,290 | 579 |
Gain on debt extinguishment | 0 | 0 | 149,570 | 0 |
Loss on asset disposal/impairment | 0 | 0 | (20,078) | 0 |
Other income (expense) | 0 | 496 | 13,515 | 3,618 |
Total Other Income/(Expense), net | 449 | (3) | 144,297 | 2,974 |
NET INCOME | 80,651 | 100,296 | 311,286 | 167,594 |
Preferred Stock Dividend | 0 | (25,000) | 0 | (75,000) |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 80,651 | $ 75,296 | $ 311,286 | $ 92,594 |
BASIC AND DILUTED INCOME PER SHARE (in Dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING (in Shares) | 71,422,868 | 48,260,422 | 70,715,751 | 48,301,467 |
Statements of Stockholders_ Equ
Statements of Stockholders’ Equity (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Stock Payable [Member] | Retained Earnings [Member] |
Balance at Jun. 30, 2019 | $ 2,000 | $ 47,728 | $ 62,695,035 | $ 583 | $ (61,497,908) |
Balance (in Shares) at Jun. 30, 2019 | 2,000,000 | 47,727,867 | |||
Preferred stock dividends | (25,000) | ||||
Stock based compensation expense for employee and Board of Director service | 10,119 | ||||
Net income (loss) for the quarter | 28,903 | ||||
Balance at Sep. 30, 2019 | $ 2,000 | $ 47,728 | 62,695,035 | 10,702 | (61,494,005) |
Balance (in Shares) at Sep. 30, 2019 | 2,000,000 | 47,727,867 | |||
Balance at Jun. 30, 2019 | $ 2,000 | $ 47,728 | 62,695,035 | 583 | (61,497,908) |
Balance (in Shares) at Jun. 30, 2019 | 2,000,000 | 47,727,867 | |||
Balance at Mar. 31, 2020 | $ 2,000 | $ 46,923 | 62,714,077 | 12,323 | (61,405,314) |
Balance (in Shares) at Mar. 31, 2020 | 2,000,000 | 48,922,868 | |||
Balance at Sep. 30, 2019 | $ 2,000 | $ 47,728 | 62,695,035 | 10,702 | (61,494,005) |
Balance (in Shares) at Sep. 30, 2019 | 2,000,000 | 47,727,867 | |||
Preferred stock dividends | (25,000) | ||||
Stock based compensation expense for employee and Board of Director service | $ 1,195 | 19,042 | (10,702) | ||
Stock based compensation expense for employee and Board of Director service (in Shares) | 1,195,001 | ||||
Net income (loss) for the quarter | 38,395 | ||||
Balance at Dec. 31, 2019 | $ 2,000 | $ 48,923 | 62,714,077 | (61,480,610) | |
Balance (in Shares) at Dec. 31, 2019 | 2,000,000 | 48,922,868 | |||
Preferred stock dividends | (25,000) | ||||
Stock based compensation expense for employee and Board of Director service | 12,323 | ||||
Net income (loss) for the quarter | 100,296 | ||||
Balance at Mar. 31, 2020 | $ 2,000 | $ 46,923 | 62,714,077 | 12,323 | (61,405,314) |
Balance (in Shares) at Mar. 31, 2020 | 2,000,000 | 48,922,868 | |||
Preferred stock dividends | (8,300) | ||||
Preferred stock conversion to common stock | $ (2,000) | $ 20,000 | (18,000) | ||
Preferred stock conversion to common stock (in Shares) | (2,000,000) | 20,000,000 | |||
Stock based compensation expense for employee and Board of Director service | $ 1,250 | 23,396 | (12,323) | ||
Stock based compensation expense for employee and Board of Director service (in Shares) | 1,250,000 | ||||
Net income (loss) for the quarter | (125,061) | ||||
Balance at Jun. 30, 2020 | $ 70,173 | 62,719,473 | (61,538,675) | ||
Balance (in Shares) at Jun. 30, 2020 | 70,172,868 | ||||
Stock based compensation expense for employee and Board of Director service | 12,323 | ||||
Net income (loss) for the quarter | 53,783 | ||||
Balance at Sep. 30, 2020 | $ 70,173 | 62,719,473 | 12,323 | (61,484,892) | |
Balance (in Shares) at Sep. 30, 2020 | 70,172,868 | ||||
Balance at Jun. 30, 2020 | $ 70,173 | 62,719,473 | (61,538,675) | ||
Balance (in Shares) at Jun. 30, 2020 | 70,172,868 | ||||
Balance at Mar. 31, 2021 | $ 71,423 | 62,742,033 | 31,590 | (61,227,389) | |
Balance (in Shares) at Mar. 31, 2021 | 71,422,868 | ||||
Balance at Sep. 30, 2020 | $ 70,173 | 62,719,473 | 12,323 | (61,484,892) | |
Balance (in Shares) at Sep. 30, 2020 | 70,172,868 | ||||
Stock based compensation expense for employee and Board of Director service | $ 1,250 | 22,560 | (12,323) | ||
Stock based compensation expense for employee and Board of Director service (in Shares) | 1,250,000 | ||||
Net income (loss) for the quarter | 176,852 | ||||
Balance at Dec. 31, 2020 | $ 71,423 | 62,742,033 | (61,308,040) | ||
Balance (in Shares) at Dec. 31, 2020 | 71,422,868 | ||||
Stock based compensation expense for employee and Board of Director service | 31,590 | ||||
Net income (loss) for the quarter | 80,651 | ||||
Balance at Mar. 31, 2021 | $ 71,423 | $ 62,742,033 | $ 31,590 | $ (61,227,389) | |
Balance (in Shares) at Mar. 31, 2021 | 71,422,868 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 311,286 | $ 167,594 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization expense | 159,436 | 181,390 |
Stock based compensation | 55,400 | 31,977 |
Gain on debt extinguishment | (149,570) | 0 |
Loss on asset disposal/impairment | 20,078 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (51,032) | (115,074) |
Inventory and inventory reserve | (143,131) | (122,015) |
Prepaid and other current assets | 11,271 | (36,841) |
Accounts payable and accrued expenses | (48,085) | (61,124) |
Deferred revenue | (3,143) | (13,133) |
Lease liability payable, operating lease | (109,350) | (105,750) |
Net Cash Provided/Used by Operating Activities | 53,160 | (72,976) |
CASH FLOWS USED IN INVESTING ACTIVITIES | ||
Purchase of property and equipment | 0 | (37,276) |
Cash paid for leasehold improvements | (10,785) | 0 |
Net Cash Used In Investing Activities | (10,785) | (37,276) |
CASH FLOWS USED IN FINANCING ACTIVITIES | ||
Payments on notes payable | (335) | (25,121) |
NET INCREASE IN CASH | 42,040 | (135,373) |
CASH AT BEGINNING OF PERIOD | 666,756 | 557,026 |
CASH AT END OF PERIOD | 708,796 | 421,653 |
SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES | ||
Interest paid | 0 | 1,223 |
Income taxes paid | 0 | 0 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Write off of fully depreciated and disposed fixed assets | 124,287 | 0 |
Use of store inventory, capitalized as fixed asset | 6,600 | 0 |
Accrued preferred stock dividends | 0 | 75,000 |
Issuance of common stock previously accrued for | $ 0 | $ 583 |
BASIS OF FINANCIAL STATEMENT PR
BASIS OF FINANCIAL STATEMENT PRESENTATION | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [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 (“SEC”). 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 Annual Report on Form 10-K for the fiscal year ended June 30, 2020 (the “2020 Annual Report”). Operating results for the fiscal quarter ended March 31, 2021 are not necessarily indicative of the results that may be expected for the current fiscal year ending June 30, 2021. COVID-19 Update The COVID-19 crisis did not have a material impact on the Company’s sales results for the third quarter of fiscal year 2021, as evidenced by our higher than expected net sales revenues of $1.2 million. This represents a 13% increase in net revenues compared to the year earlier period. However, the market for chemical raw materials continues to be plagued by limited material availability due to COVID related manufacturing capacity reductions. Freezing January temperatures in Texas resulted in the shutdown of all polyol manufacturing for several weeks, further impacting raw material availability. We continue to be on allocation with respect to raw material supply, which has impaired our ability to fill orders in a timely manner, and this is expected to continue until FY 2020 Q2 at a minimum. Reduced productivity at our ports due to new COVID work practices has resulted in delays in receiving imported materials. We continue to be diligent in attempting to minimize COVID-19 exposure risk in our facility, which has enabled us to avoid widescale COVID exposure events at our facility. It is expected that the economy will continue to move towards a full opening of all businesses in the coming months as more individuals receive the vaccine and states ease restrictions on business operations. If this trend continues, this should continue to provide a strong tailwind for demand of our products. However, vaccine hesitancy, a new wave of COVID-19 cases, and/or the emergence of a vaccine-resistant strain of the virus could delay reopening or cause another shutdown in certain regions or the U.S. as a whole. Further, we have also seen increases in the cost of our materials as well as the overall cost of conducting business, which will continue to pressure gross margins. In response to this we have evaluated the impact of these cost factors and will be implementing price increases where required in the upcoming months. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Significant accounting policies disclosed herein have not changed since our audited financial statements and notes thereto included in our June 30, 2020 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”. 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 shipment of product themselves, and once the product has left our dock, Amerityre Corporation (the “Company” or “Amerityre”), recognizes revenue for the product. In effect by arranging their own freight, the customer is “taking control” of the product when it leaves our warehouse; or (ii) when a customer does not arrange shipment of product themselves, 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). Deferred revenue was $9,049, inclusive of $1,494 of shipping and handling revenue (see below), as of March 31, 2021. There was deferred revenue of $6,275, inclusive of $945 of shopping and handling revenue as of March 31, 2020. 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. 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 is a deferral of $1,494 as of March 31, 2021 and $945 as of March 31, 2020. Basic and Fully Diluted Net Income (Loss) Per Share Basic and Fully Diluted net income (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 1,030,000 and 2,870,000 common stock equivalents for the periods ended March 31, 2021 and 2020, respectively, because they are anti-dilutive. Recent Accounting Pronouncements Recent accounting pronouncements issued by the Financial Accounting Standards Board (“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. |
INVENTORY
INVENTORY | 9 Months Ended |
Mar. 31, 2021 | |
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 net realizable value. The inventory consists primarily of chemicals, finished goods produced in our plant and products purchased for resale. March 31, 2021 June 30, 2020 (Unaudited) Raw Materials $ 328,399 $ 263,573 Finished Goods 553,163 618,104 Inventory reserve (115,387 ) (87,006 ) Inventory – net (Current and long term) $ 766,175 794,671 Our inventory reserve reflects items that were deemed to be defective or obsolete based on an analysis of all inventories on hand. The Company critically reviews all slow-moving inventory to determine if it is 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. |
RIGHT TO USE LEASE ASSETS
RIGHT TO USE LEASE ASSETS | 9 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block [Abstract] | |
Lessee, Operating Leases [Text Block] | NOTE 4 RIGHT TO USE LEASE ASSETS Based on our lease accounting policy, we have identified the following operating leases. As of March 31, 2021, we have no financing leases: March 31, 2021 June 30, 2020 (Unaudited) Facility lease $ 484,650 $ 594,000 Leasehold improvements related to our facility 286,854 280,376 Accumulated amortization – leasehold improvements (187,652 ) (182,369 ) Right to use leased assets, operating, net $ 583,852 $ 692,007 In March 2019 we negotiated a five-year extension of the lease for 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 square feet, inclusive of approximately 5,500 square feet of office space, situated on approximately 4.15 acres. Our remaining liability under this agreement is $484,650, payable at amounts ranging from $11,750 to $12,600 a month until June 30, 2024. |
DEBT
DEBT | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 5 DEBT A former board member, Silas O. Kines, was 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 March 31, 2021, $2,000 and $61,532 (June 30, 2020, $2,000 and $61,867) were recorded for the current and long-term portion, respectively, of the related liability. In April 2020, the Company secured a loan from the Small Business Administration Paycheck Protection Program. The loan amount was $149,570 and had a term of 2 years at 1% interest. In November 2020, the Company’s received full forgiveness by the Small Business Administration. |
STOCK OPTIONS AND WARRANTS
STOCK OPTIONS AND WARRANTS | 9 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
Shareholders' Equity and Share-based Payments [Text Block] | NOTE 6 STOCK OPTIONS AND WARRANTS On July 22, 2020, the Board of Directors adopted the 2020 Equity Incentive Plan (the “2020 Plan”) which contains provisions for up to 5,000,000 stock-based instruments to be granted to employees, consultants and directors. Effective September 24, 2020, the Company filed a withdrawal of designation related to the 2013 Series Convertible Preferred Stock designation. In doing so, the State of Nevada also withdrew all preferred shares authorized. The Company will file a new designation authorizing preferred shares should this be needed in the future. No options have been granted as of March 31, 2021 or in fiscal year 2021. A summary of the status of our outstanding stock options as of March 31, 2021 and June 30, 2020 and changes during the periods then ended is presented below: March 31, 2021 June 30, 2020 Weight Average Intrinsic Weight Average Intrinsic Shares Exercise Price Value Shares Exercise Price Value Outstanding beginning of period 2,870,000 $ 0.12 3,970,000 $ 0.12 Granted - $ 0.00 - $ 0.00 Expired/Cancelled (1,840,000 ) $ (0.12 ) (1,100,000 ) $ (0.14 ) Exercised - $ 0.00 - $ 0.00 Outstanding end of period 1,030,000 $ 0.12 $ - 2,870,000 $ 0.12 $ - Exercisable 1,030,000 $ 0.12 $ - 2,870,000 $ 0.12 $ - The following table summarizes the range of outstanding and exercisable options as of March 31, 2021: Outstanding Exercisable Range of Exercise Prices Number Outstanding at March 31, 2021 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at March 31, 2021 Weighted Average Remaining Contractual Life $ 0.08 150,000 0.67 $ 0.08 150,000 0.67 $ 0.10 480,000 0.75 $ 0.10 480,000 0.75 $ 0.17 400,000 0.67 $ 0.17 400,000 0.67 1,030,000 1,030,000 |
STOCK AWARDS
STOCK AWARDS | 9 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 7 STOCK AWARDS Effective January 1, 2021, the Company renewed the Chief Executive Officer’s Employment Agreement. The new Agreement extends his term of employment to December 31, 2021. Inclusive in this new Agreement is a stock award of 2.7 million shares of the Company’s common stock vesting ratably over 12 months (January 2021 – December 2021), valued at a fixed rate of $0.031, the average price per share of the Company’s common stock for the period December 24, 2020 to December 31, 2020. On January 1, 2021, 60,000 shares of common stock were granted to the Company’s Chief Financial Officer as part of her employment renewal. The Company’s common stock vesting ratably over 12 months (January 2021 – December 2021), valued at a fixed rate of $0.031, the average price per share of the Company’s common stock for the period December 24, 2020 to December 31, 2020. In the January 2021 Board Meeting, the Chairman of the Board proposed compensation to the independent members of the Board of Directors such that each such director’s compensation would be in company shares that are both granted and vested as of each Board meeting each independent Director attends, at the following share amounts: Audit Committee Chair 15,000 per meeting, Board Secretary 15,000 per meeting, all other independent Directors 10,000 per meeting. As the shares are both granted and vested per Board meeting attended, the value of the related shares are the closing stock price on each meeting date. The Board approved this plan. The value of these shares ranged between $0.02 and $0.10 per share during the three-month quarter ended March 31, 2021. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 8 SUBSEQUENT EVENTS The Company has evaluated all activity through May 14, 2021 (the date the Financial Statements were available to be issued) and concluded that no subsequent events have occurred that would require recognition in the Financial Statements or disclosure in the Notes to the Financial Statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Revenue [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”. 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 shipment of product themselves, and once the product has left our dock, Amerityre Corporation (the “Company” or “Amerityre”), recognizes revenue for the product. In effect by arranging their own freight, the customer is “taking control” of the product when it leaves our warehouse; or (ii) when a customer does not arrange shipment of product themselves, 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). Deferred revenue was $9,049, inclusive of $1,494 of shipping and handling revenue (see below), as of March 31, 2021. There was deferred revenue of $6,275, inclusive of $945 of shopping and handling revenue as of March 31, 2020. |
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. 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 is a deferral of $1,494 as of March 31, 2021 and $945 as of March 31, 2020. |
Earnings Per Share, Policy [Policy Text Block] | Basic and Fully Diluted Net Income (Loss) Per Share Basic and Fully Diluted net income (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 1,030,000 and 2,870,000 common stock equivalents for the periods ended March 31, 2021 and 2020, respectively, because they are anti-dilutive. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Recent accounting pronouncements issued by the Financial Accounting Standards Board (“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. |
INVENTORY (Tables)
INVENTORY (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
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 net realizable value. The inventory consists primarily of chemicals, finished goods produced in our plant and products purchased for resale. March 31, 2021 June 30, 2020 (Unaudited) Raw Materials $ 328,399 $ 263,573 Finished Goods 553,163 618,104 Inventory reserve (115,387 ) (87,006 ) Inventory – net (Current and long term) $ 766,175 794,671 |
RIGHT TO USE LEASE ASSETS (Tabl
RIGHT TO USE LEASE ASSETS (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block [Abstract] | |
Schedule of Property Subject to or Available for Operating Lease [Table Text Block] | Based on our lease accounting policy, we have identified the following operating leases. As of March 31, 2021, we have no financing leases: March 31, 2021 June 30, 2020 (Unaudited) Facility lease $ 484,650 $ 594,000 Leasehold improvements related to our facility 286,854 280,376 Accumulated amortization – leasehold improvements (187,652 ) (182,369 ) Right to use leased assets, operating, net $ 583,852 $ 692,007 |
STOCK OPTIONS AND WARRANTS (Tab
STOCK OPTIONS AND WARRANTS (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | A summary of the status of our outstanding stock options as of March 31, 2021 and June 30, 2020 and changes during the periods then ended is presented below: March 31, 2021 June 30, 2020 Weight Average Intrinsic Weight Average Intrinsic Shares Exercise Price Value Shares Exercise Price Value Outstanding beginning of period 2,870,000 $ 0.12 3,970,000 $ 0.12 Granted - $ 0.00 - $ 0.00 Expired/Cancelled (1,840,000 ) $ (0.12 ) (1,100,000 ) $ (0.14 ) Exercised - $ 0.00 - $ 0.00 Outstanding end of period 1,030,000 $ 0.12 $ - 2,870,000 $ 0.12 $ - Exercisable 1,030,000 $ 0.12 $ - 2,870,000 $ 0.12 $ - |
Share-based Payment Arrangement, Option, Exercise Price Range [Table Text Block] | The following table summarizes the range of outstanding and exercisable options as of March 31, 2021: Outstanding Exercisable Range of Exercise Prices Number Outstanding at March 31, 2021 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at March 31, 2021 Weighted Average Remaining Contractual Life $ 0.08 150,000 0.67 $ 0.08 150,000 0.67 $ 0.10 480,000 0.75 $ 0.10 480,000 0.75 $ 0.17 400,000 0.67 $ 0.17 400,000 0.67 1,030,000 1,030,000 |
BASIS OF FINANCIAL STATEMENT _2
BASIS OF FINANCIAL STATEMENT PRESENTATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Accounting Policies [Abstract] | ||||
Revenues | $ 1,240,997 | $ 1,121,805 | $ 3,497,273 | $ 3,168,542 |
Revenue Percentage | 13.00% |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Deferred Revenue, Current | $ 9,049 | $ 6,275 | $ 9,049 | $ 6,275 | $ 12,192 |
Revenues | $ 1,240,997 | $ 1,121,805 | $ 3,497,273 | $ 3,168,542 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 1,030,000 | 2,870,000 | |||
Shipping and Handling Revenue [Member] | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Revenues | $ 1,494 | $ 945 |
INVENTORY (Details) - Schedule
INVENTORY (Details) - Schedule of Inventory - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Schedule of Inventory [Abstract] | ||
Raw Materials | $ 328,399 | $ 263,573 |
Finished Goods | 553,163 | 618,104 |
Inventory reserve | (115,387) | (87,006) |
Inventory – net (Current and long term) | $ 766,175 | $ 794,671 |
RIGHT TO USE LEASE ASSETS (Deta
RIGHT TO USE LEASE ASSETS (Details) | 9 Months Ended | |
Mar. 31, 2021USD ($) | Mar. 31, 2019ft²a | |
RIGHT TO USE LEASE ASSETS (Details) [Line Items] | ||
Area of Real Estate Property (in Square Feet) | ft² | 49,200 | |
Area of Land (in Acres) | a | 4.15 | |
Operating Leases, Future Minimum Payments Due | $ 484,650 | |
Minimum [Member] | ||
RIGHT TO USE LEASE ASSETS (Details) [Line Items] | ||
Operating Leases, Rent Expense, Minimum Rentals | 11,750 | |
Maximum [Member] | ||
RIGHT TO USE LEASE ASSETS (Details) [Line Items] | ||
Operating Leases, Rent Expense, Minimum Rentals | $ 12,600 | |
Building [Member] | ||
RIGHT TO USE LEASE ASSETS (Details) [Line Items] | ||
Area of Real Estate Property (in Square Feet) | ft² | 5,500 |
RIGHT TO USE LEASE ASSETS (De_2
RIGHT TO USE LEASE ASSETS (Details) - Schedule of Property Subject to or Available for Operating Lease - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Schedule of Property Subject to or Available for Operating Lease [Abstract] | ||
Facility lease | $ 484,650 | $ 594,000 |
Leasehold improvements related to our facility | 286,854 | 280,376 |
Accumulated amortization – leasehold improvements | (187,652) | (182,369) |
Inventory - net | $ 583,852 | $ 692,007 |
DEBT (Details)
DEBT (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Apr. 30, 2020 | Mar. 31, 2021 | Jun. 30, 2020 | |
Notes Payable, Other Payables [Member] | |||
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 | $ 61,532 | $ 61,867 | |
Notes Payable to Banks [Member] | |||
DEBT (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 149,570 | ||
Debt Instrument, Term | 2 years | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% |
STOCK OPTIONS AND WARRANTS (Det
STOCK OPTIONS AND WARRANTS (Details) | Jul. 22, 2020shares |
2020 Equity Incentive Plan (the “2020 Plan”) [Member] | |
STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5,000,000 |
STOCK OPTIONS AND WARRANTS (De
STOCK OPTIONS AND WARRANTS (Details) - Schedule of Share-based Compensation, Stock Options, Activity - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Schedule of Share-based Compensation, Stock Options, Activity [Abstract] | ||
Outstanding beginning of period | 2,870,000 | 3,970,000 |
Outstanding beginning of period | $ 0.12 | $ 0.12 |
Granted | 0 | 0 |
Granted | $ 0 | $ 0 |
Expired/Cancelled | (1,840,000) | (1,100,000) |
Expired/Cancelled | $ (0.12) | $ (0.14) |
Exercised | 0 | 0 |
Exercised | $ 0 | $ 0 |
Outstanding end of period | 1,030,000 | 2,870,000 |
Outstanding end of period | $ 0.12 | $ 0.12 |
Outstanding end of period | $ 0 | $ 0 |
Exercisable | 1,030,000 | 2,870,000 |
Exercisable | $ 0.12 | $ 0.12 |
Exercisable | $ 0 | $ 0 |
STOCK OPTIONS AND WARRANTS (_2
STOCK OPTIONS AND WARRANTS (Details) - Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range - $ / shares | 9 Months Ended | ||
Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Number of Options Outstanding | 1,030,000 | 2,870,000 | 3,970,000 |
Number of Options Exercisable | 1,030,000 | ||
Options at $0.08 [Member] | |||
Share-based Payment Arrangement, Option, 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 | 8 months 1 day | ||
Weighted Average Exercise Price Outstanding Options (in Dollars per share) | $ 0.08 | ||
Weighted Average Remaining Contractual Life Exercisable Options | 8 months 1 day | ||
Number of Options Exercisable | 150,000 | ||
Options at $0.10 [Member] | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Exercise Price of Options (in Dollars per share) | $ 0.10 | ||
Number of Options Outstanding | 480,000 | ||
Weighted Average Remaining Contractual Life of Outstanding Options | 9 months | ||
Weighted Average Exercise Price Outstanding Options (in Dollars per share) | $ 0.10 | ||
Weighted Average Remaining Contractual Life Exercisable Options | 9 months | ||
Number of Options Exercisable | 480,000 | ||
Options at $0.17 [Member] | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Exercise Price of Options (in Dollars per share) | $ 0.17 | ||
Number of Options Outstanding | 400,000 | ||
Weighted Average Remaining Contractual Life of Outstanding Options | 8 months 1 day | ||
Weighted Average Exercise Price Outstanding Options (in Dollars per share) | $ 0.17 | ||
Weighted Average Remaining Contractual Life Exercisable Options | 8 months 1 day | ||
Number of Options Exercisable | 400,000 |
STOCK AWARDS (Details)
STOCK AWARDS (Details) - $ / shares | Jan. 01, 2021 | Mar. 31, 2021 |
Minimum [Member] | ||
STOCK AWARDS (Details) [Line Items] | ||
Shares Issued, Price Per Share (in Dollars per share) | $ 0.02 | |
Maximum [Member] | ||
STOCK AWARDS (Details) [Line Items] | ||
Shares Issued, Price Per Share (in Dollars per share) | $ 0.10 | |
Chief Executive Officer [Member] | ||
STOCK AWARDS (Details) [Line Items] | ||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 2,700,000 | |
Shares Issued, Price Per Share (in Dollars per share) | $ 0.031 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | vesting ratably over 12 months | |
Chief Financial Officer [Member] | ||
STOCK AWARDS (Details) [Line Items] | ||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 60,000 | |
Shares Issued, Price Per Share (in Dollars per share) | $ 0.031 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | vesting ratably over 12 months | |
Audit Committee Chair [Member] | ||
STOCK AWARDS (Details) [Line Items] | ||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 15,000 | |
Board Secretary [Member] | ||
STOCK AWARDS (Details) [Line Items] | ||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 15,000 | |
Director [Member] | ||
STOCK AWARDS (Details) [Line Items] | ||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 10,000 |