Commitments And Contingencies

12 Months Ended

Jun. 30, 2014

Commitments And Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 10 COMMITMENTS AND CONTINGENCIES

During the period ended March 31, 2014, the Company entered into a consulting agreement for a one year period. The Company advanced $103,000 in cash and issued 54,950 shares of common stock for these services, which shares were valued at their estimated fair value of $100,000. The total consideration paid of $203,000 is being amortized over the one year period of the agreement commencing in September 2013. The unamortized balance is included in prepaid expenses for the cash payment ($14,128) and deferred compensation for the share payment ($16,667).

During the period ended March 31, 2014, the Company entered into employment contracts with two employees, with no set duration, for aggregate compensation of $260,000 per year. The employees were granted an aggregate of 614,000 five year options which vested immediately as to 114,000 options and as to 125,000 options per year over the next 4 years. The options are exercisable at $2.50 per share for 114,000 options, $3.00 per share for 125,000 options, $3.50 per share for 125,000 options, $3.75 for 125,000 options and $4.00 for 125,000 options (see Note 8).

We are currently involved in one legal proceeding, a breach of contract lawsuit against IRTH Communications, LLC. On May 24, 2014, we filed a lawsuit in Orange County, FL (case # 2014-CA-00-2626-O), against IRTH for breach of a contract to provide investor relations services to us. In that lawsuit we seek return of $110,000 of monies paid to IRTH, and we seek the cancellation of 54,950 shares of stock issued to IRTH. IRTH has subsequently sued us separately in the California courts for breach of contract, seeking damages and also seeking to have their shares cleared for trading, which they are not currently. However, the California action has been stayed pending the outcome of the Florida lawsuit. We believe the counterclaim is without merit and if needed will defend it vigorously. Because of this, and because the case is in the early stages it is not possible to estimate its possible outcome. As such, no effect has been given to any loss that may result from the resolution of this matter in the accompanying financial statements.