Stockholders' Deficit

9 Months Ended

Mar. 31, 2017

Stockholders' Deficit [Abstract]

STOCKHOLDERS' DEFICIT

NOTE 8—STOCKHOLDERS’ DEFICIT

Equity

During the nine months ended March 31, 2017, the Company did not issue any new shares of Common Stock to the stockholders.

Stock Options

During the year ended June 30, 2014, two employees were granted an aggregate of 614,000 five-year options, which vested immediately as to 114,000 options and 125,000 options were scheduled to vest each year over the next four years. The options were 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. These two employees left the Company in April 2015 and the remaining unvested options were cancelled. No stock based compensation was recorded during the nine months ended March 31, 2017 and 2016 due to the cancellation of options in April 2015.

A summary of the status of the stock options granted to employees and others as of March 31, 2017 is as follows:

	Number of Shares
Options outstanding at June 30, 2016		207,750
Changes:
Granted		-
Exercised		-
Forfeited		-
Cancelled		-
Options outstanding at March 31, 2017		207,750
Options exercisable at March 31, 2017		207,750

Stock Warrants

Stock warrants outstanding at March 31, 2017 were as follows:

	Number of Shares			Weighted Average Remaining Contractual Life (Years)
Warrants outstanding at June 30, 2016		525,000			0.53
Changes:
Granted		-			-
Exercised		-			-
Forfeited		(525,000	)		-
Cancelled		-			-
Warrants outstanding at March 31, 2017		-			-
Warrants exercisable at March 31, 2017		-			-

Date Issued	Expiration Date	Exercise Price		Number of Warrants
July 2013	July 2016	$	2.00		125,000
February 2014	February 2017	$	1.50		200,000
February 2014	February 2017	$	2.00		200,000

On April 9, 2015, in anticipation of and in connection with the share purchase by Engage International, the holder of a warrant to purchase 1,000,000 shares of Common Stock at an exercise price of $1.00, agreed to its cancellation for no consideration. During the nine months ended March 31, 2017, the 525,000 warrants expired without exercise.