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8. COMMON STOCK
12 Months Ended
Jun. 30, 2014
Text Block [Abstract]  
8. COMMON STOCK

The Company has authorized 100,000,000 shares of $0.001 par value per share Common Stock, of which   70,296,203 and 51,244,242 were issued outstanding as of June 30, 2014 and 2013, respectively.  The activity surrounding the issuances of the Common Stock is as follows:

 

Fiscal Year Ended June 30, 2014

 

The Company issued 9,825,000 shares of Common Stock for net cash proceeds of $966,565. The Company paid $15,935 in cash offering costs and issued 126,750 in stock offering costs. Offering costs have been recorded as reductions to additional paid-in capital from common stock proceeds. Attached to the Common Shares, the Company issued 1,366,016 warrants to purchase shares of the Company’s Common Stock. The Company recognized $289,791 in employee stock option expense and for the amortization of warrants issued in prior periods.

 

The Company also issued 1,271,534 shares of Common Stock for conversion of notes payable for $127,153, issued 229,250 shares as incentive to convertible debt for $46,283, and issued 380,000 shares of Common Stock to extend the maturity dates on debt for $105,225.  The Company also issued 43,758 shares of Common Stock conversion of warrants for $0 and recorded $620,226 in beneficial conversion features related to new issuances of debt.

 

As share-based compensation to employees and non-employees, the Company issued 4,134,894 shares of common stock valued at $1,085,182, based on the market price of the stock on the date of issuance.   As interest expense on outstanding notes payable, the Company issued 3,040,775 shares of common stock valued at $772,309 based on the market price on the date of issuance.

 

Fiscal Year Ended June 30, 2013

 

The Company issued 7,023,735 shares of Common Stock for net cash proceeds of $700,915. The Company paid $44,085 in cash offering costs and issued 233,735 in stock offering costs. Offering costs have been recorded as reductions to additional paid-in capital from common stock proceeds. Attached to the Common Shares, the Company issued 1,395,732 warrants to purchase shares of the Company’s Common Stock. The Company recognized $14,090 in employee stock option expense and for the amortization of warrants issued in prior periods.

 

The Company also issued 505,856 shares of Common Stock to convert $44,600 in convertible notes payable and $45,454 in accrued liabilities.

 

As share-based compensation to employees and non-employees, the Company issued 4,592,744 shares of common stock valued at $951,301, based on the market price of the stock on the date of issuance. As interest expense on outstanding notes payable, the Company issued 2,584,994 shares of common stock valued at $759,435 based on the market price on the date of issuance.