Note 6 - Deferred Compensation

9 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

6. DEFERRED COMPENSATION:

The Company owes deferred compensation to various employees, former employees and consultants totaling $617,341 of March 31, 2015. Included in the deferred compensation balance as of March 31, 2015, are $93,306, $32,825 and $45,111 owed Bassani, Smith and Schafer, respectively, pursuant to extension agreements effective January 1, 2015, whereby unpaid compensation earned after January 1, 2015, would accrue interest at 4% per annum and could be converted into shares of the Company’s common stock at the election of the employee during the first five calendar days of any month. The conversion price shall be the average closing price of the Company’s common stock for the last 10 trading days of the immediately preceding month. The Company also owes various consultants, pursuant to various agreements, deferred compensation of $185,405 as of March 31, 2015 with similar conversion terms as those described above for Bassani, Smith and Schafer, with the exception that the interest accrues at 3% per annum. The Company also owes a current employee and a former employee $168,000 and $19,210, respectively, in deferred compensation which is convertible into 226,168 and 21,429 shares, respectively, of the Company’s common stock as of March 31, 2015.

Effective January 1, 2015, pursuant to Schafer’s extension agreement, his deferred compensation of $243,750 as of December 31, 2014 was transferred into a new deferred compensation convertible promissory note (Notes 8 and 10).

As of December 31, 2014, the Company owed Bassani deferred compensation of $239,250 including interest of $74,250, which was due and payable on July 1, 2014 but had been extended until April 15, 2015. The deferred compensation accrued interest at 10% per annum and was convertible into the Company’s restricted common stock at $1.50 per share. Effective January 1, 2015, the Company entered into an extension agreement with Bassani, whereby his $239,250 of deferred compensation was transferred into a new deferred compensation convertible promissory note (Notes 8 and 10).