(Mark One)
|
|
x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the fiscal year ended June 30, 2013
|
|
OR
|
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from to
|
Nevada
(State or other jurisdiction of
incorporation or organization)
|
87-0535207
(I.R.S. Employer
Identification No.)
|
1501 Industrial Road
Boulder City, Nevada 89005
(702) 293-1930
(Address of principal executive office and telephone number)
|
Title of each class
|
Name of each exchange on which registered
|
N/A
|
N/A
|
Page
|
||
PART I
|
1
|
|
ITEM 1.
|
1
|
|
ITEM 1A.
|
4
|
|
ITEM 1B.
|
8
|
|
ITEM 2.
|
8
|
|
ITEM 3.
|
8
|
|
ITEM 4.
|
8
|
|
PART II
|
9
|
|
ITEM 5.
|
9
|
|
ITEM 6.
|
9
|
|
ITEM 7.
|
10
|
|
ITEM 7A.
|
15
|
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ITEM 8.
|
15
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ITEM 9.
|
16
|
|
ITEM 9A.
|
16
|
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ITEM 9B.
|
17
|
|
PART III
|
18
|
|
ITEM 10.
|
DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
|
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
|
ITEM 14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
|
PART IV
|
19
|
|
ITEM 15.
|
19
|
Description of Patent
|
U.S. Patent App/Serial No.
|
Issued Date or Date Filed
|
Brief Description/Purpose
|
|||
Improved Method and Apparatus for Making Tires and the Like
|
6,165,397
|
12/26/2000
|
Applies to pouring the material at the inside diameter (where the tire starts) during the manufacturing process
|
|||
Run-Flat Tire with Elastomeric Inner Support
|
6,679,306
|
1/20/2004
|
Applies to a polyurethane insert within a tire to create a “run-flat” system
|
|||
Method and Apparatus for Vacuum Forming a Wheel from a Urethane Material
|
7,377,596
|
4/29/2005
|
Applies to the method we employ to coat a light gauge steel or aluminum wheel by evacuating air from the mold while moving material through the mold utilizing a vacuum process to eliminate pockets of air within the matrix of the material. The resulting product becomes a “Composite” wheel.
|
|||
Elastomeric Tire with Arch Shaped Shoulders
|
6,971,426
|
12/06/2005
|
Applies the design of the Arcus® run-flat tire (the first polyurethane elastomer tire to run with or without air)
|
|||
Method for Manufacturing a Tire with Belts, Plies and Beads Using a Pre-cured Elastomer and Cold Rolling Method
|
6,974,519
|
12/13/2005
|
Applies to how we put the plies, beads and belts on a mandrel or bladder to be placed inside a mold for manufacturing a tire
|
|||
Plies Sleeve for Use in Forming an Elastomeric Tire
|
7,438,961
|
1/10/2006
|
Applies to the how the tire beads and tire plies are assembled prior to putting them on a mandrel or a core/bladder
|
|||
Improved Vacuum Forming Apparatus for Vacuum Forming a Tire, Wheel or Other Item from an Elastomeric Material
|
7,527,489
|
5/22/2006
|
Applies to an improvement in the vacuum forming equipment used to manufacture a tire and other items
|
|||
Method and Apparatus for Vacuum Forming a Wheel from a Urethane Material
|
7,377,596
|
5/27/2008
|
Applies to the method we employ to coat a light gauge steel or aluminum wheel by evacuating air from the mold while moving material through the mold utilizing a vacuum process to eliminate pockets of air within the matrix of the material. The resulting product becomes a “Composite” wheel.
|
|||
Method for Vacuum Forming an Elastomeric Tire
|
8,114,330
|
2/14/2012
|
Applies to polyurethane tires and methods we employ to evacuate air from mold while moving material through the mold.
|
|||
Run Flat Tire Insert System
|
7,398,809
|
7/15/2008
|
Applies to how to utilize an insert on a wheel within a corresponding pneumatic tire
|
|||
Method and Apparatus for Vacuum Forming an Elastomeric Tire
|
7,399,172
|
7/15/2008
|
Applies to polyurethane tires and the method we employ to evacuate air from the mold while moving material through the mold utilizing a vacuum process to eliminate air pockets within the matrix of the material
|
|||
Method for Filling a Tire and Wheel with a Closed-Cell Foam
|
Pending
|
10/31/2008
|
Applies to how filling a tire and wheel assembly cavity with flexible closed-cell polyurethane foam
|
|||
System for Retreading a Transport Tire with Polyurethane Tread
|
8,206,141
|
6/26/2012
|
Applies to apparatus we used to retread transport tires with polyurethane tread.
|
|||
Process for Forming an Airless Spare Tire
|
Pending
|
9/7/2011
|
Applies to the process we employ to manufacture an automobile spare tire from polyurethane.
|
|||
Method for Retreading a Heavy Duty Tire with a Polyurethane Tread
|
Pending
|
05/2/2012
|
Applies to the method we employ for applying a polyurethane tread to a rubber tire casing.
|
Trademarks
|
Registration/Serial #
|
Issued/Filed
|
||
Amerityre®
|
2,401,989 |
8/14/2001
|
||
Elastothane®
|
3,139,489 |
9/9/2003
|
||
Arcus®
|
2,908,077 |
12/1/2003
|
||
Logo™
|
85/686,835 |
7/25/2012
|
||
Amerifill®
|
3,440,176 |
3/18/2008
|
||
Kik®
|
3,608,633 |
4/21/2009
|
||
Kryon®
|
4,009,423 |
9/9/2011
|
·
|
subsequently discovered prior art;
|
·
|
lack of entitlement to the priority of an earlier, related application; or
|
·
|
failure to comply with the written description, best mode, enablement or other applicable requirements.
|
Fiscal year ended June 30,
|
High
|
Low
|
||||||
2013
|
||||||||
Fourth Quarter
|
$
|
0.13
|
$
|
0.03
|
||||
Third Quarter
|
$
|
0.15
|
$
|
0.12
|
||||
Second Quarter
|
$
|
0.20
|
$
|
0.13
|
||||
First Quarter
|
$
|
0.29
|
$
|
0.20
|
2012
|
||||||||
Fourth Quarter
|
$
|
0.39
|
$
|
0.16
|
||||
Third Quarter
|
$
|
0.40
|
$
|
0.26
|
||||
Second Quarter
|
$
|
0.46
|
$
|
0.26
|
||||
First Quarter
|
$
|
0.50
|
$
|
0.16
|
·
|
Cost of sales, which consists primarily of raw materials, components and production of our products, including applied labor costs and benefits expenses, maintenance, facilities and other operating costs associated with the production of our products;
|
·
|
Selling, general and administrative expenses, which consist primarily of salaries, commissions and related benefits paid to our employees and related selling and administrative costs including professional fees;
|
·
|
Research and development expenses, which consist primarily of equipment and materials used in the development of our technologies;
|
·
|
Consulting expenses, which consist primarily of amounts paid to third-parties for outside services;
|
·
|
Depreciation and amortization expenses which result from the depreciation of our property and equipment, including amortization of our intangible assets; and
|
·
|
Amortization of deferred compensation that results from the expense related to certain stock options to our employees.
|
·
|
any changes in the market relating to the patents that would decrease the life of the asset;
|
·
|
any adverse change in the extent or manner in which the patents are being used;
|
·
|
any significant adverse change in legal factors relating to the use of the patents;
|
·
|
current period operating or cash flow loss combined with our history of operating or cash flow losses;
|
·
|
future cash flow values based on the expectation of commercialization through licensing; and
|
·
|
current expectations that, more likely than not, the patents will be sold or otherwise disposed of significantly before the end of its previously estimated useful life.
|
·
|
Net revenues, which consists of product sales revenues and equipment sales revenues, if any;
|
·
|
Sales revenue, net of returns and trade discounts, which is an indicator of our overall business growth and the success of our sales and marketing efforts;
|
·
|
Gross profit, which is an indicator of both competitive pricing pressures and the cost of sales of our products;
|
·
|
Growth in our customer base, which is an indicator of the success of our sales efforts; and
|
·
|
Distribution of revenue across our products offered.
|
Percent
|
||||||||||||
Fiscal Year Ended June 30,
|
Change
|
|||||||||||
(in 000’s)
|
||||||||||||
2013
|
2012
|
2013 vs. 2012
|
||||||||||
Net revenues
|
$
|
3,635
|
$
|
4,365
|
(16.7)
|
%
|
||||||
Cost of revenues
|
2,403
|
2,833
|
(15.2)
|
%
|
||||||||
Gross profit
|
1,232
|
1,531
|
(19.5)
|
%
|
||||||||
Selling, general, and administrative expenses (1)
|
2,015
|
2,371
|
(15.0)
|
%
|
||||||||
Research and development expenses
|
1
|
10
|
(90.0)
|
%
|
||||||||
Consulting expenses
|
70
|
90
|
(22.2)
|
%
|
||||||||
Depreciation and amortization expenses
|
207
|
212
|
(2.4)
|
%
|
||||||||
Gain on sales of assets
|
44
|
9
|
388.9
|
%
|
||||||||
Other Income/(Expense)
|
(73
|
)
|
(23
|
)
|
87.0
|
%
|
||||||
Net loss
|
$
|
(1,135
|
)
|
$
|
(1,175
|
)
|
(3.4)
|
%
|
Years ended June 30,
|
||||||||
(in 000’s)
|
||||||||
2013
|
2012
|
|||||||
Net cash used by operating activities
|
$
|
(641
|
)
|
$
|
(213
|
)
|
||
Net cash used in investing activities
|
(224
|
)
|
(99
|
)
|
||||
Net cash provided by financing activities
|
866
|
289
|
||||||
Net increase (decrease) in cash and cash equivalents during period
|
$
|
3
|
$
|
(23
|
)
|
Payments due by period
|
||||||||||||||||||||
Total
|
Less than
1 year
|
1 to 3 years
|
3 to 5 years
|
After
5 years
|
||||||||||||||||
Facility lease (1)
|
$
|
132,000
|
$
|
132,000
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Total contractual cash obligations
|
$
|
132,000
|
$
|
132,000
|
$
|
-
|
$
|
-
|
$
|
-
|
|
·
|
a documented organizational structure and division of responsibility;
|
|
·
|
established policies and procedures, including a code of conduct to foster a strong ethical climate which is communicated throughout the company;
|
|
·
|
regular reviews of our financial statements by qualified individuals; and
|
|
·
|
the careful selection, training and development of our people.
|
Exhibit
|
||
Number
|
Description
|
|
3.1
|
Articles of Incorporation of the Company (incorporated by reference to Exhibit 3.01 to our registration statement on Form 8-A12G (File No. 000-50053)).
|
|
3.2
|
Certificate of Amendment to the Articles of Incorporation of the Company (incorporated by reference to Exhibit 3(i) in our Form 10Q for the quarter ended December 31, 2012 (File No. 000-50053)).
|
|
3.3
|
Bylaws of the Company (incorporated by reference to our Form 8K dated September 25, 2013(File No. 000-50053)).
|
|
31.1
|
||
31.2
|
||
32.1
|
||
32.2
|
||
101 INS
|
XBRL Instance Document
|
|
101 SCH
|
XBRL Taxonomy Extension Schema Document
|
|
101 CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101 DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
101 LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101 PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
AMERITYRE CORPORATION
|
|||
By:
|
|||
/s/ Timothy L. Ryan
|
/s/ L. Wayne Arnett
|
||
Timothy L. Ryan
Chief Executive Officer
|
L. Wayne Arnett
Chief Financial Officer
|
/s/ Timothy L. Ryan
|
/s/ John J. Goldberg
|
||
Timothy L. Ryan
Chairman of the Board and Chief Executive Officer
(Principal Executive Officer)
|
John J. Goldberg
Director
|
||
/s/ L. Wayne Arnett
|
/s/ Glenn D. Bougie
|
||
L. Wayne Arnett
Director and Chief Financial Officer
(Principal Financial Officer)
|
Glenn D. Bougie
Director
|
Audited Financial Statements
|
|
F-2
|
|
F-3
|
|
F-5
|
|
F-6
|
|
F-8
|
|
F-9
|
June 30, 2013
|
June 30, 2012
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS
|
||||||||
Cash
|
$
|
108,747
|
$
|
105,838
|
||||
Accounts receivable - net
|
338,242
|
400,458
|
||||||
Accounts receivable - related party - net
|
30,018
|
22,981
|
||||||
Inventory - net
|
543,752
|
553,578
|
||||||
Deferred debt issuance cost
|
30,000
|
-
|
||||||
Prepaid and other current assets
|
84,770
|
67,210
|
||||||
Total Current Assets
|
1,135,529
|
1,150,065
|
||||||
PROPERTY AND EQUIPMENT
|
||||||||
Leasehold improvements
|
162,683
|
162,683
|
||||||
Molds and models
|
804,359
|
744,611
|
||||||
Equipment
|
3,109,440
|
2,959,233
|
||||||
Leased equipment
|
27,900
|
27,900
|
||||||
Furniture and fixtures
|
100,142
|
100,142
|
||||||
Construction in progress
|
-
|
30,122
|
||||||
Software
|
311,632
|
309,425
|
||||||
Less – accumulated depreciation
|
(3,841,200
|
) |
(3,651,903
|
)
|
||||
Total Property and Equipment
|
674,956
|
682,213
|
||||||
OTHER ASSETS
|
||||||||
Patents and trademarks – net
|
505,006
|
531,222
|
||||||
Deposits
|
11,000
|
36,000
|
||||||
Total Other Assets
|
516,006
|
567,222
|
||||||
TOTAL ASSETS
|
$
|
2,326,491
|
$
|
2,399,500
|
June 30, 2013
|
June 30, 2012
|
|||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES
|
||||||||
Accounts payable
|
$
|
493,723
|
$
|
376,721
|
||||
Convertible notes
|
100,000
|
450,000
|
||||||
Unsecured notes and short-term borrowings
|
409,200
|
-
|
||||||
Accrued expenses
|
167,931
|
356,986
|
||||||
Current portion of long-term debt
|
18,888
|
27,014
|
||||||
Accrued interest
|
19,004
|
9,018
|
||||||
Deferred revenue
|
7,293
|
3,345
|
||||||
Total Current Liabilities
|
1,216,039
|
1,223,084
|
||||||
Long-term debt
|
53,840
|
53,840
|
||||||
Total Long-Term Debt
|
53,840
|
53,840
|
||||||
TOTAL LIABILITIES
|
1,269,879
|
1,276,924
|
||||||
COMMITMENTS AND CONTINGENCIES (NOTE 2)
|
||||||||
STOCKHOLDERS’ EQUITY
|
||||||||
Preferred stock: 5,000,000 shares authorized of $0.001 par value, -0- shares issued and outstanding
|
-
|
-
|
||||||
Common stock: 55,000,000 shares authorized of $0.001 par value, 39,741,620 and 34,176,620 shares issued and outstanding, respectively
|
39,741
|
34,176
|
||||||
Additional paid-in capital
|
60,213,599
|
58,890,503
|
||||||
Preferred stock subscribed
|
-
|
260,000
|
||||||
Retained deficit
|
(59,196,728
|
) |
(58,062,103
|
)
|
||||
Total Stockholders’ Equity
|
1,056,612
|
1,122,576
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
2,326,491
|
$
|
2,399,500
|
For the Years Ended June 30,
|
||||||||
2013
|
2012
|
|||||||
NET REVENUES
|
||||||||
Products
|
$
|
3,634,676
|
$
|
4,315,756
|
||||
Equipment
|
-
|
49,000
|
||||||
Total Net Revenues
|
3,634,676
|
4,364,756
|
||||||
COST OF REVENUES
|
||||||||
Products
|
2,402,880
|
2,793,540
|
||||||
Equipment
|
-
|
39,845
|
||||||
Total Cost of Revenues
|
2,402,880
|
2,833,385
|
||||||
GROSS PROFIT
|
1,231,796
|
1,531,371
|
||||||
EXPENSES
|
||||||||
Consulting
|
70,196
|
90,257
|
||||||
Depreciation and amortization
|
206,705
|
212,056
|
||||||
Research and development
|
1,395
|
10,032
|
||||||
Bad debt expense
|
(26,450
|
)
|
18,805
|
|||||
Selling, general and administrative
|
2,041,558
|
2,352,053
|
||||||
Total Expenses
|
2,293,404
|
2,683,203
|
||||||
LOSS FROM OPERATIONS
|
(1,061,608
|
)
|
(1,151,832
|
)
|
||||
OTHER INCOME/(EXPENSE)
|
||||||||
Gain/(loss) on disposal of assets
|
(43,702
|
)
|
9,031
|
|||||
Interest income
|
568
|
9,332
|
||||||
Interest expense
|
(29,883
|
)
|
(41,550
|
)
|
||||
Total Other Income/Expense
|
(73,017
|
)
|
(23,187
|
)
|
||||
NET LOSS
|
$
|
(1,134,625
|
)
|
$
|
(1,175,019
|
)
|
||
BASIC AND DILUTED LOSS PER SHARE
|
$
|
(0.03
|
)
|
$
|
(0.04
|
)
|
||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
|
36,620,798
|
33,377,620
|
Preferred Stock
|
Common Stock
|
Additional
Paid-in |
Notes
Receivable/
Stock
|
Accumulated | ||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Subscriptions
|
Deficit
|
||||||||||||||||||||||
Balance, June 30, 2011
|
-
|
$
|
-
|
32,251,297
|
$
|
32,251
|
$
|
58,500,707
|
$
|
(343,238
|
)
|
$
|
(56,887,084
|
)
|
||||||||||||||
Common stock issued to director for additional services at $0.17 per share
|
-
|
-
|
100,000
|
100
|
16,900
|
-
|
-
|
|||||||||||||||||||||
Common stock issued for officer compensation at $0.17 per share
|
-
|
-
|
100,000
|
100
|
16,900
|
-
|
- | |||||||||||||||||||||
Common stock issued for consulting services at $0.24 per share
|
-
|
-
|
100,000
|
100
|
23,900
|
-
|
-
|
|||||||||||||||||||||
Common stock issued for conversion of note payable at $0.35 per share
|
-
|
-
|
516,571
|
516
|
180,283
|
-
|
-
|
|||||||||||||||||||||
Common stock issued to directors for additional services at $0.40 per share
|
-
|
-
|
94,000
|
94
|
37,506
|
-
|
-
|
|||||||||||||||||||||
Common stock issued for officer compensation at $0.40 per share
|
-
|
-
|
50,000
|
50
|
19,950
|
-
|
- | |||||||||||||||||||||
Common stock issued in conversion of notes payable at $0.35 per share
|
-
|
-
|
42,858
|
43
|
14,957
|
-
|
-
|
|||||||||||||||||||||
Common stock issued to directors for additional services at $0.27 per share
|
-
|
-
|
160,000
|
160
|
43,040
|
-
|
-
|
|||||||||||||||||||||
Common stock Issued as officer compensation at $0.27 per share
|
-
|
-
|
100,000
|
100
|
26,900
|
-
|
-
|
|||||||||||||||||||||
Common stock issued in option exercise at $0.17 per share
|
-
|
-
|
300,000
|
300
|
50,700
|
-
|
-
|
|||||||||||||||||||||
Common stock issued to director for additional services at $0.34 per share
|
-
|
-
|
100,000
|
100
|
33,900
|
-
|
-
|
|||||||||||||||||||||
Common stock issued for board compensation at $0.29 per share
|
-
|
-
|
211,894
|
212
|
61,237
|
-
|
-
|
|||||||||||||||||||||
Common stock issued for employee compensation at $0.28 per share
|
-
|
-
|
50,000
|
50
|
13,950
|
-
|
-
|
|||||||||||||||||||||
Stock based compensation expense
|
-
|
-
|
-
|
-
|
92,911
|
-
|
-
|
|||||||||||||||||||||
Deposits on preferred stock subscriptions
|
-
|
-
|
-
|
-
|
-
|
260,000
|
-
|
|||||||||||||||||||||
Settlement of note payable
|
-
|
-
|
-
|
-
|
(243,238
|
) |
343,238
|
-
|
||||||||||||||||||||
Net loss for the year ended June 30, 2012
|
-
|
- |
-
|
-
|
-
|
- |
(1,175,019
|
)
|
||||||||||||||||||||
Balance, June 30, 2012
|
-
|
$ | - |
34,176,620
|
$ |
34,176
|
$ |
58,890,503
|
$
|
260,000
|
$
|
(58,062,103
|
)
|
Preferred Stock
|
Common Stock
|
Additional
Paid-in
|
Notes
Receivable/
Stock
|
Accumulated | ||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Subscriptions
|
Deficit
|
||||||||||||||||||||||
Balance, June 30, 2012
|
-
|
$
|
-
|
34,176,620
|
$
|
34,176
|
$
|
58,890,503
|
$
|
260,000
|
$
|
(58,062,103
|
)
|
|||||||||||||||
Deposits on preferred stock subscriptions
|
-
|
-
|
-
|
-
|
-
|
875,000
|
-
|
|||||||||||||||||||||
Preferred stock issued for subscriptions at $0.001 par value
|
1,135,000
|
1,135
|
-
|
-
|
1,133,865
|
(1,135000
|
)
|
-
|
||||||||||||||||||||
Preferred stock subscription and issuance costs
|
-
|
-
|
-
|
-
|
(60,311
|
)
|
-
|
-
|
||||||||||||||||||||
Common stock issued for directors for additional services at $0.20 per share
|
-
|
-
|
750,000
|
750
|
149,250
|
-
|
- | |||||||||||||||||||||
Common stock issued to director for additional services at $0.11 per share
|
-
|
-
|
250,000
|
250
|
27,250
|
-
|
-
|
|||||||||||||||||||||
Common stock issued to employee as performance bonus at $0.11 per share
|
-
|
-
|
25,000
|
25
|
2,725
|
-
|
-
|
|||||||||||||||||||||
Common stock issued for convertible preferred stock at 4:1 conversion rate
|
(1,135,000
|
) |
(1,135
|
) |
4,540,000
|
4,540
|
(3,405
|
)
|
-
|
-
|
||||||||||||||||||
Stock option based compensation expense for board and employee service
|
-
|
-
|
-
|
-
|
73,721
|
-
|
-
|
|||||||||||||||||||||
Net loss for the year ended June 30, 2013
|
-
|
- |
-
|
-
|
-
|
- |
(1,134,625
|
)
|
||||||||||||||||||||
Balance, June 30, 2013
|
-
|
$ |
-
|
39,741,620
|
$ |
39,741
|
$ |
60,213,599
|
$ |
-
|
$
|
(59,196,728
|
)
|
For the Years Ended June 30,
|
||||||||
2013
|
2012
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net Loss
|
$ | (1,134,625 | ) | $ | (1,175,019 | ) | ||
Adjustments to reconcile net loss to net cash used by operating activities:
|
||||||||
Depreciation and amortization expense
|
213,919 | 243,930 | ||||||
Change in allowance for bad debt
|
(29,106 | ) | (21, 819 | ) | ||||
Stock based compensation related to director and employee stock options
|
73,721 | 150,000 | ||||||
Stock based compensation
|
30,250 | 330,160 | ||||||
(Gain)/loss on disposal of assets
|
43,702 | (9,031 | ) | |||||
Changes in operating assets and liabilities:
|
||||||||
Decrease in accounts receivable
|
84,285 | 186,379 | ||||||
(Increase)/decrease in prepaid and other current assets
|
(22,559 | ) | 14,955 | |||||
Decrease in inventory and change in inventory reserve
|
9,825 | 148,258 | ||||||
(Decrease)/increase in accounts payable and accrued expenses
|
89,600
|
(80,322 | ) | |||||
Net Cash Used by Operating Activities
|
(640,988 | ) | (212,509 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Purchase of property and equipment
|
(225,742 | ) | (100,249 | ) | ||||
Cash (paid for)/recovered from patents and trademarks
|
1,595 | (18,854 | ) | |||||
Proceeds from the sale of equipment
|
- | 20,500 | ||||||
Net Cash Used by Investing Activities
|
(224,147 | ) | (98,603 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Proceeds from the issuance of unsecured note payables
|
409,200 | - | ||||||
Redemption of convertible note payables
|
(350,000 | ) | (110,000 | ) | ||||
Proceeds from the settlement of note receivable
|
- | 100,000 | ||||||
Payments on current portion of long-term debt
|
(5,845 | ) | (12,040 | ) | ||||
Stock issuance of for exercise of options
|
- | 51,000 | ||||||
Proceeds from stock subscription
|
814,689 | 260,000 | ||||||
Net Cash Provided by Financing Activities
|
868,044
|
288,960 | ||||||
NET (DECREASE) INCREASE IN CASH
|
2,909 | (22,152 | ) | |||||
CASH AT BEGINNING OF YEAR
|
105,838 | 127,990 | ||||||
CASH AT END OF YEAR
|
$ | 108,747 | $ | 105,838 |
For the Years Ended June 30,
|
||||||||
2013
|
2012
|
|||||||
SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES
|
||||||||
Common stock issued on note conversion
|
$
|
-
|
$
|
195,800
|
||||
Common stock issued for accrued stock compensation
|
$
|
-
|
$
|
58,000
|
||||
Commission accrual decreasing current portion of long-term debt
|
$
|
8,057
|
$
|
3,106
|
2013
|
2012
|
|||||||
Loss (numerator)
|
$
|
(1,134,625
|
)
|
$
|
(1,175,019
|
)
|
||
Shares (denominator)
|
36,620,798
|
33,377,620
|
||||||
Per share amount
|
$
|
(0.03
|
)
|
$
|
(0.04
|
)
|
2013 | 2012 | |||||||
Deferred tax assets: | ||||||||
NOL Carryover
|
$
|
16,690,000
|
$
|
17,563,700
|
||||
Section 1231 Loss Carryover
|
1,300
|
1,000
|
||||||
Allowance for Doubtful Accounts
|
3,100
|
14,500
|
||||||
Related Party Accruals
|
24,400
|
24,400
|
||||||
Inventory Reserve
|
24,300
|
13,000
|
||||||
R & D Carryover
|
195,400
|
195,400
|
||||||
Accrued Vacation
|
4,600
|
5,000
|
||||||
Deferred tax liabilities:
|
||||||||
Depreciation
|
(162,900
|
)
|
(154,800
|
)
|
||||
Valuation Allowance
|
(16,780,200
|
)
|
(17,662,200
|
)
|
||||
Net deferred tax asset
|
$
|
-
|
$
|
-
|
2013
|
2012
|
|||||||
Book Income
|
$
|
(442,500
|
)
|
$
|
(458,300
|
)
|
||
Depreciation
|
(8,100
|
)
|
18,900
|
|||||
Meals & Entertainment
|
6,900
|
3,600
|
||||||
Stock for Services
|
40,500
|
187,300
|
||||||
Accrued Vacation
|
(300
|
)
|
1,100
|
|||||
Inventory Reserve
|
11,200
|
(4,500
|
)
|
|||||
Receivable Reserve
|
(11,400
|
)
|
(8,500
|
)
|
||||
Gain/(Loss) on Asset Disposal
|
-
|
2,600
|
||||||
Accrued Compensation
|
-
|
(46,500
|
)
|
|||||
Valuation Allowance
|
403,700
|
304,300
|
||||||
$
|
-
|
$
|
-
|
2013
|
2012
|
|||||||
Raw Materials
|
$
|
230,030
|
$
|
201,651
|
||||
Finished Goods
|
313,722
|
351,927
|
||||||
Total Inventory
|
$
|
543,752
|
$
|
553,578
|
Leasehold improvements
|
5 years, or over lease term
|
Equipment
|
5 to 10 years
|
Furniture and fixtures
|
7 years
|
Automobiles
|
5 years
|
Software
|
3 years
|
2014
|
$
|
28,610
|
||
2015
|
$
|
28,610
|
||
2016
|
$
|
28,610
|
||
2017
|
$
|
28,610
|
||
2018
|
$
|
28,610
|
2013
|
2012
|
|||||||||
Risk free interest rate
|
.33% | - | .75% | .33% | - | .75% | ||||
Expected life |
3.0 Years
|
3.0 Years
|
||||||||
Expected volatility
|
47.64% | - | 84.38% | 47.64% | - | 84.38% | ||||
Dividend yield
|
0.00% | 0.00% |
June 30, 2013
|
June 30, 2012
|
|||||||||||||||
Shares
|
Weighted Average
Exercise Price
|
Shares
|
Weighted Average
Exercise Price
|
|||||||||||||
Outstanding beginning of period
|
2,579,000
|
$
|
0.45
|
675,000
|
$
|
1.26
|
||||||||||
Granted
|
300,000
|
$
|
0.26
|
2,554,000
|
$
|
0.18
|
||||||||||
Expired/Cancelled
|
(975,000
|
)
|
$
|
0.81
|
(350,000
|
)
|
$
|
0.31
|
||||||||
Exercised
|
-
|
$
|
-
|
(300,000
|
)
|
$
|
0.17
|
|||||||||
Outstanding end of period
|
1,904,000
|
$
|
0.23
|
2,579,000
|
$
|
0.45
|
||||||||||
Exercisable
|
1,204,000
|
$
|
0.34
|
1,079,000
|
$
|
0.73
|
Outstanding
|
Exercisable
|
|||||||||||||||||||||
Range of
Exercise Prices
|
Number Outstanding at
June 30, 2013
|
Weighted
Average
Remaining
Contractual Life
|
Weighted
Average
Exercise Price
|
Number
Exercisable at
June 30, 2013
|
Weighted
Average Remaining
Contractual Life
|
|||||||||||||||||
$
|
0.17
|
650,000
|
1.00
|
$
|
0.17
|
650,000
|
1.00
|
|||||||||||||||
$
|
0.17
|
400,000
|
2.00
|
$
|
0.17
|
400,000
|
2.00
|
|||||||||||||||
$
|
0.17
|
400,000
|
3.00
|
$
|
0.17
|
-
|
-
|
|||||||||||||||
$
|
0.29
|
154,000
|
2.00
|
$
|
0.29
|
154,000
|
2.00
|
|||||||||||||||
$
|
0.50
|
300,000
|
0.02
|
$
|
0.50
|
-
|
-
|
|||||||||||||||
1,904,000
|
1,204,000
|
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
|
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
|
Accounting Policies, by Policy (Policies)
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Accounting, Policy [Policy Text Block] | Accounting Method
The
Company’s financial statements are prepared using the
accrual method of accounting. The Company has elected a June
30 year-end. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification, Policy [Policy Text Block] | Reclassifications
Prior
period amounts have been adjusted to conform to the current
year presentation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | Basic and Fully Diluted Net Loss per Share
Basis
and Fully Diluted net loss per share is computed using the
weighted-average number of common shares outstanding during
the period.
The
Company’s outstanding stock options, warrants, and
shares issuable upon conversion of outstanding convertible
notes have been excluded from the diluted net loss per share
calculation. The Company excluded a total of 2,612,286 and
2,644,429 common stock equivalents for the years ended June
30, 2013 and 2012, respectively because they are
anti-dilutive. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Use of Estimates, Policy [Policy Text Block] | Estimates
The
preparation of financial statements in conformity with
generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could
differ from those estimates. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax, Policy [Policy Text Block] | Income Taxes
Deferred
taxes are provided on a liability method whereby deferred tax
assets are recognized for deductible temporary differences
and operating loss and tax credit carry-forwards and deferred
tax liabilities are recognized for taxable temporary
differences. Temporary differences are the differences
between the reported amounts of assets and liabilities and
their tax bases. Deferred tax assets are reduced by a
valuation allowance when, in the opinion of management, it is
more likely than not that some portion or all of the deferred
tax assets will not be realized. Deferred tax assets and
liabilities are adjusted for the effects of changes in tax
laws and rates on the date of enactment.
Net
deferred tax assets consist of the following components as of
June 30, 2013 and 2012:
The
income tax provision differs from the amount of income tax
determined by applying the U.S. federal income tax rate to
pretax income from continuing operations for the years ended
June 30, 2013 and 2012 due to the following:
At
June 30, 2013, the Company had net operating loss
carry-forwards of approximately $42,795,000 that may be
offset against future taxable income from the year 2013
through 2032. No tax benefit has been reported in the June
30, 2013 financial statements since the potential tax benefit
is offset by a valuation allowance of the same amount. Due to
the change in ownership provisions of the Tax Reform Act of
1986, net operating loss carry-forwards for Federal income
tax reporting purposes are subject to annual limitations.
Should a change in ownership occur, net operating loss
carry-forwards may be limited as to use in future
years.
ASC
740 requires a company to determine whether it is more likely
than not that a tax position will be sustained upon
examination based on the technical merits of the position. If
the more-likely-than-not threshold is met, a company must
measure the tax position to determine the amount to recognize
in the financial statements. As a result of the
implementation of ASC 740, the Company performed a review of
its material tax positions in accordance with recognition and
measurement standards established by ASC 740.
The
Company files income tax returns in the U.S. federal
jurisdiction, and in Utah. With few exceptions,
the Company is no longer subject to U.S. federal, state and
local, or non-U.S. income tax examinations by tax authorities
for years before 2009.
We
adopted the provisions of Accounting Standards Codification
740, Income
Taxes (ASC 740), on January 1, 2007. The
Company’s policy is to recognize interest accrued
related to unrecognized tax benefits in interest expense and
penalties in operating expenses. As of June 30, 2013 the
Company had no accrued interest or penalties related to
uncertain tax positions. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory, Policy [Policy Text Block] | Inventory
Inventory
is stated at the lower of cost (computed on a first-in,
first-out basis) or market. The cost of finished goods
includes the cost of raw material, direct and indirect labor,
and other indirect manufacturing costs. The inventory
consists of chemicals, finished goods produced in the
Company’s plant and products purchased for
resale.
We
had an inventory reserve amount of $62,186 and $33,448
recorded as of June 30, 2013 and 2012, respectively, for
items that were deemed to be slow moving based on an analysis
of all inventories on hand. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment
Property
and equipment are stated at cost. Expenditures for small
tools, ordinary maintenance and repairs are charged to
operations as incurred. Major additions and improvements are
capitalized. When we retire or dispose of assets, the costs
and accumulated depreciation or amortization are removed from
the respective accounts and we recognize any related gain or
loss. Repairs and maintenance are charged to expense when
incurred. Major replacements that substantially extend the
useful life of an asset are capitalized and depreciated.
Depreciation is computed using the straight-line method over
estimated useful lives as follows:
Depreciation
expense for the years ended June 30, 2013 and 2012 was
$189,297 and $214,472, respectively. |
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Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition
Revenue
for products is recognized when the sales amount is
determined, shipment of goods to the customer has occurred
and collection is reasonably assured. Generally, we ship all
of our products FOB origination. License fee revenue is
recognized as earned, and no revenue is recognized until the
inception of the license term. |
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Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Patents and Trademarks
Patent
and trademark costs have been capitalized at June 30, 2013,
totaling $758,935 with accumulated amortization of $253,929
for a net book value of $505,006. Patent and trademark costs
capitalized at June 30, 2012, totaled $760,530 with
accumulated amortization of $229,308 for a net book value of
$531,222. The patents which have been granted are being
amortized over a period of 20 years. Patents which are
pending or are being developed are not being amortized.
Amortization will begin once the patents have been issued.
Included in the total patent and trademark costs are $245,823
of patent and trademark costs pending that are not currently
being amortized. Amortization expense for the
years ended June 30, 2013 and 2012 was $24,621 and $29,458
respectively. The Company evaluates the
recoverability of intangibles and reviews the amortization
period on a continual basis utilizing the guidance of
Accounting Standards Codification 350, Intangibles
– Goodwill and Other (ASC 350). Several factors
are used to evaluate intangibles, including, but not limited
to, management’s plans for future operations, recent
operating results and projected, undiscounted cash
flows.
The
estimated amortization expense, based on current intangible
balances, for the next five fiscal years beginning July 1,
2013 is as follows: |
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Advertising Costs, Policy [Policy Text Block] | Advertising
The
Company follows the policy of charging the costs of
advertising to expense as incurred. Advertising
expense for the years ended June 30, 2013 and 2012 was
$13,108 and $19,154, respectively. |
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Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock Based-Compensation Expense
Since
July 2005, we account for stock-based compensation under the
provisions of Accounting Standards Codification 718, Compensation
– Stock Compensation (ASC 718), formerly SFAS
123(R). Our financial statements as of and for the fiscal
years ended June 30, 2013 and 2012 reflect the impact of ASC
718. Stock-based compensation expense recognized under ASC
718 for the fiscal years ended June 30, 2013 and 2012 was
$73,721 and $92,910, respectively, related to employee stock
options.
ASC
718 requires companies to estimate the fair value of
share-based payment awards on the date of grant using an
option-pricing model. The value of the portion of the award
that is ultimately expected to vest is recognized as expense
over the requisite service periods in our Statement of
Operations. Stock-based compensation expense recognized in
our Statements of Operations for fiscal years ended June 30,
2013 and 2012 assume all awards will vest; therefore no
reduction has been made for estimated forfeitures. |
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New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements
There
were no recent accounting pronouncements adopted by the
Company during the year ended June 30, 2013. |
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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. |
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Trade and Other Accounts Receivable, Policy [Policy Text Block] | Trade
Receivables
We
generally charge-off trade receivables that are more than 120
days outstanding as bad-debt expense, unless management
believes the amount to be collectable. The charge-off amounts
are included in selling, general and administrative
expenses. For the fiscal years ended June 30, 2013
and 2012, our bad debt (recovery) expense was ($26,450) and
$18,805, respectively. |
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Stockholders' Equity, Policy [Policy Text Block] | Equity Securities
Equity
securities issued for services rendered have been accounted
for at the fair market value of the securities on the date of
authorization. |
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Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Risk
The
Company maintains several accounts with financial
institutions. Currently, the accounts are insured
by the Federal Deposit Insurance Corporation up to
$250,000.
Credit
losses, if any, have been provided for in the financial
statements and are based on management’s expectations.
The Company’s accounts receivable are subject to
potential concentrations of credit risk. The Company does not
believe that it is subject to any unusual risks or
significant risks in the normal course of its
business.
We
have two customers who accounted for 22% and 33% of our sales
for the years ended June 30, 2013 and 2012,
respectively. |
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Fair Value Measurement, Policy [Policy Text Block] | Valuation of Options and Warrants
The
valuation of options and warrants granted to unrelated
parties for services are measured as of the earlier of (1)
the date at which a commitment for performance by the
counterparty to earn the equity instrument is reached, or (2)
the date the counterparty’s performance is complete.
The options and warrants will continue to be revalued in
situations where they are granted prior to the completion of
the performance. |
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Sales Tax [Policy Text Block] | Sales Tax
In
accordance with FASB ASC 605-45, formerly EITF Issue No.
06-3, How
Taxes Collected from Customers and Remitted to Government
Authorities Should Be Presented in the Income
Statement, the Company accounts for sales taxes and
value added taxes imposed on its good and services on a net
basis in the consolidated statement of operations. |
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Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents
We
consider all highly liquid investments with a maturity of
three months or less when purchased to be cash
equivalents. |
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Standard Product Warranty, Policy [Policy Text Block] | Product Warranties
The
Company’s standard sales terms include a limited
warranty on workmanship and materials to the original
purchaser if items sold are used in the service for which
they are intended. Specifically the Company warrants wheels,
bearings, and bushings for one year from the date of
purchase. The Company estimates its warranty reserve based on
historical experience with warranty claims and returns for
defective items. As of June 30, 2013 and 2012, the Company
has estimated its warranty reserve and has recorded a
liability of $0 and $0, respectively. |
Statement of Operations (USD $)
|
12 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
NET REVENUES | ||
Products | $ 3,634,676 | $ 4,315,756 |
Equipment | 0 | 49,000 |
Total Net Revenues | 3,634,676 | 4,364,756 |
COST OF REVENUES | ||
Products | 2,402,880 | 2,793,540 |
Equipment | 0 | 39,845 |
Total Cost of Revenues | 2,402,880 | 2,833,385 |
GROSS PROFIT | 1,231,796 | 1,531,371 |
EXPENSES | ||
Consulting | 70,196 | 90,257 |
Depreciation and amortization | 206,705 | 212,056 |
Research and development | 1,395 | 10,032 |
Bad debt expense | (26,450) | 18,805 |
Selling, general and administrative | 2,041,558 | 2,352,053 |
Total Expenses | 2,293,404 | 2,683,203 |
LOSS FROM OPERATIONS | (1,061,608) | (1,151,832) |
OTHER INCOME/(EXPENSE) | ||
Gain/(loss) on disposal of assets | (43,702) | 9,031 |
Interest income | 568 | 9,332 |
Interest expense | (29,883) | (41,550) |
Total Other Income/Expense | (73,017) | (23,187) |
NET LOSS | $ (1,134,625) | $ (1,175,019) |
BASIC AND DILUTED LOSS PER SHARE (in Dollars per share) | $ (0.03) | $ (0.04) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING (in Shares) | 36,620,798 | 33,377,620 |
NOTE 2 - COMMITMENTS AND CONTINGENCIES
|
12 Months Ended |
---|---|
Jun. 30, 2013
|
|
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] |
NOTE
2 – COMMITMENTS AND CONTINGENCIES
In
June 2012, we negotiated a two year extension of the lease on
our executive office and manufacturing facility located at
1501 Industrial Road, Boulder City, Nevada. The
property consists of a 49,200 square foot building, which
includes approximately 5,500 square feet of office space,
situated on approximately 4.15 acres. The
extended lease commenced on July 1, 2012 and reduced the base
rent to $11,000 per month. All other terms and
conditions of the building lease remain in effect.
Also
in April 2009, the Company terminated the consulting
agreements between the Company and Richard A. Steinke and
Manuel Chacon, who had been providing the Company with
technology development and chemical formulating services,
respectively. Each consulting agreement had an expiration
date of August 31, 2009. The consulting agreements did not
have a provision for early termination. At June 30, 2009, the
Company provided for the contingent liability resulting from
these early terminations.
|
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Earnings Per Share Reconciliation (USD $)
|
12 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Schedule of Earnings Per Share Reconciliation [Abstract] | ||
Loss (numerator) (in Dollars) | $ (1,134,625) | $ (1,175,019) |
Shares (denominator) | 36,620,798 | 33,377,620 |
Per share amount (in Dollars per share) | $ (0.03) | $ (0.04) |
NON-CASH FINANCING ACTIVITES (Tables)
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
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Supplemental Cash Flow Elements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] |
|
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Inventory (USD $)
|
Jun. 30, 2013
|
Jun. 30, 2012
|
---|---|---|
Schedule of Inventory [Abstract] | ||
Raw Materials | $ 230,030 | $ 201,651 |
Finished Goods | 313,722 | 351,927 |
Total Inventory | $ 543,752 | $ 553,578 |
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Effective Income Tax Reconciliation (USD $)
|
12 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Schedule of Effective Income Tax Reconciliation [Abstract] | ||
Book Income | $ (442,500) | $ (458,300) |
Depreciation | (8,100) | 18,900 |
Meals & Entertainment | 6,900 | 3,600 |
Stock for Services | 40,500 | 187,300 |
Accrued Vacation | (300) | 1,100 |
Inventory Reserve | 11,200 | (4,500) |
Receivable Reserve | (11,400) | (8,500) |
Gain/(Loss) on Asset Disposal | 0 | 2,600 |
Accrued Compensation | 0 | (46,500) |
Valuation Allowance | 403,700 | 304,300 |
$ 0 | $ 0 |
NOTE 3 - STOCK TRANSACTIONS (Details) (USD $)
|
12 Months Ended |
---|---|
Jun. 30, 2013
|
|
NOTE 3 - STOCK TRANSACTIONS (Details) [Line Items] | |
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | 750,000 |
Restricted Stock Issued, August 1, 2012 [Member] | Director [Member]
|
|
NOTE 3 - STOCK TRANSACTIONS (Details) [Line Items] | |
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | 250,000 |
Stock Issued During Period, Value, Restricted Stock Award, Gross (in Dollars) | $ 150,000 |
Share Price (in Dollars per share) | $ 0.20 |
Restricted Stock Issued, March 5, 2013 [Member] | Director [Member]
|
|
NOTE 3 - STOCK TRANSACTIONS (Details) [Line Items] | |
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | 25,000 |
Stock Issued During Period, Value, Restricted Stock Award, Gross (in Dollars) | $ 27,500 |
Share Price (in Dollars per share) | $ 0.10 |
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Deferred Tax Assets (USD $)
|
Jun. 30, 2013
|
Jun. 30, 2012
|
---|---|---|
Schedule of Deferred Tax Assets [Abstract] | ||
NOL Carryover | $ 16,690,000 | $ 17,563,700 |
Section 1231 Loss Carryover | 1,300 | 1,000 |
Allowance for Doubtful Accounts | 3,100 | 14,500 |
Related Party Accruals | 24,400 | 24,400 |
Inventory Reserve | 24,300 | 13,000 |
R & D Carryover | 195,400 | 195,400 |
Accrued Vacation | 4,600 | 5,000 |
Depreciation | (162,900) | (154,800) |
Valuation Allowance | (16,780,200) | (17,662,200) |
Net deferred tax asset | $ 0 | $ 0 |
Statements of Stockholders' Equity (Parentheticals) (USD $)
|
12 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
Preferred Stock [Member]
Stock Issued for Subscriptions at Par Value [Member]
|
Jun. 30, 2012
Common Stock [Member]
Stock Issued to Director for Additional Services at $0.17 Per Share [Member]
|
Jun. 30, 2012
Common Stock [Member]
Stock Issued for Officer Compensation at $0.17 Per Share [Member]
|
Jun. 30, 2012
Common Stock [Member]
Stock Issued for Consulting Services at $0.24 Per Shares [Member]
|
Jun. 30, 2012
Common Stock [Member]
Stock Issued for Conversion of Note Payable at $0.35 Per Share [Member]
|
Jun. 30, 2012
Common Stock [Member]
Stock Issued to Directors for Additional Services at $0.40 Per Share [Member]
|
Jun. 30, 2012
Common Stock [Member]
Stock Issued for Officer Compensation at $0.40 Per Share [Member]
|
Jun. 30, 2012
Common Stock [Member]
Stock Issued for Conversion of Notes Payable at $0.35 Per Share [Member]
|
Jun. 30, 2012
Common Stock [Member]
Stock Issued to Directors for Additional Services at $0.27 Per Share [Member]
|
Jun. 30, 2012
Common Stock [Member]
Stock Issued for Officer Compensation at $0.27 Per Share [Member]
|
Jun. 30, 2012
Common Stock [Member]
Stock Issued for Exercise of Options at $0.17 Per Share [Member]
|
Jun. 30, 2012
Common Stock [Member]
Stock Issued to Directors for Additional Services at $0.34 Per Share [Member]
|
Jun. 30, 2012
Common Stock [Member]
Stock Issued for Board Compensation at $0.29 Per Share [Member]
|
Jun. 30, 2012
Common Stock [Member]
Stock Issued for Employee Compensation at $0.28 Per Share [Member]
|
Jun. 30, 2013
Common Stock [Member]
Stock Issued to Directors for Additional Services at $0.20 Per Share [Member]
|
Jun. 30, 2013
Common Stock [Member]
Stock Issued to Directors for Additional Services at $0.11 Per Share [Member]
|
Jun. 30, 2013
Common Stock [Member]
Stock Issued to Employee as Performance Bonus at $0.11 Per Share [Member]
|
Jun. 30, 2013
Common Stock [Member]
Stock Issued for Convertible Preferred Stock at 4:1 Conversion Rate [Member]
|
|
Stock issued per share (in Dollars per share) | $ 0.001 | $ 0.17 | $ 0.17 | $ 0.24 | $ 0.35 | $ 0.40 | $ 0.40 | $ 0.35 | $ 0.27 | $ 0.27 | $ 0.17 | $ 0.34 | $ 0.29 | $ 0.28 | $ 0.20 | $ 0.11 | $ 0.11 | |
Common stock issued for convertible preferred stock conversion rate | 4:1 |
NON-CASH FINANCING ACTIVITES
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
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Supplemental Cash Flow Elements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Flow, Supplemental Disclosures [Text Block] |
NON-CASH
FINANCING ACTIVITES
During
the years ended June 30, 2013 and 2012, the Company
paid $20,836
and $63,234 for interest, respectively. Also, there
were no cash payments of taxes for the years ended June 30,
2013 and 2012, respectively.
|
NOTE 3 - STOCK TRANSACTIONS
|
12 Months Ended |
---|---|
Jun. 30, 2013
|
|
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] |
NOTE
3 – STOCK TRANSACTIONS
During
the year ended June 30, 2013, the Company had the following
stock transactions:
On
August 1, 2012, the Board of Directors authorized an
aggregate of 750,000 shares of restricted common stock to its
directors for additional services provided during the six
months ended June 30, 2012. The total value of the shares
issued was $150,000 based on the closing market price on the
authorization date of $0.20 per share. The value
of the shares was accrued as stock-based compensation expense
for the year ended June 30, 2012. The shares were issued in
September 2012.
On
March 5, 2013, the Company issued 250,000 shares of
restricted common stock to a director for additional services
provided during the six months ended December 31, 2012. The
Company also issued 25,000 shares of restricted common stock
to an employee as a performance bonus. The total value of the
shares issued was $27,500 based on the market closing price
on the authorization date of $0.10 per share.
|
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] |
NOTE
1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
a.
Organization
Amerityre
Corporation, (the “Company”) was incorporated
under the laws of the State of Nevada on January 30, 1995,
under the name American Tire Corporation. The Company was
organized to take advantage of existing proprietary and
non-proprietary technology available for the manufacturing of
specialty tires. The Company engages in the manufacturing,
marketing, distribution and sales of “flat free”
specialty tires and tire-wheel assemblies and currently is
manufacturing these tires at its manufacturing facility
located in Boulder City, Nevada. During the year ended June
30, 2001, the name of the Company was changed to Amerityre
Corporation.
b.
Accounting Method
The
Company’s financial statements are prepared using the
accrual method of accounting. The Company has elected a June
30 year-end.
c.
Reclassifications
Prior
period amounts have been adjusted to conform to the current
year presentation.
d.
Basic and Fully Diluted Net Loss per Share
Basis
and Fully Diluted net loss per share is computed using the
weighted-average number of common shares outstanding during
the period.
The
Company’s outstanding stock options, warrants, and
shares issuable upon conversion of outstanding convertible
notes have been excluded from the diluted net loss per share
calculation. The Company excluded a total of 2,612,286 and
2,644,429 common stock equivalents for the years ended June
30, 2013 and 2012, respectively because they are
anti-dilutive.
e.
Estimates
The
preparation of financial statements in conformity with
generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could
differ from those estimates.
f.
Income Taxes
Deferred
taxes are provided on a liability method whereby deferred tax
assets are recognized for deductible temporary differences
and operating loss and tax credit carry-forwards and deferred
tax liabilities are recognized for taxable temporary
differences. Temporary differences are the differences
between the reported amounts of assets and liabilities and
their tax bases. Deferred tax assets are reduced by a
valuation allowance when, in the opinion of management, it is
more likely than not that some portion or all of the deferred
tax assets will not be realized. Deferred tax assets and
liabilities are adjusted for the effects of changes in tax
laws and rates on the date of enactment.
Net
deferred tax assets consist of the following components as of
June 30, 2013 and 2012:
The
income tax provision differs from the amount of income tax
determined by applying the U.S. federal income tax rate to
pretax income from continuing operations for the years ended
June 30, 2013 and 2012 due to the following:
At
June 30, 2013, the Company had net operating loss
carry-forwards of approximately $42,795,000 that may be
offset against future taxable income from the year 2013
through 2032. No tax benefit has been reported in the June
30, 2013 financial statements since the potential tax benefit
is offset by a valuation allowance of the same amount. Due to
the change in ownership provisions of the Tax Reform Act of
1986, net operating loss carry-forwards for Federal income
tax reporting purposes are subject to annual limitations.
Should a change in ownership occur, net operating loss
carry-forwards may be limited as to use in future
years.
ASC
740 requires a company to determine whether it is more likely
than not that a tax position will be sustained upon
examination based on the technical merits of the position. If
the more-likely-than-not threshold is met, a company must
measure the tax position to determine the amount to recognize
in the financial statements. As a result of the
implementation of ASC 740, the Company performed a review of
its material tax positions in accordance with recognition and
measurement standards established by ASC 740.
The
Company files income tax returns in the U.S. federal
jurisdiction, and in Utah. With few exceptions,
the Company is no longer subject to U.S. federal, state and
local, or non-U.S. income tax examinations by tax authorities
for years before 2009.
We
adopted the provisions of Accounting Standards Codification
740, Income
Taxes (ASC 740), on January 1, 2007. The
Company’s policy is to recognize interest accrued
related to unrecognized tax benefits in interest expense and
penalties in operating expenses. As of June 30, 2013 the
Company had no accrued interest or penalties related to
uncertain tax positions.
g.
Inventory
Inventory
is stated at the lower of cost (computed on a first-in,
first-out basis) or market. The cost of finished goods
includes the cost of raw material, direct and indirect labor,
and other indirect manufacturing costs. The inventory
consists of chemicals, finished goods produced in the
Company’s plant and products purchased for
resale.
We
had an inventory reserve amount of $62,186 and $33,448
recorded as of June 30, 2013 and 2012, respectively, for
items that were deemed to be slow moving based on an analysis
of all inventories on hand.
h.
Property and Equipment
Property
and equipment are stated at cost. Expenditures for small
tools, ordinary maintenance and repairs are charged to
operations as incurred. Major additions and improvements are
capitalized. When we retire or dispose of assets, the costs
and accumulated depreciation or amortization are removed from
the respective accounts and we recognize any related gain or
loss. Repairs and maintenance are charged to expense when
incurred. Major replacements that substantially extend the
useful life of an asset are capitalized and depreciated.
Depreciation is computed using the straight-line method over
estimated useful lives as follows:
Depreciation
expense for the years ended June 30, 2013 and 2012 was
$189,297 and $214,472, respectively.
i.
Revenue Recognition
Revenue
for products is recognized when the sales amount is
determined, shipment of goods to the customer has occurred
and collection is reasonably assured. Generally, we ship all
of our products FOB origination. License fee revenue is
recognized as earned, and no revenue is recognized until the
inception of the license term.
j.
Patents and Trademarks
Patent
and trademark costs have been capitalized at June 30, 2013,
totaling $758,935 with accumulated amortization of $253,929
for a net book value of $505,006. Patent and trademark costs
capitalized at June 30, 2012, totaled $760,530 with
accumulated amortization of $229,308 for a net book value of
$531,222. The patents which have been granted are being
amortized over a period of 20 years. Patents which are
pending or are being developed are not being amortized.
Amortization will begin once the patents have been issued.
Included in the total patent and trademark costs are $245,823
of patent and trademark costs pending that are not currently
being amortized. Amortization expense for the
years ended June 30, 2013 and 2012 was $24,621 and $29,458
respectively. The Company evaluates the
recoverability of intangibles and reviews the amortization
period on a continual basis utilizing the guidance of
Accounting Standards Codification 350, Intangibles
– Goodwill and Other (ASC 350). Several factors
are used to evaluate intangibles, including, but not limited
to, management’s plans for future operations, recent
operating results and projected, undiscounted cash
flows.
The
estimated amortization expense, based on current intangible
balances, for the next five fiscal years beginning July 1,
2013 is as follows:
k.
Advertising
The
Company follows the policy of charging the costs of
advertising to expense as incurred. Advertising
expense for the years ended June 30, 2013 and 2012 was
$13,108 and $19,154, respectively.
l.
Stock Based-Compensation Expense
Since
July 2005, we account for stock-based compensation under the
provisions of Accounting Standards Codification 718, Compensation
– Stock Compensation (ASC 718), formerly SFAS
123(R). Our financial statements as of and for the fiscal
years ended June 30, 2013 and 2012 reflect the impact of ASC
718. Stock-based compensation expense recognized under ASC
718 for the fiscal years ended June 30, 2013 and 2012 was
$73,721 and $92,910, respectively, related to employee stock
options.
ASC
718 requires companies to estimate the fair value of
share-based payment awards on the date of grant using an
option-pricing model. The value of the portion of the award
that is ultimately expected to vest is recognized as expense
over the requisite service periods in our Statement of
Operations. Stock-based compensation expense recognized in
our Statements of Operations for fiscal years ended June 30,
2013 and 2012 assume all awards will vest; therefore no
reduction has been made for estimated forfeitures.
m.
Recent Accounting Pronouncements
There
were no recent accounting pronouncements adopted by the
Company during the year ended June 30, 2013.
n.
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.
o. Trade
Receivables
We
generally charge-off trade receivables that are more than 120
days outstanding as bad-debt expense, unless management
believes the amount to be collectable. The charge-off amounts
are included in selling, general and administrative
expenses. For the fiscal years ended June 30, 2013
and 2012, our bad debt (recovery) expense was ($26,450) and
$18,805, respectively.
p.
Equity Securities
Equity
securities issued for services rendered have been accounted
for at the fair market value of the securities on the date of
authorization.
q.
Concentrations of Risk
The
Company maintains several accounts with financial
institutions. Currently, the accounts are insured
by the Federal Deposit Insurance Corporation up to
$250,000.
Credit
losses, if any, have been provided for in the financial
statements and are based on management’s expectations.
The Company’s accounts receivable are subject to
potential concentrations of credit risk. The Company does not
believe that it is subject to any unusual risks or
significant risks in the normal course of its
business.
We
have two customers who accounted for 22% and 33% of our sales
for the years ended June 30, 2013 and 2012,
respectively.
r.
Valuation of Options and Warrants
The
valuation of options and warrants granted to unrelated
parties for services are measured as of the earlier of (1)
the date at which a commitment for performance by the
counterparty to earn the equity instrument is reached, or (2)
the date the counterparty’s performance is complete.
The options and warrants will continue to be revalued in
situations where they are granted prior to the completion of
the performance.
s.
Sales Tax
In
accordance with FASB ASC 605-45, formerly EITF Issue No.
06-3, How
Taxes Collected from Customers and Remitted to Government
Authorities Should Be Presented in the Income
Statement, the Company accounts for sales taxes and
value added taxes imposed on its good and services on a net
basis in the consolidated statement of operations.
t.
Cash and Cash Equivalents
We
consider all highly liquid investments with a maturity of
three months or less when purchased to be cash
equivalents.
u.
Product Warranties
The
Company’s standard sales terms include a limited
warranty on workmanship and materials to the original
purchaser if items sold are used in the service for which
they are intended. Specifically the Company warrants wheels,
bearings, and bushings for one year from the date of
purchase. The Company estimates its warranty reserve based on
historical experience with warranty claims and returns for
defective items. As of June 30, 2013 and 2012, the Company
has estimated its warranty reserve and has recorded a
liability of $0 and $0, respectively.
v.
Related Party Transactions
Amerityre’s
Chairman of the Board and Chief Executive Officer, Timothy L.
Ryan, is also the principal owner of Rhino Rubber LLC, a
manufacturing and distribution company for solid industrial
tires and wheels. During fiscal 2013 and fiscal
2012, Rhino Rubber LLC purchased a total of $6,210 and
$24,141, respectively, in tire products from
Ameritye. As of June 30, 2013 and 2012, the
accounts receivable balances for Rhino Rubber LLC were
$30,018 and $22,981, respectively. The terms and
conditions of those related-party sales transactions were the
same as those afforded to any of Amerityre’s
customers.
A
former board member, Silas O. Kines, who passed away on
January 11, 2012, was also the principal owner of Forklift
Tire of Florida and K-2 Industrial Tire,
Inc. Forklift Tire of Florida is a distributor
primarily of Amerityre’s forklift product
line. During fiscal 2013 and fiscal 2012, Forklift
Tire of Florida purchased a total $0 and $21,663,
respectively, in tire products from Amerityre. As
of June 30, 2013 and 2012, the accounts receivable balances
for Forklift Tire of Florida were $0 and $9,255,
respectively. The terms and conditions of those
related-party sales transactions were the same as those
afforded to any of Amerityre’s customers. In
accordance with the Commission Agreement, 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 to the long term liability recorded on the
transaction. As of June 30, 2013, $18,888 and
$53,840 were recorded for the current and long-term portion,
respectively, of the related liability. Since his passing,
Mr. Kines is no longer considered a related party. As a
result, the related receivables are not reflected as related
party receivables on the balance sheet for the years ended
June 30, 2013 and 2012.
|
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of the Estimated Useful Lives of Property, Plant and Equipment
|
12 Months Ended |
---|---|
Jun. 30, 2013
|
|
Leasehold Improvements [Member]
|
|
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 years, or over lease term |
Equipment [Member]
|
|
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 to 10 years |
Furniture and Fixtures [Member]
|
|
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 7 years |
Automobiles [Member]
|
|
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 years |
Software and Software Development Costs [Member]
|
|
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 years |
NOTE 6 - NOTE RECEIVABLE (Details) (USD $)
|
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2007
Notes Receivable, June 2007 [Member]
|
Jun. 30, 2009
Original Notes Replaced with Single Note, December 2008 [Member]
|
Jun. 30, 2011
Note Receivable, Forbearance Agreement [Member]
Share Retured as Payment, October and November 2010 [Member]
|
Jun. 30, 2011
Note Receivable, Forbearance Agreement [Member]
Shares Returned as Payment, November 2010 [Member]
|
Jun. 30, 2010
Note Receivable, Forbearance Agreement [Member]
|
Jun. 30, 2012
Note Receivable Settlement, November 2011 [Member]
|
Jun. 30, 2007
Exercise of Options, June 2007 [Member]
|
|
NOTE 6 - NOTE RECEIVABLE (Details) [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) | 200,000 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Option Exercise Price (in Dollars per share) | $ 4.00 | ||||||||
Proceeds from Stock Options Exercised | $ 0 | $ 51,000 | $ 200,000 | ||||||
Number of Notes Receivable Issued for Exercise of Options | 2 | ||||||||
Notes Receivable, Face Amount | 300,000 | 439,502 | |||||||
Notes Receivable, Payment Terms | equal annual installments over a 3 year period | payable in four (4) equal installments | payment of unpaid interest plus monthly installments of $7,500 through October 2010 with a balance payment of $27,500 plus accrued interest due on November 1, 2010 which has been received | interest-only monthly installment payments beginning January 1, 2011 and five annual principal payments of approximately $69,000 due beginning December 1, 2011 | |||||
Notes Receivable, Stated Interest Rate | 8.50% | 4.50% | |||||||
Common Stock Returned as Payment of Note Receivable (in Shares) | 20,000 | 80,000 | |||||||
Proceeds from Collection of Notes Receivable | 0 | 100,000 | 100,000 | ||||||
Proceeds from Interest Received | 1,287 | ||||||||
Financing Receivable, Net | $ 343,238 |