Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2019 | Feb. 14, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SmartMetric, Inc. | |
Entity Central Index Key | 0001301991 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Interactive Data Current | No | |
Entity File Number | 000-54853 | |
Entity Incorporation State Country Code | NV | |
Entity Common Stock, Shares Outstanding | 312,936,217 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Current assets: | ||
Cash | $ 53,473 | $ 10,161 |
Prepaid expenses and other current assets | 13,017 | 6,450 |
Total current assets | 66,490 | 16,611 |
Total assets | 66,490 | 16,611 |
Current liabilities: | ||
Accounts payable and accrued expenses | 891,398 | 884,140 |
Liability for stock to be issued | 189,538 | 147,484 |
Deferred Officer's salary | 790,015 | 790,015 |
Related party interest payable | 121,138 | 93,488 |
Dividends payable | 4,374 | 3,123 |
Due to shareholders | 41,343 | |
Shareholder loan | 9,819 | 3,759 |
Total current liabilities | 2,047,625 | 1,922,009 |
Commitments and Contingencies (Note 4) | ||
Series C mandatory redeemable convertible preferred stock, net of discount, authorized 1,000,000 shares 106,800 and 121,700 shares issued and outstanding, respectively | 86,564 | 99,278 |
Stockholders' deficit: | ||
Preferred stock, $.001 par value; 5,000,000 shares authorized, 610,000 and 610,000 shares issued and outstanding | 610 | 610 |
Common stock, $.001 par value; 600,000,000 and 300,000,000 shares authorized, 281,965,822 and 264,648,821 shares issued and outstanding , respectively | 281,966 | 264,649 |
Additional paid-in capital | 25,051,083 | 24,663,528 |
Accumulated deficit | (27,401,358) | (26,933,463) |
Total stockholders' deficit | (2,067,699) | (2,004,676) |
Total liabilities and stockholders' deficit | $ 66,490 | $ 16,611 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Jun. 30, 2019 |
Preferred stock, par value | $ .001 | $ .001 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 610,000 | 610,000 |
Preferred stock, outstanding | 610,000 | 610,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 600,000,000 | 300,000,000 |
Common stock, issued | 281,965,822 | 264,648,821 |
Common stock, outstanding | 281,965,822 | 264,648,821 |
Series C mandatory redeemable convertible preferred stock | ||
Preferred stock, authorized | 1,000,000 | 1,000,000 |
Preferred stock, issued | 106,800 | 121,700 |
Preferred stock, outstanding | 106,800 | 121,700 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||
Revenues | ||||
Expenses: | ||||
Officer's salary | 47,500 | 47,500 | 95,000 | 95,000 |
Other general and administrative | 149,719 | 124,157 | 282,578 | 248,161 |
Research and development | 25,594 | 21,775 | 46,706 | 51,135 |
Total operating expenses | 222,813 | 193,432 | 424,284 | 394,296 |
Loss from operations before other expense | (222,813) | (193,432) | (424,284) | (394,296) |
Other expense | ||||
Interest expense | (13,825) | (13,358) | (27,651) | (25,820) |
Total other expense | (13,825) | (13,358) | (27,651) | (25,820) |
Loss before income taxes | (236,638) | (206,790) | (451,935) | (420,116) |
Provision for income taxes | ||||
Net loss | (236,638) | (206,790) | (451,935) | (420,116) |
Preferred stock dividends | (4,238) | (15,963) | ||
Net loss available for common stockholders | $ (240,876) | $ (206,790) | $ (467,898) | $ (420,116) |
Net loss per share, basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average number of common shares outstanding, basic and diluted | 278,034,075 | 254,804,287 | 275,362,668 | 252,521,874 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes In Stockholders' (Deficit) (Unaudited) - USD ($) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at Jun. 30, 2018 | $ 249,148 | $ 24,217,831 | $ (25,996,910) | $ (1,529,321) | |
Balance, Shares at Jun. 30, 2018 | 249,147,547 | ||||
Shares issued of common stock and warrants for cash | $ 5,503 | 210,667 | 216,170 | ||
Shares issued of common stock and warrants for cash, shares | 5,502,538 | ||||
Net loss for the period | (213,827) | (213,827) | |||
Balance at Sep. 30, 2018 | $ 254,651 | 24,428,498 | (26,210,237) | (1,526,479) | |
Balance, shares at Sep. 30, 2018 | 254,650,085 | ||||
Balance at Jun. 30, 2018 | $ 249,148 | 24,217,831 | (25,996,910) | (1,529,321) | |
Balance, Shares at Jun. 30, 2018 | 249,147,547 | ||||
Net loss for the period | (260,270) | ||||
Balance at Dec. 31, 2018 | $ 256,678 | 24,479,000 | (26,417,027) | (1,680,740) | |
Balance, shares at Dec. 31, 2018 | 256,676,745 | ||||
Balance at Sep. 30, 2018 | $ 254,651 | 24,428,498 | (26,210,237) | (1,526,479) | |
Balance, Shares at Sep. 30, 2018 | 254,650,085 | ||||
Shares issued of common stock and warrants for cash | $ 2,027 | 59,973 | 62,000 | ||
Shares issued of common stock and warrants for cash, shares | 2,026,660 | ||||
Net loss available for common shareholders | (206,790) | ||||
Apic Adjustment | (9,471) | (9,471) | |||
Net loss for the period | (206,790) | (206,790) | |||
Balance at Dec. 31, 2018 | $ 256,678 | 24,479,000 | (26,417,027) | (1,680,740) | |
Balance, shares at Dec. 31, 2018 | 256,676,745 | ||||
Balance at Jun. 30, 2019 | $ 610 | $ 264,649 | 24,663,528 | (26,933,461) | (2,004,676) |
Balance, Shares at Jun. 30, 2019 | 610,000 | 264,648,821 | |||
Shares issued of common stock and warrants for cash | $ 7,992 | 218,008 | 226,000 | ||
Shares issued of common stock and warrants for cash, shares | 7,991,662 | ||||
Shares converted from Preferred shares | $ 3,224 | 63,289 | 66,513 | ||
Shares converted from Preferred shares, shares | 3,224,643 | ||||
Preferred Dividends | (11,725) | (11,725) | |||
Net loss available for common shareholders | (215,296) | (215,296) | |||
Balance at Sep. 30, 2019 | $ 610 | $ 275,865 | 24,944,825 | (27,160,482) | (1,939,182) |
Balance, shares at Sep. 30, 2019 | 610,000 | 275,865,126 | |||
Balance at Jun. 30, 2019 | $ 610 | $ 264,649 | 24,663,528 | (26,933,461) | (2,004,676) |
Balance, Shares at Jun. 30, 2019 | 610,000 | 264,648,821 | |||
Net loss for the period | (451,935) | ||||
Balance at Dec. 31, 2019 | $ 610 | $ 281,966 | 25,051,083 | (27,401,358) | (2,067,699) |
Balance, shares at Dec. 31, 2019 | 610,000 | 281,965,822 | |||
Balance at Sep. 30, 2019 | $ 610 | $ 275,865 | 24,944,825 | (27,160,482) | (1,939,182) |
Balance, Shares at Sep. 30, 2019 | 610,000 | 275,865,126 | |||
Shares issued of common stock and warrants for cash | $ 3,730 | 77,720 | 81,450 | ||
Shares issued of common stock and warrants for cash, shares | 3,730,000 | ||||
Shares converted from Preferred shares | $ 2,371 | 28,538 | 30,909 | ||
Shares converted from Preferred shares, shares | 2,370,696 | ||||
Preferred Dividends | (4,238) | (4,238) | |||
Net loss available for common shareholders | (236,638) | (240,876) | |||
Net loss for the period | (236,638) | ||||
Balance at Dec. 31, 2019 | $ 610 | $ 281,966 | $ 25,051,083 | $ (27,401,358) | $ (2,067,699) |
Balance, shares at Dec. 31, 2019 | 610,000 | 281,965,822 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (451,935) | $ (260,270) |
Changes in assets and liabilities | ||
Increase in prepaid expenses and other current assets | (6,567) | 4,750 |
Increase (decrease) in accounts payable and accrued expenses | 7,258 | 38,529 |
Increase in deferred officer salary | 95,000 | |
Increase in credit card debt | 1,313 | |
Increase in due to shareholder | 41,343 | |
Increase in accrued interest payable | 27,650 | 25,821 |
Net cash used in operating activities | (382,251) | (94,857) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Loans from related parties | 6,060 | 3,520 |
Proceeds from sale of common stock | 349,504 | 251,829 |
Proceeds from sale of Series C Preferred stock | 70,000 | |
Net cash provided by financing activities | 425,564 | 255,349 |
NET INCREASE IN CASH | 43,312 | 160,492 |
CASH, BEGINNING OF PERIOD | 10,161 | 4,427 |
CASH, END OF PERIOD | 53,473 | 164,919 |
CASH PAID DURING THE PERIOD FOR: | ||
Income taxes | ||
Interest | ||
Non-cash financing and investing activities | ||
Conversion of 104,000 Preferred C shares into 5,595,339 shares of Common stock | $ 93,906 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Parenthetical) | 6 Months Ended |
Dec. 31, 2019shares | |
Common Stock [Member] | |
Conversion of shares | 5,595,339 |
Series C Preferred Shares [Member] | |
Conversion of shares | 104,000 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | NOTE 1 ORGANIZATION AND BASIS OF PRESENTATION SmartMetric, Inc. (“SmartMetric” or the “Company”) was incorporated pursuant to the laws of Nevada on December 18, 2002. SmartMetric is a company engaged in the technology industry. SmartMetric’s main products are a fingerprint sensor activated payments card and a security card with a finger sensor and fully functional fingerprint reader embedded inside the card. The SmartMetric biometric cards have a rechargeable battery allowing for portable biometric identification and card activation. This card is referred to as a biometric card or the SmartMetric Biometric Card. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management of the Company, the accompanying unaudited financial statements contain all the adjustments (which are of a normal recurring nature) necessary for a fair presentation. Operating results for the six months ended December 31, 2019 are not necessarily indicative of the results that may be expected for the year ending June 30, 2020. For further information, refer to the financial statements and the footnotes thereto contained in the Company’s Annual Report on Form 10-K for the year ended June 30, 2019, as filed with the Securities and Exchange Commission on September 30, 2019. The condensed consolidated balance sheet as of June 30, 2019, has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by US GAAP for complete financial statements. Going Concern As shown in the accompanying condensed consolidated financial statements the Company has sustained recurring losses of $451,935 and $420,116 for the six months ended December 31, 2019 and 2018, respectively, and has an accumulated deficit of $27,401,358 at December 31, 2019. There are no assurances that the Company will be able to achieve the level of revenues adequate to generate sufficient cash flow from operations to support the Company’s working capital requirements. To the extent that funds generated are insufficient, the Company will have to raise additional working capital. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company. If adequate working capital is not available, the Company may not continue its operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date of this filing. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Management believes that the Company’s capital requirements will depend on many factors. These factors include product marketing and distribution. The management plans include equity sales and borrowing in order to fund the operations. Principles of Consolidation The condensed consolidated financial statements do not include any adjustments relating to the carrying amounts of recorded assets or the carrying amounts and classification of recorded liabilities that may be required should the Company be unable to continue as a going concern. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, SmartMetric Australia Pty. Ltd. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures. Actual results may differ from those estimates. Research and Development Research and development costs are charged to expense as incurred. Our research and development expenses consist primarily of expenditures for electronics design and engineering, software design and engineering, component sourcing, component engineering, manufacturing, product trials, compensation and consulting costs. Recent Accounting Pronouncements The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow except as noted below. In February 2016, the FASB issued authoritative guidance, which is included in ASC 842, “Leases.” This guidance requires lessees to recognize most leases on the balance sheet by recording a right-of-use asset and a lease liability. The Company has made the decision to adopt this guidance early, making it effective for the Company as of March 1, 2019. Based on the completed analysis, the Company has determined the adjustment will not have a material impact on the financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which aligns accounting for share-based payments issued to nonemployees to that of employees under the existing guidance of Topic 718, with certain exceptions. This update supersedes previous guidance for equity-based payments to nonemployees under Subtopic 505-50, Equity—Equity-Based Payments to Non-Employees. This guidance is effective for the Company as of March 1, 2019. Based on the completed analysis, the Company has determined the adjustment will not have a material impact on the financial statements. Loss Per Share of Common Stock In accordance with FASB ASC 260, “Earnings Per Share,” the basic loss per share is computed by dividing the loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Basic net loss per share excludes the dilutive effect of stock options or warrants and convertible notes. Diluted net earnings (loss) per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents, consisting of shares that might be issued upon exercise of common stock options and warrants. In periods where losses are reported, the weighted-average number of common shares outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive. As of December 31, 2019 and 2018, 28,153,406 and 20,257,155 dilutive shares were excluded from the calculation of diluted loss per common share, with all dilutive shares being Common stock warrants. Stock-Based Compensation The Company measures expense for issuances of stock-based compensation to employees and others at fair value of the stock and warrants issued, as this is more reliable than the fair value of the services received complete. The fair value of the equity instrument is charged directly to compensation expense and additional paid-in capital. Reclassifications Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. |
Prepaid Expenses
Prepaid Expenses | 6 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES | NOTE 3 PREPAID EXPENSES Prepaid expenses represent the unexpired terms of various consulting agreements as well as advance rental payments. The Company does not currently have any prepaid items related to shares issue for services. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 4 - COMMITMENTS AND CONTINGENCIES Lease Agreement The Company's main office is located in Las Vegas, Nevada. Rent expense under all leases for the six months ended December 31, 2019 and 2018 was $2,303 and $7,277 respectively. The Company maintains only one office. This office is located in Las Vegas, NV and is a month-to-month lease. Related Party Transactions The Company's Chief Executive Officer has made cash advances to the Company with an aggregate amount due of $9,819 and $3,759 at December 31, 2019 and June 30, 2019, respectively. These advances bear interest at the rate of five percent (5%) per annum. The Company has accrued the amounts of $790,015 and $790,015 at December 31, 2019 and June 30, 2019, respectively, as deferred officer's salary, for the difference between the Chief Executive Officer's annual salary and the amounts paid. On September 11, 2017, we received a license to certain patents from Chaya Hendrick, our founder and CEO, related to our technologies until the expiration of the patents. As consideration, we issued Chaya Hendrick, or her assigns, (i) 200,000 shares of Series B Convertible Preferred Stock, (ii) a royalty equal to 5% of gross revenues derived from products sold related to the patents, and (iii) certain minimum required payments beginning at $50,000 and doubling each year thereafter. The Series B Preferred Shares may be converted at the election of holder on a basis for 50 common shares for each preferred share at any time or an aggregate of 10,000,000 common shares in exchange for all 200,000 preferred shares. |
Stockholders' Deficit
Stockholders' Deficit | 6 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' DEFICIT | NOTE 5 STOCKHOLDERS' DEFICIT Preferred Stock As of December 31, 2019, the Company has 5,000,000 shares of Class B preferred stock, par value $0.001, authorized and 610,000 shares issued and outstanding. On December 11, 2009, the Company filed a Certificate of Designation with the State of Nevada, to designate 500,000 shares of preferred stock as Series B Convertible Preferred Stock ("Series B Convertible Preferred Stock"). Effective November 5, 2014, the number of shares designated as Series B Convertible Preferred Stock was increased to 5,000,000 shares. Each share of Series B Convertible Preferred Stock has a par value of $0.001, and a stated value equal to $5.00 ("Stated Value"). Holders of the Series B Convertible Preferred Stock are entitled to receive dividends or other distributions with the holders of the common stock of the Company on an as converted basis when, as, and if declared by the directors of the Company. Holders of the Series B Convertible Preferred Stock are entitled to convert each share of the Series B Convertible Preferred Stock into fifty (50) shares of common stock. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, holders of the Series B Convertible Preferred Stock are entitled to receive out of the assets, whether capital or surplus, of the Company an amount equal to the Stated Value, pro rata with the holders of the common stock. Class A Common Stock As of December 31, 2019, the Company has 50,000,000 shares of Class A common stock, par value $0.001, authorized and no shares issued and outstanding. In October 2003, the Company issued 50,000,000 shares of Class A common stock at par value ($50,000). These shares were converted into 50,000,000 shares of common stock in 2006. Common Stock The Company was incorporated on December 18, 2002, with 45,000,000 shares of Common Stock, par value $0.001, authorized. The Articles of Incorporation were amended in 2006 to increase the number of authorized shares to 100,000,000 shares, and in 2009 to increase the number of authorized shares to 200,000,000. As a result of a screener's error, the Company previously disclosed in its Quarterly Report on Form 10-Q for the quarters ended September 30, 2015 and December 31, 2015 that it increased the number of authorized shares of common stock to 300,000,000. On March 31, 2016, our Board of Directors ("The Board") approved an amendment (the "Amendment") to the Company's Articles of Incorporation to increase the total number of shares of authorized capital stock to 305,000,000 shares, par value $0.001 per share, consisting of (i) 300,000,000 shares of Common Stock, up from 200,000,000 shares of Common Stock, and (ii) 5,000,000 shares of Preferred Stock, subject to shareholder approval (the "Proposal"). On March 31, 2016, a majority of the Company's stockholders approved the Amendment. The Company filed a definitive information statement on Schedule 14C with the Securities and Exchange Commission on May 4, 2016 (the "Information Statement"). The Information Statement was furnished to all of the Company's shareholders for the purpose of informing them of the action taken by a majority of the Company's stockholders. During the three month period ending December 31, 2019, the Company increased its total number of shares of authorized capital stock to 600,000,000 shares, par value $0.001 per share. As of December 31, 2019, the Company has 281,965,822 shares of common stock issued and outstanding. ● During the three months ended September 30, 2019, the Company sold for cash 6,337,500 shares of common stock and warrants to purchase: (i) 6,337,500 shares at prices ranging from $0.10 per share to $0.25 per share for net proceeds of $133,495. The warrants expire at various times through September 17, 2021. None of these shares were issued during the quarter ended September 30, 2019, with all 6,337,500 shares being recorded as stock payable. During the three months ended September 30, 2019, the Company issued 11,216,305 shares for cash. Of these shares, 7,991,662 shares were issued from stock payable. There were 52,800 Preferred C shares issued for net proceeds of $45,000 and 70,000 Preferred C shares converted to 3,224,643 Common shares for the three month period ended September 30, 2019 ● During the three months ended December 31, 2019, the Company sold for cash 40,675,000 shares of common stock and warrants to purchase: (i) 825,000 shares at prices ranging from $0.20 per share to $0.25 per share for net proceeds of $214,510. The warrants expire at various times through November 1, 2021. None of these shares were issued during the quarter ended December 31, 2019, with all 40,675,000 shares being recorded as stock payable. During the three months ended December 31, 2019, the Company issued 3,730,000 shares for cash. Of these shares, all of these were issued from stock liability. There were 36,300 Preferred C shares issued for net proceeds of $25,000 and 34,000 Preferred C shares converted to 2,370,696 Common shares for the three month period ended December 31, 2019. Warrants From time to time the Company granted warrants in connection with private placements of securities, as described herein. As of December 31, 2019, and June 30, 2019, the following is a breakdown of the warrant activity: Range of Exercise Prices Number of Weighted-Average Weighted- Number Weighted- Warrants Outstanding and Exercisable at December 31, 2019: $0.05 - $1.00 28,153,406 1.27 $ 0.28 28,153,406 $ 0.28 Warrants Outstanding and Exercisable at June 30, 2019: $0.20 - $1.00 26,526,234 1.12 $ 0.34 26,526,234 $ 0.34 Warrant Activity: December 31, 2019: Outstanding - June 30, 2019 26,526,234 Issued 7,162,500 Exercised — Expired (5,535,328 ) Outstanding - December 31, 2019 28,153,406 June 30, 2019: Outstanding - June 30, 2018 14,842,583 Issued 18,738,235 Exercised — Expired (7,054,584 ) Outstanding - June 30, 2019 26,526,234 At December 31, 2019, all of the 28,153,406 warrants are vested and (i) 27,853,406 warrants expire at various times prior to November 1, 2021, (ii) 300,000 warrants expire in July 2020, |
Mandatory Redeemable Convertibl
Mandatory Redeemable Convertible Preferred Stock | 6 Months Ended |
Dec. 31, 2019 | |
Mandatory Redeemable Convertible Preferred Stock [Abstract] | |
MANDATORY REDEEMABLE CONVERTIBLE PREFERRED STOCK | NOTE 6 MANDATORY REDEEMABLE CONVERTIBLE PREFERRED STOCK Issuances of Series C Mandatory Redeemable Convertible Preferred Stock On January 10, 2019, the Board of Directors of the Company adopted a resolution pursuant to the Company's Certificate of Incorporation, as amended, providing for the designations, preferences and relative, participating, optional and other rights, and the qualifications, limitations and restrictions, of the Series C Convertible Preferred Stock. On January 14, 2019, the Company filed a Certificate of Designations for a Series C Convertible Preferred Stock. The authorized number of Series C Convertible Preferred Stock is 1,000,000 shares, par value 0.001. The Series C Preferred Stock will, with respect to dividend rights and rights upon liquidation, winding-up or dissolution, rank: (a) senior with respect to dividends and right of The number of Series C, mandatory redeemable convertible preferred stock shares issued and outstanding were 106,800 and 121,700, respectively, for December 31, 2019 and June 30, 2019. The Holder shall have the right at any time during the period beginning on the date which is six (6) months following the Issuance Date, to convert all or any part of the outstanding Series C Preferred Stock into fully paid and non-assessable shares of Common Stock at the Variable Conversion Price. The "Variable Conversion Price" shall mean 71% multiplied by the Market Price (representing a discount rate of 29%). "Market Price" means the average of the two (2) lowest Trading Prices (as defined here) for the Common Stock during the fifteen (15) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. On the date which is eighteen (18) months following the Issuance Date or upon the occurrence of an Event of Default (the "Mandatory Redemption Date"), the Company shall redeem all of the shares of Series C Preferred Stock of the Holder (which have not been previously redeemed or converted). With five (5) days of the Mandatory Redemption Date, the Company shall make payment to each Holder of an amount in cash equal to the total number of shares of Series C Preferred Stock held by such Holder multiplied by the then current Stated Value. All shares of mandatorily redeemable convertible preferred stock have been presented outside of permanent equity in accordance with ASC 480, Classification and Measurement of Redeemable Securities The estimated fair value of the Series C mandatory redeemable convertible preferred stock at December 31, 2019 and 2018 was $86,568 and $0, respectively. There were 36,300 Preferred C shares issued for net proceeds of $25,000 and 34,000 Preferred C shares converted to 2,370,696 Common shares for the three month period ended December 31, 2019. For the six month period ended December 31, 2019, there were 89,100 Preferred C shares issued for net proceeds of $70,000 and 104,000 Preferred C shares converted to 5,595,339 Common shares. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 7 INCOME TAXES The Company provides for income taxes at the end of each interim period based on the estimated effective tax rate for the full fiscal year. Cumulative adjustments to the Company's estimate are recorded in the interim period in which a change in the estimated annual effective rate is determined. The Company has estimated its effective tax rate to be 0%, based primarily on losses incurred and the uncertainty of realization of the tax benefit of such losses. |
Litigation
Litigation | 6 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION | NOTE 8 LITIGATION From time to time we may be a defendant or plaintiff in various legal proceedings arising in the normal course of our business. As of the date of this Quarterly Report, there are no material pending legal or governmental proceedings relating to us or properties to which we are a party, and, to our knowledge, there are no material proceedings to which any of our directors, executive officers or affiliates are a party adverse to us or which have a material interest adverse to us. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 9 SUBSEQUENT EVENTS In accordance with ASC 855-10, the Company has analyzed its operations subsequent to December 31, 2019 to the date these financial statements were issued. On January 16, 2020, the Company converted 17,700 preferred shares into 2,445,395 common shares. The Company issued 28,525,000 shares for cash for $570,500. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures. Actual results may differ from those estimates. |
Research and Development | Research and Development Research and development costs are charged to expense as incurred. Our research and development expenses consist primarily of expenditures for electronics design and engineering, software design and engineering, component sourcing, component engineering, manufacturing, product trials, compensation and consulting costs. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow except as noted below. In February 2016, the FASB issued authoritative guidance, which is included in ASC 842, “Leases.” This guidance requires lessees to recognize most leases on the balance sheet by recording a right-of-use asset and a lease liability. The Company has made the decision to adopt this guidance early, making it effective for the Company as of March 1, 2019. Based on the completed analysis, the Company has determined the adjustment will not have a material impact on the financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which aligns accounting for share-based payments issued to nonemployees to that of employees under the existing guidance of Topic 718, with certain exceptions. This update supersedes previous guidance for equity-based payments to nonemployees under Subtopic 505-50, Equity—Equity-Based Payments to Non-Employees. This guidance is effective for the Company as of March 1, 2019. Based on the completed analysis, the Company has determined the adjustment will not have a material impact on the financial statements. |
Loss Per Share of Common Stock | Loss Per Share of Common Stock In accordance with FASB ASC 260, “Earnings Per Share,” the basic loss per share is computed by dividing the loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Basic net loss per share excludes the dilutive effect of stock options or warrants and convertible notes. Diluted net earnings (loss) per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents, consisting of shares that might be issued upon exercise of common stock options and warrants. In periods where losses are reported, the weighted-average number of common shares outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive. As of December 31, 2019 and 2018, 28,153,406 and 20,257,155 dilutive shares were excluded from the calculation of diluted loss per common share. |
Stock-Based Compensation | Stock-Based Compensation The Company measures expense for issuances of stock-based compensation to employees and others at fair value of the stock and warrants issued, as this is more reliable than the fair value of the services received complete. The fair value of the equity instrument is charged directly to compensation expense and additional paid-in capital. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of share based compensation warrant activity | Range of Exercise Prices Number of Weighted-Average Weighted- Number Weighted- Warrants Outstanding and Exercisable at December 31, 2019: $0.05 - $1.00 28,153,406 1.27 $ 0.28 28,153,406 $ 0.28 Warrants Outstanding and Exercisable at June 30, 2019: $0.20 - $1.00 26,526,234 1.12 $ 0.34 26,526,234 $ 0.34 Warrant Activity: December 31, 2019: Outstanding - June 30, 2019 26,526,234 Issued 7,162,500 Exercised — Expired (5,535,328 ) Outstanding - December 31, 2019 28,153,406 June 30, 2019: Outstanding - June 30, 2018 14,842,583 Issued 18,738,235 Exercised — Expired (7,054,584 ) Outstanding - June 30, 2019 26,526,234 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Organization and Basis of Presentation (Textual) | |||||
Net loss | $ (236,638) | $ (206,790) | $ (451,935) | $ (420,116) | |
Accumulated deficit | $ (27,401,358) | $ (27,401,358) | $ (26,933,463) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - shares | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies (Textual) | ||
Dilutive shares were excluded from diluted loss per common share | 28,153,406 | 20,257,155 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Sep. 11, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 |
Commitments and Contingencies (Textual) | ||||
Rent expense | $ 2,303 | $ 7,277 | ||
Deferred compensation liability | 790,015 | $ 790,015 | ||
Chief Executive Officer [Member] | ||||
Commitments and Contingencies (Textual) | ||||
Cash advances from related party | $ 9,819 | $ 3,759 | ||
Interest rate | 5.00% | |||
Related party transactions, description | (i) 200,000 shares of Series B Convertible Preferred Stock, (ii) a royalty equal to 5% of gross revenues derived from products sold related to the patents, and (iii) certain minimum required payments beginning at $50,000 and doubling each year thereafter. The Series B Preferred Shares may be converted at the election of holder on a basis for 50 common shares for each preferred share at any time or an aggregate of 10,000,000 common shares in exchange for all 200,000 preferred shares. |
Stockholders' Deficit (Details)
Stockholders' Deficit (Details) - Warrant [Member] - shares | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Abstract] | ||
Outstanding - beginning of year | 14,842,583 | |
Issued | 7,162,500 | 18,738,235 |
Exercised | ||
Expired | (5,535,328) | (7,054,584) |
Outstanding - end of year | 28,153,406 | 26,526,234 |
Stockholders' Deficit (Details
Stockholders' Deficit (Details 1) - Warrant [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Jun. 30, 2019 | |
$0.05 - $1.00 [Member] | ||
Warrants Outstanding and Exercisable at December 31, 2019: | ||
Number of Warrants Outstanding | 28,153,406 | |
Weighted-Average Contractual Life Remining in Years | 1 year 3 months 8 days | |
Weighted-average exercise price | $ 0.28 | |
Number Exercisable | 28,153,406 | |
$0.05 - $1.00 [Member] | Minimum [Member] | ||
Warrants Outstanding and Exercisable at December 31, 2019: | ||
Exercise Price | $ 0.05 | |
$0.05 - $1.00 [Member] | Maximum [Member] | ||
Warrants Outstanding and Exercisable at December 31, 2019: | ||
Exercise Price | $ 1 | |
$0.20 - $1.00 [Member] | ||
Warrants Outstanding and Exercisable at December 31, 2019: | ||
Number of Warrants Outstanding | 26,526,234 | |
Weighted-Average Contractual Life Remining in Years | 1 year 1 month 13 days | |
Weighted-average exercise price | $ 0.34 | |
Number Exercisable | 26,526,234 | |
$0.20 - $1.00 [Member] | Minimum [Member] | ||
Warrants Outstanding and Exercisable at December 31, 2019: | ||
Exercise Price | $ 0.20 | |
$0.20 - $1.00 [Member] | Maximum [Member] | ||
Warrants Outstanding and Exercisable at December 31, 2019: | ||
Exercise Price | $ 1 |
Stockholders' Deficit (Detail_2
Stockholders' Deficit (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Oct. 31, 2003 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | Nov. 05, 2014 | Dec. 11, 2009 | Jun. 30, 2006 | |
Stockholders' Deficit (Textual) | |||||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | ||||||
Preferred stock, par value | $ .001 | $ .001 | $ .001 | ||||||
Preferred stock, shares issued | 610,000 | 610,000 | 610,000 | ||||||
Preferred stock, shares outstanding | 610,000 | 610,000 | 610,000 | ||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Common stock, shares authorized | 600,000,000 | 600,000,000 | 300,000,000 | ||||||
Common stock, shares issued | 281,965,822 | 281,965,822 | 264,648,821 | ||||||
Common stock, shares outstanding | 281,965,822 | 281,965,822 | 264,648,821 | ||||||
Shares were converted into shares of common stock | 50,000,000 | ||||||||
Number of shares of authorized capital stock | 50,000,000 | ||||||||
Shares of common stock sold for cash | 40,675,000 | 6,337,500 | |||||||
Common stock for net proceeds | $ 251,829 | $ 446,072 | $ 349,504 | $ 251,829 | |||||
Warrants to purchase shares, description | The Company sold for cash 40,675,000 shares of common stock and warrants to purchase: (i) 825,000 shares at prices ranging from $0.20 per share to $0.25 per share for net proceeds of $214,510. The warrants expire at various times through November 1, 2021. None of these shares were issued during the quarter ended December 31, 2019, with all 40,675,000 shares being recorded as stock payable. During the three months ended December 31, 2019, the Company issued 3,730,000 shares for cash. Of these shares, all of these were issued from stock liability. There were 36,300 Preferred C shares issued for net proceeds of $25,000 and 34,000 Preferred C shares converted to 2,370,696 Common shares for the three month period ended December 31, 2019. | The Company sold for cash 6,337,500 shares of common stock and warrants to purchase: (i) 6,337,500 shares at prices ranging from $0.10 per share to $0.25 per share for net proceeds of $133,495. The warrants expire at various times through September 17, 2021. None of these shares were issued during the quarter ended September 30, 2019, with all 6,337,500 shares being recorded as stock payable. During the three months ended September 30, 2019, the Company issued 11,216,305 shares for cash. Of these shares, 7,991,662 shares were issued from stock payable. There were 52,800 Preferred C shares issued for net proceeds of $45,000 and 70,000 Preferred C shares converted to 3,224,643 Common shares for the three month period ended September 30, 2019 | |||||||
Warrant [Member] | |||||||||
Stockholders' Deficit (Textual) | |||||||||
Number of warrants vested | 28,153,406 | ||||||||
Warrants expire | Nov. 1, 2021 | Nov. 1, 2021 | |||||||
Number of warrants | $ 27,853,406 | $ 27,853,406 | |||||||
Warrant One [Member] | |||||||||
Stockholders' Deficit (Textual) | |||||||||
Warrants expire | Jul. 31, 2020 | Jul. 31, 2020 | |||||||
Number of warrants | $ 300,000 | $ 300,000 | |||||||
Series C Convertible Preferred Stock [Member] | |||||||||
Stockholders' Deficit (Textual) | |||||||||
Designate share of preferred stock | 1,000,000 | 1,000,000 | |||||||
Convertible preferred stock | 500,000 | 500,000 | |||||||
Class B preferred stock [Member] | |||||||||
Stockholders' Deficit (Textual) | |||||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||||||
Preferred stock, shares issued | 610,000 | 610,000 | |||||||
Preferred stock, shares outstanding | 610,000 | 610,000 | |||||||
Preferred designate shares | 500,000 | ||||||||
Class A Common Stock | |||||||||
Stockholders' Deficit (Textual) | |||||||||
Common stock, par value | $ 0.001 | $ 0.001 | |||||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | |||||||
Common stock, shares issued | |||||||||
Common stock, shares outstanding | |||||||||
Common Stock [Member] | |||||||||
Stockholders' Deficit (Textual) | |||||||||
Common stock, par value | $ 0.001 | $ 0.001 | |||||||
Common stock, shares authorized | 45,000,000 | 45,000,000 | |||||||
Authorized Common stock, description | The Articles of Incorporation were amended in 2006 to increase the number of authorized shares to 100,000,000 shares, and in 2009 to increase the number of authorized shares to 200,000,000. As a result of a screener's error, the Company previously disclosed in its Quarterly Report on Form 10-Q for the quarters ended September 30, 2015 and December 31, 2015 that it increased the number of authorized shares of common stock to 300,000,000. On March 31, 2016, our Board of Directors ("The Board") approved an amendment (the "Amendment") to the Company's Articles of Incorporation to increase the total number of shares of authorized capital stock to 305,000,000 shares, par value $0.001 per share, consisting of (i) 300,000,000 shares of Common Stock, up from 200,000,000 shares of Common Stock, and (ii) 5,000,000 shares of Preferred Stock, subject to shareholder approval (the "Proposal"). On March 31, 2016, a majority of the Company's stockholders approved the Amendment. | ||||||||
Series B Convertible Preferred Stock [Member] | |||||||||
Stockholders' Deficit (Textual) | |||||||||
Convertible preferred stock | 5,000,000 |
Mandatory Redeemable Converti_2
Mandatory Redeemable Convertible Preferred Stock (Details) - USD ($) | Jan. 14, 2019 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Preferred stock, authorized | 5,000,000 | 5,000,000 | ||
Preferred stock, par value | $ .001 | $ .001 | ||
Preferred stock shares issued | 610,000 | 610,000 | ||
Preferred stock shares outstanding | 610,000 | 610,000 | ||
Series C mandatory redeemable convertible preferred stock [Member] | ||||
Fair value of convertible preferred stock | $ 86,568 | $ 0 | ||
Preferred stock, authorized | 1,000,000 | |||
Preferred stock, par value | $ 0.001 | |||
Dividend percent | 10.00% | |||
Description of conversion of stock | The Holder shall have the right at any time during the period beginning on the date which is six (6) months following the Issuance Date, to convert all or any part of the outstanding Series C Preferred Stock into fully paid and non-assessable shares of Common Stock at the Variable Conversion Price. The “Variable Conversion Price” shall mean 71% multiplied by the Market Price (representing a discount rate of 29%). “Market Price” means the average of the two (2) lowest Trading Prices (as defined here) for the Common Stock during the fifteen (15) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. | |||
Preferred stock shares issued | 106,800 | 121,700 | ||
Preferred stock shares outstanding | 106,800 | 121,700 | ||
Preferred shares, description | There were 36,300 Preferred C shares issued for net proceeds of $25,000 and 34,000 Preferred C shares converted to 2,370,696 Common shares for the three month period ended December 31, 2019. For the six month period ended December 31, 2019, there were 89,100 Preferred C shares issued for net proceeds of $70,000 and 104,000 Preferred C shares converted to 5,595,339 Common shares. | |||
Series C mandatory redeemable convertible preferred stock [Member] | Minimum [Member] | ||||
Dividend percent | 105.00% | |||
Series C mandatory redeemable convertible preferred stock [Member] | Maximum [Member] | ||||
Dividend percent | 130.00% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 1 Months Ended | |||
Jan. 16, 2020 | Jan. 21, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Subsequent Event (Textual) | ||||
Shares of common stock issued | 281,965,822 | 264,648,821 | ||
Common stock par value | $ 0.001 | $ 0.001 | ||
Subsequent Event [Member] | ||||
Subsequent Event (Textual) | ||||
Shares of common stock issued | 28,525,000 | |||
Shares of preferred shares converted into common stock | 17,700 | |||
Shares of common shares converted into common stock | 2,445,395 | |||
Issued cash | $ 570,500 | |||
Issued shares | 28,525,000 |