Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2018 | Jan. 31, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | VERITEC INC | |
Entity Central Index Key | 773,318 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Is Entity's Reporting Status Current? | No | |
Entity Filer Category | Non-accelerated Filer | |
Is Entity Small Business? | true | |
Is Entity Emerging Growth Company? | false | |
Entity Common Stock, Shares Outstanding | 39,538,007 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,019 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 |
Current Assets: | ||
Cash | $ 100,082 | $ 139,086 |
Accounts receivable | 8,767 | 7,071 |
Prepaid expenses | 5,391 | 5,328 |
Total Assets | 114,240 | 151,485 |
Current Liabilities: | ||
Accounts payable | 717,431 | 671,197 |
Accounts payable, related party | 96,110 | 96,110 |
Accrued expenses | 80,463 | 63,507 |
Convertible notes and notes payable – party (includes $576,929 and $563,826 of convertible notes and notes payable in default) | 615,730 | 602,261 |
Convertible notes and notes payable, related party (includes $272,728 and $265,729 of notes payable, related party in default) | 3,320,266 | 2,994,599 |
Deferred revenues | 15,000 | 30,000 |
Total Current Liabilities | 4,845,000 | 4,457,674 |
Contingent earnout liability | 155,000 | 155,000 |
Total Liabilities | 5,000,000 | 4,612,674 |
Stockholders' Deficiency: | ||
Convertible preferred stock, par value $1.00; authorized 10,000,000 shares, 276,000 shares of Series H authorized, 1,000 shares issued and outstanding | 1,000 | 1,000 |
Common stock, par value $.01; authorized 150,000,000 shares and 50,000,000 shares, respectively; 39,538,007 shares issued and outstanding | 395,380 | 395,380 |
Common stock to be issued, 145,000 shares to be issued as of September 30, 2017 and June 30, 2017, respectively | 12,500 | 12,500 |
Additional paid-in capital | 18,100,148 | 18,099,576 |
Accumulated deficit | (23,394,788) | (22,969,645) |
Total Stockholders' Deficiency | (4,885,760) | (4,461,189) |
Total Liabilities and Stockholders' Deficiency | $ 114,240 | $ 151,485 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 |
Convertible preferred stock, par value | $ 1 | $ 1 |
Convertible preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Convertible preferred stock, shares issued | 1,000 | 1,000 |
Convertible preferred stock, shares outstanding | 1,000 | 1,000 |
Common stock, par value | $ .01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 50,000,000 |
Common stock, shares issued | 39,538,007 | 39,538,007 |
Common stock, shares outstanding | 39,538,007 | 39,538,007 |
Common stock, shares to be issued | 145,000 | 145,000 |
Convertible notes and notes payable, in default | $ 576,929 | $ 563,826 |
Convertible notes and notes payable, related party, in default | $ 272,728 | $ 265,729 |
Series H Convertible | ||
Convertible preferred stock, shares authorized | 276,000 | 276,000 |
Convertible preferred stock, shares issued | 1,000 | 1,000 |
Convertible preferred stock, shares outstanding | 1,000 | 1,000 |
Common stock, par value | $ 1,000 | $ 1,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenue: | |||||
Mobile banking technology revenue | $ 31,490 | $ 30,526 | $ 60,590 | $ 61,117 | |
Other revenue, management fee related party | 50,885 | 93,241 | 92,516 | 173,493 | |
Total revenue | 82,375 | 123,767 | 153,106 | 234,610 | |
Cost of Sales | 55,188 | 52,880 | 118,172 | 107,116 | |
Gross Profit | 27,187 | 70,887 | 34,934 | 127,494 | |
Operating Expenses: | |||||
General and administrative expenses | 135,500 | 149,874 | 313,550 | 313,927 | |
Research and development | 10,780 | 50 | 19,938 | ||
Total Operating Expenses | 135,500 | 160,654 | 313,600 | 333,865 | |
Loss from Operations | (108,313) | (89,767) | (278,666) | (206,371) | |
Other Income (Expense): | |||||
Change in fair value of derivative liabilities | 243,411 | 706,411 | |||
Interest expense | [1] | (74,284) | (60,674) | (146,477) | (117,735) |
Total other income (expense) | (74,284) | 182,737 | (146,477) | 588,676 | |
Net Income (Loss) | $ (182,597) | $ 92,970 | $ (425,143) | $ 382,305 | |
Net Loss Per Common Share - Basic and Diluted | $ 0 | $ 0 | $ (0.01) | $ 0.01 | |
Weighted Average Number of Shares Outstanding - Basic and Diluted | 39,538,007 | 39,538,007 | 39,538,007 | 39,538,007 | |
Interest expense to related parties | $ 67,549 | $ 53,940 | $ 133,007 | $ 104,267 | |
[1] | Includes interest expense to related parties |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Deficiency) (Unaudited) - USD ($) | Preferred Stock | Common Stock | Common Stock to be Issued | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning balance, Shares at Jun. 30, 2017 | 1,000 | 39,538,007 | ||||
Beginning balance, Amount at Jun. 30, 2017 | $ 1,000 | $ 395,380 | $ 12,500 | $ 17,974,576 | $ (22,951,435) | $ (4,567,979) |
Stock-Based Compensation | ||||||
Net Income (Loss) | 382,305 | 382,305 | ||||
Ending balance, Shares at Dec. 31, 2017 | 1,000 | 39,538,007 | ||||
Ending balance, Amount at Dec. 31, 2017 | $ 1,000 | $ 395,380 | 12,500 | 17,974,576 | (22,569,130) | (4,185,674) |
Beginning balance, Shares at Sep. 30, 2017 | 1,000 | 39,538,007 | ||||
Beginning balance, Amount at Sep. 30, 2017 | $ 1,000 | $ 395,380 | 12,500 | (17,974,576) | (22,662,100) | (4,278,644) |
Net Income (Loss) | 92,970 | 92,970 | ||||
Ending balance, Shares at Dec. 31, 2017 | 1,000 | 39,538,007 | ||||
Ending balance, Amount at Dec. 31, 2017 | $ 1,000 | $ 395,380 | 12,500 | 17,974,576 | (22,569,130) | (4,185,674) |
Beginning balance, Shares at Jun. 30, 2018 | 1,000 | 39,538,007 | ||||
Beginning balance, Amount at Jun. 30, 2018 | $ 1,000 | $ 395,380 | 12,500 | 18,099,576 | (22,969,645) | (4,461,189) |
Stock-Based Compensation | 572 | 572 | ||||
Net Income (Loss) | (425,143) | (425,143) | ||||
Ending balance, Shares at Dec. 31, 2018 | 1,000 | 39,538,007 | ||||
Ending balance, Amount at Dec. 31, 2018 | $ 1,000 | $ 395,380 | 12,500 | 18,100,148 | (23,394,788) | (4,885,760) |
Beginning balance, Shares at Sep. 30, 2018 | 1,000 | 39,538,007 | ||||
Beginning balance, Amount at Sep. 30, 2018 | $ 1,000 | $ 395,380 | 12,500 | 18,099,576 | (23,212,191) | (4,703,735) |
Stock-Based Compensation | 572 | 572 | ||||
Net Income (Loss) | (182,597) | (182,597) | ||||
Ending balance, Shares at Dec. 31, 2018 | 1,000 | 39,538,007 | ||||
Ending balance, Amount at Dec. 31, 2018 | $ 1,000 | $ 395,380 | $ 12,500 | $ 18,100,148 | $ (23,394,788) | $ (4,885,760) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income (Loss) | $ (182,597) | $ (425,143) | $ 382,305 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Amortization | 16,042 | ||
Change in fair value of derivative liabilities | (706,411) | ||
Stock-based compensation expense | 572 | 572 | |
Interest accrued on notes payable | 146,546 | 117,734 | |
(Increase) Decrease in: | |||
Accounts receivable | (1,696) | (1,570) | |
Prepaid expenses | (63) | (3,338) | |
(Decrease) Increase in: | |||
Accounts payable | 46,234 | 4,678 | |
Accrued expenses | 16,956 | (8,185) | |
Deferred revenues | (15,000) | (25,002) | |
Net cash used in operating activities | (231,594) | (223,747) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from notes payable, related party | 192,590 | 241,590 | |
Net cash provided by (used in) financing activities | 192,590 | 241,590 | |
NET INCREASE (DECREASE) IN CASH | (39,004) | 17,843 | |
CASH AT BEGINNING OF PERIOD | 139,086 | 46,693 | |
CASH AT END OF PERIOD | $ 100,082 | 100,082 | 64,536 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Interest paid | |||
Taxes Paid |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company Veritec, Inc. (Veritec) was formed in the State of Nevada on September 8, 1982. Veritec’s wholly owned subsidiaries include Veritec Financial Systems, Inc., Tangible Payment Systems, Inc., and Public Bell, Inc. (collectively the “Company”). Nature of Business The Company is currently engaged in the development, marketing, sales and licensing of products and professional services related to mobile banking prepaid debit cards. As a Cardholder Independent Sales Organization, Veritec is able to promote and sell Visa branded card programs. As a Third-Party Servicer, Veritec provides back-end cardholder transaction processing services for Visa branded card programs on behalf of a sponsoring bank. The Company is currently seeking a bank to sponsor its Prepaid Card programs. The Company has a portfolio of five United States and eight foreign patents. In addition, the Company has seven U.S. and twenty-eight foreign pending patent applications. BASIS OF PRESENTATION The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, the Condensed Consolidated Financial Statements do not include all of the information and footnotes required for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the period ended December 31, 2018, are not necessarily indicative of the results that may be expected for the year ending June 30, 2019. The Condensed Consolidated Balance Sheet information as of June 30, 2018 was derived from the Company’s audited Consolidated Financial Statements as of and for the year ended June 30, 2018 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on October 5, 2018. These financial statements should be read in conjunction with that report. The accompanying Condensed Consolidated Financial Statements include the accounts of Veritec and its wholly owned subsidiaries, Veritec Financial Systems, Inc., Tangible Payment Systems, Inc., and Public Bell, Inc. Inter-company transactions and balances were eliminated in consolidation. GOING CONCERN The accompanying Condensed Consolidated Financial Statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. During the six months ended December 31, 2018, the Company incurred a loss from operations of $278,666 and used cash in operating activities of $231,594, and at December 31, 2018, the Company had a working capital deficit of $4,730,760 and a stockholders’ deficiency of $4,885,760. In addition, as of December 31, 2018, the Company is delinquent in payment of $778,554 of its notes payable. These factors, among others, raise substantial doubt about our ability to continue as a going concern within one year of the date that the financial statements are issued. In addition, the Company’s independent registered public accounting firm, in its report on our June 30, 2018 financial statements, has raised substantial doubt about the Company’s ability to continue as a going concern. The Company’s financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company believes it will require additional funds to continue its operations through fiscal 2019 and to continue to develop its existing projects and plans to raise such funds by finding additional investors to purchase the Company’s securities, generating sufficient sales revenue, implementing dramatic cost reductions or any combination thereof. There is no assurance that the Company can be successful in raising such funds, generating the necessary sales or reducing major costs. Further, if the Company is successful in raising such funds from sales of equity securities, the terms of these sales may cause significant dilution to existing holders of common stock. The Condensed Consolidated Financial Statements do not include any adjustments that may result from this uncertainty. Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Those estimates and assumptions include estimates for reserves of uncollectible accounts, analysis of impairments of long lived assets, accruals for potential liabilities, and assumptions used in valuing derivatives and stock-based compensation, and the valuation of deferred taxes. Revenue Recognition Effective July 1, 2018 the Company adopted the Financial Accounting Standards Board's ("FASB") Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606”) which superseded previous revenue recognition guidance. The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying the Company’s performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients. The Company has concluded that the new guidance did not require any significant change to its revenue recognition processes and the implementation of ASC 606 did not have a material impact on the Company’s financial statements. Fair Value of Financial Instruments Fair value measurements adopted by the Company are based on the authoritative guidance provided by the Financial Accounting Standards Board (“FASB”) which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. FASB authoritative guidance establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs, other than the quoted prices in active markets that are observable either directly or indirectly. Level 3 - Unobservable inputs based on the Company's assumptions. The carrying amounts reported in the Condensed Consolidated Balance Sheet for cash and cash equivalents, accounts receivable, and current liabilities, including notes payable and convertible notes, approximate their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. Net Income (Loss) per Common Share Basic earnings (loss) per share are computed by dividing the net income (loss) applicable to Common Stockholders by the weighted average number of shares of Common Stock outstanding during the year. Diluted earnings (loss) per share is computed by dividing the net income (loss) applicable to Common Stockholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method. Potential common shares are excluded from the computation as their effect is antidilutive. For the period ended December 31, 2018 and 2017, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an anti-dilutive effect. At December 31, 2017, the Company’s Series H Preferred Stock, Convertible Notes Payable and Options were antidilutive because their exercise prices and conversion prices were out of the money. As of December 31, 2018 and 2017, we excluded the outstanding securities summarized below, which entitle the holders thereof to acquire shares of common stock, from our calculation of earnings per share, as their effect would have been anti-dilutive. As of December 31, 2018 2017 Series H Preferred Stock 10,000 10,000 Convertible Notes Payable 20,131,347 18,645,933 Options 3,650,000 2,500,000 Total 23,791,347 21,155,933 Concentrations During the six months ended December 31, 2018, the Company had one customer, a related party, which represented 60% of our revenues, one customer that represented 20% of our revenues, and one customer that represented 10% of our revenues. During the six months ended December 31, 2017, the Company had one customer, a related party, that represented 74% of our revenues, and one customer that represented 10% of our revenues. No other customer represented more than 10% of our revenues during the six months ended December 31, 2018 and 2017. Segments The Company operates in one segment, the mobile financial banking industry. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in: economic characteristics; nature of products and services; and procurement, manufacturing and distribution processes. Since the Company operates in one segment, all financial information required by “Segment Reporting” can be found in the accompanying consolidated financial statements Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 requires a lessee to record a right of use asset and a corresponding lease liability on the balance sheet for all leases with terms longer than 12 months. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 including interim periods within those fiscal years. Early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. In July 2018, the FASB issued ASU 2018-11, which allows for a cumulative-effect adjustment in the period of adoption and will not require restatement of prior periods. The Company is in the process of evaluating the impact of ASU 2016-02 and ASU 2018-11 on the Company’s financial statements and disclosures. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements. |
Convertible Notes and Notes Pay
Convertible Notes and Notes Payable | 6 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTE 2 – CONVERTIBLE NOTES AND NOTES PAYABLE Convertible notes and notes payable-in default Convertible notes and notes payable includes principal and accrued interest and consists of the following at December 31, 2018 and June 30, 2018: December 31, 2018 June 30, 2018 (a) Convertible notes (includes $180,506 of convertible notes in default) $ 219,307 $ 214,576 (b) Notes payable-in default 396,423 387,684 Total notes-third parties $ 615,730 $ 602,260 (a) The notes are unsecured, convertible into common stock at amounts ranging from $0.08 to $0.30 per share, bear interest at rates ranging from 5% to 8% per annum, were due through 2011 and are in default or due on demand. At June 30, 2018, convertible notes totaled $214,576. During the six months ended December 31, 2018, interest of $4,731 was added to principal leaving a balance owed of $219,307 at December 31, 2018. At December 31, 2018, $180,506 of the convertible notes were in default, and convertible at a conversion price of $0.30 per share into 601,688 shares of the Company’s common stock. Certain of the amounts due are subject to a legal proceeding (see Note 6). The balance of $38,801 is due on demand and convertible at a conversion price of $0.08 per share into 485,007 shares of the Company’s common stock. (b) The notes are either secured by the Company’s intellectual property or unsecured and bear interest ranging from 6.5% to 10% per annum, were due in 2012, and are in default. At June 30, 2018, the notes totaled $387,684. During the six months ended December 31, 2018, interest of $8,739 was added to principal leaving a balance owed of $396,423 at December 31, 2018. At December 31, 2018, $357,640 of notes are secured by the Company’s intellectual property and $38,783 of notes are unsecured. Convertible notes and notes payable-related party Notes payable-related party includes principal and accrued interest and consists of the following at December 31, 2018 and June 30, 2018: December 31, 2018 June 30, 2018 (a) Convertible notes-The Matthews Group $ 1,398,702 $ 1,344,782 (b) Notes payable-The Matthews Group 1,648,766 1,384,088 (c) Convertible notes-other related-in default 272,798 265,729 Total notes-related party $ 3,320,266 $ 2,994,599 (a) The notes are unsecured, convertible into common stock at $0.08 per share, bear interest at rates ranging from 8% to 10% per annum, and are due on demand. The Matthews Group is a related party (see Note 5) and is owned 50% by Ms. Van Tran, the Company’s CEO, and 50% by Larry Johanns, a significant shareholder of the Company. At June 30, 2018, convertible notes due to The Matthews Group totaled $1,344,782. During the six months ended December 31, 2018, interest of $53,920 was added to principal leaving a balance owed of $1,398,702 at December 31, 2018. At December 31, 2018, the notes are convertible at a conversion price of $0.08 per share into 17,483,772 shares of the Company’s common stock. (b) The notes are unsecured, accrue interest at 10% per annum, and are due on demand. The notes were issued relating to a management services agreement with The Matthews Group (see Note 5) dated December 31, 2015. At June 30, 2018, notes due to The Matthews Group totaled $1,384,088. During the six months ended December 31, 2018, $192,590 of notes payable were issued, interest of $72,088 was added to principal, leaving a balance owed of $1,648,766 at December 31, 2018. (c) The notes are due to a current and a former director, are unsecured, convertible into common stock at per share amounts ranging from $0.10 to $0.30, and bear interest at rates ranging from 8% to 10% per annum. At June 30, 2018, convertible notes due other related parties totaled $265,729. During the six months ended December 31, 2018, interest of $7,069 was added to principal leaving a balance owed of $272,798 at December 31, 2018. At December 31, 2018, $201,624 of the notes were due in 2010 and are in default, and the balance of $71,174 is due on demand. At December 31, 2018, $201,624 of the notes are convertible at a conversion price of $0.30 per share into 672,081 shares of the Company’s common stock, $21,331 of the notes are convertible at a conversion price of $0.10 per share into 213,312 shares of the Company’s common stock, and $49,843 of the notes are convertible at a conversion price of $0.08 per share into 622,160 shares of the Company’s common stock. |
Stockholders' Deficiency
Stockholders' Deficiency | 6 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Deficiency | NOTE 3 - STOCKHOLDERS’ DEFICIENCY At December 31, 2018 and June 30, 2018, 145,000 shares of common stock to be issued with an aggregate value of $12,500 have not been issued and are reflected as common stock to be issued in the accompanying Condensed Consolidated Financial Statements. |
Stock Options
Stock Options | 6 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options | NOTE 4 – STOCK OPTIONS A summary of stock options as of December 31, 2018 and for the two years then ended is as follows: Number of Shares Weighted - Average Exercise Price Outstanding at June 30, 2018 2,500,000 $ 0.08 Granted 1,150,000 0.03 Forfeited — $ — Outstanding at December 31, 2018 3,650,000 $ 0.06 Exercisable at December 31, 2018 2,500,000 $ 0.08 In December 2018, the Company granted to its directors and employees, stock options to purchase an aggregate of 1,150,000 shares of Common Stock. The fair value of the stock options granted was determined to be $21,285, and is being amortized over the vesting period of 12 months. The fair value of the stock options was calculated using the Black-Scholes option pricing model using the following assumptions – stock price of $0.03; exercise price of $0.03; expected life of 2 years; volatility of 121%; dividend rate of 0.0% and discount rate of 2.63%. The Company recorded compensation expense pursuant to authoritative guidance provided by the ASC Topic 718 – Stock Compensation Both the outstanding and exercisable stock options had no intrinsic value at December 31, 2018. Additional information regarding options outstanding as of December 31, 2018 is as follows: Options Outstanding at December 31, 2018 Options Exercisable at December 31, 2018 Range of Exercise Number of Shares Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number of Shares Exercisable Weighted Average Exercise Price $ 0.03 1,150,000 5.98 $ 0.03 — $ 0.03 $ 0.08 2,500,000 1.11 $ 0.08 2,500,000 $ 0.08 3,650,000 2,500,000 The weighted-average remaining contractual life of stock options outstanding and exercisable at December 31, 2018 is 2.64 years. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 5 – RELATED PARTY TRANSACTIONS The Matthews Group is owned 50% by Ms. Van Tran, the Company’s CEO/Executive Chair and a director, and 50% by Larry Johanns, a significant stockholder of the Company. The Company has relied on The Matthews Group for funding (see Note 4). Management Services Agreement and Related Notes Payable with Related Party The Company’s Barcode Technology was invented by the founders of Veritec as a product identification system for identification and tracking of parts, components and products mostly in the liquid crystal display (LCD) markets and for secure identification documents, financial cards, medical records and other high security applications. On September 30, 2015, the Company sold all of its assets of its Barcode Technology comprised solely of its intellectual property to The Matthews Group. The Company then entered into a management services agreement with The Matthews Group to manage all facets of the barcode technology operations, on behalf of The Matthews Group, through June 30, 2019. The Matthews Group bears the risk of loss from the barcode operations and has the right to the residual benefits of the barcode operations. In consideration of the services provided by the Company to The Matthews Group, the Company earns a fee of 20% of all revenues up to May 31, 2017, and 35% of all revenues from June 1, 2017 to June 30, 2019, from the barcode technology operations. During the three and six months ended December 31, 2018 and 2017, the Company recorded management fee revenue related to this agreement of $50,885 and $93,241, respectively and $92,516 and $173,493, respectively. Additionally, pursuant to the management services agreement, all cash flow (all revenues collected less direct costs paid) of the barcode technology operations is retained by the Company as proceeds from unsecured notes payable due The Matthews Group. During the six months ended December 31, 2018 and 2017, cash flow loans of $192,590 and $241,590, respectively, were made to the Company at 10% interest per annum and due on demand. At December 31, 2018, cash flow loans of $1,648,766 are due to The Matthews Group (see Note 2). Advances from Related Parties From time to time, Ms. Van Tran provides advances to finance the Company’s working capital requirements. As of December 31, 2018 and June 30, 2018, total advances to Ms. Van Tran amounted to $96,110, and have been presented as accounts payable, related party on the accompanying Condensed Consolidated Balance Sheets. The advances are unsecured, non-interest bearing, and due on demand. Other Transactions with Related Parties The Company leases its office facilities from Ms. Tran. For the six months ended December 31, 2018 and 2017, rental payments to Ms. Van Tran totaled $25,500 and $25,200, respectively. |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies | |
Legal Proceedings | NOTE 6 – LEGAL PROCEEDINGS On or about November 13, 2017, David A. Badhwa and Denise a Badhwa (collectively “Plaintiffs”) filed a lawsuit in district court in Hennepin County, Minnesota asserting that the Company breached the terms of a promissory note. Plaintiffs seek repayment on the principal of the promissory note, in the amount of $100,000, $10,000 of which Plaintiffs contend Veritec previously paid, plus interest, collection costs and attorney’s fees. As of May 15, 2018, the date of the last communication on the amount of recovery that Plaintiffs seek, Plaintiffs sought an award or settlement in the amount of $162,990. If Plaintiffs prevail on their claims, the Court could award Plaintiffs the unpaid principal in the amount of $90,000, plus interest at the rate of eight percent (8%) per annum on the unpaid balance, as well as attorney’s fees incurred by Plaintiffs in seeking payment on the promissory note in an amount determined by the Court. An award of attorney’s fees could be significant. Veritec has vigorously defended Plaintiffs claims and has asserted a variety of counterclaims against Plaintiffs. Veritec has also attempted to engage Plaintiffs in settlement discussions, but Plaintiffs have not engaged in meaningful negotiations to resolve the claims in dispute. Management has recorded a liability related to this proceeding that it feels is adequate. On September 21, 2016, the Company entered into a settlement agreement with an individual who was a former officer of the Company. The individual in prior years was also issued 500,000 shares of common stock for services. The Company alleged that the individual used the Company's intellectual property without approval. Under the terms of the settlement agreement, the individual agreed to relinquish a convertible note payable and unpaid interest aggregating $364,686, and return 500,000 shares of common stock previously issued to him. In turn, the Company agreed to release and discharge the individual against all claims arising on or prior to the date of the settlement agreement. As of December 31, 2018, the 500,000 shares have not been relinquished. When the Company receives the shares, it will record a cancellation of shares. |
Nature of Business and Summar_2
Nature of Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, the Condensed Consolidated Financial Statements do not include all of the information and footnotes required for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the period ended December 31, 2018, are not necessarily indicative of the results that may be expected for the year ending June 30, 2019. The Condensed Consolidated Balance Sheet information as of June 30, 2018 was derived from the Company’s audited Consolidated Financial Statements as of and for the year ended June 30, 2018 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on October 5, 2018. These financial statements should be read in conjunction with that report. The accompanying Condensed Consolidated Financial Statements include the accounts of Veritec and its wholly owned subsidiaries, Veritec Financial Systems, Inc., Tangible Payment Systems, Inc., and Public Bell, Inc. Inter-company transactions and balances were eliminated in consolidation. |
Going Concern | GOING CONCERN The accompanying Condensed Consolidated Financial Statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. During the six months ended December 31, 2018, the Company incurred a loss from operations of $278,666 and used cash in operating activities of $231,594, and at December 31, 2018, the Company had a working capital deficit of $4,730,760 and a stockholders’ deficiency of $4,885,760. In addition, as of December 31, 2018, the Company is delinquent in payment of $778,554 of its notes payable. These factors, among others, raise substantial doubt about our ability to continue as a going concern within one year of the date that the financial statements are issued. In addition, the Company’s independent registered public accounting firm, in its report on our June 30, 2018 financial statements, has raised substantial doubt about the Company’s ability to continue as a going concern. The Company’s financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company believes it will require additional funds to continue its operations through fiscal 2019 and to continue to develop its existing projects and plans to raise such funds by finding additional investors to purchase the Company’s securities, generating sufficient sales revenue, implementing dramatic cost reductions or any combination thereof. There is no assurance that the Company can be successful in raising such funds, generating the necessary sales or reducing major costs. Further, if the Company is successful in raising such funds from sales of equity securities, the terms of these sales may cause significant dilution to existing holders of common stock. The Condensed Consolidated Financial Statements do not include any adjustments that may result from this uncertainty. |
Use of Estimates | Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Those estimates and assumptions include estimates for reserves of uncollectible accounts, analysis of impairments of long lived assets, accruals for potential liabilities, and assumptions used in valuing derivatives and stock-based compensation, and the valuation of deferred taxes. |
Revenue Recognition | Revenue Recognition Effective July 1, 2018 the Company adopted the Financial Accounting Standards Board's ("FASB") Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606”) which superseded previous revenue recognition guidance. The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying the Company’s performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients. The Company has concluded that the new guidance did not require any significant change to its revenue recognition processes and the implementation of ASC 606 did not have a material impact on the Company’s financial statements. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value measurements adopted by the Company are based on the authoritative guidance provided by the Financial Accounting Standards Board (“FASB”) which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. FASB authoritative guidance establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs, other than the quoted prices in active markets that are observable either directly or indirectly. Level 3 - Unobservable inputs based on the Company's assumptions. The carrying amounts reported in the Condensed Consolidated Balance Sheet for cash and cash equivalents, accounts receivable, and current liabilities, including notes payable and convertible notes, approximate their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. |
Net Income (Loss) per Common Share | Net Income (Loss) per Common Share Basic earnings (loss) per share are computed by dividing the net income (loss) applicable to Common Stockholders by the weighted average number of shares of Common Stock outstanding during the year. Diluted earnings (loss) per share is computed by dividing the net income (loss) applicable to Common Stockholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method. Potential common shares are excluded from the computation as their effect is antidilutive. For the period ended December 31, 2018 and 2017, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an anti-dilutive effect. At December 31, 2017, the Company’s Series H Preferred Stock, Convertible Notes Payable and Options were antidilutive because their exercise prices and conversion prices were out of the money. As of December 31, 2018 and 2017, we excluded the outstanding securities summarized below, which entitle the holders thereof to acquire shares of common stock, from our calculation of earnings per share, as their effect would have been anti-dilutive. As of December 31, 2018 2017 Series H Preferred Stock 10,000 10,000 Convertible Notes Payable 20,131,347 18,645,933 Options 3,650,000 2,500,000 Total 23,791,347 21,155,933 |
Concentrations | Concentrations During the six months ended December 31, 2018, the Company had one customer, a related party, which represented 60% of our revenues, one customer that represented 20% of our revenues, and one customer that represented 10% of our revenues. During the six months ended December 31, 2017, the Company had one customer, a related party, that represented 74% of our revenues, and one customer that represented 10% of our revenues. No other customer represented more than 10% of our revenues during the six months ended December 31, 2018 and 2017. |
Segments | Segments The Company operates in one segment, the mobile financial banking industry. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in: economic characteristics; nature of products and services; and procurement, manufacturing and distribution processes. Since the Company operates in one segment, all financial information required by “Segment Reporting” can be found in the accompanying consolidated financial statements |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 requires a lessee to record a right of use asset and a corresponding lease liability on the balance sheet for all leases with terms longer than 12 months. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 including interim periods within those fiscal years. Early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. In July 2018, the FASB issued ASU 2018-11, which allows for a cumulative-effect adjustment in the period of adoption and will not require restatement of prior periods. The Company is in the process of evaluating the impact of ASU 2016-02 and ASU 2018-11 on the Company’s financial statements and disclosures. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements. |
Nature of Business and Summar_3
Nature of Business and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of securities excluded from EPS calculation | As of December 31, 2018 2017 Series H Preferred Stock 10,000 10,000 Convertible Notes Payable 20,131,347 18,645,933 Options 3,650,000 2,500,000 Total 23,791,347 21,155,933 |
Convertible Notes and Notes P_2
Convertible Notes and Notes Payable (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Convertible notes and notes payable - in default | December 31, 2018 June 30, 2018 (a) Convertible notes (includes $180,506 of convertible notes in default) $ 219,307 $ 214,576 (b) Notes payable-in default 396,423 387,684 Total notes-third parties $ 615,730 $ 602,260 |
Convertible notes and notes payable- related party | December 31, 2018 June 30, 2018 (a) Convertible notes-The Matthews Group $ 1,398,702 $ 1,344,782 (b) Notes payable-The Matthews Group 1,648,766 1,384,088 (c) Convertible notes-other related-in default 272,798 265,729 Total notes-related party $ 3,320,266 $ 2,994,599 |
Stock Options (Tables)
Stock Options (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Options | Number of Shares Weighted - Average Exercise Price Outstanding at June 30, 2018 2,500,000 $ 0.08 Granted 1,150,000 0.03 Forfeited — $ — Outstanding at December 31, 2018 3,650,000 $ 0.06 Exercisable at December 31, 2018 2,500,000 $ 0.08 |
Additional information regarding outstanding options | Options Outstanding at December 31, 2018 Options Exercisable at December 31, 2018 Range of Exercise Number of Shares Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number of Shares Exercisable Weighted Average Exercise Price $ 0.03 1,150,000 5.98 $ 0.03 — $ 0.03 $ 0.08 2,500,000 1.11 $ 0.08 2,500,000 $ 0.08 3,650,000 2,500,000 |
Summary of securities excluded
Summary of securities excluded from EPS calculation (Details) - shares | 6 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Series H Preferred Stock | 10,000 | 10,000 |
Convertible Notes Payable | 20,131,347 | 18,645,933 |
Options | 3,650,000 | 2,500,000 |
Total | 23,791,347 | 21,155,933 |
Nature of Business and Summar_4
Nature of Business and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | |
Loss from Operations | $ (108,313) | $ (89,767) | $ (278,666) | $ (206,371) | ||||
Cash used in operating activities | 231,594 | 223,747 | ||||||
Working capital deficit | 4,730,760 | 4,730,760 | ||||||
Stockholders' deficiency | (4,885,760) | $ (4,185,674) | (4,885,760) | $ (4,185,674) | $ (4,703,735) | $ (4,461,189) | $ (4,278,644) | $ (4,567,979) |
Notes payable, delinquent | $ 778,554 | $ 778,554 | ||||||
Customer 1 | ||||||||
Sales percentage from major customers | 60.00% | 74.00% | ||||||
Customer 2 | ||||||||
Sales percentage from major customers | 20.00% | 10.00% | ||||||
Customer 3 | ||||||||
Sales percentage from major customers | 10.00% |
Convertible Notes and Notes P_3
Convertible Notes and Notes Payable - Convertible notes and notes payable in default (Details) - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |||
Convertible notes payable - in default | [1] | $ 219,307 | $ 214,576 |
Notes payable - in default | [2] | 396,423 | 387,684 |
Total notes - third parties | $ 615,730 | $ 602,260 | |
[1] | (a) The notes are unsecured, convertible into common stock at amounts ranging from $0.08 to $0.30 per share, bear interest at rates ranging from 5% to 8% per annum, were due through 2011 and are in default or due on demand. | ||
[2] | (b) The notes are either secured by the Companys intellectual property or unsecured and bear interest ranging from 6.5% to 10% per annum, were due in 2012, and are in default. |
Convertible Notes and Notes P_4
Convertible Notes and Notes Payable - Convertible notes and notes payable related party (Details) - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 |
Notes Payable Related Party | $ 3,320,266 | $ 2,994,599 |
The Matthews Group | ||
Convertible Notes, Related Party | 1,398,702 | 1,344,782 |
Notes Payable Related Party | 1,648,766 | 1,384,088 |
Other | ||
Convertible Notes, Related Party | $ 272,798 | $ 265,729 |
Convertible Notes and Notes P_5
Convertible Notes and Notes Payable (Details Narrative) - USD ($) | 6 Months Ended | ||
Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Notes Payable Related Party | $ 3,320,266 | $ 2,994,599 | |
The Matthews Group | |||
Accrued interest | 53,920 | ||
Interest rate | 10.00% | ||
Convertible Notes Payable (In Default) | |||
Conversion price | $ 0.30 | ||
Notes payable | 219,307 | $ 214,576 | |
Accrued interest | 4,731 | ||
Notes in Default | 180,506 | ||
Balance due on demand | $ 38,801 | ||
Shares issued upon conversion | 601,688 | ||
Notes Payable (In Default) | |||
Notes payable | $ 396,423 | 387,684 | |
Accrued interest | $ 8,739 | ||
Notes Payable (In Default) | Minimum | |||
Interest rate | 6.50% | ||
Notes Payable (In Default) | Maximum | |||
Interest rate | 10.00% | ||
Secured Interest Bearing Notes | |||
Notes in Default | $ 357,640 | ||
Unsecured Interest Bearing Notes | |||
Notes in Default | $ 38,283 | ||
The Matthews Group | |||
Conversion price | $ 0.08 | ||
Shares issued upon conversion | 17,483,772 | ||
Convertible Notes, Related Party | $ 1,398,702 | 1,344,782 | |
Notes Payable Related Party | 1,648,766 | $ 1,384,088 | |
Notes Payable | The Matthews Group | |||
Accrued interest | 72,088 | ||
Notes issued | 192,590 | ||
Other | |||
Conversion price | $ 0.08 | ||
Accrued interest | 7,069 | ||
Notes in Default | 201,624 | ||
Balance due on demand | 71,174 | ||
Convertible Notes, Related Party | $ 272,798 | $ 265,729 | |
$0.30 per share | |||
Conversion price | $ 0.30 | ||
Shares issued upon conversion | 672,081 | ||
Convertible Notes, Related Party | $ 201,624 | ||
$0.10 per share | |||
Conversion price | $ 0.10 | ||
Shares issued upon conversion | 213,312 | ||
Convertible Notes, Related Party | $ 21,331 | ||
$0.08 per share | |||
Conversion price | $ 0.08 | ||
Shares issued upon conversion | 622,160 | ||
Convertible Notes, Related Party | $ 49,843 |
Stockholders Deficiency (Detail
Stockholders Deficiency (Details Narrative) - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 |
Equity [Abstract] | ||
Common stock to be issued | 145,000 | 145,000 |
Common stock to be issued, value | $ 12,500 | $ 12,500 |
Stock Options - Summary of Stoc
Stock Options - Summary of Stock Options (Details) | 6 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Beginning number of shares; outstanding | shares | 2,500,000 |
Beginning weighted-average exercise price; outstanding | $ / shares | $ .08 |
Options Granted | shares | 1,150,000 |
Options granted, weighted average exercise price | $ / shares | $ 0.03 |
Options Forfeited | shares | |
Options Forfeited, weighted average exercise price | $ / shares | |
Ending number of shares; outstanding | shares | 3,650,000 |
Ending weighted-average exercise price; outstanding | $ / shares | $ 0.06 |
Number of Shares; exercisable | shares | 2,500,000 |
Weighted-average exercise price; exercisable | $ / shares | $ .08 |
Stock Options - Additional info
Stock Options - Additional information regarding outstanding options (Details) | 6 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Options outstanding, shares | 3,650,000 |
Options excercisable | 2,500,000 |
Options exercisable, weighted average exercise price | $ / shares | $ 0.03 |
$0.03 per share | |
Options outstanding, shares | 1,150,000 |
Weighted average remaining contractual life | 5 years 11 months |
Weighted average exercise price | $ / shares | $ 0.03 |
Options excercisable | |
Options exercisable, weighted average exercise price | $ / shares | $ 0.03 |
$0.08 per share | |
Options outstanding, shares | 2,500,000 |
Weighted average remaining contractual life | 1 year 1 month |
Weighted average exercise price | $ / shares | $ 0.08 |
Options excercisable | 2,500,000 |
Options exercisable, weighted average exercise price | $ / shares | $ 0.08 |
Stock Options (Details Narrativ
Stock Options (Details Narrative) | 6 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Options granted | shares | 1,150,000 |
Fair value of stock options granted | $ 21,285 |
Options granted, price per share | $ / shares | $ 0.03 |
Options granted, exercise price | $ / shares | $ 0.03 |
Options granted, expected life | 2 years |
Options granted, volatility | 121.00% |
Options granted, dividend rate | 0.00% |
Options granted, discount rate | 2.63% |
Compensation expense | $ 572 |
Outstanding unvested options | $ 20,713 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) | 3 Months Ended | 6 Months Ended | 20 Months Ended | 25 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | May 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018USD ($) | |
Accounts payable, related party | $ 96,110 | $ 96,110 | $ 96,110 | ||||
Managament fee, percent of revenue | 0.20 | 0.35 | |||||
Other revenue, related party | 50,885 | $ 92,516 | 93,241 | $ 173,493 | |||
Notes Payable Related Party | 3,320,266 | 3,320,266 | 2,994,599 | ||||
Matthews Group #2 | |||||||
Notes Payable Related Party | $ 1,648,766 | $ 1,648,766 | |||||
Unsecured related party note, interest | 10.00% | 10.00% | |||||
Unsecured related party note | $ 192,590 | $ 192,590 | |||||
The Matthews Group | |||||||
Unsecured related party note, interest | 10.00% | 10.00% | |||||
Unsecured related party note | $ 241,590 | $ 241,590 | |||||
Van Tran | |||||||
Advances due to related party | $ 96,110 | 96,110 | $ 96,110 | ||||
Rental Payments | $ 25,500 | $ 25,200 | |||||
Larry Johanns | |||||||
Ownership of TMG | 50.00% | 50.00% | |||||
Van Tran | |||||||
Ownership of TMG | 50.00% | 50.00% |
Legal Proceedings (Details Narr
Legal Proceedings (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Nov. 13, 2017 | Sep. 21, 2016 | |
Commitments and Contingencies | |||
Promissory Note | $ 100,000 | ||
Settlement amount | $ 162,990 | ||
Interest | 8.00% | ||
Convertible note payable relinquished | $ 364,686 | ||
Shares to be returned | 500,000 | ||
Gain on settlement of note payable to former officer | $ 364,686 |