Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Aug. 10, 2015 | Dec. 31, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Amerityre Corp | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Common Stock, Shares Outstanding | 41,650,287 | ||
Entity Public Float | $ 1,901,276 | ||
Amendment Flag | false | ||
Entity Central Index Key | 945,828 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Jun. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
CURRENT ASSETS | ||
Cash | $ 455,717 | $ 728,585 |
Accounts receivable - net | 314,054 | 384,160 |
Accounts receivable - related party - net | 6,312 | 17,089 |
Current Inventory - net | 661,129 | 770,991 |
Prepaid and other current assets | 27,860 | 39,631 |
Total Current Assets | 1,465,072 | 1,940,456 |
PROPERTY AND EQUIPMENT | ||
Leasehold improvements | 153,543 | 162,683 |
Molds and models | 572,894 | 824,979 |
Equipment | 2,937,922 | 2,966,649 |
Furniture and fixtures | 74,921 | 105,622 |
Construction in progress | 0 | 975 |
Software | 305,924 | 311,632 |
Less – accumulated depreciation | (3,735,744) | (3,915,542) |
Total Property and Equipment | 309,460 | 456,998 |
OTHER ASSETS | ||
Patents and trademarks – net | 202,710 | 286,947 |
Non-current inventory | 186,560 | 0 |
Deposits | 11,000 | 11,000 |
Total Other Assets | 400,270 | 297,947 |
TOTAL ASSETS | 2,174,802 | 2,695,401 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 438,680 | 617,678 |
Current portion of long-term debt | 13,608 | 16,013 |
Total Current Liabilities | 452,288 | 633,691 |
Long-term debt | 53,840 | 53,840 |
TOTAL LIABILITIES | $ 506,128 | $ 687,531 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock: 5,000,000 shares authorized of $0.001 par value, 2,000,000 and 2,000,000 shares issued and outstanding, respectively | $ 2,000 | $ 2,000 |
Common stock: 75,000,000 shares authorized of $0.001 par value, 41,570,287 and 41,441,620 shares issued and outstanding, respectively | 41,570 | 41,441 |
Additional paid-in capital | 62,515,856 | 62,455,820 |
Accumulated deficit | (60,890,752) | (60,491,391) |
Total Stockholders’ Equity | 1,668,674 | 2,007,870 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 2,174,802 | $ 2,695,401 |
Balance Sheets (Parentheticals)
Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2015 | Jun. 30, 2014 |
Preferred stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 2,000,000 | 2,000,000 |
Preferred stock, shares outstanding | 2,000,000 | 2,000,000 |
Common stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 41,570,287 | 41,441,620 |
Common stock, shares outstanding | 41,570,287 | 41,441,620 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
NET SALES | $ 4,793,737 | $ 4,316,061 |
COST OF REVENUES | 3,514,608 | 3,556,579 |
GROSS PROFIT | 1,279,129 | 759,482 |
EXPENSES | ||
Research and development | 200,753 | 166,890 |
Sales and marketing | 556,843 | 470,575 |
General and administrative | 819,899 | 1,020,814 |
Total Expenses | 1,577,495 | 1,658,279 |
LOSS FROM OPERATIONS | (298,366) | (898,797) |
OTHER INCOME/(EXPENSE) | ||
Interest expense | 0 | (92,979) |
Write-off of deferred financing costs | 0 | (40,000) |
Gain on extinguishment of long term payable | 62,500 | 0 |
Loss on disposal of assets | (62,731) | (250,845) |
Other (loss) income | (764) | 12,958 |
Total Other Expense | (995) | (370,866) |
NET LOSS | (299,361) | (1,269,663) |
Preferred Stock Dividend | (100,000) | (25,000) |
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (399,361) | $ (1,294,663) |
BASIC AND DILUTED LOSS PER SHARE (in Dollars per share) | $ (0.01) | $ (0.03) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING (in Shares) | 41,494,497 | 40,012,990 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - Related Party [Domain] - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Jun. 30, 2013 | $ 0 | $ 39,741 | $ 60,213,599 | $ (59,196,728) | |
Balance (in Shares) at Jun. 30, 2013 | 0 | 39,741,620 | |||
Common stock issued for cash at $0.07 per share | $ 50 | 3,450 | |||
Common stock issued for cash at $0.07 per share (in Shares) | 50,000 | ||||
2013 Series Convertible preferred stock issued at $1 per share, net of offering costs | $ 2,000 | 1,978,478 | |||
2013 Series Convertible preferred stock issued at $1 per share, net of offering costs (in Shares) | 2,000,000 | ||||
Common stock issued for services | $ 500 | 39,500 | |||
Common stock issued for services (in Shares) | 500,000 | ||||
Common stock issued to directors for services at $0.06 per share | $ 1,150 | 67,850 | |||
Common stock issued to directors for services at $0.06 per share (in Shares) | 1,150,000 | ||||
Preferred stock dividends | (25,000) | $ 25,000 | |||
Stock option based compensation expense | 111,973 | ||||
Warrant expense | 40,970 | ||||
Net loss | (1,269,663) | (1,269,663) | |||
Balance at Jun. 30, 2014 | $ 2,000 | $ 41,441 | 62,455,820 | (60,491,391) | 2,007,870 |
Balance (in Shares) at Jun. 30, 2014 | 2,000,000 | 41,441,620 | |||
Common stock issued for services | $ 129 | 5,018 | |||
Common stock issued for services (in Shares) | 128,667 | ||||
Reversal of deferred financing fees | 31,500 | ||||
Preferred stock dividends | (100,000) | 0 | |||
2013 Series Convertible preferred stock offering costs | (188) | ||||
Stock option based compensation expense | 23,706 | ||||
Net loss | (299,361) | (299,361) | |||
Balance at Jun. 30, 2015 | $ 2,000 | $ 41,570 | $ 62,515,856 | $ (60,890,752) | $ 1,668,674 |
Balance (in Shares) at Jun. 30, 2015 | 2,000,000 | 41,570,287 |
Statements of Stockholders' Eq6
Statements of Stockholders' Equity (Parentheticals) - $ / shares | Jun. 30, 2015 | Jun. 30, 2014 |
Preferred Stock [Member] | ||
Stock issued at | $ 1 | |
Common Stock [Member] | ||
Stock issued at | 0.07 | |
Stock issued for services at | $ 0.04 | 0.08 |
Director [Member] | Common Stock [Member] | ||
Stock issued for services at | $ 0.06 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Loss | $ (299,361) | $ (1,269,663) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation and amortization expense | 221,109 | 224,150 |
Change in allowance for bad debt expense (recovery) | (7,777) | 7,317 |
Stock based compensation related to director and employee stock options | 23,706 | 111,973 |
Stock paid for services | 5,147 | 69,000 |
Accretion of discount on convertible note | 0 | 40,970 |
Write off of deferred financing costs | 0 | 40,000 |
Gain on extinguishment of long term payable | (62,500) | 0 |
Loss on disposal of assets | 62,731 | 250,845 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 88,660 | (43,651) |
Prepaid and other current assets | 11,771 | 75,139 |
Inventory and change in inventory reserve | (76,696) | (216,424) |
Accounts payable and accrued expenses | (85,000) | (95,273) |
Net Cash Used by Operating Activities | (118,210) | (805,617) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | (55,840) | (46,448) |
Cash paid for patents and trademarks | (4,000) | 0 |
Proceeds from the sale of assets | 7,775 | 0 |
Net Cash Used by Investing Activities | (52,065) | (46,448) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from the issuance of unsecured note payables | 0 | 355,182 |
Redemption of convertible note payables | 0 | (100,000) |
Payments on notes payable | (2,405) | (767,257) |
Proceeds from sale of common stock | 0 | 3,500 |
Proceeds from sale of preferred stock, net of offering costs | (188) | 1,980,478 |
Preferred stock dividends | (100,000) | 0 |
Net Cash Used by Financing Activities | (102,593) | 1,471,903 |
NET (DECREASE) INCREASE IN CASH | (272,868) | 619,838 |
CASH AT BEGINNING OF YEAR | 728,585 | 108,747 |
CASH AT END OF YEAR | 455,717 | 728,585 |
NON-CASH FINANCING ACTIVITIES | ||
Interest paid | 4,363 | 60,391 |
Income taxes paid | 0 | 0 |
SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES | ||
Write off of accounts receivable previously allowed for | 7,296 | 0 |
Reversal of deferred financing fees | 31,500 | 0 |
Accrual of preferred share dividends | 0 | 25,000 |
Reclassificaiton of Property and Equipment [Member] | ||
SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES | ||
Property and equipment, Transfers and Changes | 0 | 31,857 |
Removal of Fully Depreciated Fixed Assets [Member] | ||
SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES | ||
Property and equipment, Transfers and Changes | 368,953 | 10,000 |
Expired or Retired Patents [Member] | ||
SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES | ||
Property and equipment, Transfers and Changes | $ 58,276 | $ 0 |
NOTE 1 - ORGANIZATION AND SUMMA
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | NOTE 1 – Organization Amerityre Corporation (the “Company”) incorporated as a Nevada corporation on January 30, 1995 under the name American Tire Corporation and changed its name to Amerityre Corporation in December 1999. The Company was organized to take advantage of existing proprietary and non-proprietary technology available for the manufacturing of specialty tires. The Company engages in the manufacturing, marketing, distribution and sales of “flat free” specialty tires and tire-wheel assemblies and currently is manufacturing these tires at its manufacturing facility located in Boulder City, Nevada. The Company’s financial statements are prepared using the accrual method of accounting. The Company has elected a June 30 year-end. Reclassifications Certain reclassifications, which have no effect on net loss, have been made in the prior period financial statements, specifically the recognition of the preferred share dividend as a non-cash transaction at June 30, 2014. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management routinely makes judgments on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. Concentrations of Risk The Company maintains several accounts with financial institutions. Currently, the accounts are insured by the Federal Deposit Insurance Corporation up to $250,000. Credit losses, if any, have been provided for in the financial statements and are based on management’s expectations. The Company’s accounts receivable are subject to potential concentrations of credit risk. The Company does not believe that it is subject to any unusual risks or significant risks in the normal course of its business. We have three customers who accounted for 27% of our sales for the year ended June 30, 2015 and two customers who accounted for 21% of our sales for the year ended June 30, 2014. Cash and Cash Equivalents We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. As of June 30, 2015 and 2014, respectively, we had no cash equivalents. Trade Receivables We generally charge-off trade receivables that are more than 120 days outstanding as bad-debt expense, unless management believes the amount to be collectable. The charge-off amounts are included in general and administrative expenses. As of June 30, 2015 and 2014, the reserve for uncollectible accounts was $289 and $15,362, respectively. Inventory Inventory is stated at the lower of cost (computed on a first-in, first-out basis) or market. The inventory consists primarily of chemicals, finished goods produced in our plant and products purchased for resale. 2015 2014 Raw materials $ 302,910 $ 358,725 Finished goods 655,714 525,722 Inventory reserve (110,935 ) (113,456 ) Inventory – net (current and long term) $ 847,689 $ 770,991 Our inventory reserve reflects items that were deemed to be defective or obsolete based on an analysis of all inventories on hand. In fiscal year 2015, the Company critically reviewed all slow moving inventory to determine if defective or obsolete. If not defective or obsolete we presented these items as non-current inventory, although all inventory is ready and available for sale at any moment. This change in methodology did not materially affect the total components of our inventory classification as presented above. Property and Equipment Property and equipment are stated at cost. Expenditures for small tools, ordinary maintenance and repairs are charged to operations as incurred. Major additions and improvements are capitalized. When we retire or dispose of assets, the costs and accumulated depreciation or amortization are removed from the respective accounts and we recognize any related gain or loss. Major replacements that substantially extend the useful life of an asset are capitalized and depreciated. Depreciation is computed using the straight-line method over estimated useful lives as follows: Leasehold improvements 5 years, or over lease term Equipment 5 to 10 years Furniture and fixtures 7 years Software 2 years Depreciation expense for the years ended June 30, 2015 and 2014 was $189,155 and $205,289, respectively. Patents and Trademarks Patent and trademark costs have been capitalized at June 30, 2015, totaling $479,633 with accumulated amortization of $276,923 for a net book value of $202,710. Patent and trademark costs capitalized at June 30, 2014, totaled $590,192 with accumulated amortization of $303,245 for a net book value of $286,947. The patents which have been granted are being amortized over a period of 20 years. Patents which are pending or are being developed are not amortized. Amortization begins once the patents have been issued. Included in the total patent and trademark costs are $-0- and $6,207 of patent and trademark costs pending at June 30, 2015 and 2014, respectively, that were not being amortized. Annually, pending or expired patents are inventoried and analyzed, which resulted in the recognition of a loss on abandonment, expiration or retirement of patents and trademarks of $56,283 and $168,743 for the years ended June 30, 2015 and 2014, respectively. Amortization expense for the years ended June 30, 2015 and 2014 was $31,954 and $49,315 respectively. The Company evaluates the recoverability of intangibles and reviews the amortization period on a continual basis utilizing the guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Intangibles – Goodwill and Other · any changes in the market relating to the patents that would decrease the life of the asset; · any adverse change in the extent or manner in which the patents are being used; · any significant adverse change in legal factors relating to the use of the patents; · current period operating or cash flow loss combined with our history of operating or cash flow losses; · future cash flow values based on the expectation of commercialization through licensing; and · current expectations that, more likely than not, the patents will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The estimated amortization expense, based on current intangible balances, for the next five fiscal years beginning July 1, 2015 is as follows: 2015 $ 27,331 2016 $ 27,297 2017 $ 22,304 2018 $ 20,962 2019 $ 16,653 Financial and Derivative Instruments The Company periodically enters into financial instruments. Upon entry, each instrument is reviewed for debt or equity treatment. In the event that the debt or equity treatment is not readily apparent, FASB ASC 480-10-S99 is consulted for temporary treatment. Once an event takes place that removes the temporary element the Company appropriately reclassifies the instrument to debt or equity. The Company periodically assesses its financial and equity instruments to determine if they require derivative accounting. Instruments which may potentially require derivative accounting are conversion features of debt, equity, and common stock equivalents in excess of available authorized common shares, and contracts with variable share settlements. In the event of derivative treatment, we mark the instrument to market. Stock-Based Compensation We account for stock-based compensation under the provisions of FASB ASC 718, Compensation – Stock Compensation FASB ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our Statement of Operations. Stock-based compensation expense recognized in our Statements of Operations for fiscal years ended June 30, 2015 and 2014 assume all awards will vest; therefore no reduction has been made for estimated forfeitures. Basic and Fully Diluted Net Loss per Share Basic and Fully Diluted net loss per share is computed using the weighted-average number of common shares outstanding during the period. The Company’s outstanding stock options, warrants, and shares issuable upon conversion of outstanding convertible notes have been excluded from the diluted net loss per share calculation. The Company excluded a total of 2,770,000 and 2,254,000 common stock equivalents for the years ended June 30, 2015 and 2014, respectively because they are anti-dilutive. Income Taxes FASB ASC 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. As a result of the implementation of FASB ASC 740, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by FASB ASC 740. Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry-forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Net deferred tax assets consist of the following components as of June 30, 2015 and 2014: 2015 2014 Deferred tax assets: NOL carryover $ 17,035,800 $ 16,930,200 Section 1231 loss carryover 24,900 900 Allowance for doubtful accounts 100 6,000 Related party accruals - 24,400 Inventory reserve 38,800 44,200 R & D carryover 221,600 195,400 Accrued vacation (7,600 ) 5,900 Deferred tax liabilities: Depreciation (11,400 ) (44,300 ) Valuation allowance (17,302,200 ) (17,162,700 ) Net deferred tax asset $ - $ - The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended June 30, 2015 and 2014 due to the following: 2015 2014 Book loss $ (104,800 ) $ (495,200 ) Depreciation 39,400 54,300 Meals & entertainment 2,800 3,300 Nondeductible expenses 17,100 102,200 Accrued vacation (2,200 ) 1,300 Inventory reserve (900 ) 20,000 Receivable reserve (5,300 ) 2,900 Related party accruals (21,900 ) - Loss on asset disposal 10,400 71,000 Valuation allowance 65,400 240,200 $ - $ - At June 30, 2015, the Company had net operating loss carry-forwards of approximately $42,948,000 that may be offset against future taxable income from the year 2016 through 2035. No tax benefit has been reported in the June 30, 2015 financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry-forwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry-forwards may be limited as to use in future years. The Company’s policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. As of June 30, 2015 the Company had no accrued interest or penalties related to uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2011. Fair Value Accounting As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The three levels of the fair value hierarchy are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Revenue Recognition Revenue for products is recognized when the sales amount is determined, shipment of goods to the customer has occurred and collection is reasonably assured. Generally, we ship all of our products FOB origination. License fee revenue is recognized as earned, and no revenue is recognized until the inception of the license term. Shipping and Handling Shipping and Handling Fees require that freight costs charged to customers be classified as revenues. Freight expenses are included in costs of sales. Product Warranties The Company’s standard sales terms include a limited warranty on workmanship and materials to the original purchaser if items sold are used in the service for which they are intended. Specifically the Company warrants wheels, bearings, and bushings for one year from the date of purchase. In the past the Company estimated its warranty reserve based on historical experience with warranty claims and returns for defective items. Because the Company has experienced limited items through the warranty process, in fiscal year 2015 the Company changed to actual, instead of estimated, warranty recognition. This change in accounting principle did not have a material impact on the Company’s financial statements and as of June 30, 2015 and 2014, the Company had no estimated warranty reserves accrued. Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. Advertising expense for the years ended June 30, 2015 and 2014 was $28,606 and $5,128, respectively. Sales Tax In accordance with FASB ASC 605-45, formerly EITF Issue No. 06-3, How Taxes Collected from Customers and Remitted to Government Authorities Should Be Presented in the Income Statement Related Party Transactions Amerityre’s Chairman of the Board, Timothy L. Ryan, is also the principal owner of Rhino Rubber LLC, a manufacturing and distribution company for solid industrial tires and wheels. During fiscal 2015 and fiscal 2014, Rhino Rubber LLC purchased a total of $9,633 and $9,668, respectively, in tire products from Amerityre. As of June 30, 2015 and 2014, the accounts receivable balances for Rhino Rubber LLC were $6,312 and $17,089, respectively. The terms and conditions of those related-party sales transactions were the same as those afforded to any of Amerityre’s customers. We currently distribute directly from our manufacturing facility in Boulder City, Nevada and from Rhino Rubber in Akron, Ohio. Costs for these services were limited to freight, shipping and labor for mounting services. The Company pays $600 a month to Rhino Rubber. Recent Accounting Pronouncements Adopted In August 2014, the FASB issued ASU 2014-15 Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company has elected to early adopt the provisions of ASU 2014-10 for these financial statements. Issued In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20),” which eliminates the concept of extraordinary items. The new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015. The new guidance is to be applied prospectively but may also be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. We expect to adopt the provisions of this new guidance on July 1, 2016. We do not expect the adoption of the new provisions to have a material impact on our financial condition or results of operations. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC, did not, or are not believed by management to, have a material impact on the Company's present or future financial position, results of operations or cash flows. |
NOTE 2 - DEBT
NOTE 2 - DEBT | 12 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 2 – DEBT In years prior to 2014, the Company engaged in a variety of debt via notes payable and short term borrowings, all of which had been fully paid off as of June 30, 2014, except the following. A former board member, Silas O. Kines, who passed away on January 11, 2012, was also the principal owner of Forklift Tire of Florida and K-2 Industrial Tire, Inc. In accordance with the Commission Agreement with Forklift Tire of Florida, dated February 2, 2011, between Amerityre Corporation and K-2 Industrial Tire, Inc., K-2 is due a five percent (5%) commission on all forklift tire sales. In exchange for the forklift models transferred to Amerityre under that agreement, the first $96,000 in commission payments will be used to extinguish the long term liability recorded on the transaction. As of June 30, 2015, $13,608 and $53,840 (2014 $16,013 and $53,840) were recorded for the current and long-term portion, respectively, of the related liability. |
NOTE 3 - COMMITMENTS AND CONTIN
NOTE 3 - COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 3 – COMMITMENTS AND CONTINGENCIES In May 2015, we negotiated a five (5) year extension of the lease on our executive office and manufacturing facility located at 1501 Industrial Road, Boulder City, Nevada. The property consists of a 49,200 square foot building. We currently occupy all 49,200, inclusive of approximately 5,500 square feet of office space, situated on approximately 4.15 acres. All other terms and conditions of the building lease remain in effect. Payments due by period Total Less than 1 year 1 to 3 years 3 to 5 years After 5 years Facility lease $ 686,400 $ 135,600 $ 274,800 $ 276,000 $ - Total contractual cash obligations $ 686,400 $ 135,600 $ 274,800 $ 276,000 $ - Rent expense for the years ended June 30, 2015 and 2014 was $132,000 and $132,000, respectively. |
NOTE 4 - STOCK TRANSACTIONS
NOTE 4 - STOCK TRANSACTIONS | 12 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 4 – STOCK TRANSACTIONS During the years ended June 30, 2015 and 2014, the Company had the following stock transactions: In December 2013, we executed a Commitment Letter with a private lender commencing negotiations for a $1,000,000 line of credit. Under the terms of the Commitment Letter, the board of directors authorized the issuance of 500,000 shares of common stock to the lender as commitment fees. The total value of the shares issued was $40,000 based on the market closing price on the authorization date of $0.08 per share. On December 13, 2013, the Board of Directors approved a resolution designating 2,000,000 shares of preferred stock, $0.001 par value, as 2013 Series Convertible Preferred Stock (the “2013 Series Shares”). On December 18, 2013, the Company filed a Certificate of Designation with the Nevada Secretary of State for the 2013 Series Convertible Preferred Stock, which was approved by the Nevada Secretary of State on December 19, 2013. The 2013 Series Shares have voting rights only on any matters directly affecting the rights and privileges of the 2013 Series Shares. The 2013 Series Shares have a liquidation preference amounting to a return of the initial par value per share only, with no further participation in any distributions to other shareholders. Any issued 2013 Series Shares will convert to the Company’s common stock at a ratio of ten shares of common stock for each share of the 2013 Series Shares (1) at any time at the election of the holder; or (2) automatically on the date that is six years after the date of original issuance of the shares. Lastly, the 2013 Series Shares contain a quarterly cash dividend rate of 1.25% of the original issuance price of $1.00 per share. The 2013 Series Shares were offered and sold in reliance on the exemption from registration under Securities and Exchange Commission Rule 506, Regulation D. As of the close of the private placement on April 8, 2014, the Company had received cash deposits and issued a stock certificate for the purchase of all 2,000,000 of the 2013 Series Shares. As of June 30, 2014, proceeds from the private placement of the 2013 Series Shares were $1,980,478, net of issuance costs of $19,522. The Company also recognized an additional $188 in issuance costs as of June 30, 2015. No underwriter participated in the placement and no commissions were paid. During the second quarter of fiscal year 2015, we granted a consultant 128,667 common shares valued at $0.04 per share ($5,147) for work performed related to sales of our products in the three month period ending December 31, 2014. These shares were issued in January 2015. Lastly, in a prior period we had accrued deferred financing costs related to a private placement stock campaign. Upon further investigation the accrual was in error and reversed in the second quarter of fiscal 2015, resulting in an increase to additional paid in capital of $31,500. |
NOTE 5 - STOCK OPTIONS AND WARR
NOTE 5 - STOCK OPTIONS AND WARRANTS | 12 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Shareholders' Equity and Share-based Payments [Text Block] | NOTE 5 – STOCK OPTIONS AND WARRANTS General Option Information On July 6, 2011, the Board of Directors cancelled the “2004 Non-Employee Directors’ Stock Incentive Plan” and approved the "Directors’ 2011 Stock Option and Award Plan”. Under the 2011 Plan, a total of 3,300,000 shares are authorized for issuance. The Company also maintained the 2005 Stock Option and Award Plan, which was previously approved by shareholders, for the purpose of granting option awards to its employees and consultants. This plan had a 10 year life and expired July 2015. On August 10, 2015, the Board of Directors cancelled the “Directors’ 2011 Stock Option and Award Plan” as all options under this plan had been granted and adopted the “2015 Omnibus Stock Option and Award Plan” which contains provisions for up to 3,000,000 stock options to be granted to employees, consultants and directors. Prior Issuances of options In July 2011, each non-executive director is eligible to receive (therefore granted), based on their length of service, options to purchase a total of 300,000 shares at that day’s closing price, $0.17. Any options issued will vest over a three year service period as follows: 100,000 on June 30, 2012, 100,000 on June 30, 2013 and 100,000 on June 30, 2014. These options expire two years after vesting. The Director who serves as Audit Chair during the fiscal year received an additional 50,000 options per year under the same terms. In June 2014, 1,450,000 options, representing 650,000 share options from the 2012 service period, 400,000 share options from the 2013 service period and 400,000 from the 2014 service period were extended for 5 years. In accordance with the Stock Compensation Also in July 2011, Board Chairman, who acted in the CEO capacity until April 1, 2015, Timothy L. Ryan was granted 200,000 options per year under the 2005 Stock Option and Award Plan with the same terms as above. During the fiscal year ended June 30, 2013, the Company granted a total of 300,000 options to a director for his services on the Board of Directors. Those options were all cancelled during the year ended June 30, 2013, upon the director’s resignation from the Board. The Company also recognized $73,721 in expense related to the continued vesting of options that were granted during prior years. During the fiscal year ended June 30, 2014 the Company granted a total of 150,000 options to directors for service on the Board of Directors. Option issuances and vesting during the period ending June 30, 2015 No options were granted to Board members for Board service for the year ended June 30, 2015. During the year ended June 30, 2015, 100,000 options were granted to a consultant pursuant to a consulting agreement. Additionally 140,000 options related to this transaction vested (20,000 options monthly May – November 2014 at $0.10). Year to date expense related to these options is $12,022 as of June 30, 2015. On December 1, 2014, 480,000 options were granted to the Company’s Chief Executive Officer (then our Chief Operating Officer) as part of his employment offer. The options have a strike price of $0.10, vest December 1, 2015 and expire December 1, 2020. Year to date expense related to these options is $10,844 as of June 30, 2015. On January 21, 2015, 50,000 options were granted to the Company’s Chief Financial Officer as part of her employment offer. The options have a strike price of $0.10, vest ratably January 21, 2015 to December 1, 2015 and expire December 1, 2020. Year to date expense related to these options is $840 as of June 30, 2015. We estimated the fair value of the stock options at the grant date based on the following weighted average assumptions: Risk-free interest rate 1.190 – 1.345 % Expected life 3.8 – 4.5 years Expected volatility 147.43 – 152.40 % Dividend yield 0.00 % A summary of the status of our outstanding stock options as of June 30, 2015 and June 30, 2014 and changes during the periods then ended is presented below: June 30, 2015 June 30, 2014 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding beginning of period 1,754,000 $ 0.17 1,904,000 $ 0.23 Granted 670,000 $ 0.10 150,000 $ 0.08 Expired/Cancelled (154,000 ) $ 0.29 (300,000 ) $ 0.50 Exercised - $ - - $ - Outstanding end of period 2,270,000 $ 0.14 1,754,000 $ 0.17 Exercisable 1,752,500 $ 0.16 1,604,000 $ 0.18 The following table summarizes the range of outstanding and exercisable options as of June 30, 2015: Outstanding Exercisable Range of Exercise Prices Number Outstanding at June 30, 2015 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at June 30, 2015 Weighted Average Remaining Contractual Life $ 0.08 150,000 6.42 $ 0.08 150,000 6.42 $ 0.10 670,000 4.47 $ 0.10 152,500 4.47 $ 0.17 650,000 4.42 $ 0.17 650,000 4.42 $ 0.17 400,000 5.42 $ 0.17 400,000 5.42 $ 0.17 400,000 6.42 $ 0.17 400,000 6.42 2,270,000 1,752,500 General Warrant Information In September 2013, the Company obtained an extension on the remaining $100,000 secured convertible promissory note that was issued in the private placement that closed in a prior year. In exchange for the extension, the note holder received 500,000 common stock warrants and $6,500 in accrued interest and fees. The common stock warrants expire three years from the date of issuance, are exercisable at $0.13 per share, and vest on the next date the value of Amerityre common stock reaches $0.25 per share. As of June 30, 2015 the warrants have not vested. The related note was paid off as of June 30, 2014. |
NOTE 6 - LIQUIDITY
NOTE 6 - LIQUIDITY | 12 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Substantial Doubt about Going Concern [Text Block] | NOTE 6 – Over the past year, we have been working on various proposals to secure short-term loans as well as long-term bank financing and equity based investments. The Company currently does not have an existing credit facility. Over the past year, we have worked with our vendors to obtain extended credit terms and increase credit lines where needed. Additionally, we continue to focus on adherence to established collection policies and proactive communication with repeat customers, including adjusting credit limits to allow for increased sales volume where warranted. We are intent on focusing on the sale and distribution of profitable product lines. Although, management continues to look for further financing facilities at affordable terms that will allow the Company to maintain sufficient raw material and finished goods inventory to capitalize on sales growth opportunities, no additional capital expenditures are anticipated over the next twelve months unless they support sales development and product improvement. We continue to work to reduce our overall costs wherever possible. To help address our cash resources which at times may be limited, we are in discussions with various third parties about potential opportunities to license our technology which we believe will bring in additional cash flows without diluting our common stock or requiring the addition of debt. We are in discussions with banks and other lenders regarding establishing a line of credit for short term cash needs, however at this time we have not succeeded in establishing such a line of credit. Lastly, we have entered into a short term receivable factoring agreement with a third party to sell our receivable invoices. This agreement enables us to sell individual customer invoices for faster cash flow to the Company as we deem needed. As of June 30, 2015, the Company has approximately 10,500,000 shares authorized and available for issuance. Although we are reluctant to raise money through stock sales at what we believe are dilutive share prices, these authorized but unissued and unreserved shares of our common stock can be utilized if necessary to fund the expansion of our manufacturing operations or to obtain additional working capital. In assessing our liquidity, management reviews and analyzes our current cash, accounts receivable, accounts payable, capital expenditure commitments and other obligations. In connection with the preparation of our financial statements for the year ended June 30, 2015, we have analyzed our cash needs for the next twelve months. We have concluded that our available cash and accounts receivables are sufficient to meet our current minimum working capital, capital expenditure and other cash requirements for this period. |
NOTE 7 - SUBSEQUENT EVENTS
NOTE 7 - SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 7 – SUBSEQUENT EVENTS In July 2015 the Board of Directors granted the following stock bonus awards: · To all non-officer employees of Amerityre on record as of July 22, 2015, a one-time stock bonus award of 5,000 shares of the Company’s restricted common stock per employee, valued at $0.03 a share. As of July 22, 2015 there were 16 non-officer employees at Amerityre resulting in 80,000 shares, which were issued in July 2015. · To the officers of Amerityre, 600,000 shares were granted on July 20, 2015 (valued at $0.03) with 75% of the grant allocated to the CEO and 25% of the grant allocated to the CFO. The shares of stock vest ratably each quarter end during fiscal year 2016 and are payable immediately after the vesting date. In July 2015 the Company leased a piece of equipment for $19,337 which will enable our research and development personnel to complete standard physical property testing in a timelier manner. The lease contains a bargain purchase option and resulting in the capitalization of the equipment and the related debt. In August 2015, the Board of Directors cancelled the “Directors’ 2011 Stock Option and Award Plan” and adopted the “2015 Omnibus Stock Option and Award Plan” which contains provisions for up to 3,000,000 stock options to be granted to employees, consultants and directors. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Organization Amerityre Corporation (the “Company”) incorporated as a Nevada corporation on January 30, 1995 under the name American Tire Corporation and changed its name to Amerityre Corporation in December 1999. The Company was organized to take advantage of existing proprietary and non-proprietary technology available for the manufacturing of specialty tires. The Company engages in the manufacturing, marketing, distribution and sales of “flat free” specialty tires and tire-wheel assemblies and currently is manufacturing these tires at its manufacturing facility located in Boulder City, Nevada. The Company’s financial statements are prepared using the accrual method of accounting. The Company has elected a June 30 year-end. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain reclassifications, which have no effect on net loss, have been made in the prior period financial statements, specifically the recognition of the preferred share dividend as a non-cash transaction at June 30, 2014. |
Use of Estimates, Policy [Policy Text Block] | Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management routinely makes judgments on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Risk The Company maintains several accounts with financial institutions. Currently, the accounts are insured by the Federal Deposit Insurance Corporation up to $250,000. Credit losses, if any, have been provided for in the financial statements and are based on management’s expectations. The Company’s accounts receivable are subject to potential concentrations of credit risk. The Company does not believe that it is subject to any unusual risks or significant risks in the normal course of its business. We have three customers who accounted for 27% of our sales for the year ended June 30, 2015 and two customers who accounted for 21% of our sales for the year ended June 30, 2014. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. As of June 30, 2015 and 2014, respectively, we had no cash equivalents. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Trade Receivables We generally charge-off trade receivables that are more than 120 days outstanding as bad-debt expense, unless management believes the amount to be collectable. The charge-off amounts are included in general and administrative expenses. As of June 30, 2015 and 2014, the reserve for uncollectible accounts was $289 and $15,362, respectively. |
Inventory, Policy [Policy Text Block] | Inventory Inventory is stated at the lower of cost (computed on a first-in, first-out basis) or market. The inventory consists primarily of chemicals, finished goods produced in our plant and products purchased for resale. 2015 2014 Raw materials $ 302,910 $ 358,725 Finished goods 655,714 525,722 Inventory reserve (110,935 ) (113,456 ) Inventory – net (current and long term) $ 847,689 $ 770,991 Our inventory reserve reflects items that were deemed to be defective or obsolete based on an analysis of all inventories on hand. In fiscal year 2015, the Company critically reviewed all slow moving inventory to determine if defective or obsolete. If not defective or obsolete we presented these items as non-current inventory, although all inventory is ready and available for sale at any moment. This change in methodology did not materially affect the total components of our inventory classification as presented above. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost. Expenditures for small tools, ordinary maintenance and repairs are charged to operations as incurred. Major additions and improvements are capitalized. When we retire or dispose of assets, the costs and accumulated depreciation or amortization are removed from the respective accounts and we recognize any related gain or loss. Major replacements that substantially extend the useful life of an asset are capitalized and depreciated. Depreciation is computed using the straight-line method over estimated useful lives as follows: Leasehold improvements 5 years, or over lease term Equipment 5 to 10 years Furniture and fixtures 7 years Software 2 years Depreciation expense for the years ended June 30, 2015 and 2014 was $189,155 and $205,289, respectively. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Patents and Trademarks Patent and trademark costs have been capitalized at June 30, 2015, totaling $479,633 with accumulated amortization of $276,923 for a net book value of $202,710. Patent and trademark costs capitalized at June 30, 2014, totaled $590,192 with accumulated amortization of $303,245 for a net book value of $286,947. The patents which have been granted are being amortized over a period of 20 years. Patents which are pending or are being developed are not amortized. Amortization begins once the patents have been issued. Included in the total patent and trademark costs are $-0- and $6,207 of patent and trademark costs pending at June 30, 2015 and 2014, respectively, that were not being amortized. Annually, pending or expired patents are inventoried and analyzed, which resulted in the recognition of a loss on abandonment, expiration or retirement of patents and trademarks of $56,283 and $168,743 for the years ended June 30, 2015 and 2014, respectively. Amortization expense for the years ended June 30, 2015 and 2014 was $31,954 and $49,315 respectively. The Company evaluates the recoverability of intangibles and reviews the amortization period on a continual basis utilizing the guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Intangibles – Goodwill and Other · any changes in the market relating to the patents that would decrease the life of the asset; · any adverse change in the extent or manner in which the patents are being used; · any significant adverse change in legal factors relating to the use of the patents; · current period operating or cash flow loss combined with our history of operating or cash flow losses; · future cash flow values based on the expectation of commercialization through licensing; and · current expectations that, more likely than not, the patents will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The estimated amortization expense, based on current intangible balances, for the next five fiscal years beginning July 1, 2015 is as follows: 2015 $ 27,331 2016 $ 27,297 2017 $ 22,304 2018 $ 20,962 2019 $ 16,653 |
Derivatives, Policy [Policy Text Block] | Financial and Derivative Instruments The Company periodically enters into financial instruments. Upon entry, each instrument is reviewed for debt or equity treatment. In the event that the debt or equity treatment is not readily apparent, FASB ASC 480-10-S99 is consulted for temporary treatment. Once an event takes place that removes the temporary element the Company appropriately reclassifies the instrument to debt or equity. The Company periodically assesses its financial and equity instruments to determine if they require derivative accounting. Instruments which may potentially require derivative accounting are conversion features of debt, equity, and common stock equivalents in excess of available authorized common shares, and contracts with variable share settlements. In the event of derivative treatment, we mark the instrument to market. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation We account for stock-based compensation under the provisions of FASB ASC 718, Compensation – Stock Compensation FASB ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our Statement of Operations. Stock-based compensation expense recognized in our Statements of Operations for fiscal years ended June 30, 2015 and 2014 assume all awards will vest; therefore no reduction has been made for estimated forfeitures. |
Earnings Per Share, Policy [Policy Text Block] | Basic and Fully Diluted Net Loss per Share Basic and Fully Diluted net loss per share is computed using the weighted-average number of common shares outstanding during the period. The Company’s outstanding stock options, warrants, and shares issuable upon conversion of outstanding convertible notes have been excluded from the diluted net loss per share calculation. The Company excluded a total of 2,770,000 and 2,254,000 common stock equivalents for the years ended June 30, 2015 and 2014, respectively because they are anti-dilutive. |
Income Tax, Policy [Policy Text Block] | Income Taxes FASB ASC 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. As a result of the implementation of FASB ASC 740, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by FASB ASC 740. Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry-forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Net deferred tax assets consist of the following components as of June 30, 2015 and 2014: 2015 2014 Deferred tax assets: NOL carryover $ 17,035,800 $ 16,930,200 Section 1231 loss carryover 24,900 900 Allowance for doubtful accounts 100 6,000 Related party accruals - 24,400 Inventory reserve 38,800 44,200 R & D carryover 221,600 195,400 Accrued vacation (7,600 ) 5,900 Deferred tax liabilities: Depreciation (11,400 ) (44,300 ) Valuation allowance (17,302,200 ) (17,162,700 ) Net deferred tax asset $ - $ - The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended June 30, 2015 and 2014 due to the following: 2015 2014 Book loss $ (104,800 ) $ (495,200 ) Depreciation 39,400 54,300 Meals & entertainment 2,800 3,300 Nondeductible expenses 17,100 102,200 Accrued vacation (2,200 ) 1,300 Inventory reserve (900 ) 20,000 Receivable reserve (5,300 ) 2,900 Related party accruals (21,900 ) - Loss on asset disposal 10,400 71,000 Valuation allowance 65,400 240,200 $ - $ - At June 30, 2015, the Company had net operating loss carry-forwards of approximately $42,948,000 that may be offset against future taxable income from the year 2016 through 2035. No tax benefit has been reported in the June 30, 2015 financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry-forwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry-forwards may be limited as to use in future years. The Company’s policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. As of June 30, 2015 the Company had no accrued interest or penalties related to uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2011. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Accounting As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The three levels of the fair value hierarchy are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Revenue for products is recognized when the sales amount is determined, shipment of goods to the customer has occurred and collection is reasonably assured. Generally, we ship all of our products FOB origination. License fee revenue is recognized as earned, and no revenue is recognized until the inception of the license term. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Shipping and Handling Fees require that freight costs charged to customers be classified as revenues. Freight expenses are included in costs of sales. |
Standard Product Warranty, Policy [Policy Text Block] | Product Warranties The Company’s standard sales terms include a limited warranty on workmanship and materials to the original purchaser if items sold are used in the service for which they are intended. Specifically the Company warrants wheels, bearings, and bushings for one year from the date of purchase. In the past the Company estimated its warranty reserve based on historical experience with warranty claims and returns for defective items. Because the Company has experienced limited items through the warranty process, in fiscal year 2015 the Company changed to actual, instead of estimated, warranty recognition. This change in accounting principle did not have a material impact on the Company’s financial statements and as of June 30, 2015 and 2014, the Company had no estimated warranty reserves accrued. |
Advertising Costs, Policy [Policy Text Block] | Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. Advertising expense for the years ended June 30, 2015 and 2014 was $28,606 and $5,128, respectively. |
Sales Tax Policy [Policy Text Block] | Sales Tax In accordance with FASB ASC 605-45, formerly EITF Issue No. 06-3, How Taxes Collected from Customers and Remitted to Government Authorities Should Be Presented in the Income Statement |
Related Party Transactions Policy [Policy Text Block] | Related Party Transactions Amerityre’s Chairman of the Board, Timothy L. Ryan, is also the principal owner of Rhino Rubber LLC, a manufacturing and distribution company for solid industrial tires and wheels. During fiscal 2015 and fiscal 2014, Rhino Rubber LLC purchased a total of $9,633 and $9,668, respectively, in tire products from Amerityre. As of June 30, 2015 and 2014, the accounts receivable balances for Rhino Rubber LLC were $6,312 and $17,089, respectively. The terms and conditions of those related-party sales transactions were the same as those afforded to any of Amerityre’s customers. We currently distribute directly from our manufacturing facility in Boulder City, Nevada and from Rhino Rubber in Akron, Ohio. Costs for these services were limited to freight, shipping and labor for mounting services. The Company pays $600 a month to Rhino Rubber. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Adopted In August 2014, the FASB issued ASU 2014-15 Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company has elected to early adopt the provisions of ASU 2014-10 for these financial statements. Issued In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20),” which eliminates the concept of extraordinary items. The new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015. The new guidance is to be applied prospectively but may also be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. We expect to adopt the provisions of this new guidance on July 1, 2016. We do not expect the adoption of the new provisions to have a material impact on our financial condition or results of operations. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC, did not, or are not believed by management to, have a material impact on the Company's present or future financial position, results of operations or cash flows. |
NOTE 1 - ORGANIZATION AND SUM16
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventory is stated at the lower of cost (computed on a first-in, first-out basis) or market. The inventory consists primarily of chemicals, finished goods produced in our plant and products purchased for resale. 2015 2014 Raw materials $ 302,910 $ 358,725 Finished goods 655,714 525,722 Inventory reserve (110,935 ) (113,456 ) Inventory – net (current and long term) $ 847,689 $ 770,991 |
Property, Plant and Equipment [Table Text Block] | Depreciation is computed using the straight-line method over estimated useful lives as follows: Leasehold improvements 5 years, or over lease term Equipment 5 to 10 years Furniture and fixtures 7 years Software 2 years |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated amortization expense, based on current intangible balances, for the next five fiscal years beginning July 1, 2015 is as follows: 2015 $ 27,331 2016 $ 27,297 2017 $ 22,304 2018 $ 20,962 2019 $ 16,653 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Net deferred tax assets consist of the following components as of June 30, 2015 and 2014: 2015 2014 Deferred tax assets: NOL carryover $ 17,035,800 $ 16,930,200 Section 1231 loss carryover 24,900 900 Allowance for doubtful accounts 100 6,000 Related party accruals - 24,400 Inventory reserve 38,800 44,200 R & D carryover 221,600 195,400 Accrued vacation (7,600 ) 5,900 Deferred tax liabilities: Depreciation (11,400 ) (44,300 ) Valuation allowance (17,302,200 ) (17,162,700 ) Net deferred tax asset $ - $ - |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended June 30, 2015 and 2014 due to the following: 2015 2014 Book loss $ (104,800 ) $ (495,200 ) Depreciation 39,400 54,300 Meals & entertainment 2,800 3,300 Nondeductible expenses 17,100 102,200 Accrued vacation (2,200 ) 1,300 Inventory reserve (900 ) 20,000 Receivable reserve (5,300 ) 2,900 Related party accruals (21,900 ) - Loss on asset disposal 10,400 71,000 Valuation allowance 65,400 240,200 $ - $ - |
NOTE 3 - COMMITMENTS AND CONT17
NOTE 3 - COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Payments due by period Total Less than 1 year 1 to 3 years 3 to 5 years After 5 years Facility lease $ 686,400 $ 135,600 $ 274,800 $ 276,000 $ - Total contractual cash obligations $ 686,400 $ 135,600 $ 274,800 $ 276,000 $ - |
NOTE 5 - STOCK OPTIONS AND WA18
NOTE 5 - STOCK OPTIONS AND WARRANTS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | We estimated the fair value of the stock options at the grant date based on the following weighted average assumptions: Risk-free interest rate 1.190 – 1.345 % Expected life 3.8 – 4.5 years Expected volatility 147.43 – 152.40 % Dividend yield 0.00 % |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the status of our outstanding stock options as of June 30, 2015 and June 30, 2014 and changes during the periods then ended is presented below: June 30, 2015 June 30, 2014 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding beginning of period 1,754,000 $ 0.17 1,904,000 $ 0.23 Granted 670,000 $ 0.10 150,000 $ 0.08 Expired/Cancelled (154,000 ) $ 0.29 (300,000 ) $ 0.50 Exercised - $ - - $ - Outstanding end of period 2,270,000 $ 0.14 1,754,000 $ 0.17 Exercisable 1,752,500 $ 0.16 1,604,000 $ 0.18 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following table summarizes the range of outstanding and exercisable options as of June 30, 2015: Outstanding Exercisable Range of Exercise Prices Number Outstanding at June 30, 2015 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at June 30, 2015 Weighted Average Remaining Contractual Life $ 0.08 150,000 6.42 $ 0.08 150,000 6.42 $ 0.10 670,000 4.47 $ 0.10 152,500 4.47 $ 0.17 650,000 4.42 $ 0.17 650,000 4.42 $ 0.17 400,000 5.42 $ 0.17 400,000 5.42 $ 0.17 400,000 6.42 $ 0.17 400,000 6.42 2,270,000 1,752,500 |
NOTE 1 - ORGANIZATION AND SUM19
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Cash, FDIC Insured Amount | $ 250,000 | |
Allowance for Doubtful Accounts Receivable | 289 | $ 15,362 |
Depreciation | 189,155 | 205,289 |
Intangible Assets, Gross (Excluding Goodwill) | 479,633 | 590,192 |
Finite-Lived Intangible Assets, Accumulated Amortization | 276,923 | 303,245 |
Intangible Assets, Net (Excluding Goodwill) | $ 202,710 | 286,947 |
Finite-Lived Intangible Asset, Useful Life | 20 years | |
Other Finite-Lived Intangible Assets, Gross | $ 0 | 6,207 |
Impairment of Intangible Assets (Excluding Goodwill) | 56,283 | 168,743 |
Amortization of Intangible Assets | 31,954 | 49,315 |
Share-based Compensation | $ 23,706 | $ 111,973 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 2,770,000 | 2,254,000 |
Operating Loss Carryforwards | $ 42,948,000 | |
Operating Loss Carryforwards, Expiration Date 1 | 2,035 | |
Advertising Expense | $ 28,606 | $ 5,128 |
Accounts Receivable, Related Parties, Current | $ 6,312 | $ 17,089 |
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | ||
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Concentration Risk, Percentage | 27.00% | 21.00% |
Affiliated Entity [Member] | ||
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $ 9,633 | $ 9,668 |
Affiliated Entity [Member] | Costs for Shipping and Labor for Mounting Services [Member] | ||
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $ 600 |
NOTE 1 - ORGANIZATION AND SUM20
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Inventory - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Schedule of Inventory [Abstract] | ||
Raw materials | $ 302,910 | $ 358,725 |
Finished goods | 655,714 | 525,722 |
Inventory reserve | (110,935) | (113,456) |
Inventory – net (current and long term) | $ 847,689 | $ 770,991 |
NOTE 1 - ORGANIZATION AND SUM21
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2015 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Leasehold improvements | 5 years, or over lease term |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 7 years |
Software and Software Development Costs [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 2 years |
Minimum [Member] | Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 5 years |
Maximum [Member] | Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 10 years |
NOTE 1 - ORGANIZATION AND SUM22
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Jun. 30, 2015USD ($) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |
2,015 | $ 27,331 |
2,016 | 27,297 |
2,017 | 22,304 |
2,018 | 20,962 |
2,019 | $ 16,653 |
NOTE 1 - ORGANIZATION AND SUM23
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Deferred tax assets: | ||
NOL carryover | $ 17,035,800 | $ 16,930,200 |
Section 1231 loss carryover | 24,900 | 900 |
Allowance for doubtful accounts | 100 | 6,000 |
Related party accruals | 0 | 24,400 |
Inventory reserve | 38,800 | 44,200 |
R & D carryover | 221,600 | 195,400 |
Accrued vacation | (7,600) | 5,900 |
Deferred tax liabilities: | ||
Depreciation | (11,400) | (44,300) |
Valuation allowance | (17,302,200) | (17,162,700) |
Net deferred tax asset | $ 0 | $ 0 |
NOTE 1 - ORGANIZATION AND SUM24
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||
Book loss | $ (104,800) | $ (495,200) |
Depreciation | 39,400 | 54,300 |
Meals & entertainment | 2,800 | 3,300 |
Nondeductible expenses | 17,100 | 102,200 |
Accrued vacation | (2,200) | 1,300 |
Inventory reserve | (900) | 20,000 |
Receivable reserve | (5,300) | 2,900 |
Related party accruals | (21,900) | 0 |
Loss on asset disposal | 10,400 | 71,000 |
Valuation allowance | 65,400 | 240,200 |
$ 0 | $ 0 |
NOTE 2 - DEBT (Details)
NOTE 2 - DEBT (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Debt Disclosure [Abstract] | ||
Sales Commission, Percentage | 5.00% | |
Debt Instrument, Face Amount | $ 96,000 | |
Long-term Debt, Current Maturities | 13,608 | $ 16,013 |
Long-term Debt, Excluding Current Maturities | $ 53,840 | $ 53,840 |
NOTE 3 - COMMITMENTS AND CONT26
NOTE 3 - COMMITMENTS AND CONTINGENCIES (Details) | May. 01, 2015ft²a | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | ||
Area of Real Estate Property (in Square Feet) | 49,200 | ||
Area of Land (in Acres) | a | 4.15 | ||
Operating Leases, Rent Expense | $ | $ 132,000 | $ 132,000 |
NOTE 3 - COMMITMENTS AND CONT27
NOTE 3 - COMMITMENTS AND CONTINGENCIES (Details) - Schedule of Future Minimum Rental Payments for Operating Leases | Jun. 30, 2015USD ($) |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | |
Operating Lease, Future Minimum Payments, Total | $ 686,400 |
Operating Lease, Future Minimum Payments, Due Less than 1 year | 135,600 |
Operating Lease, Future Minimum Payments, Due 1 to 3 years | 274,800 |
Operating Lease, Future Minimum Payments, Due 3-5 years | 276,000 |
Operating Lease, Future Minimum Payments, Due After 5 years | $ 0 |
NOTE 4 - STOCK TRANSACTIONS (De
NOTE 4 - STOCK TRANSACTIONS (Details) - USD ($) | Dec. 13, 2013 | Jan. 31, 2015 | Dec. 31, 2013 | Jun. 30, 2015 | Jun. 30, 2014 |
NOTE 4 - STOCK TRANSACTIONS (Details) [Line Items] | |||||
Preferred Stock, Shares Authorized (in Shares) | 5,000,000 | 5,000,000 | |||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ 0.001 | $ 0.001 | |||
Other Significant Noncash Transaction, Value of Consideration Received | $ 31,500 | $ 0 | |||
Consulting Agreement [Member] | |||||
NOTE 4 - STOCK TRANSACTIONS (Details) [Line Items] | |||||
Shares Issued, Price Per Share (in Dollars per share) | $ 0.04 | ||||
Stock Issued During Period, Shares, Issued for Services (in Shares) | 128,667 | ||||
Stock Issued During Period, Value, Issued for Services | $ 5,147 | ||||
Convertible Preferred Stock [Member] | |||||
NOTE 4 - STOCK TRANSACTIONS (Details) [Line Items] | |||||
Preferred Stock, Shares Authorized (in Shares) | 2,000,000 | ||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ 0.001 | ||||
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | 10 | ||||
Convertible Preferred Stock, Terms of Conversion | (1) at any time at the election of the holder; or (2) automatically on the date that is six years after the date of original issuance of the shares. | ||||
Preferred Stock, Dividend Rate, Percentage | 1.25% | ||||
Shares Issued, Price Per Share (in Dollars per share) | $ 1 | ||||
Stock Issued During Period, Shares, New Issues (in Shares) | 2,000,000 | ||||
Proceeds from Issuance of Private Placement | 1,980,478 | ||||
Payments of Stock Issuance Costs | $ 188 | $ 19,522 | |||
Line of Credit [Member] | |||||
NOTE 4 - STOCK TRANSACTIONS (Details) [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | ||||
Stock Issued During Period, Shares, Other (in Shares) | 500,000 | ||||
Stock Issued During Period, Value, Other | $ 40,000 | ||||
Share Price (in Dollars per share) | $ 0.08 |
NOTE 5 - STOCK OPTIONS AND WA29
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) - USD ($) | Jan. 21, 2015 | Dec. 01, 2014 | Jul. 06, 2011 | Nov. 30, 2014 | Oct. 31, 2014 | Sep. 30, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Jun. 30, 2014 | May. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 10, 2015 |
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 670,000 | 150,000 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,754,000 | 2,270,000 | 1,754,000 | 1,904,000 | |||||||||||
Share-based Compensation (in Dollars) | $ 23,706 | $ 111,973 | |||||||||||||
Consulting Agreement [Member] | |||||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 100,000 | ||||||||||||||
Share-based Compensation (in Dollars) | $ 12,022 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | 140,000 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Option Exercise Price (in Dollars per share) | $ 0.10 | ||||||||||||||
Director [Member] | |||||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 150,000 | 300,000 | |||||||||||||
Share-based Compensation (in Dollars) | $ 73,721 | ||||||||||||||
Chief Executive Officer [Member] | |||||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 480,000 | ||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Option Exercise Price (in Dollars per share) | $ 0.10 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Date | Dec. 1, 2015 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Dec. 1, 2020 | ||||||||||||||
Allocated Share-based Compensation Expense (in Dollars) | $ 10,844 | ||||||||||||||
Chief Financial Officer [Member] | |||||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 50,000 | ||||||||||||||
Share-based Compensation (in Dollars) | $ 840 | ||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Option Exercise Price (in Dollars per share) | $ 0.10 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Dec. 1, 2020 | ||||||||||||||
2015 Omnibus Stock Option and Award Plan [Member] | Subsequent Event [Member] | |||||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,300,000 | 3,000,000 | |||||||||||||
Directors' 2011 Stock Option and Award Plan [Member] | |||||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||||||||||
Directors' 2011 Stock Option and Award Plan [Member] | Director [Member] | |||||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 2 years | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 300,000 | ||||||||||||||
Share Price (in Dollars per share) | $ 0.17 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 5 years | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,450,000 | 1,450,000 | |||||||||||||
Directors' 2011 Stock Option and Award Plan [Member] | Director [Member] | Service Period, 2012 [Member] | |||||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 650,000 | 650,000 | |||||||||||||
Directors' 2011 Stock Option and Award Plan [Member] | Director [Member] | Service Period, 2013 [Member] | |||||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 400,000 | 400,000 | |||||||||||||
Directors' 2011 Stock Option and Award Plan [Member] | Director [Member] | Service Period, 2014 [Member] | |||||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 400,000 | 400,000 | |||||||||||||
Directors' 2011 Stock Option and Award Plan [Member] | Board of Directors Chairman [Member] | |||||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 50,000 | ||||||||||||||
2005 Stock Option and Award Plan [Member] | Chief Executive Officer [Member] | |||||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 200,000 | ||||||||||||||
Share-based Compensation Award, Tranche One [Member] | Directors' 2011 Stock Option and Award Plan [Member] | Director [Member] | |||||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 100,000 | ||||||||||||||
Share-based Compensation Award, Tranche Two [Member] | Directors' 2011 Stock Option and Award Plan [Member] | Director [Member] | |||||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 100,000 | ||||||||||||||
Share-based Compensation Award, Tranche Three [Member] | Directors' 2011 Stock Option and Award Plan [Member] | Director [Member] | |||||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 100,000 | ||||||||||||||
Convertible Debt [Member] | |||||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share Price (in Dollars per share) | $ 0.25 | ||||||||||||||
Convertible Notes Payable, Current (in Dollars) | $ 100,000 | ||||||||||||||
Class of Warrant or Rights, Granted | 500,000 | ||||||||||||||
Debt Issuance Cost (in Dollars) | $ 6,500 | ||||||||||||||
Warrants, Term of Warrants | 3 years | ||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 0.13 | ||||||||||||||
Minimum [Member] | Chief Financial Officer [Member] | |||||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Date | Dec. 1, 2015 | ||||||||||||||
Maximum [Member] | Chief Financial Officer [Member] | |||||||||||||||
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Date | Dec. 1, 2015 |
NOTE 5 - STOCK OPTIONS AND WA30
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Valuation Assumptions - 12 months ended Jun. 30, 2015 | Total |
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Valuation Assumptions [Line Items] | |
Dividend yield | 0.00% |
Minimum [Member] | |
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Valuation Assumptions [Line Items] | |
Risk-free interest rate | 1.19% |
Expected life | 3 years 292 days |
Expected volatility | 147.43% |
Maximum [Member] | |
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Valuation Assumptions [Line Items] | |
Risk-free interest rate | 1.345% |
Expected life | 4 years 6 months |
Expected volatility | 152.40% |
NOTE 5 - STOCK OPTIONS AND WA31
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Share-based Compensation, Stock Options, Activity - $ / shares | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule of Share-based Compensation, Stock Options, Activity [Abstract] | ||
Outstanding beginning of period | 1,754,000 | 1,904,000 |
Outstanding beginning of period | $ 0.17 | $ 0.23 |
Granted | 670,000 | 150,000 |
Granted | $ 0.10 | $ 0.08 |
Expired/Cancelled | (154,000) | (300,000) |
Expired/Cancelled | $ 0.29 | $ 0.50 |
Exercised | 0 | 0 |
Exercised | $ 0 | $ 0 |
Outstanding end of period | 2,270,000 | 1,754,000 |
Outstanding end of period | $ 0.14 | $ 0.17 |
Exercisable | 1,752,500 | 1,604,000 |
Exercisable | $ 0.16 | $ 0.18 |
NOTE 5 - STOCK OPTIONS AND WA32
NOTE 5 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range - $ / shares | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number of Options Outstanding | 2,270,000 | 1,754,000 | 1,904,000 |
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $ 0.14 | $ 0.17 | $ 0.23 |
Number of Exercisable Options | 1,752,500 | 1,604,000 | |
Options at $0.08 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Price of Options (in Dollars per share) | $ 0.08 | ||
Number of Options Outstanding | 150,000 | ||
Weighted Average Remaining Contractual Life of Outstanding Options | 6 years 153 days | ||
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $ 0.08 | ||
Number of Exercisable Options | 150,000 | ||
Weighted Average Remaining Contractual Life of Exercisable Options | 6 years 153 days | ||
Options at $0.10 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Price of Options (in Dollars per share) | $ 0.10 | ||
Number of Options Outstanding | 670,000 | ||
Weighted Average Remaining Contractual Life of Outstanding Options | 4 years 171 days | ||
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $ 0.10 | ||
Number of Exercisable Options | 152,500 | ||
Weighted Average Remaining Contractual Life of Exercisable Options | 4 years 171 days | ||
Options at $0.17 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Price of Options (in Dollars per share) | $ 0.17 | ||
Number of Options Outstanding | 650,000 | ||
Weighted Average Remaining Contractual Life of Outstanding Options | 4 years 153 days | ||
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $ 0.17 | ||
Number of Exercisable Options | 650,000 | ||
Weighted Average Remaining Contractual Life of Exercisable Options | 4 years 153 days | ||
Options at $0.17 #2 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Price of Options (in Dollars per share) | $ 0.17 | ||
Number of Options Outstanding | 400,000 | ||
Weighted Average Remaining Contractual Life of Outstanding Options | 5 years 153 days | ||
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $ 0.17 | ||
Number of Exercisable Options | 400,000 | ||
Weighted Average Remaining Contractual Life of Exercisable Options | 5 years 153 days | ||
Options at $0.17 #3 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Price of Options (in Dollars per share) | $ 0.17 | ||
Number of Options Outstanding | 400,000 | ||
Weighted Average Remaining Contractual Life of Outstanding Options | 6 years 153 days | ||
Weighted Average Exercise Price of Outstanding Options (in Dollars per share) | $ 0.17 | ||
Number of Exercisable Options | 400,000 | ||
Weighted Average Remaining Contractual Life of Exercisable Options | 6 years 153 days |
NOTE 6 - LIQUIDITY (Details)
NOTE 6 - LIQUIDITY (Details) | Jun. 30, 2015shares |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Common Stock, Shares Authorized for Issuance | 10,500,000 |
NOTE 7 - SUBSEQUENT EVENTS (Det
NOTE 7 - SUBSEQUENT EVENTS (Details) | Jul. 22, 2015$ / sharesshares | Jul. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Aug. 10, 2015shares | Jul. 06, 2011shares |
NOTE 7 - SUBSEQUENT EVENTS (Details) [Line Items] | ||||||
Operating Leases, Rent Expense (in Dollars) | $ | $ 132,000 | $ 132,000 | ||||
Subsequent Event [Member] | 2015 Omnibus Stock Option and Award Plan [Member] | ||||||
NOTE 7 - SUBSEQUENT EVENTS (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,000,000 | 3,300,000 | ||||
Equipment [Member] | Subsequent Event [Member] | ||||||
NOTE 7 - SUBSEQUENT EVENTS (Details) [Line Items] | ||||||
Operating Leases, Rent Expense (in Dollars) | $ | $ 19,337 | |||||
Officer [Member] | Subsequent Event [Member] | ||||||
NOTE 7 - SUBSEQUENT EVENTS (Details) [Line Items] | ||||||
Shares Issued, Price Per Share (in Dollars per share) | $ / shares | $ 0.03 | |||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 600,000 | |||||
Chief Executive Officer [Member] | Subsequent Event [Member] | ||||||
NOTE 7 - SUBSEQUENT EVENTS (Details) [Line Items] | ||||||
Share-based Compensation by Share-based Payment Award, Shares Granted, Percentage | 75.00% | |||||
Chief Financial Officer [Member] | Subsequent Event [Member] | ||||||
NOTE 7 - SUBSEQUENT EVENTS (Details) [Line Items] | ||||||
Share-based Compensation by Share-based Payment Award, Shares Granted, Percentage | 25.00% | |||||
Restricted Stock [Member] | Employee [Member] | Subsequent Event [Member] | ||||||
NOTE 7 - SUBSEQUENT EVENTS (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 5,000 | |||||
Shares Issued, Price Per Share (in Dollars per share) | $ / shares | $ 0.03 | |||||
Number of Employees | 16 | |||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 80,000 |