10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 10-Q

(Mark One)

S QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2012

£ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________________ to _________________

Commission File No.: 333-137210

ZEVOTEK, INC.

(Exact name of registrant as specified in its charter)

Delaware	05-0630427
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

19 Sylvan Avenue

Second Floor

Englewood Cliffs, NJ 07632

(Address of principal executive offices)

Issuer’s telephone number:   (201) 820-0357

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes    x   No   ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes   x     No   o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer   ¨		Accelerated filer   ¨
Non-accelerated filer   ¨	(Do not check if a smaller reporting company)	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.  Yes     ¨    No    x

APPLICABLE ONLY TO CORPORATE ISSUERS

As of May 21, 2012, there were 318,794 shares of our common stock outstanding.

 Quarterly Report on Form 10-Q

Quarterly Period Ended March 31, 2012

Table of Contents

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets as of March 31, 2012 (unaudited) and June 30, 2011	3
	Condensed Consolidated Statements of Operations for the Three and Nine Months Ended March 31, 2012 and 2011 (unaudited)	4
	Condensed Consolidated Statement of Stockholders’ Deficit for Period from June 30, 2010 to March 31, 2012 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 2012 and 2011 (unaudited)	6
	Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2012	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21
Item 4.	Controls and Procedures	21
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	23
Item 1A	Risk Factors	23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 3.	Defaults upon Senior Securities	23
Item 4.	Mine Safety Disclosures	23
Item 5.	Other Information	23
Item 6.	Exhibits	23
Signatures		24
CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

PART 1:  FINANCIAL INFORMATION

ITEM 1 – FINANCIAL STATEMENTS

ZEVOTEK, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	March 31,			June 30,
	2012			2011
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	17		$	4,737
Accounts receivable		-			4,043
Inventory		86,113			88,323
Prepayments and other current assets		14,000			-
Total current assets		100,130			97,103
Other asset:
Licensing agreement		40,000			40,000
Total assets	$	140,130		$	137,103
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable and accrued expenses	$	1,010,867		$	774,346
Advances payable		214,173			43,823
Convertible notes payable and demand notes (net of debt discount of $0 and $814,962 as of March 31, 2012 and June 30, 2011, respectively)		1,287,569			309,806
Total current liabilities		2,512,609			1,127,975
Long term portion of convertible notes payable (net of debt discount of $0 and $106,350 as of March 31, 2012 and June 30, 2011, respectively)		-			86,080
Stockholders' deficit:
Preferred Stock, $0.00001 par value; 10,000,000 shares authorized Series A Preferred stock, $0.00001 par value; 50,000 shares designated, issued and outstanding as of March 31, 2012 and June 30, 2011		1			1
Series B Preferred stock, $0.00001 par value; 1,000,000 shares designated, issued and outstanding as of March 31, 2012 and June 30, 2011		10			10
Common stock, $0.00001 par value, 5,000,000,000 shares authorized; 318,794 and 220,810 shares issued and outstanding as of March 31, 2012 and June 30, 2011, respectively		3			2
Treasury stock, 1 share as of March 31, 2012 and June 30, 2011		—			—
Additional paid in capital		5,704,355			5,652,172
Accumulated deficit		(8,076,848	)		(6,729,137	)
Total stockholders' deficit		(2,372,479	)		(1,076,952	)
Total liabilities and stockholders' deficit	$	140,130		$	137,103

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

3

ZEVOTEK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended March 31,						Nine Months Ended March 31,
	2012			2011			2012			2011
REVENUES:
Sales	$	1,488		$	5,068		$	6,135		$	12,952
Cost of sales		536			2,514			2,210			7,326
Gross profit		952			2,554			3,925			5,626
OPERATING EXPENSES:
Selling		645			46,287			31,544			291,471
General and administrative		102,855			124,319			284,351			456,674
Total operating expense		103,500			170,606			315,895			748,145
Loss from operations		(102,548	)		(168,052	)		(311,970	)		(742,519	)
OTHER (EXPENSE):
Interest, net		(38,067	)		(29,875	)		(114,429	)		(85,208	)
Amortization of beneficial conversion feature		—			(37,544	)		(921,312	)		(132,780	)
Total other expense		(38,067	)		(67,419	)		(1,035,741	)		(217,988	)
Net loss before provision for income taxes		(140,615	)		(235,471	)		(1,347,711	)		(960,507	)
Income taxes		—			—			—			—
NET LOSS	$	(140,615	)	$	(235,471	)	$	(1,347,711	)	$	(960,507	)
Net loss per common share, basic and fully diluted	$	(0.44	)	$	(2.26	)	$	(4.52	)	$	(14.60	)
Weighted average number of common shares outstanding, basic and fully diluted		318,419			104,117			298,090			65,767

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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ZEVOTEK, INC.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT

For the Period from June 30, 2010 to March 31, 2012

	Preferred stock												Common							Additional
	Series A				Series B				Common stock				Stock To			Treasury stock				Paid in		Accumulated
	Shares		Amount		Shares		Amount		Shares		Amount		Be Issued			Shares		Amount		Capital		Deficit			Total
BALANCE, June 30, 2010		50,000	$	1		1,000,000	$	10		34,719	$	—	$	30,000			1	$	—	$	4,000,804	$	(5,485,025	)	$	(1,454,210	)
Common stock issued for services rendered		—		—		—		—		29,273		—		—			—		—		235,413		—			235,413
Common stock issued for accounts payable		—		—		—		—		2,219		—		—			—		—		90,000		—			90,000
Conversion of debt and accrued interest for common stock		—		—		—		—		148,098		2		—			—		—		112,998		—			113,000
Fair value of beneficial conversion feature		—		—		—		—		—		—		—			—		—		1,137,957		—			1,137,957
Common stock issued to officers and board members		—		—		—		—		4,950		—		—			—		—		45,000		—			45,000
Common stock issued to former officers for accrued compensation		—		—		—		—		1,551		—		(30,000	)		—		—		30,000		—			—
Net loss		—		—		—		—		—		—		—			—		—		—		(1,244,112	)		(1,244,112	)
BALANCE, June 30, 2011		50,000	$	1		1,000,000	$	10		220,810	$	2	$	—			1	$	—	$	5,652,172	$	(6,729,137	)	$	(1,076,952	)
Common stock issued for services rendered		—		—		—		—		2,500		—		—			—		—		5,000		—			5,000
Common stock issued for settlement of accrued liabilities		—		—		—		—		8,000		—		—			—		—		7,373		—			7,373
Common stock issued for purchasing representative agreement		—		—		—		—		22,045		—		—			—		—		9,250		—			9,250
Conversion of debt and interest for common stock		—		—		—		—		61,121		1		—			—		—		30,560		—			30,561
Shares issued in satisfaction of fraction shares resulting from 1 for 5,000 reverse stock split		—		—		—		—		4,318		—		—			—		—		—		—			—
Net loss		—		—		—		—		—		—		—			—		—		—		(1,347,711	)		(1,347,711	)
BALANCE, March 31, 2012 (unaudited)		50,000	$	1		1,000,000	$	10		318,794	$	3	$	—			1	$	—	$	5,704,355	$	(8,076,848	)	$	(2,372,479	)

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

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ZEVOTEK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended March 31, 2012 and 2011

(UNAUDITED)

	2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(1,347,711	)	$	(960,507	)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued for services rendered		8,750			189,186
Common stock issued for interest		39			4,050
Common stock issued to board members as remuneration		—			31,500
Amortization of beneficial conversion feature		921,312			132,780
Changes in operating assets and liabilities:
Decrease in accounts receivable		4,043			3,353
Decrease in inventory		2,210			8,130
(Increase) decrease in prepayments and other current assets		(8,500	)		17,600
Increase in accounts payable and accrued expenses		244,787			153,292
Net cash used in operating activities		(175,070	)		(420,616	)
CASH FLOWS FROM INVESTING ACTIVITIES:		—			—
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from advances payable		170,350			289,903
Net cash provided by financing activities		170,350			289,903
Net decrease in cash and cash equivalents		(4,720	)		(130,713	)
Cash and cash equivalents, beginning of period		4,737			132,517
Cash and cash equivalents, end of period	$	17		$	1,804
SUPPLEMENTAL DISCLOSURE OF CASH FLOW:
Interest paid	$	—		$	—
Income taxes paid	$	—		$	—
NON CASH INVESTING AND FINANCING ACTIVITIES:
Common stock issued for prior year interest	$	—		$	4,119
Common stock issued for settlement of accrued liabilities	$	7,373		$	110,000
Common stock issued as a prepayment for purchasing representative agreement	$	5,500		$	—
Interest transfer to convertible note	$	—		$	2,821
Exchange of convertible debenture for advances payable	$	—		$	192,430
Debt and accrued interest converted for shares of common stock	$	30,522		$	79,077

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

6

ZEVOTEK, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2012

NOTE A - SUMMARY OF ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the preparation of the accompanying unaudited condensed consolidated financial statements follows.

Business and Basis of Presentation

ZEVOTEK, INC. (the “Company” or the “Registrant”) was organized on March 19, 2005 under the state laws of Delaware with an original name of “The Diet Coffee Company.” On March 1, 2006, the Company amended its Certificate of Incorporation and changed its name from “The Diet Coffee Company, Inc.” to “Diet Coffee, Inc.” On June 25, 2008, the Company changed its name to “Zevotek, Inc.”

The Company’s wholly owned subsidiary is Ionic Bulb.com, Inc., a Delaware corporation formed on August 21, 2007, through which it sells the Ionic Bulb, a patented air purifier that silently emits negative ions using a microchip placed inside a 10,000-hour energy saving compact fluorescent light bulb (CFL). The Ionic Bulb is an eco-friendly, maintenance-free, inexpensive alternative to air purifiers that is designed to clean the air in a 100 square foot area of unpleasant odors and indoor air pollutants that you breathe. The Company sells the Ionic Bulb through specialty retail shops, TV commercials, Amazon.com and newionicbulb.com, and it markets the Ionic Bulb to major U.S. retail stores. The Company also acquired exclusive worldwide sales and manufacturing rights to a U.S. patented new product named “Gung H2O” that reduces water use in the home. The Company plans to sell Gung H20 to major U.S. retail stores and directly to American consumers using TV ads and Internet marketing.

General

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) and instructions to Form 10-Q. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet of the Company, as of June 30, 2011, was derived from the Company’s audited consolidated balance sheet as of that date. All other condensed consolidated financial statements contained herein are unaudited and reflect all adjustments which are, in the opinion of management, necessary to summarize fairly the financial position of the Company and the results of the Company’s operations and cash flows for the periods presented. All of these adjustments are of normal recurring nature. All intercompany balances and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended June 30, 2011.

Reverse Stock Split

On September 26, 2011, the Company filed a certificate of amendment to its Certificate of Incorporation with the Secretary of State of Delaware to effectuate a reverse split of its outstanding shares of common stock on a 1 to 5,000 basis. The Financial Industry Regulatory Authority (“FINRA”) effected the reverse stock split on October 27, 2011. Each holder of common stock received 1 share of the Company’s common stock in exchange for each 5,000 shares of the Company’s common stock they owned. The Company did not issue fractional shares in connection with the foregoing split. Fractional shares were rounded up to the nearest whole share. All references in the accompanying unaudited condensed consolidated financial statements and notes thereto have been retroactively restated to reflect the stock split.

Revenue Recognition

For revenue from product sales, the Company recognizes revenue in accordance with Accounting Standards Codification 605, “Revenue Recognition SEC Staff Accounting Bulletin Topic 13” (“ASC 605”). ASC 605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence that an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required.

7

ASC 605 incorporates Accounting Standards Codification 605-25, “Revenue Recognition Multiple Element Arrangements”. ASC 605-25 addresses accounting for arrangements that may involve the delivery or performance of multiple products, services and/or rights to use assets. The Company does not have any multiple element arrangements.

Consideration Paid to Customers

The Company offers its customers certain incentives in the form of cooperative advertising arrangements, product markdown allowances, trade discounts, cash discounts, and slotting fees. Markdown allowances, trade discounts, cooperative advertising program participation and cash discounts are all recorded as reductions of net sales. No customer incentives are included in sales for the three and nine months ended March 31, 2012 and 2011.

Use of Estimates

The preparation of the unaudited condensed consolidated financial statement in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Cash and Cash Equivalents

For the purpose of the accompanying unaudited condensed consolidated financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents.

Inventories / Cost of Goods Sold

The Company has adopted a policy to record inventory at the lower of cost or market determined by the first-in-first-out method. The elements of cost that comprise inventory and cost of goods sold are FOB shipping point costs, freight and destination charges, customs and importation fees and taxes, customer broker fees (if any) and other related costs. Warehousing costs are charged to cost of goods in the period the costs are incurred. The Company provides inventory allowances based on estimates of obsolete inventories.

Inventories consist of finished products available for sale to distributors and customers. At March 31, 2012 and June 30, 2011, finished goods inventory was $86,113 and $88,323, respectively.

Allowance for doubtful accounts

The Company maintains an allowance for doubtful accounts to reduce amounts to their estimated realizable value, including reserves for customer and other receivable allowances and incentives. In estimating the provision for doubtful accounts, the Company considers a number of factors including age of the accounts receivable, trends and ratios involving the age of the accounts receivable and the customer mix of each aging categories. As of March 31, 2012 and June 30, 2011, the allowance for doubtful accounts was $0.

Impairment of long lived assets

The Company has adopted Accounting Standards Codification 360 "Property, Plant and Equipment" (“ASC 360”). The Statement requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell.

Advertising

The Company charges the costs of advertising to expenses as incurred. The Company charged $0 and $10,842 to operations for the three months ended March 31, 2012 and 2011, respectively. The Company charged $1,393 and $141,895 to operations for the nine months ended March 31, 2012 and 2011, respectively.

8

Income Taxes

The Company has adopted Accounting Standards Codification 740, “Income Taxes” (“ASC 740”) which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes are insignificant, except basis difference related to certain debts and stock based compensation expense.

Effective January 1, 2007 the Company adopted an amendment to the requirements of ASC 740. The amended standard prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

ASC 740-10-25-5 “Income Taxes—Overall—Recognition—Basis Recognition Threshold”, (the “Tax Position Topic”) provides guidance to address uncertainty in tax positions and clarifies the accounting for income taxes by prescribing a minimum recognition threshold, i.e. “more-likely-than-not”, that the income tax positions must achieve before being recognized in the financial statements. In addition, the Tax Position Topic requires expanded annual disclosures, including a roll forward of the beginning and ending aggregate unrecognized tax benefits as well as specific detail related to tax uncertainties for which it is reasonably possible the amount of unrecognized tax benefit will significantly increase or decrease within twelve months.

As a result of implementing ASC 740, there has been no adjustment to the Company’s financial statements and the adoption of ASC 740 did not have a material effect on the Company’s unaudited condensed consolidated financial statements for the three and nine months ended March 31, 2012 and 2011.

Research and Development

The Company accounts for research and development costs in accordance with the Financial Accounting Standards Board's Accounting Standards Codification 730 "Research and Development" (“ASC 730”). Under ASC 730, all research and development costs must be charged to expense as incurred. Third-party research and developments costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company had no expenditures on research and product development for three and nine months ended March 31, 2012 and 2011, respectively.

Stock Based Compensation

Effective January 1, 2006, the Company adopted the requirements of ASC 505 “Equity” and ASC 718-10 “Stock Compensation”, under the modified prospective transition method. The standards require the measurement of compensation cost at the grant date, based upon the estimated fair value of the award, and requires amortization of the related expense over the employee’s requisite service period.

Under ASC 718-10, stock based compensation cost will be recognized over the period during which an employee is required to provide service in exchange for the award. ASC 718-10 also requires an entity to calculate the pool of excess tax benefits available to absorb tax deficiencies recognized subsequent to adoption of ASC 718-10 (the “APIC pool”). The Company has evaluated its APIC pool and has determined that it was immaterial as of January 1, 2006. ASC 718-10 also amends ASC 230 “Cash Flows,” to require that excess tax benefits that had been reflected as operating cash flows be reflected as financing cash flows.

Loss per Share

The Company has adopted Accounting Standards Codification subtopic 260-10, Earnings per Share (“ASC 260-10”) specifying the computation, presentation and disclosure requirements of earnings per share information. Basic loss per share has been calculated based upon the weighted average number of common shares outstanding. Stock options and warrants would have been excluded as common stock equivalents in the diluted loss per share because their effect is anti-dilutive on the computation. Potentially dilutive shares of common stock realizable from the conversion of the Company’s convertible debentures of 146,437,488 and 3,898,973,401 shares, respectively at March 31, 2012 and 2011, are excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive.

9

Concentration of Credit Risk

Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit.

Reclassifications

Certain reclassifications have been made in prior period's unaudited condensed consolidated financial statements to conform to classifications used in the current period.

Recent Accounting Pronouncements

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements will have a material impact on its consolidated financial condition or the results of its operations.

NOTE B - GOING CONCERN MATTERS

The accompanying unaudited condensed consolidated statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying unaudited condensed consolidated financial statements for the three and nine months ended March 31, 2012, the Company incurred net losses of $140,615 and $1,347,711, respectively. At March 31, 2012, the Company had a working capital deficit of $2,412,479 (current liabilities exceeded current assets) and accumulated deficit of $8,076,848. The Company is in default of principal and accrued interest on certain convertible notes payable.

The Company cannot predict whether any additional financing will be available in the form of equity or debt, or be in another form. The Company may not be able to obtain the necessary additional capital on a timely basis, on acceptable terms, or at all. In any of these events, the Company may be unable to implement its current plans for expansion, repay its debt obligations as they become due, or respond to competitive pressures and could require it to curtail or cease its operations, any of which circumstances would have a material adverse effect on its business, prospects, financial conditions and result of operations. These factors, among others, may indicate that the Company will be unable to continue as a going concern for a reasonable period of time.

The Company's existence is dependent upon management's ability to develop profitable operations. Management anticipates that the Company may attain profitable status and improve its liquidity through the continued developing, marketing and selling of its products and additional investment in the Company. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might result should the Company be unable to continue as a going concern.

NOTE C – LICENSING, DISTRIBUTION AND PURCHASING AGREEMENT

On February 24, 2009, the Company entered into an Exclusive License and Sales Agreement whereby the Company has worldwide exclusive rights to manufacture, market, use, sell, distribute and advertise a patented ionic bulb.

In exchange for the exclusive license, the Company issued 500 shares of its common stock. The license was valued at the market price of the underlying security.

On March 2, 2011, the Company and the Ionic Bulb patent holder entered into a non-exclusive Purchasing Representative Agreement whereby the patent holder agreed to introduce the Company to a new third party manufacturer that will produce a next generation version of the Ionic Bulb with new features and improved manufacturing cost. Additionally, the patent holder affirmed his obligation to defend against patent infringement. The Company agreed to pay patent holder a fixed amount per Ionic Bulb ordered from the new manufacturer. As agreed by both parties, the Company made an advance fee payment by issuance of 5,000 shares of the Company’s restricted stock which was valued at $5,500 and is included in prepayments as of March 31, 2012 and an additional 17,045 shares of common stock valued at $3,750 as a result of a decline in market price and charged to operations. The value of the restricted shares applied to payment of the fees was based upon the average closing price of the Company's common stock for the ten trading days preceding the date on which the restrictive stock legend was to be removed. The term of the agreement is three years with one-year automatic renewals that are subject to minimum fee payments to the patent holder for the first and second renewal term, respectively.

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NOTE D- ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities are as follows:

	March 31, 2012 (unaudited)		June 30, 2011
Accounts payable	$	28,701	$	10,867
Accrued professional fees		349,245		225,163
Accrued payroll and payroll taxes		122,789		161,649
Old disputed accounts payable		160,756		160,756
Accrued interest		295,319		183,507
Other accrued liabilities		54,057		32,404
Total	$	1,010,867	$	774,346

NOTE E – ADVANCES PAYABLE

As of March 31, 2012 and June 30, 2011, the Company owed $214,173 and $43,823 to a note holder and a lender, respectively, for cash advanced to the Company for operating purposes. The advances accrue interest at 10% per annum and are repayable on demand.

NOTE F - CONVERTIBLE NOTES PAYABLE AND DEMAND NOTES

	March 31, 2012 (unaudited)			June 30, 2011
Notes Payable:
Convertible term note (a)	$	923		$	923
Convertible term note (b)		1,923			1,923
Convertible term note (c)		50,000			50,000
Convertible term note (d)		2,497			2,497
Convertible term note (e)		226			25,174
Convertible term note (f)		11,132			11,132
Convertible term note (g)		26,420			30,920
Convertible term note (h)		192,430			192,430
Convertible term note (i)		34,141			34,141
Convertible term note (j)		22,350			22,530
Convertible term note (k)		945,527			945,527
		1,287,569			1,317,197
Less: unamortized discount on debt		—			(921,311	)
		1,287,569			395,886
Less: current portion		(1,287,569	)		(309,806	)
Long term debt	$	—		$	86,080

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a)	On May 14, 2008, the Company entered into convertible term notes bearing interest at 10% per annum with a maturity date of May 14, 2010. At any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.0001 per share. The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holders about amending the conversion terms to cure the default.
b)	On May 27, 2008, the Company entered into a convertible term note bearing interest at 10% per annum with a maturity date of May 27, 2010. At any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.0001 per share. The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holder about amending the conversion terms to cure the default.
c)	On January 1, 2008, the Company entered into a convertible term note for the principal amount of $50,000 bearing interest at 7% per annum with a maturity date of June 30, 2008. This note is convertible into common stock at 90% of the common stock closing price at June 30, 2008, or approximately 4 shares of common stock. The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holder about amending the conversion terms to cure the default.
d)	On January 8, 2009, the Company entered into convertible term notes bearing interest at 10% per annum with a maturity date of January 8, 2011. The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holder about amending the conversion terms to cure the default. At any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.0001 per share.
e)	On March 9, 2009, the Company entered into convertible term notes bearing interest at 10% per annum with a maturity date of March 9, 2011. The notes were amended on January 8, 2011 to extend the maturity date to January 8, 2012. At any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.10 per share (see below). The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holder about amending the conversion terms to cure the default
f)	Of the convertible term notes entered into on May 14, 2008, certain notes having a principal amount of $11,132 as of March 31, 2012 and 2011 were not amended with respect to their conversion price and, at any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.001 per share. The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holder about amending the conversion terms to cure the default.
g)	On July 28, 2009, the Company entered into a convertible term note bearing interest at 10% per annum with a maturity date of July 28, 2011. The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holder about amending the conversion terms to cure the default. At any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.10 per share (see below).
h)	On August 6, 2010, the Company converted $192,430 of advances payable into a convertible term note bearing interest at 10% per annum with a maturity date of August 6, 2012. At any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.10 per share (see below).
i)	On January 8, 2009, the Company entered into convertible term notes bearing interest at 10% per annum with a maturity date of January 8, 2011. The notes were amended on January 8, 2011 to extend the maturity date to January 8, 2012. At any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.10 per share (see below). The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holder about amending the conversion terms to cure the default.
j)	On March 9, 2009, the Company entered into convertible term notes bearing interest at 10% per annum with a maturity date of March 9, 2011. The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holder about amending the conversion terms to cure the default. At any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.10 per share (see below).
k)	On May 10, 2011, the Company converted $945,527 of advances payable into a convertible term note bearing interest at 10% per annum with a maturity date of May 10, 2012. At any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.10 per share (see below). The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holder about amending the conversion terms to cure the default.

On August 6, 2010, the Company converted $192,430 of advances payable into a convertible note. The Company recognized and measured an aggregate of $192,430 of the advances payable, which is equal to the intrinsic value of the imbedded amended beneficial conversion feature, to additional paid in capital and a debt discount against the note issued, with the discount being amortized over the note’s two-year term.

On May 10, 2011, the Company converted $945,527 of advances payable into a convertible note. The Company recognized and measured an aggregate of $945,527 of the advances payable, which is equal to the intrinsic value of the imbedded amended beneficial conversion feature, to additional paid in capital and a debt discount against the note issued, with the discount being amortized over the note’s one-year term.

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On October 12, 2011, the Company entered into amendment agreements with certain holders of its outstanding convertible promissory notes, ((e) and (g) through (k) above), in order to amend certain terms contained therein.  The Company amended its (i) 10% convertible promissory note in the original principal amount of $192,430 dated as of August 6, 2010 and (ii) its 10% convertible promissory note in the original principal amount of $945,527 dated as of May 10, 2011, in order to (a) amend the conversion price to $0.10, (b) add a “Most Favored Nations Provision” to allow for adjustment of such conversion price in the event of certain lower priced issuances of the Company’s securities and (c) include a provision prohibiting the conversion of such note in the event conversion would require the Company to issue shares of common stock in excess of its then authorized but unissued shares.  The Company amended its (i) 10% convertible promissory note in the original principal amount of $26,225 dated as of January 8, 2009, (ii) its 10% convertible promissory note in the original principal amount of $41,728 dated as of January 8, 2009; (iii) its 10% convertible promissory note in the original principal amount of $72,471 dated as of March 9, 2009, (iv) its 10% convertible promissory note in the original principal amount of $41,500 dated as of March 9, 2009 and (v) its 10% convertible promissory note in the original principal amount of $44,000 dated as of July 28, 2009 in order to (a) amend the conversion price to $0.10 and (b) add a “Most Favored Nations Provision” to allow for adjustment of such conversion price in the event of certain lower priced issuances of the Company’s securities. Because the changes in fair values of the conversion options were greater than 10% of the carrying value of the original debts, the transactions qualified under ASC 470-50 “Debtor’s Accounting for a Modification or Exchange of Debt Instruments” and determined to be substantial. As a result, the Company wrote off the remaining unamortized debt discount totaling $624,004 at December 31, 2011.

During the three and nine months ended March 31, 2012, amortization related to the beneficial conversion feature on the convertible notes was $0 and $921,312, respectively.

During the three and nine months ended March 31, 2011, amortization related to the beneficial conversion feature on the convertible notes was $37,544 and $132,780, respectively.

NOTE G – STOCKHOLDERS EQUITY

Preferred Stock

The Company has authorized 10,000,000 shares of Preferred Stock of which 50,000 shares have been designated as Series A Preferred Stock, par value $0.00001, and 1,000,000 shares have been designated as Series B Preferred Stock, par value $0.00001, within the limitations and restrictions stated in the Certificate of Incorporation of the Company.

The Company issued 50,000 shares of Series A Preferred Stock. Each share of Series A Preferred Stock is entitled to 10,000 votes on all matters submitted to the stockholders of the Company. The holders of the Series A Preferred Stock are not granted any preference upon the liquidation, dissolution or winding up of the business of the Company. The Series A Preferred Stock is not convertible into Common Stock.

The Company has designated and issued 1,000,000 shares of Series B Preferred Stock. On May 14, 2008, the Company and a third party note holder entered into an exchange agreement under which the third party note holder exchanged a $21,026 promissory note for 1,000,000 shares of Series B Preferred Stock. Each share of Series B Preferred Stock is entitled to 5,000 votes on all matters submitted to the stockholders of the Company. Subsequently, the third party note holder, Anthony Intrieri, became Chairman of the Board of Directors. On September 12, 2011, the Estate of Anthony Intrieri ("Estate") sold 1,000,000 shares of the Company's Series B Preferred Stock to an unrelated third party. The Estate obtained the shares following the passing of Mr. Intrieri.

Common Stock

On September 26, 2011, the Company filed a certificate of amendment to its Certificate of Incorporation with the Secretary of State of Delaware to effectuate a reverse split of its outstanding shares of common stock on a 1 to 5,000 basis. FINRA effected the reverse stock split on October 27, 2011. Each holder of common stock received 1 share of the Company’s common stock in exchange for each 5,000 shares of the Company’s common stock they own. The Company did not issue fractional shares in connection with the foregoing split. Fractional shares were rounded up to the nearest whole share. All references in the accompanying unaudited condensed consolidated financial statements and notes thereto have been retroactively restated to reflect the stock split.

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During the nine months ended March 31, 2012, the Company issued 10,500 shares of common stock, valued at $12,373 for services and accrued expenses.

During the nine months ended March 31, 2012, the Company issued 22,045 shares of common stock, valued at $9,250 for a non-exclusive Purchasing Representative Agreement (Note C).

During the nine months ended March 31, 2012, the Company converted debt and accrued interest of $30,561 into 61,121 shares of common stock based upon the Notes’ conversion prices.

During the nine months ended March 31, 2012, the Company issued 4,318 shares of common stock in satisfaction of fraction shares resulting from the 1 for 5,000 reverse stock split.

As of March 31, 2012 and June 30, 2011, there were 318,794 and 220,810 shares of common stock issued and outstanding, respectively.

Treasury Stock

As of March 31, 2012 and June 30, 2011, the Company had 1 share of common stock held in treasury, which was carried at $0 based on a $0.00001 par value.

NOTE H - STOCK OPTIONS AND WARRANTS

During the nine months ended March 31, 2012 and 2011, the Company did not issue any stock warrants or options. As of March 31, 2012, there are no outstanding stock warrants or options.

NOTE I - COMMITMENTS AND CONTINGENCIES

U.S. Federal Trade Commission Settlement

On March 26, 2007, the Company received a letter from the U.S. Federal Trade Commission (“FTC”) whereby former management was informed that the FTC was conducting an investigation into advertising claims made for weight loss product known as “Slim Coffee.” The purpose of the investigation was to determine whether former management, in connection with its sales of Slim Coffee, engaged in unfair or deceptive acts or practices and false advertising. A negotiated settlement was reached with the FTC under which the Company and its former management did not admit any wrongdoing. On January 10, 2008, pursuant to a stipulated final judgment and order, the United States District Court, Southern District of New York, entered a final judgment and order against the Company in the amount of $923,910. The full amount of the judgment, and payment of any portion of it is suspended and cannot be reinstated so long as (a) the Company abides by the reporting and monitoring requirements of the judgment, (b) does not make false advertising claims in connection with any of its products in the future, and (c) its past financial disclosures to the FTC were materially accurate. The Company plans to comply with the terms of the stipulation and does not anticipate incurring a liability for the judgment, however there can be no assurance of the Company’s compliance therewith. Should the Company fail to comply with the FTC’s final judgment, this non-compliance would have a material adverse effect on the Company’s business, financial condition and results of operations.

Licenses

On February 24, 2009, the Company entered into an Exclusive License and Sales Agreement whereby the Company obtained worldwide exclusive rights to manufacture, market, use, sell, distribute and advertise certain licensed products. The license is on a year to year basis with automatic renewal and is subject to becoming non-exclusive should the Company fail to file all quarterly and annual reports by their respective due dates, inclusive of allowable extensions. In exchange for the exclusive license, the Company issued 500 shares of its common stock.

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On March 2, 2011, the Company and the Ionic Bulb patent holder entered into a non-exclusive Purchasing Representative Agreement whereby the patent holder agreed to introduce the Company to a new third party manufacturer that will produce a next generation version of the Ionic Bulb with new features and improved manufacturing cost. Additionally, the patent holder affirmed his obligation to defend against patent infringement. The Company agreed to pay patent holder a fixed amount per Ionic Bulb ordered from the new manufacturer. As agreed by both parties, the Company made an advance fee payment by issuance of 5,000 shares of the Company’s restricted stock which was valued at $5,500 and is included in prepayments as of March 31, 2012 and an additional 17,045 shares of common stock valued at $3,750 as a result of a decline in market price and charged to operations. The value of the restricted shares applied to payment of the fees was based upon the average closing price of the Company's common stock for the ten trading days preceding the date on which the restrictive stock legend was to be removed. The term of the agreement is three years with one-year automatic renewals that are subject to minimum fee payments to the patent holder for the first and second renewal term, respectively (Note C).

Gung H2O License

On December 10, 2010, the Company entered into an Exclusive License and Sales Agreement whereby the Company has worldwide exclusive rights to develop, manufacture, market, use, sell, distribute and advertise a U.S. patented new product named Gung H2O that reduces water use in the home. The license has a five-year initial term with automatic annual renewals and is not subject to minimum payments to the licensor.

Payroll Taxes

At March 31, 2012, the Company is delinquent with filing and remitting payroll taxes of approximately $49,000 including estimated penalties and interest related to payroll taxes withheld since April 2007. The Company has recorded the delinquent payroll taxes, which are included in accrued expenses on the balance sheets. Although the Company has not entered into any formal repayment agreements with the applicable tax authorities, management plans to make payment as funds become available. Penalties and interest amounts are subject to increase based on a number of factors that can cause the estimated liability to increase further. Interest and penalties were accrued in an amount estimated to cover the ultimate liability.

Sales Taxes

At March 31, 2012, the Company is delinquent with remitting sales taxes of approximately $16,000, including related estimated penalties and interest related to sales taxes withheld since 2006 in the state of New York. The Company has recorded the delinquent sales taxes, which are included in accrued expenses on the balance sheet. Although the Company has not entered into any formal repayment agreements with the applicable tax authorities, management plans to make payment as funds become available. Penalties and interest amounts are subject to increase based on a number of factors that can cause the estimated liability to increase further. Interest and penalties were accrued in an amount estimated to cover the ultimate liability.

Leases

The Company leased office space on a month to month basis in Stuart, Florida. Rent expense for the three and nine months ended March 31, 2012 was $636 and $1914, respectively. Rent expense for the three and nine months ended March 31, 2011 was $1,072 and $3,617, respectively.

NOTE J - FAIR VALUE MEASUREMENT

Fair Value Measurements under GAAP clarifies the principle that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. Under the standard, fair value measurements are separately disclosed by level within the fair value hierarchy. It only applies to accounting pronouncements that already require or permit fair value measures, except for standards that relate to share-based payments.

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.

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To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed is determined based on the lowest level input that is significant to the fair value measurement.

The carrying value of the Company’s cash, accounts receivable, prepayments, accounts payable, advances payable, convertible notes payable, and other current assets and liabilities approximate fair value because of their short-term maturity. All other significant financial assets, financial liabilities and equity instruments of the Company are either recognized or disclosed in the unaudited condensed consolidated financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practicable the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed.  As of March 31, 2012, there were no financial assets or liabilities that were measured at fair value on a recurring basis.

NOTE K – SUBSEQUENT EVENTS

Since March 31, 2012, the Company has borrowed $30,000 as an advance from a certain lender.

On May 17, 2012, the Company issued a convertible promissory note to an investor as repayment for $10,000 advanced to the Company on March 19, 2012. The note matures on March 19, 2014 and accrues interest at an annual rate of ten percent (10%). The note is payable in full on the maturity date unless previously converted into shares of the Company’s common stock at a conversion price of $0.10 per share, as may be adjusted.

On May 7, 2012, Mr. Jason Ryu was appointed as Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and Director due to the resignation of Mr. Robert Babkie on March 19, 2012. Prior to his appointment, the Company entered into a certain Exclusive License and Sales Agreement and a Purchasing Representative Agreement with Mr. Ryu as fully discussed in Note I.

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ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

General

The following discussion and analysis is provided to increase the understanding of, and should be read in conjunction with, our unaudited condensed consolidated financial statements and related notes included elsewhere in this Report.  Historical results and percentage relationships among any amounts in these financial statements are not necessarily indicative of trends in operating results for any future period. This report contains “forward-looking statements”.  The statements, which are not historical facts contained in this Report, including this Management’s discussion and analysis of financial condition and results of operation, and notes to our unaudited condensed consolidated financial statements, particularly those that utilize terminology such as “may” “will,” “should,” “expects,” “anticipates,” “estimates,” “believes,” or “plans” or comparable terminology are forward-looking statements. Such statements are based on currently available operating, financial and competitive information, and are subject to various risks and uncertainties. Future events and our actual results may differ materially from the results reflected in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, dependence on existing and future key strategic and strategic end-user customers, limited ability to establish new strategic relationships, ability to sustain and manage growth, variability of operating results, our expansion and development of new service lines, marketing and other business development initiatives, the commencement of new engagements, competition in the industry, general economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the service requirements of our clients, the potential liability with respect to actions taken by our existing and past employees, risks associated with international sales, and other risks described herein and in our other filings with the Securities and Exchange Commission.

All forward-looking statements in this document are based on information currently available to us as of the date of this report, and we assume no obligation to update any forward-looking statements.  Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.

Company History

We were organized on March 19, 2005 under the state laws of Delaware with an original name of “The Diet Coffee Company.” On March 1, 2006, we amended our Certificate of Incorporation and changed our name from “The Diet Coffee Company, Inc.” to “Diet Coffee, Inc.” On June 25, 2008, we changed our name to “Zevotek, Inc.” Our principal executive offices are located at 19 Sylvan Avenue, Second Floor, Englewood Cliffs, NJ 07632. Our telephone number is (201) 820-0357

Company Overview

We market and sell innovative personal and home care items.  We are engaged in the direct marketing and distribution of consumer products.  On February 24, 2009, we entered into an Exclusive License and Sales Agreement giving us the worldwide rights to manufacture, market, use, sell, distribute and advertise an air purifier that is contained in an energy saving compact fluorescent light bulb named the Ionic Bulb.  We market the Ionic Bulb through TV infomercials, our website newionicbulb.com and Amazon.com.  We plan to sell through catalogs and major U.S. retail and specialty stores.

On December 10, 2010, we entered into an Exclusive License and Sales Agreement giving us the worldwide rights to develop, manufacture, market, use, sell, distribute and advertise a U.S. patented new product named “Gung H2O” that reduces water use in the home. Gung H2O is a patented plumbing valve that is installed in the traditional gravity toilet tank of a non-low flow toilet.  The Gung H2O valve regulates the amount of water used to fill and flush a toilet.  The valve is adjustable to enable the toilet to use more or less water as desired.  The Gung H2O valve enables a traditional non-low flow toilet to use less water to achieve the equivalent level of flushing power of a non-low flow toilet.  We plan to sell Gung H20 to major U.S. retail stores and directly to American consumers using TV ads and Internet marketing.

We are currently seeking new products to sell.

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Recent Updates

On March 19, 2012, Robert Babkie resigned as our President, Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and Director and on May 7, 2012, Jason Ryu was appointed as our Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and Director.  Mr. Ryu and the Company are a party to that certain Exclusive License and Sales Agreement dated as of February 24, 2009 pursuant to which Mr. Ryu granted the Company a worldwide exclusive license to manufacture, market, use, sell, distribute and advertise the Ionic Bulb.  In consideration for the license, the Company issued Mr. Ryu 500 shares of common stock.  Under the February 2009 Agreement, the Company also retained Mr. Ryu as a non-exclusive independent contractor sales representative to obtain purchase orders of the licensed products on behalf of the Company.  Mr. Ryu and the Company are also parties to that certain non exclusive Purchasing Representative Agreement dated as of March 2, 2011 pursuant to which Mr. Ryu would identify certain manufacturers of the Ionic Bulb in consideration for 5,000 shares of the Company’s common stock, valued at $5,500, which represents a prepayment of Mr. Ryu’s fee based on his right to receive payments based on the Company’s purchase cost of the Ionic Bulb from the identified manufacturers. As a result of a decline in market price, Mr Ryu received an additional 17,045 shares of the Company’s common stock, valued at $3,750, which was charged to operations.

Comparison of Three Months Ended March 31, 2012 to March 31, 2011

Results of Operations

Revenue

Our sales were $1,488 for the three months ended March 31, 2012 and $5,068 for the three months ended March 31, 2011, a decrease of $3,580 or 70.6% which was primarily due to our sales for the three months ended March 31, 2012 being generated through orders placed by customers at Amazon.com as compared to our sales for the three months ended March 31, 2011 being primarily generated through orders placed by customers in response to our TV airings of the one-minute versions of our Ionic Bulb ads.

Gross Profit

Our gross profit was $952 for the three months ended March 31, 2012 and $2,554 for the three months ended March 31, 2011, a decrease of $1,602 or 62.7% which was primarily due to our decrease in sales.

Operating Expenses

Operating expenses were $315,895 for the three months ended March 31, 2012 and $748,145 for the three months ended March 31, 2011, a decrease of $432,250 or 57.8% which was primarily due to reductions in fulfillment and warehousing costs, salaries, advertising, professional fees and consulting fees.  We incurred $31,544 and $291,471 in selling expenses during the three months ended March 31, 2012 and 2011, respectively.  Selling expenses for the three months ended March 31, 2012 were comprised of advertising, marketing, salaries and fulfillment costs.  Selling expenses for the three months ended March 31, 2011 were comprised of advertising and marketing costs in connection with a sales and marketing campaign to generate Ionic Bulb retail orders.  We incurred $284,351 and $456,674 in general and administrative expenses for the three months ended March 31, 2012 and 2011, respectively.

Net Loss

Our net loss decreased by $94,856 or 40.3% to $140,615 for the three months ended March 31, 2012 as compared to our net loss of $235,471 for the three months ended March 31, 2011.  The decrease was primarily due to the $67,106 reduction in operating expenses and the $37,544 a reduction in the amortization of beneficial conversion feature expense associated with our convertible notes payable.

Our net loss per common share was $0.44 (basic and diluted) for the three months ended March 31, 2012 as compared to our net loss per common share of $2.26 for the three months ended March 31, 2011.

The weighted average number of outstanding shares was 318,419 (basic and diluted) for the three months ended March 31, 2012 as compared to 104,117 (basic and diluted) for the three months ended March 31, 2011.

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Comparison of Nine Months Ended March 31, 2012 to March 31, 2011

Results of Operations

Revenue

Our sales were $6,135 for the nine months ended March 31, 2012 and $12,952 for the nine months ended March 31, 2011, a decrease of $6,817 or 52.6% which was primarily due to our sales for the nine months ended March 31, 2012 being generated through orders placed by customers at Amazon.com as compared to our sales for the nine months ended March 31, 2011 being primarily generated through orders placed by customers in response to our TV airings of our Ionic Bulb ads.

Gross Profit

Our gross profit was $3,925 for the nine months ended March 31, 2012 and $5,626 for the nine months ended March 31, 2011, a decrease of $1,701 or 30.2%, which was primarily due to our decrease in sales.

Operating Expenses

Operating expenses were $315,896 for the nine months ended March 31, 2012 and $748,145 for the nine months ended March 31, 2011, a decrease of $432,249 or 57.8% which was primarily due to reductions in fulfillment and warehousing costs, salaries, advertising, professional fees and consulting fees.  We incurred $31,544 and $291,471 in selling expenses during the nine months ended March 31, 2012 and 2011, respectively.  Selling expenses for the nine months ended March 31, 2012 were comprised of advertising, marketing, salaries and fulfillment costs.  Selling expenses for the nine months ended March 31, 2011 were comprised of advertising and marketing costs in connection with a sales and marketing campaign to generate Ionic Bulb retail orders.  We incurred $284,352 and $456,674 in general and administrative expenses for the nine months ended March 31, 2012 and 2011, respectively.

Net Loss

Our net loss increased by $387,204 or 40.3% to $1,347,711 for the nine months ended March 31, 2012 as compared to our net loss of $960,507 for the nine months ended March 31, 2011.  The increase was primarily due to the write off of our unamortized debt discount resulting from the amendment of our convertible notes payable’s original fixed conversion price of $0.0001 to the new fixed conversion price of $0.10 effective on October 12, 2011, which was partially offset by our $432,249 reduction in operating expense in the nine months ended March 31, 2012 and as compared to the nine months ended March 31, 2011.

Our net loss per common share was $4.52 (basic and diluted) for the nine months ended March 31, 2012 as compared to our net loss per common share of $14.60 for the nine months ended March 31, 2011.

The weighted average number of outstanding shares was 298,090 (basic and diluted) for the nine months ended March 31, 2012 as compared to 65,767 (basic and diluted) for the nine months ended March 31, 2011.

Liquidity and Capital Resources

Overview

As of March 31, 2012, we had a working capital deficit of $2,412,479.  As of June 30, 2011, we had a working capital deficit of $1,030,872.  Our cash position at March 31, 2011 was $17 as compared to $4,737 at June 30, 2011.  Our working capital deficit changed significantly during the nine months ended March 31, 2012 due to the $236,521 increase in accounts payable and accrued expenses, the $170,350 of additional funds advanced to us for operating purposes andthe $624,004 write off of the remaining unamortized debt discount resulting from debt modifications during the second quarter ended December 31, 2011.

Cash provided by financing activities for the nine months ended March 31, 2012 and 2011 totaled $170,350 and $289,903, respectively, consisting of advances of funds for our operating purposes.

We expect capital expenditures to be nominal for the year ending June 30, 2012. These anticipated expenditures are for investments in property and equipment used in our business.

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Financing Needs

Since our inception on December 19, 2005 to March 31, 2012, we have generated revenues of $1,411,936 and have incurred a net loss of $8,076,848. We hope to begin achieving sustainable revenues within the next 12 months, of which there can be no guarantee.  Our ability to achieve profitability is dependent on several factors, including but not limited to, our ability to generate liquidity from operations and satisfy our ongoing operating costs on a timely basis. We may still need additional investments in order to continue operations to cash flow break even, but we cannot guarantee that we will be able to obtain such investments.  From time to time, we may receive additional funding from existing investors. Financing transactions may include the issuance of equity or debt securities, obtaining credit facilities, or other financing mechanisms. However, the trading price of our common stock and conditions in the U.S. stock and debt markets make it more difficult to obtain financing through the issuance of equity or debt securities. Even if we are able to raise the funds required, it is possible that we could incur unexpected costs and expenses, fail to collect significant amounts owed to us, or experience unexpected cash requirements that would force us to seek alternative financing. Further, if we issue additional equity or debt securities, stockholders may experience additional dilution or the new equity securities may have rights, preferences or privileges senior to those of existing holders of our common stock.

If additional financing is not available or is not available on acceptable terms, we will have to curtail our operations again, attempt to further restructure financial obligations and/or seek a strategic merger, acquisition or a sale of assets.

The independent registered public accounting firm’s report on our June 30, 2011 consolidated financial statements included in our Form 10-K states that our difficulty in generating sufficient cash flow to meet our obligations and sustain operations raise substantial doubts about the our ability to continue as a going concern. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might result should the Company be unable to continue as a going concern.

Inflation

The effect of inflation on our revenue and operating results was not significant. Our operations are located in North America and there are no seasonal aspects that would have a material effect on our financial condition or results of operations.

Off Balance Sheet Arrangements

We do not maintain off-balance sheet arrangements nor do we participate in non-exchange traded contracts requiring fair value accounting treatment.

CRITICAL ACCOUNTING POLICIES AND USE OF ESTIMATES

Financial Reporting Release No. 60, recently released by the Securities and Exchange Commission (the “SEC”), requires all companies to include a discussion of critical accounting policies or methods used in the preparation of financial statements. The notes to the unaudited condensed consolidated financial statements include a summary of significant accounting policies and methods used in the preparation of our unaudited condensed consolidated financial statements. In addition, Financial Reporting Release No. 61 was recently released by the SEC requires all companies to include a discussion which addresses, among other things, liquidity, off-balance sheet arrangements, contractual obligations and commercial commitments. The following is a brief discussion of the more significant accounting policies and methods used by us.

The discussion and analysis of our financial condition and results of operations are based upon our unaudited condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of financial statements in accordance with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including the recoverability of tangible and intangible assets, disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reported period.

On an on-going basis, we evaluate our estimates. The most significant estimates relate to our recognition of revenue, the allowance for doubtful accounts receivable and inventory valuation reserves.

We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our unaudited condensed consolidated financial statements.

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Reverse Stock Split

On September 26, 2011, the Company filed a Certificate of Amendment to the Company’s Certificate of Incorporation in order to effect a reverse split on the outstanding shares of the Company’s common stock on a 1 for 5,000 basis (the “Reverse Split”).  All per share numbers in this quarterly report are reflective of the Reverse Split.  The Financial Industry Regulatory Authority (“FINRA”) effected the Reverse Split on October 27, 2011.

Revenue Recognition

The Company recognizes revenue from product sales based on four basic criteria that must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgment regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which the product was not delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required.  The Company does not have any multiple element arrangements.

Inventories / Cost of Goods Sold

The Company has adopted a policy to record inventory at the lower of cost or market determined by the first-in-first-out method. The elements of cost that comprise inventory and cost of goods sold are FOB shipping point costs, freight and destination charges, customs and importation fees and taxes, customer broker fees (if any) and other related costs. Warehousing costs are charged to cost of goods in the period the costs are incurred. The Company provides inventory allowances based on estimates of obsolete inventories.

Allowance for doubtful accounts

The Company maintains an allowance for doubtful accounts to reduce amounts to their estimated realizable value, including reserves for customer and other receivable allowances and incentives. In estimating the provision for doubtful accounts, the Company considers a number of factors including age of the accounts receivable, trends and ratios involving the age of the accounts receivable and the customer mix of each aging categories.

Advertising

The Company charges the costs of advertising to expenses as incurred.

ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4 – CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file under the Exchange Act is accumulated and communicated to our management, including our principal executive and financial officers, as appropriate to allow timely decisions regarding required disclosure.

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The Company’s management, under the supervision and with the participation of our Chief Executive Officer/Chief Financial Officer, carried out an evaluation of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Exchange Act) as of March 31, 2012.  Based upon that evaluation and the identification of the material weakness in the Company’s internal control over financial reporting, the Chief Executive Officer/Chief Financial Officer concluded that the Company’s disclosure controls and procedures were not effective as of the end of the period covered by this report.

The reason for the ineffectiveness of our disclosure controls and procedures was the result of having limited number of employees and not having proper segregation of duties based on the cost benefit of hiring additional employees solely to address the segregation of duties issue.  We compensate for the lack of segregation of duties by employing close involvement of management day-to-day operations and outsourcing to financial consultants.

Changes in Internal Control over Financial Reporting

The primary change in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-15 or 15d-15 under the Exchange Act that occurred during the quarter ended March 31, 2012 that have materially affected, or is reasonably likely to materially affect, our internal control over financial reporting is that on March 19, 2012, Robert Babkie resigned as our President, Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and Director and on May 7, 2012, Jason Ryu was appointed as our Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and Director.

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PART II:  OTHER INFORMATION

ITEM 1 – LEGAL PROCEEDINGS

None.

ITEM 1A – RISK FACTORS

Not applicable.

ITEM 2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS COMPANY UPDATE

None.

ITEM 3 – DEFAULT UPON SENIOR SECURITIES

The Company is in default under the terms of all, except one of its outstanding promissory notes, which have an aggregate principal amount of $1,095,138 as of their respective issuance dates. As of May 21, 2012, the Company owes $1,244,541 in principal and interest under the terms of the notes. The Company and the note holders are in discussions.

ITEM 4 – MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5 – OTHER INFORMATION

On May 17, 2012, the Company issued a convertible promissory note to an investor as repayment for $10,000 advanced to the Company on March 19, 2012.  The note matures on March 19, 2014 and accrues interest at an annual rate of ten percent (10%). The note is payable in full on the maturity date unless previously converted into shares of the Company’s common stock at a conversion price of $0.10 per share, as may be adjusted. A form of the note is attached to this Quarterly Report as Exhibit 10.1.

ITEM 6 – EXHIBITS

Exhibit No.	Description
31.1	Certification of  Chief Executive Officer and Chief Financial Officer of Zevotek, Inc. pursuant to Rule 13a-14(a)
32.1	Certification of Chief Executive Officer and Chief Financial Officer of Zevotek, Inc. pursuant to 18 U.S.C. § 1350 adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002
10.1	Form of Convertible Promissory Note
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ZEVOTEK, INC.
May 21, 2012	/s/ Jason Ryu
	Jason Ryu
	Chief Executive Officer and Chief Financial Officer
	(Principal Executive and Principal Financial and Accounting Officer)

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EX-31.1

Exhibit 31.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jason Ryu, certify that:

1. I have reviewed this report on Form 10-Q of Zevotek, Inc. for the fiscal quarter ended March 31, 2012;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:  May 21, 2012

/s/ Jason Ryu

Jason Ryu, Chief Executive Officer and Chief Financial Officer

(Principal Executive Officer and Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Zevotek, Inc., a Delaware corporation (the “Company”), on Form 10-Q for the period ended March 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jason Ryu,, Chief Executive Officer, Chief Financial Officer and Director of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Dated: May 21, 2012

/s/ Jason Ryu

Jason Ryu, Chief Executive Officer,

Chief Financial Officer and Director

(Principal Executive and Principal Financial and Accounting Officer)

EX-10.1

Exhibit 10.1

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, REGISTRATION UNDER SAID ACT.

CONVERTIBLE PROMISSORY NOTE

U.S. $______________

Date of Issuance:                                                                                                                         _________, 2012

FOR VALUE RECEIVED, Zevotek, Inc., a Delaware corporation (the “Maker”), hereby promises to pay to ____________, or its successors and assigns (the “Payee”), at his address at _______________, or to such other address as Payee shall provide in writing to the Maker for such purpose, a principal sum of ___________ Dollars and ___ Cents (U.S. $__________). The aggregate principal amount outstanding under this Note has been paid to the Maker by the Payee in multiple advances, which are described more fully on the schedule annexed hereto as Exhibit B (the “Loan Schedule”). The entire principal amount hereunder shall be due and payable in full on ___________, 2014 (the “Maturity Date”), or on such earlier date as such principal amount may earlier become due and payable pursuant to the terms hereof.

1.Interest Rate.  Interest shall accrue on the unpaid principal amount of this Secured Convertible Promissory Note (the “Note”) at the rate of __% per annum from the date of the final advance, as set forth on the Loan Schedule (__________, 2012) until such unpaid principal amount is paid in full or earlier converted into shares (the “Shares”) of the Maker’s common stock, par value $0.00001 per share (the “Common Stock”) in accordance with the terms hereof.  Interest hereunder shall be paid quarterly or on such earlier date as the principal amount under this Note becomes due and payable or is converted in accordance with the terms hereof and shall be computed on the basis of a 360-day year for the actual number of days elapsed.

2.Conversion of Principal and Interest. Subject to the terms and conditions hereof, the Payee, at its sole option, may deliver to the Maker a notice in the form attached hereto as Exhibit A (a “Conversion Notice”) and an updated Loan Schedule, at any time and from time to time after the date hereof (the date of the delivery of a Conversion Notice, a “Conversion Date”), to convert all or any portion of the outstanding principal amount of this Note plus accrued and unpaid interest thereon, for a number of Shares equal to the quotient obtained by dividing the dollar amount of such outstanding principal amount of this Note plus the accrued and unpaid interest thereon being convened by the Conversion Price (as defined in Section 16).  Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Note plus all accrued and unpaid interest thereunder in an amount equal to the applicable conversion, which shall be evidenced by entries set forth in the Conversion Notice and the Loan Schedule.

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3.Certain Conversion Limitations.  The Maker shall not effect any conversion of this Note, and a Payee shall not have the right to convert any portion of this Note, to the extent that after giving effect to the conversion set forth on the applicable Notice of Conversion, the Payee (together with the Payee’s affiliates, and any other person or entity acting as a group together with the Payee or any of the Payee’s affiliates) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Payee and its affiliates shall include the number of shares of Common Stock issuable upon conversion of this Note with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which are issuable upon (A) conversion of the remaining, unconverted principal amount of this Note beneficially owned by the Payee or any of its Affiliates and (B) exercise or conversion of the unexercised or unconverted portion of any other securities of the Maker  subject to a limitation on conversion or exercise analogous to the limitation contained herein (including, without limitation, any other Notes or the Warrants) beneficially owned by the Payee or any of its Affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 4(c)(ii), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  To the extent that the limitation contained in this Section 4(c)(ii) applies, the determination of whether this Note is convertible (in relation to other securities owned by the Payee together with any Affiliates) and of which principal amount of this Note is convertible shall be in the sole discretion of the Payee, and the submission of a Notice of Conversion shall be deemed to be the Payee’s determination of whether this Note may be converted (in relation to other securities owned by the Payee together with any Affiliates) and which principal amount of this Note is convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, the Payee will be deemed to represent to the Maker each time it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Maker shall have no obligation to verify or confirm the accuracy of such determination.  In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.   For purposes of this Section 4(c)(ii), in determining the number of outstanding shares of Common Stock, the Payee may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following: (A) the Maker’s most recent periodic or annual report, as the case may be; (B) a more recent public announcement by the Maker; or (C) a more recent notice by the Maker or the Maker’s transfer agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of a Payee, the Maker shall within two Trading Days confirm orally and in writing to the Payee the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Maker, including this Note, by the Payee or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion of this Note held by the Payee.  The Payee, upon not less than 61 days’ prior notice to the Maker, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 4(c)(ii), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon conversion of this Note held by the Payee and the Beneficial Ownership Limitation provisions of this Section 4(c)(ii) shall continue to apply.  Any such increase or decrease will not be effective until the 61st day after such notice is delivered to the Maker.  The Beneficial Ownership Limitation provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4(c)(ii) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Note.

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4.Deliveries.

(a)Not later than three (3) Trading Days (as defined in Section 16) after any Conversion Date, the Maker will deliver to the Payee either (i) a certificate or certificates representing the number of Shares being acquired upon the conversion of this Note and any interest accrued thereunder being converted pursuant to the Conversion Notice (subject to the limitations set forth in Section 3 hereof), and (ii) an endorsement by the Maker of the Loan Schedule acknowledging the remaining outstanding principal amount of this Note plus all accrued and unpaid interest thereon not converted (an “Endorsement”).  The Maker’s delivery to the Payee of stocks certificates in accordance clause (i) above shall be Maker’s conclusive endorsement of the remaining outstanding principal amount of this Note plus all accrued and unpaid interest thereon not converted as set forth in the Loan Schedule.

5.Mandatory Prepayment Upon Triggering Events.  Upon the occurrence of a Triggering Event (as defined below), the Payee shall have the right (in addition to all other rights it may have hereunder or under applicable law), exercisable at the sole option of the Payee, to require the Maker to prepay all or a portion of the outstanding principal amount of this Note plus all accrued and unpaid interest thereon.  Such prepayment shall be due and payable within thirty (30) Trading Days of the date on which the notice for the payment therefore is provided by the Payee.

A “Triggering Event” means any one or more of the following events (whatever the reason and whether it shall be voluntary or involuntary, or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):

(i)any default in the payment of the principal of interest on or other payments owing in respect of this Note, free of any claim of subordination, as and when the same shall become due and payable (whether on a Conversion Date, the Maturity Date, by acceleration or otherwise) and such non-payment continues for ten (10) Business Days after written notice of non-payment is given by Payee to Maker;

(ii)the Maker shall fail for any reason to deliver certificates or an Endorsement to the Payee prior to the sixtieth (60th) day after a Conversion Date pursuant to any in accordance with Section 4;

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(iii)           the Maker or any of its subsidiaries shall commence or there shall be commenced against the Maker or any such subsidiary a case under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the Maker commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the Maker or any subsidiary thereof or there is commenced against the Maker or subsidiary thereof any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 60 days; or the Maker or any subsidiary thereof is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or the Maker or any subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of 60 days; or the Maker or any subsidiary thereof shall by any act or failure to act indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Maker or any subsidiary thereof for the purpose of effecting any of the foregoing.

6.No Waiver of Payee’s Rights, etc. All payments of principal and interest shall be made without setoff, deduction or counterclaim.  No delay or failure on the part of the Payee in exercising any of its options, powers, or rights, nor any partial or single exercise of its options, powers or rights shall constitute a waiver thereof or of any other option, power or right, and no waiver on the part of the Payee of any of its options, powers or rights shall constitute a waiver of any other option, power or right.  The Maker hereby waives presentment of payment, protest, and notices or demands in connection with the delivery, acceptance, performance, default or endorsement of this Note.  Acceptance by the Payee of less than the full amount due and payable hereunder shall in no way limit the right of the Payee to require full payment of all sums due and payable hereunder in accordance with the terms hereof.

7.Modifications. No term or provision contained herein may be modified, amended or waived except by written agreement or consent signed by the party to be bound thereby.

8.Cumulative Rights and Remedies: Usury.  The rights and remedies of the Payee expressed herein are cumulative and not exclusive of any rights and remedies otherwise available.  If it shall be found that any interest outstanding hereunder shall violate applicable laws governing usury, the applicable rate of interest outstanding hereunder shall be reduced to the maximum permitted rate of interest under such law.

9.Collection Expenses. If this obligation is placed in the hands of an attorney for collection after default, and provided the Payee prevails on the merits in respect to its claim of default, the Maker shall pay (and shall indemnify and hold harmless the Payee from and against), all reasonable attorneys’ fees and expenses incurred by the Payee in pursuing collection of this Note.

10.Successors and Assigns. This Note shall be binding upon the Maker and its successors and shall inure to the benefit of the Payee and its successors and assigns.  The term “Payee” as used herein, shall also include any endorsee, assignee or other holder of this Note.

11.Lost or Stolen Promissory Note.  If this Note is lost, stolen, mutilated or otherwise destroyed, the Maker shall execute and deliver to the Payee a new promissory note containing the same terms, and in the same form, as this Note.  In such event, the Maker may require the Payee to deliver to the Maker an affidavit of lost instrument and customary indemnity in respect thereof as a condition to the delivery of any such new promissory note.

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12.Due Authorization.  This Note has been duly authorized, executed and delivered by the Maker and is the legal obligation of the Maker, enforceable against the Maker in accordance with its terms.

13.Governing Law. This Note shall be governed by and construed and enforced in accordance with the internal laws of the State of New York without regard to the principles of conflicts of law thereof.  Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the County of New York, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.

14.Definitions. For the purposes hereof, the following terms shall have the following meanings:

“Business Day” means any day except Saturday, Sunday and any day that shall be a legal holiday or a day on which banking institutions in the State of New York are authorized or required by law or other government action to close.

“Conversion Price” shall be $______ per share (which shall not be adjusted if the Maker, at any time while this Note is outstanding, (a) shall pay a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock, (b) subdivide outstanding shares of Common Stock into a larger number of shares, (c) combine (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (d) issue by reclassification of shares of the Common Stock any shares of its capital stock).

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Per Share Market Value” means on any particular date (a) the closing bid price per share of Common Stock on such date on the OTC Bulletin Board or on such Subsequent Market on which the shares of Common Stock are then listed or quoted, or if there is no such price on such date, then the closing bid price on the OTC Bulletin Board or on such Subsequent Market on the date nearest preceding such date, or (b) if the shares of Common Stock are not then listed or quoted on the OTC Bulletin Board or a Subsequent Market, the closing bid price for a share of Common Stock in the over-the-counter market, as reported by the National Quotation Bureau Incorporated or similar organization or agency succeeding to its functions of reporting prices) at the close of business on such date, or (c) if the shares of Common Stock are not then reported by the National Quotation Bureau Incorporated (or similar organization or agency succeeding to its functions of reporting prices), then the average of the “Pink Sheet” quotes for the relevant conversion period, as determined in good faith by the Payee.

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“Person” means a corporation, an association, a partnership, a limited liability company, an organization, a business, an individual, a government or political subdivision thereof or a governmental agency.

“Securities Act” means the Securities Act of 1933, as amended.

“Subsequent Market” means the New York Stock Exchange, American Stock Exchange, Nasdaq Small Cap Market or Nasdaq National Market.

“Trading Day” means (a) a day on which the shares of Common Stock are traded on such Subsequent Market on which the shares of Common Stock are then listed or quoted, or (b) if the shares of Common Stock are not listed on a Subsequent Market. a day on which the shares of Common Stock are traded in the over-the-counter market, as reported by the OTC Bulletin Board, or (c) if the shares of Common Stock are not quoted on the OTC Bulletin Board, a day on which the shares of Common Stock are quoted in the over-the-counter market as reported by the National Quotation Bureau Incorporated (or any similar organization or agency succeeding its functions of reporting prices); provided, however, that in the event that the shares of Common Stock are not listed or quoted as set forth in (a), (b) and (c) hereof, then Trading Day shall mean any day except Saturday, Sunday and any day which shall be a legal holiday or a day on which banking institutions in the State of New York are authorized or required by law or other government action to close.

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IN WITNESS WHEREOF, the Maker has caused this Convertible Promissory Note to be duly executed and delivered as of the date first set forth above.

ZEVOTEK, INC.

By: 

Name: Jason Ryu

Title: Chief Executive Officer

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EXHIBIT A

NOTICE OF CONVERSION

Dated:

The undersigned hereby elects to convert the principal amount and interest indicated below of the _________, 2012 Convertible Promissory Note into shares of common stock, $0.00001 par value (the “Common Stock”), of Zevotek, Inc., according to the conditions hereof, as of the date written below.  No fee will be charged to the holder for any conversion.

Exchange calculations:

Date to Effect Conversion: ___________________________________________

Principal Amount and Interest of

Secured Convertible Note to be Converted: ______________________________

Number of shares of Common Stock to be Issued: ________________________

Applicable Conversion Price:_________________________________________

Signature: ________________________________________________________

Name:___________________________________________________________

Address: _________________________________________________________

A-1

EXHIBIT B

LOAN SCHEDULE

Convertible Promissory Note Issued by Zevotek, Inc.

Dated: ____________, 2012

Date of Advance  Amount of Advance  Total Amount Due Subsequent to Advance

B-1

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NOTE C - LICENSING, DISTRIBUTION AND PURCHASING AGREEMENT

9 Months Ended

Mar. 31, 2012

Licensing Distribution And Purchase Agreements Disclosure [Text Block]

NOTE C – LICENSING, DISTRIBUTION AND PURCHASING AGREEMENT

On February 24, 2009, the Company entered into an Exclusive License and Sales Agreement whereby the Company has worldwide exclusive rights to manufacture, market, use, sell, distribute and advertise a patented ionic bulb.

In exchange for the exclusive license, the Company issued 500 shares of its common stock. The license was valued at the market price of the underlying security.

On March 2, 2011, the Company and the Ionic Bulb patent holder entered into a non-exclusive Purchasing Representative Agreement whereby the patent holder agreed to introduce the Company to a new third party manufacturer that will produce a next generation version of the Ionic Bulb with new features and improved manufacturing cost. Additionally, the patent holder affirmed his obligation to defend against patent infringement. The Company agreed to pay patent holder a fixed amount per Ionic Bulb ordered from the new manufacturer. As agreed by both parties, the Company made an advance fee payment by issuance of 5,000 shares of the Company’s restricted stock which was valued at $5,500 and is included in prepayments as of March 31, 2012 and an additional 17,045 shares of common stock valued at $3,750 as a result of a decline in market price and charged to operations. The value of the restricted shares applied to payment of the fees was based upon the average closing price of the Company's common stock for the ten trading days preceding the date on which the restrictive stock legend was to be removed. The term of the agreement is three years with one-year automatic renewals that are subject to minimum fee payments to the patent holder for the first and second renewal term, respectively.

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NOTE B - GOING CONCERN MATTERS

9 Months Ended

Mar. 31, 2012

Going Concern Disclosure [Text Block]

NOTE B - GOING CONCERN MATTERS

The accompanying unaudited condensed consolidated statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying unaudited condensed consolidated financial statements for the three and nine months ended March 31, 2012, the Company incurred net losses of $140,615 and $1,347,711, respectively. At March 31, 2012, the Company had a working capital deficit of $2,412,479 (current liabilities exceeded current assets) and accumulated deficit of $8,076,848. The Company is in default of principal and accrued interest on certain convertible notes payable.

The Company cannot predict whether any additional financing will be available in the form of equity or debt, or be in another form. The Company may not be able to obtain the necessary additional capital on a timely basis, on acceptable terms, or at all. In any of these events, the Company may be unable to implement its current plans for expansion, repay its debt obligations as they become due, or respond to competitive pressures and could require it to curtail or cease its operations, any of which circumstances would have a material adverse effect on its business, prospects, financial conditions and result of operations. These factors, among others, may indicate that the Company will be unable to continue as a going concern for a reasonable period of time.

The Company's existence is dependent upon management's ability to develop profitable operations. Management anticipates that the Company may attain profitable status and improve its liquidity through the continued developing, marketing and selling of its products and additional investment in the Company. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might result should the Company be unable to continue as a going concern.

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2012	Jun. 30, 2011
Current assets:
Cash and cash equivalents	$ 17	$ 4,737
Accounts receivable		4,043
Inventory	86,113	88,323
Prepayments and other current assets	14,000
Total current assets	100,130	97,103
Licensing agreement	40,000	40,000
Total assets	140,130	137,103
Current liabilities:
Accounts payable and accrued expenses	1,010,867	774,346
Advances payable	214,173	43,823
Convertible notes payable and demand notes (net of debt discount of $0 and $814,962 as of March 31, 2012 and June 30, 2011, respectively)	1,287,569	309,806
Total current liabilities	2,512,609	1,127,975
Long term portion of convertible notes payable (net of debt discount of $0 and $106,350 as of March 31, 2012 and June 30, 2011, respectively)		86,080
Stockholders' deficit:
Common stock, $0.00001 par value, 5,000,000,000 shares authorized; 318,794 and 220,810 shares issued and outstanding as of March 31, 2012 and June 30, 2011, respectively	3	2
Treasury stock, 1 share as of March 31, 2012 and June 30, 2011	0	0
Additional paid in capital	5,704,355	5,652,172
Accumulated deficit	(8,076,848)	(6,729,137)
Total stockholders' deficit	(2,372,479)	(1,076,952)
Total liabilities and stockholders' deficit	140,130	137,103
Series A Preferred Stock [Member]
Stockholders' deficit:
Preferred Stock	1	1
Series B Preferred Stock [Member]
Stockholders' deficit:
Preferred Stock	$ 10	$ 10

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	9 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,347,711)	$ (960,507)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued for services rendered	8,750	189,186
Common stock issued for interest	39	4,050
Common stock issued to board members as remuneration		31,500
Amortization of beneficial conversion feature	921,312	132,780
Changes in operating assets and liabilities:
Decrease in accounts receivable	4,043	3,353
Decrease in inventory	2,210	8,130
(Increase) decrease in prepayments and other current assets	(8,500)	17,600
Increase in accounts payable and accrued expenses	244,787	153,292
Net cash used in operating activities	(175,070)	(420,616)
CASH FLOWS FROM INVESTING ACTIVITIES:	0	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from advances payable	170,350	289,903
Net cash provided by financing activities	170,350	289,903
Net decrease in cash and cash equivalents	(4,720)	(130,713)
Cash and cash equivalents, beginning of period	4,737	132,517
Cash and cash equivalents, end of period	17	1,804
SUPPLEMENTAL DISCLOSURE OF CASH FLOW:
Interest paid	0	0
Income taxes paid	0	0
NON CASH INVESTING AND FINANCING ACTIVITIES:
Common stock issued for prior year interest		4,119
Common stock issued for settlement of accrued liabilities	7,373	110,000
Common stock issued as a prepayment for purchasing representative agreement	5,500
Interest transfer to convertible note		2,821
Exchange of convertible debenture for advances payable		192,430
Debt and accrued interest converted for shares of common stock	$ 30,522	$ 79,077

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NOTE A - SUMMARY OF ACCOUNTING POLICIES

9 Months Ended

Mar. 31, 2012

Significant Accounting Policies [Text Block]

NOTE A - SUMMARY OF ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the preparation of the accompanying unaudited condensed consolidated financial statements follows.

Business and Basis of Presentation

ZEVOTEK, INC. (the “Company” or the “Registrant”) was organized on March 19, 2005 under the state laws of Delaware with an original name of “The Diet Coffee Company.” On March 1, 2006, the Company amended its Certificate of Incorporation and changed its name from “The Diet Coffee Company, Inc.” to “Diet Coffee, Inc.” On June 25, 2008, the Company changed its name to “Zevotek, Inc.”

The Company’s wholly owned subsidiary is Ionic Bulb.com, Inc., a Delaware corporation formed on August 21, 2007, through which it sells the Ionic Bulb, a patented air purifier that silently emits negative ions using a microchip placed inside a 10,000-hour energy saving compact fluorescent light bulb (CFL). The Ionic Bulb is an eco-friendly, maintenance-free, inexpensive alternative to air purifiers that is designed to clean the air in a 100 square foot area of unpleasant odors and indoor air pollutants that you breathe. The Company sells the Ionic Bulb through specialty retail shops, TV commercials, Amazon.com and newionicbulb.com, and it markets the Ionic Bulb to major U.S. retail stores. The Company also acquired exclusive worldwide sales and manufacturing rights to a U.S. patented new product named “Gung H2O” that reduces water use in the home. The Company plans to sell Gung H20 to major U.S. retail stores and directly to American consumers using TV ads and Internet marketing.

General

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) and instructions to Form 10-Q. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet of the Company, as of June 30, 2011, was derived from the Company’s audited consolidated balance sheet as of that date. All other condensed consolidated financial statements contained herein are unaudited and reflect all adjustments which are, in the opinion of management, necessary to summarize fairly the financial position of the Company and the results of the Company’s operations and cash flows for the periods presented. All of these adjustments are of normal recurring nature. All intercompany balances and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended June 30, 2011.

Reverse Stock Split

On September 26, 2011, the Company filed a certificate of amendment to its Certificate of Incorporation with the Secretary of State of Delaware to effectuate a reverse split of its outstanding shares of common stock on a 1 to 5,000 basis. The Financial Industry Regulatory Authority (“FINRA”) effected the reverse stock split on October 27, 2011. Each holder of common stock received 1 share of the Company’s common stock in exchange for each 5,000 shares of the Company’s common stock they owned. The Company did not issue fractional shares in connection with the foregoing split. Fractional shares were rounded up to the nearest whole share. All references in the accompanying unaudited condensed consolidated financial statements and notes thereto have been retroactively restated to reflect the stock split.

Revenue Recognition

For revenue from product sales, the Company recognizes revenue in accordance with Accounting Standards Codification 605, “Revenue Recognition SEC Staff Accounting Bulletin Topic 13” (“ASC 605”). ASC 605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence that an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required.

ASC 605 incorporates Accounting Standards Codification 605-25, “Revenue Recognition Multiple Element Arrangements”. ASC 605-25 addresses accounting for arrangements that may involve the delivery or performance of multiple products, services and/or rights to use assets. The Company does not have any multiple element arrangements.

Consideration Paid to Customers

The Company offers its customers certain incentives in the form of cooperative advertising arrangements, product markdown allowances, trade discounts, cash discounts, and slotting fees. Markdown allowances, trade discounts, cooperative advertising program participation and cash discounts are all recorded as reductions of net sales. No customer incentives are included in sales for the three and nine months ended March 31, 2012 and 2011.

Use of Estimates

The preparation of the unaudited condensed consolidated financial statement in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Cash and Cash Equivalents

For the purpose of the accompanying unaudited condensed consolidated financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents.

Inventories / Cost of Goods Sold

The Company has adopted a policy to record inventory at the lower of cost or market determined by the first-in-first-out method. The elements of cost that comprise inventory and cost of goods sold are FOB shipping point costs, freight and destination charges, customs and importation fees and taxes, customer broker fees (if any) and other related costs. Warehousing costs are charged to cost of goods in the period the costs are incurred. The Company provides inventory allowances based on estimates of obsolete inventories.

Inventories consist of finished products available for sale to distributors and customers. At March 31, 2012 and June 30, 2011, finished goods inventory was $86,113 and $88,323, respectively.

Allowance for doubtful accounts

The Company maintains an allowance for doubtful accounts to reduce amounts to their estimated realizable value, including reserves for customer and other receivable allowances and incentives. In estimating the provision for doubtful accounts, the Company considers a number of factors including age of the accounts receivable, trends and ratios involving the age of the accounts receivable and the customer mix of each aging categories. As of March 31, 2012 and June 30, 2011, the allowance for doubtful accounts was $0.

Impairment of long lived assets

The Company has adopted Accounting Standards Codification 360 "Property, Plant and Equipment" (“ASC 360”). The Statement requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell.

Advertising

The Company charges the costs of advertising to expenses as incurred. The Company charged $0 and $10,842 to operations for the three months ended March 31, 2012 and 2011, respectively. The Company charged $1,393 and $141,895 to operations for the nine months ended March 31, 2012 and 2011, respectively.

Income Taxes

The Company has adopted Accounting Standards Codification 740, “Income Taxes” (“ASC 740”) which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes are insignificant, except basis difference related to certain debts and stock based compensation expense.

Effective January 1, 2007 the Company adopted an amendment to the requirements of ASC 740. The amended standard prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

ASC 740-10-25-5 “Income Taxes—Overall—Recognition—Basis Recognition Threshold”, (the “Tax Position Topic”) provides guidance to address uncertainty in tax positions and clarifies the accounting for income taxes by prescribing a minimum recognition threshold, i.e. “more-likely-than-not”, that the income tax positions must achieve before being recognized in the financial statements. In addition, the Tax Position Topic requires expanded annual disclosures, including a roll forward of the beginning and ending aggregate unrecognized tax benefits as well as specific detail related to tax uncertainties for which it is reasonably possible the amount of unrecognized tax benefit will significantly increase or decrease within twelve months.

As a result of implementing ASC 740, there has been no adjustment to the Company’s financial statements and the adoption of ASC 740 did not have a material effect on the Company’s unaudited condensed consolidated financial statements for the three and nine months ended March 31, 2012 and 2011.

Research and Development

The Company accounts for research and development costs in accordance with the Financial Accounting Standards Board's Accounting Standards Codification 730 "Research and Development" (“ASC 730”). Under ASC 730, all research and development costs must be charged to expense as incurred. Third-party research and developments costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company had no expenditures on research and product development for three and nine months ended March 31, 2012 and 2011, respectively.

Stock Based Compensation

Effective January 1, 2006, the Company adopted the requirements of ASC 505 “Equity” and ASC 718-10 “Stock Compensation”, under the modified prospective transition method. The standards require the measurement of compensation cost at the grant date, based upon the estimated fair value of the award, and requires amortization of the related expense over the employee’s requisite service period.

Under ASC 718-10, stock based compensation cost will be recognized over the period during which an employee is required to provide service in exchange for the award. ASC 718-10 also requires an entity to calculate the pool of excess tax benefits available to absorb tax deficiencies recognized subsequent to adoption of ASC 718-10 (the “APIC pool”). The Company has evaluated its APIC pool and has determined that it was immaterial as of January 1, 2006. ASC 718-10 also amends ASC 230 “Cash Flows,” to require that excess tax benefits that had been reflected as operating cash flows be reflected as financing cash flows.

Loss per Share

The Company has adopted Accounting Standards Codification subtopic 260-10, Earnings per Share (“ASC 260-10”) specifying the computation, presentation and disclosure requirements of earnings per share information. Basic loss per share has been calculated based upon the weighted average number of common shares outstanding. Stock options and warrants would have been excluded as common stock equivalents in the diluted loss per share because their effect is anti-dilutive on the computation. Potentially dilutive shares of common stock realizable from the conversion of the Company’s convertible debentures of 146,437,488 and 3,898,973,401 shares, respectively at March 31, 2012 and 2011, are excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive.

Concentration of Credit Risk

Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit.

Reclassifications

Certain reclassifications have been made in prior period's unaudited condensed consolidated financial statements to conform to classifications used in the current period.

Recent Accounting Pronouncements

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements will have a material impact on its consolidated financial condition or the results of its operations.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)	Mar. 31, 2012	Jun. 30, 2011
Debt Discount, Current Portion (in Dollars)	$ 0	$ 814,962
Debt Discount, Noncurrent Portion (in Dollars)	$ 0	$ 106,350
Common stock, par value (in Dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized	5,000,000,000	5,000,000,000
Common stock, shares issued	318,794	220,810
Common stock, shares outstanding	318,794	220,810
Treasury stock, shares	1	1
Series A Preferred Stock [Member]
Preferred stock, par value (in Dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	50,000	50,000
Preferred stock, shares outstanding	50,000	50,000
Series B Preferred Stock [Member]
Preferred stock, par value (in Dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	1,000,000	1,000,000
Preferred stock, shares outstanding	1,000,000	1,000,000

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NOTE K - SUBSEQUENT EVENTS

9 Months Ended

Mar. 31, 2012

Subsequent Events [Text Block]

NOTE K – SUBSEQUENT EVENTS

Since March 31, 2012, the Company has borrowed $30,000 as an advance from a certain lender.

On May 17, 2012, the Company issued a convertible promissory note to an investor as repayment for $10,000 advanced to the Company on March 19, 2012. The note matures on March 19, 2014 and accrues interest at an annual rate of ten percent (10%). The note is payable in full on the maturity date unless previously converted into shares of the Company’s common stock at a conversion price of $0.10 per share, as may be adjusted.

On May 7, 2012, Mr. Jason Ryu was appointed as Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and Director due to the resignation of Mr. Robert Babkie on March 19, 2012. Prior to his appointment, the Company entered into a certain Exclusive License and Sales Agreement and a Purchasing Representative Agreement with Mr. Ryu as fully discussed in Note I.

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Document And Entity Information	9 Months Ended
	Mar. 31, 2012	May 21, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	Zevotek, Inc
Document Type	10-Q
Current Fiscal Year End Date	--06-30
Entity Common Stock, Shares Outstanding		318,794
Amendment Flag	false
Entity Central Index Key	0001364208
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	Mar. 31, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Mar. 31, 2012	Mar. 31, 2011
REVENUES:
Sales	$ 1,488	$ 5,068	$ 6,135	$ 12,952
Cost of sales	536	2,514	2,210	7,326
Gross profit	952	2,554	3,925	5,626
OPERATING EXPENSES:
Selling	645	46,287	31,544	291,471
General and administrative	102,855	124,319	284,351	456,674
Total operating expense	103,500	170,606	315,895	748,145
Loss from operations	(102,548)	(168,052)	(311,970)	(742,519)
OTHER (EXPENSE):
Interest, net	(38,067)	(29,875)	(114,429)	(85,208)
Amortization of beneficial conversion feature		(37,544)	(921,312)	(132,780)
Total other expense	(38,067)	(67,419)	(1,035,741)	(217,988)
Net loss before provision for income taxes	(140,615)	(235,471)	(1,347,711)	(960,507)
Income taxes	0	0	0	0
NET LOSS	$ (140,615)	$ (235,471)	$ (1,347,711)	$ (960,507)
Net loss per common share, basic and fully diluted (in Dollars per share)	$ (0.44)	$ (2.26)	$ (4.52)	$ (14.60)
Weighted average number of common shares outstanding, basic and fully diluted (in Shares)	318,419	104,117	298,090	65,767

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NOTE F - CONVERTIBLE NOTES PAYABLE AND DEMAND NOTES

9 Months Ended

Mar. 31, 2012

Debt Disclosure [Text Block]

NOTE F - CONVERTIBLE NOTES PAYABLE AND DEMAND NOTES

	March 31, 2012 (unaudited)			June 30, 2011
Notes Payable:
Convertible term note (a)	$	923		$	923
Convertible term note (b)		1,923			1,923
Convertible term note (c)		50,000			50,000
Convertible term note (d)		2,497			2,497
Convertible term note (e)		226			25,174
Convertible term note (f)		11,132			11,132
Convertible term note (g)		26,420			30,920
Convertible term note (h)		192,430			192,430
Convertible term note (i)		34,141			34,141
Convertible term note (j)		22,350			22,530
Convertible term note (k)		945,527			945,527
		1,287,569			1,317,197
Less: unamortized discount on debt		—			(921,311	)
		1,287,569			395,886
Less: current portion		(1,287,569	)		(309,806	)
Long term debt	$	—		$	86,080

a)	On May 14, 2008, the Company entered into convertible term notes bearing interest at 10% per annum with a maturity date of May 14, 2010. At any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.0001 per share. The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holders about amending the conversion terms to cure the default.
b)	On May 27, 2008, the Company entered into a convertible term note bearing interest at 10% per annum with a maturity date of May 27, 2010. At any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.0001 per share. The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holder about amending the conversion terms to cure the default.
c)	On January 1, 2008, the Company entered into a convertible term note for the principal amount of $50,000 bearing interest at 7% per annum with a maturity date of June 30, 2008. This note is convertible into common stock at 90% of the common stock closing price at June 30, 2008, or approximately 4 shares of common stock. The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holder about amending the conversion terms to cure the default.
d)	On January 8, 2009, the Company entered into convertible term notes bearing interest at 10% per annum with a maturity date of January 8, 2011. The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holder about amending the conversion terms to cure the default. At any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.0001 per share.
e)	On March 9, 2009, the Company entered into convertible term notes bearing interest at 10% per annum with a maturity date of March 9, 2011. The notes were amended on January 8, 2011 to extend the maturity date to January 8, 2012. At any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.10 per share (see below). The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holder about amending the conversion terms to cure the default
f)	Of the convertible term notes entered into on May 14, 2008, certain notes having a principal amount of $11,132 as of March 31, 2012 and 2011 were not amended with respect to their conversion price and, at any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.001 per share. The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holder about amending the conversion terms to cure the default.
g)	On July 28, 2009, the Company entered into a convertible term note bearing interest at 10% per annum with a maturity date of July 28, 2011. The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holder about amending the conversion terms to cure the default. At any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.10 per share (see below).
h)	On August 6, 2010, the Company converted $192,430 of advances payable into a convertible term note bearing interest at 10% per annum with a maturity date of August 6, 2012. At any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.10 per share (see below).
i)	On January 8, 2009, the Company entered into convertible term notes bearing interest at 10% per annum with a maturity date of January 8, 2011. The notes were amended on January 8, 2011 to extend the maturity date to January 8, 2012. At any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.10 per share (see below). The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holder about amending the conversion terms to cure the default.
j)	On March 9, 2009, the Company entered into convertible term notes bearing interest at 10% per annum with a maturity date of March 9, 2011. The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holder about amending the conversion terms to cure the default. At any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.10 per share (see below).
k)	On May 10, 2011, the Company converted $945,527 of advances payable into a convertible term note bearing interest at 10% per annum with a maturity date of May 10, 2012. At any time at the option of the note holder, principal and interest payments may be paid in common stock at a conversion price of $0.10 per share (see below). The Company is in default of payment of principal and interest on the note and the Company is in discussions with the note holder about amending the conversion terms to cure the default.

On August 6, 2010, the Company converted $192,430 of advances payable into a convertible note. The Company recognized and measured an aggregate of $192,430 of the advances payable, which is equal to the intrinsic value of the imbedded amended beneficial conversion feature, to additional paid in capital and a debt discount against the note issued, with the discount being amortized over the note’s two-year term.

On May 10, 2011, the Company converted $945,527 of advances payable into a convertible note. The Company recognized and measured an aggregate of $945,527 of the advances payable, which is equal to the intrinsic value of the imbedded amended beneficial conversion feature, to additional paid in capital and a debt discount against the note issued, with the discount being amortized over the note’s one-year term.

On October 12, 2011, the Company entered into amendment agreements with certain holders of its outstanding convertible promissory notes, ((e) and (g) through (k) above), in order to amend certain terms contained therein.  The Company amended its (i) 10% convertible promissory note in the original principal amount of $192,430 dated as of August 6, 2010 and (ii) its 10% convertible promissory note in the original principal amount of $945,527 dated as of May 10, 2011, in order to (a) amend the conversion price to $0.10, (b) add a “Most Favored Nations Provision” to allow for adjustment of such conversion price in the event of certain lower priced issuances of the Company’s securities and (c) include a provision prohibiting the conversion of such note in the event conversion would require the Company to issue shares of common stock in excess of its then authorized but unissued shares.  The Company amended its (i) 10% convertible promissory note in the original principal amount of $26,225 dated as of January 8, 2009, (ii) its 10% convertible promissory note in the original principal amount of $41,728 dated as of January 8, 2009; (iii) its 10% convertible promissory note in the original principal amount of $72,471 dated as of March 9, 2009, (iv) its 10% convertible promissory note in the original principal amount of $41,500 dated as of March 9, 2009 and (v) its 10% convertible promissory note in the original principal amount of $44,000 dated as of July 28, 2009 in order to (a) amend the conversion price to $0.10 and (b) add a “Most Favored Nations Provision” to allow for adjustment of such conversion price in the event of certain lower priced issuances of the Company’s securities. Because the changes in fair values of the conversion options were greater than 10% of the carrying value of the original debts, the transactions qualified under ASC 470-50 “Debtor’s Accounting for a Modification or Exchange of Debt Instruments” and determined to be substantial. As a result, the Company wrote off the remaining unamortized debt discount totaling $624,004 at December 31, 2011.

During the three and nine months ended March 31, 2012, amortization related to the beneficial conversion feature on the convertible notes was $0 and $921,312, respectively.

During the three and nine months ended March 31, 2011, amortization related to the beneficial conversion feature on the convertible notes was $37,544 and $132,780, respectively.

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NOTE E - ADVANCES PAYABLE

9 Months Ended

Mar. 31, 2012

Advances Payable Disclosure [Text Block]

NOTE E – ADVANCES PAYABLE

As of March 31, 2012 and June 30, 2011, the Company owed $214,173 and $43,823 to a note holder and a lender, respectively, for cash advanced to the Company for operating purposes. The advances accrue interest at 10% per annum and are repayable on demand.

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NOTE I - COMMITMENTS AND CONTINGENCIES

9 Months Ended

Mar. 31, 2012

Commitments and Contingencies Disclosure [Text Block]

NOTE I - COMMITMENTS AND CONTINGENCIES

U.S. Federal Trade Commission Settlement

On March 26, 2007, the Company received a letter from the U.S. Federal Trade Commission (“FTC”) whereby former management was informed that the FTC was conducting an investigation into advertising claims made for weight loss product known as “Slim Coffee.” The purpose of the investigation was to determine whether former management, in connection with its sales of Slim Coffee, engaged in unfair or deceptive acts or practices and false advertising. A negotiated settlement was reached with the FTC under which the Company and its former management did not admit any wrongdoing. On January 10, 2008, pursuant to a stipulated final judgment and order, the United States District Court, Southern District of New York, entered a final judgment and order against the Company in the amount of $923,910. The full amount of the judgment, and payment of any portion of it is suspended and cannot be reinstated so long as (a) the Company abides by the reporting and monitoring requirements of the judgment, (b) does not make false advertising claims in connection with any of its products in the future, and (c) its past financial disclosures to the FTC were materially accurate. The Company plans to comply with the terms of the stipulation and does not anticipate incurring a liability for the judgment, however there can be no assurance of the Company’s compliance therewith. Should the Company fail to comply with the FTC’s final judgment, this non-compliance would have a material adverse effect on the Company’s business, financial condition and results of operations.

Licenses

On February 24, 2009, the Company entered into an Exclusive License and Sales Agreement whereby the Company obtained worldwide exclusive rights to manufacture, market, use, sell, distribute and advertise certain licensed products. The license is on a year to year basis with automatic renewal and is subject to becoming non-exclusive should the Company fail to file all quarterly and annual reports by their respective due dates, inclusive of allowable extensions. In exchange for the exclusive license, the Company issued 500 shares of its common stock.

On March 2, 2011, the Company and the Ionic Bulb patent holder entered into a non-exclusive Purchasing Representative Agreement whereby the patent holder agreed to introduce the Company to a new third party manufacturer that will produce a next generation version of the Ionic Bulb with new features and improved manufacturing cost. Additionally, the patent holder affirmed his obligation to defend against patent infringement. The Company agreed to pay patent holder a fixed amount per Ionic Bulb ordered from the new manufacturer. As agreed by both parties, the Company made an advance fee payment by issuance of 5,000 shares of the Company’s restricted stock which was valued at $5,500 and is included in prepayments as of March 31, 2012 and an additional 17,045 shares of common stock valued at $3,750 as a result of a decline in market price and charged to operations. The value of the restricted shares applied to payment of the fees was based upon the average closing price of the Company's common stock for the ten trading days preceding the date on which the restrictive stock legend was to be removed. The term of the agreement is three years with one-year automatic renewals that are subject to minimum fee payments to the patent holder for the first and second renewal term, respectively (Note C).

Gung H2O License

On December 10, 2010, the Company entered into an Exclusive License and Sales Agreement whereby the Company has worldwide exclusive rights to develop, manufacture, market, use, sell, distribute and advertise a U.S. patented new product named Gung H2O that reduces water use in the home. The license has a five-year initial term with automatic annual renewals and is not subject to minimum payments to the licensor.

Payroll Taxes

At March 31, 2012, the Company is delinquent with filing and remitting payroll taxes of approximately $49,000 including estimated penalties and interest related to payroll taxes withheld since April 2007. The Company has recorded the delinquent payroll taxes, which are included in accrued expenses on the balance sheets. Although the Company has not entered into any formal repayment agreements with the applicable tax authorities, management plans to make payment as funds become available. Penalties and interest amounts are subject to increase based on a number of factors that can cause the estimated liability to increase further. Interest and penalties were accrued in an amount estimated to cover the ultimate liability.

Sales Taxes

At March 31, 2012, the Company is delinquent with remitting sales taxes of approximately $16,000, including related estimated penalties and interest related to sales taxes withheld since 2006 in the state of New York. The Company has recorded the delinquent sales taxes, which are included in accrued expenses on the balance sheet. Although the Company has not entered into any formal repayment agreements with the applicable tax authorities, management plans to make payment as funds become available. Penalties and interest amounts are subject to increase based on a number of factors that can cause the estimated liability to increase further. Interest and penalties were accrued in an amount estimated to cover the ultimate liability.

Leases

The Company leased office space on a month to month basis in Stuart, Florida. Rent expense for the three and nine months ended March 31, 2012 was $636 and $1914, respectively. Rent expense for the three and nine months ended March 31, 2011 was $1,072 and $3,617, respectively.

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NOTE G - STOCKHOLDERS EQUITY

9 Months Ended

Mar. 31, 2012

Stockholders' Equity Note Disclosure [Text Block]

NOTE G – STOCKHOLDERS EQUITY

Preferred Stock

The Company has authorized 10,000,000 shares of Preferred Stock of which 50,000 shares have been designated as Series A Preferred Stock, par value $0.00001, and 1,000,000 shares have been designated as Series B Preferred Stock, par value $0.00001, within the limitations and restrictions stated in the Certificate of Incorporation of the Company.

The Company issued 50,000 shares of Series A Preferred Stock. Each share of Series A Preferred Stock is entitled to 10,000 votes on all matters submitted to the stockholders of the Company. The holders of the Series A Preferred Stock are not granted any preference upon the liquidation, dissolution or winding up of the business of the Company. The Series A Preferred Stock is not convertible into Common Stock.

The Company has designated and issued 1,000,000 shares of Series B Preferred Stock. On May 14, 2008, the Company and a third party note holder entered into an exchange agreement under which the third party note holder exchanged a $21,026 promissory note for 1,000,000 shares of Series B Preferred Stock. Each share of Series B Preferred Stock is entitled to 5,000 votes on all matters submitted to the stockholders of the Company. Subsequently, the third party note holder, Anthony Intrieri, became Chairman of the Board of Directors. On September 12, 2011, the Estate of Anthony Intrieri ("Estate") sold 1,000,000 shares of the Company's Series B Preferred Stock to an unrelated third party. The Estate obtained the shares following the passing of Mr. Intrieri.

Common Stock

On September 26, 2011, the Company filed a certificate of amendment to its Certificate of Incorporation with the Secretary of State of Delaware to effectuate a reverse split of its outstanding shares of common stock on a 1 to 5,000 basis. FINRA effected the reverse stock split on October 27, 2011. Each holder of common stock received 1 share of the Company’s common stock in exchange for each 5,000 shares of the Company’s common stock they own. The Company did not issue fractional shares in connection with the foregoing split. Fractional shares were rounded up to the nearest whole share. All references in the accompanying unaudited condensed consolidated financial statements and notes thereto have been retroactively restated to reflect the stock split.

During the nine months ended March 31, 2012, the Company issued 10,500 shares of common stock, valued at $12,373 for services and accrued expenses.

During the nine months ended March 31, 2012, the Company issued 22,045 shares of common stock, valued at $9,250 for a non-exclusive Purchasing Representative Agreement (Note C).

During the nine months ended March 31, 2012, the Company converted debt and accrued interest of $30,561 into 61,121 shares of common stock based upon the Notes’ conversion prices.

During the nine months ended March 31, 2012, the Company issued 4,318 shares of common stock in satisfaction of fraction shares resulting from the 1 for 5,000 reverse stock split.

As of March 31, 2012 and June 30, 2011, there were 318,794 and 220,810 shares of common stock issued and outstanding, respectively.

Treasury Stock

As of March 31, 2012 and June 30, 2011, the Company had 1 share of common stock held in treasury, which was carried at $0 based on a $0.00001 par value.

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NOTE H - STOCK OPTIONS AND WARRANTS

9 Months Ended

Mar. 31, 2012

Shareholders' Equity and Share-based Payments [Text Block]

NOTE H - STOCK OPTIONS AND WARRANTS

During the nine months ended March 31, 2012 and 2011, the Company did not issue any stock warrants or options. As of March 31, 2012, there are no outstanding stock warrants or options.

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NOTE J - FAIR VALUE MEASUREMENT

9 Months Ended

Mar. 31, 2012

Fair Value Disclosures [Text Block]

NOTE J - FAIR VALUE MEASUREMENT

Fair Value Measurements under GAAP clarifies the principle that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. Under the standard, fair value measurements are separately disclosed by level within the fair value hierarchy. It only applies to accounting pronouncements that already require or permit fair value measures, except for standards that relate to share-based payments.

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed is determined based on the lowest level input that is significant to the fair value measurement.

The carrying value of the Company’s cash, accounts receivable, prepayments, accounts payable, advances payable, convertible notes payable, and other current assets and liabilities approximate fair value because of their short-term maturity. All other significant financial assets, financial liabilities and equity instruments of the Company are either recognized or disclosed in the unaudited condensed consolidated financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practicable the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed.  As of March 31, 2012, there were no financial assets or liabilities that were measured at fair value on a recurring basis.

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CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT (USD $)	Series A Preferred Stock [Member] USD ($)	Series B Preferred Stock [Member] USD ($)	Common Stock [Member] USD ($)	Common Stock To Be Issued USD ($)	Treasury Stock [Member]	Additional Paid-in Capital [Member] USD ($)	Retained Earnings [Member] USD ($)	Total USD ($)
Balance at Jun. 30, 2010	$ 1	$ 10		$ 30,000		$ 4,000,804	$ (5,485,025)	$ (1,454,210)
Balance, shares (in Shares) at Jun. 30, 2010	50,000	1,000,000	34,719		1
Common stock issued for services rendered						235,413		235,413
Common stock issued for services rendered, shares (in Shares)			29,273
Common stock issued for accounts payable						90,000		90,000
Common stock issued for accounts payable, shares (in Shares)			2,219
Conversion of debt and interest for common stock			2			112,998		113,000
Conversion of debt and interest for common stock, shares (in Shares)			148,098
Fair value of beneficial conversion feature						1,137,957		1,137,957
Common stock issued to officers and board members						45,000		45,000
Common stock issued to officers and board members (in Shares)			4,950
Common stock issued to former officers for accrued compensation				(30,000)		30,000
Common stock issued to former officers for accrued compensation (in Shares)			1,551
Net loss							(1,244,112)	(1,244,112)
Balance at Jun. 30, 2011	1	10	2			5,652,172	(6,729,137)	(1,076,952)
Balance, shares (in Shares) at Jun. 30, 2011	50,000	1,000,000	220,810		1			220,810
Common stock issued for services rendered						5,000		5,000
Common stock issued for services rendered, shares (in Shares)			2,500
Common stock issued for accounts payable						7,373		7,373
Common stock issued for accounts payable, shares (in Shares)			8,000
Common stock issued for purchasing representative agreement						9,250		9,250
Common stock issued for purchasing representative agreement (in Shares)			22,045
Conversion of debt and interest for common stock			1			30,560		30,561
Conversion of debt and interest for common stock, shares (in Shares)			61,121
Shares issued in satisfaction of fraction shares resulting from 1 for 5,000 reverse stock split (in Shares)			4,318
Net loss							(1,347,711)	(1,347,711)
Balance at Mar. 31, 2012	$ 1	$ 10	$ 3			$ 5,704,355	$ (8,076,848)	$ (2,372,479)
Balance, shares (in Shares) at Mar. 31, 2012	50,000	1,000,000	318,794		1			318,794

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NOTE D - ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

9 Months Ended

Mar. 31, 2012

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

NOTE D- ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities are as follows:

	March 31, 2012 (unaudited)		June 30, 2011
Accounts payable	$	28,701	$	10,867
Accrued professional fees		349,245		225,163
Accrued payroll and payroll taxes		122,789		161,649
Old disputed accounts payable		160,756		160,756
Accrued interest		295,319		183,507
Other accrued liabilities		54,057		32,404
Total	$	1,010,867	$	774,346