Note 4 - Loans Payable - Affiliates (Loans Payable - Affiliates [Member])

6 Months Ended

Dec. 31, 2014

Loans Payable - Affiliates [Member]

Note 4 - Loans Payable - Affiliates [Line Items]

Related Party Transactions Disclosure [Text Block]

4.     LOANS PAYABLE - AFFILIATES:

As of December 31, 2014, Dominic Bassani (“Bassani”), the Company’s Chief Executive Officer (“CEO”), has loaned the Company $200,000 for fiscal year 2013 working capital needs (“FY 2013 Loan”). The FY 2013 Loan bears interest at 8% per annum and was payable on August 31, 2013. The due date of the FY 2013 Loan plus accrued interest was extended to September 30, 2013. Subsequent to September 30, 2013, the FY 2013 Loan was extended to January 1, 2014 and then further extended to April 30, 2014 and then to July 1, 2014. During September 2014, the maturity date of the FY 2013 Loan was extended to January 1, 2015. During January 2015, the FY 2013 Loan was extended to April 15, 2015. Conversion terms substantially identical to those described in Note 7 have been added to the terms of the FY 2013 Loan. Interest expense related to the FY 2013 Loan was $4,113 and $4,113 for the three months ended December 31, 2014 and 2013, respectively, and $8,226 and $8,226 for the six months ended December 31, 2014 and 2013, respectively.

During the year ended June 30, 2014, Bassani loaned the Company $19,000 (“November Note”). The November Note bears interest at 8% per annum and was payable on February 28, 2014, but was extended to April 30, 2014, and then further extended to July 1, 2014. During September 2014, the maturity date of the November Note was extended to January 1, 2015. During January 2015, the November Note was extended to April 15, 2015. Interest expense related to the November Note was $383 and $150 for the three months ended December 31, 2014 and 2013, respectively, and $766 and $150 for the six months ended December 31, 2014 and 2013, respectively.

During the year ended June 30, 2014, the Company entered into promissory note agreements (“December Notes”) with Bassani and a major shareholder (“Shareholder”) whereby Bassani and Shareholder agreed to lend the Company up to $75,000 each for working capital needs. The December Notes bear interest at 8% per annum and were payable on March 31, 2014. However, since the Company did not have sufficient funds for working capital needs to allow repayment of the December Notes on March 31, 2014, the maturity date of the December Notes was extended for three months; which process may be repeated up to three additional times with the maturity date extended to a date as late as December 31, 2014. In consideration for the December Notes, the Company issued warrants to purchase up to 18,750 shares of the Company’s common stock at $0.85 per share until December 31, 2018 (proportionately reduced if the December Notes are funded for less than the $75,000 maximum). Additional warrants (in the same amount and terms) will be issued upon each extension of the maturity date of the December Notes. The warrants will vest immediately upon issuance. As of December 31, 2014, Bassani and Shareholder had loaned the Company $60,000 and $75,000, respectively, under the terms of the December Notes. Interest expense related to the December Notes was $2,722 and $286 for the three months ended December 31, 2014 and 2013, respectively, and $5,444 and $286 for the six months ended December 31, 2014 and 2013, respectively. The maturity date of the December Notes has been extended to April 15, 2015. During the six months ended December 31, 2014, the Company issued 67,500 warrants to purchase 67,500 shares of the Company’s common stock at $0.85 per share and has recorded interest expense of $3,375 and 6,750 for the three and six months ended December 31, 2014, respectively.