Note 4 - Loans Payable - Affiliates

12 Months Ended

Jun. 30, 2015

Loans Payable - Affiliates [Member]

Note 4 - Loans Payable - Affiliates [Line Items]

Related Party Transactions Disclosure [Text Block]

4.     LOANS PAYABLE - AFFILIATES:

During the year ended June 30, 2015, the Company had outstanding loans payable, under multiple agreements, with Dominic Bassani (“Bassani”), the Company’s Chief Executive Officer (“CEO”), and with a major shareholder (“Shareholder”) of $316,131 and $80,764, respectively. The loans accrued interest at 8% per annum and had varying maturity dates, which had been extended multiple times due to the cash constraints of the Company. During the year ended June 30, 2014, in consideration for loans of $135,000 (“Warrant Loans”), the Company issued warrants to purchase 33,750 shares of the Company’s common stock at $0.85 per share until December 31, 2018. Additional warrants (in the same amount and terms) were issued upon each extension of the maturity date of the Warrant Loans. As a result of the two extensions during the year ended June 30, 2015, 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 $6,750.

During February and March 2015, the Company entered into agreements with Bassani and Shareholder, respectively, whereby effective January 1, 2015, all loans payable (principal and interest) were transferred into notes payable and convertible notes payable.

As of June 30, 2015, the loans payable – affiliates is nil. Interest expense related to the loans payable – affiliates was $14,436 and $22,433 for the years ended June 30, 2015 and 2014, respectively.

Notes Payable - Affiliates [Member]

Note 4 - Loans Payable - Affiliates [Line Items]

Related Party Transactions Disclosure [Text Block]

5.     NOTES PAYABLE - AFFILIATES:

During February and March 2015, the Company entered into promissory notes (“2015 Promissory Notes”), with effective dates of January 1, 2015, for initial principal amounts of $395,277, $15,956 and $80,764, with Bassani, Edward Schafer (“Schafer”), the Company’s Vice Chairman, and Shareholder, respectively. The 2015 Promissory Notes bear interest at 4% per annum and are payable on December 31, 2015. In connection with the 2015 Promissory Notes, Bassani and Schafer were issued 1.5 warrants for each dollar of initial principal to purchase a share of the Company’s common stock at the price of $1.00 per share until December 31, 2020 (“Coverage Warrants”) and Shareholder was issued 0.5 Coverage Warrants for each dollar of initial principal, for a total of 654,350 Coverage Warrants. The Coverage Warrants were deemed to have a fair value of $0.10 per warrant and, therefore, the 2015 Promissory Notes were deemed to be issued with original issue discounts of $53,342, $2,153 and $3,720, respectively, based upon the relative fair value of the warrants and the present value of the face value of the 2015 Promissory Notes. The original issue discounts will be accreted over the duration of the 2015 Promissory Notes. For the year ended June 30, 2015, accretion and interest on the 2015 Promissory Notes were $29,608 and $9,840 respectively. As of June 30, 2015, the total of the 2015 Promissory Notes, including accrued interest, was $472,230.