Note 6 - Deferred Compensation

12 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

6.     DEFERRED COMPENSATION:

The Company owes deferred compensation to various employees, former employees and consultants totaling $1,436,595 as of June 30, 2016. Included in the deferred compensation balances as of June 30, 2016, are $573,818, $168,302 and $115,073 owed Bassani, Mark A. Smith (“Smith”), the Company’s President, and Schafer, respectively, pursuant to extension agreements effective January 1, 2015, whereby unpaid compensation earned after January 1, 2015, accrues interest at 4% per annum and can be converted into shares of the Company’s common stock at the election of the employee during the first five calendar days of any month. The conversion price shall be the average closing price of the Company’s common stock for the last 10 trading days of the immediately preceding month. During the year ended June 30, 2016, Smith converted $82,861 of deferred compensation into 99,159 shares of the Company’s common stock at conversion prices between $0.76 and $0.96 per share. Smith also utilized deferred compensation of $2,355 to exercise warrants which resulted in the issuance of 6,280 shares of the Company’s common stock. The Company also owes various consultants, pursuant to various agreements, for deferred compensation of $337,918 as of June 30, 2016 with similar conversion terms as those described above for Bassani, Smith and Schafer, with the exception that the interest accrues at 3% per annum. The Company also owes a former employee and a current employee deferred compensation of $168,000 and $984, respectively, which is convertible into 226,168 and 1,132 shares, respectively, of the Company’s common stock as of June 30, 2016 and, a former employee $72,500, which is not convertible and is non-interest bearing.