Note 4 - Deferred Compensation

9 Months Ended

Mar. 31, 2017

Notes to Financial Statements

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

4.

     DEFERRED COMPENSATION:

The Company owes deferred compensation to various employees, former employees and consultants totaling

$1,962,885

as of

March

31,

2017.

Included in the deferred compensation balances as of

March

31,

2017,

are

$873,273,

$338,480

and

$118,376

owed Dominic Bassani (“Bassani”), the Company’s Chief Executive Officer, Mark A. Smith (“Smith”), the Company’s President, and Edward Schafer (“Schafer”), the Company’s Vice Chairman, 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. The Company also owes various consultants, pursuant to various agreements, for deferred compensation of

$391,272

as of

March

31,

2017

with similar conversion terms as those described above for Bassani, Smith and Schafer, with the exception that the interest accrues at

3%

per annum. Bassani and Smith have each been granted the right to convert up to

$250,000

of deferred compensation balances at a price of

$0.75

per share until

December

31,

2018

(to be issued pursuant to the

2006

Plan). Smith has the right to convert all or part of his deferred compensation balance into the Company’s securities (to be issued pursuant to the

2006

Plan) “at market” and/or on the same terms as the Company is selling or has sold its securities in its most recent or then current (or most recent if there is no current) private placement. 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

1,070

shares, respectively, of the Company’s common stock as of

March

31,

2017

and, a former employee

$72,500,

which is not convertible and is non-interest bearing.