Note 4 - Deferred Compensation |
12 Months Ended |
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Jun. 30, 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 $2,107,262 and $1,436,595 as of June 30, 2017 and 2016, respectively. Included in the deferred compensation balances as of June 30, 2017, are $974,929, $320,733 and $119,473 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 deferred compensation owed Bassani, Smith and Schafer as of June 30, 2016 was $573,818, $168,301 and $115,073, respectively. The Company also owes various consultants, pursuant to various agreements, for deferred compensation of $450,643 and $337,918 as of June 30, 2017 and 2016, respectively, 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 $300,000 $0.75 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 1,131 shares, respectively, of the Company’s common stock as of June 30, 2017 and, a former employee $72,500, which is not convertible and is non-interest bearing. The company recorded interest expense of $55,569 ($45,573 with related parties) and $32,380 ($24,813 with related parties) for the years ended June 30, 2017 and 2016, respectively. |