Note 4 - Deferred Compensation

9 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

4.

     DEFERRED COMPENSATION:

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

$844,122

and

$345,929

as of

March 31, 2019

and

2018,

respectively. Included in the deferred compensation balances as of

March 31, 2019,

are

$447,019

and

$79,016

owed Dominic Bassani (“Bassani”), the Company’s Chief Executive Officer and Mark A. Smith (“Smith”), the Company’s President, 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 and Smith as of

March 31, 2018

was

$124,612

and

$72,355,

respectively. The Company also owes various consultants, pursuant to various agreements, for deferred compensation of

$244,603

and

$75,478

as of

March 31, 2019

and

2018,

respectively, with similar conversion terms as those described above for Bassani and Smith, 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

of deferred compensation balances at a price of

$0.75

per share until

December 31, 2019 (

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 then current (or most recent if there is

no

current) private placement. The Company also owes a current employee deferred compensation of

$984

which is convertible into

1,348

shares of the Company’s common stock as of

March 31, 2019

and, a former employee

$72,500,

which is

not

convertible and is non-interest bearing.

During the

nine

months ended

March 31, 2019,

Smith elected to convert deferred compensation and accounts payable of

$87,063

and

$12,937,

respectively, into an aggregate

200,000

units at

$0.50

per unit, with each unit consisting of

one

share of the Company’s restricted common stock and

one

warrant to purchase

one

half of a share of the Company’s restricted common stock for

$0.75

per share until

December 31, 2022.

The Company recorded interest expense of

$14,344

(

$11,048

with related parties) and

$32,299

(

$26,084

with related parties) for the

nine

months ended

March 31, 2019

and

2018,

respectively.