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Stockholder's Deficiency
12 Months Ended
Jun. 30, 2013
Equity [Abstract]  
Stockholder's Deficiency

8. Stockholder’s Deficiency

 

Issuance of common stock and warrants for cash

 

On March 7, 2012, the Board approved the sale of up to $1,500,000 of our Company’s common stock and warrants to purchase common stock at $2.25 per unit. Each unit consists of (i) one share of our Company's common stock; and (ii) two-year term warrants to purchase the amount of shares of common stock equal to 80% of the number of units purchased. Each warrant was issued with a fixed exercise price of $0.01 per share. As of June 30, 2012, our Company raised $659,438 through the sale of 292,222 units and the commensurate exercise of 193,778 warrants for additional cash proceeds totaling $1,938. For the year ended June 30, 2013, there were no additional stock issuances for cash.

Issuance of common stock for services

On August 20, 2012, our Company issued 250,000 shares to a third party consultant in consideration for its services under the terms of a consulting agreement for investor relations and public communications services. For the year ended June 30, 2013, we recorded non-cash charges totaling $98,383 in connection with this stock issuance based on previous day’s closing price for our common stock of $0.34, which is deemed the fair market value as of that date.

On May 31 2012, we issued 10,526 shares of restricted common stock to a public relations firm as part of their compensation for services in the area of public relations related strategy, processes and tactics. For the year ended June 30, 2012, our Company recorded noncash charges totaling $20,000 related to this issuance.

On January 19, 2012, our Company issued 36,000 shares of restricted common stock to one of its board members in exchange for additional advisory services in the area of finance and financial reporting. The shares vest over one year and any unvested shares are subject to repurchase by our Company should the recipient cease to provide for the contracted services. For the fiscal year 2013, our Company incurred a charge totaling $13,545 related to this issuance.

Share surrender and cancellation

Effective May 11, 2012, our Company entered into a Share Cancellation Agreement with Leung, a Director and shareholder of our Company, pursuant to which Leung agreed to surrender 500,000 shares of Company common stock held by him. In consideration for the surrender, our Company agreed to pay Leung $5,000 representing a price of $0.01 per share of common stock. Our Company accounted for this transaction as a repurchase and cancellation of common stock. Effective June 30, 2012, Leung forgave the amount owed to him from the share cancellation agreement. On April 29, 2013, Leung was appointed as CEO of our Company.

Stock options

As of June 30, 2013, we have a total of 1,245,962 incentive and nonqualified stock options granted and outstanding under the Plan. All of our outstanding options have terms of between five and ten years. During the year ended June 30, 2013, we recognized share based compensation expense totaling $149,692 related to stock options granted through that date.