Stock warrants

12 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Stock warrants

7. Stock warrants

In connection with the issuance of the promissory notes, the investors in the aggregate received two-year warrants to purchase up to a total of 50,000 shares of common stock at $0.50 per share, and two-year warrants purchasing up to a total of 81,250 shares of common stock at $0.01 per share. For purposes of accounting for the detachable warrants issued in connection with the convertible notes, the fair value of the warrants was estimated using the Black-Scholes-Merton option pricing formula. The value of all warrants granted at the date of issuance totaled $508,413 and was recorded as a discount to the notes payable. The amount will be amortized over the nine month term of the respective convertible note as additional interest expense.

	Number of  Shares		Weighted Average  Exercise Price
Outstanding at June 30, 2014		180,000		0.20
Granted		—		—
Exercised		—		—
Forfeited September 30, 2014		38,750		0.09
Forfeited December 31, 2014		10,000		0.04
Outstanding at June 30, 2015	$	131,250	$	0.20
Granted		—		—
Exercised		—		—
Forfeited		—		—
Outstanding at June 30, 2016	$	131,250	$	0.20

Following is a summary of the status of warrants outstanding at June 30, 2016:

Date Issued		Exercise Price		Number of Shares		Expiration Date
	8/17/12	$	0.01		6,250		7/1/2016
	8/20/12	$	0.01		6,250		7/1/2016
	9/10/12	$	0.01		10,000		7/1/2016
	9/13/12	$	0.01		12,500		7/1/2016
	9/18/12	$	0.01		6,250		7/1/2016
	10/5/12	$	0.01		2,500		7/1/2016
	10/25/12	$	0.01		6,250		7/1/2016
	1/31/13	$	0.01		6,250		7/1/2016
	10/22/12	$	0.01		25,000		7/1/2016
	8/24/12	$	0.50		50,000		8/24/2016
	Total warrants as of June 30, 2016				131,250

Following is a summary of the status of warrants outstanding at June 30, 2015:

Date Issued		Exercise Price		Number of Shares		Expiration Date
	8/17/12	$	0.01		6,250		7/1/2016
	8/20/12	$	0.01		6,250		7/1/2016
	9/10/12	$	0.01		10,000		7/1/2016
	9/13/12	$	0.01		12,500		7/1/2016
	9/18/12	$	0.01		6,250		7/1/2016
	10/5/12	$	0.01		2,500		7/1/2016
	10/25/12	$	0.01		6,250		7/1/2016
	1/31/13	$	0.01		6,250		7/1/2016
	10/22/12	$	0.01		25,000		7/1/2016
	8/24/12	$	0.50		50,000		8/24/2016
	Total warrants as of June 30, 2015				131,250