Note 3 - Summary of Significant Accounting Policies |
3 Months Ended |
|---|---|
Sep. 30, 2017 | |
| Notes to Financial Statements | |
| Significant Accounting Policies [Text Block] |
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe Company's significant accounting policies are described in Note 3, "Summary of Significant Accounting Policies," in the Company's Annual Report on Form 10 -K for the fiscal year ended June 30,
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7. There have been no material changes in these policies or their application. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation for comparative purposes. Net Loss Per Common Share The Company calculates basic loss per common share by dividing net loss by the weighted average number of common shares outstanding during the periods. Diluted loss per common share includes the impact from all dilutive potential common shares relating to outstanding convertible securities. For the three months ended September 30,
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7 and 2016, basic and diluted weighted-average common shares outstanding were 25,086,794 and 23,086,349, respectively. The Company incurred a net loss for the three months ended September 30, 2017 and 2016, and therefore, basic and diluted loss per share for the periods are the same because the inclusion of potential common equivalent shares were excluded from diluted weighted-average common shares outstanding during the period, as the inclusion of such shares would be anti-dilutive. The total potentially dilutive common shares outstanding at September 30, 2017 and 2016, excluded from diluted weighted-average common shares outstanding, which include common shares underlying outstanding convertible debt, stock options and warrants, were 15,050,184 and 5,114,007, respectively.Fair Values of Financial Instruments The carrying amount of our cash, accounts payable, accounts receivable, and accrued liabilities approximates their estimated fair values due to the short-term maturities of those financial instruments. The carrying amount of the line of credit agreement approximates its fair values as interest approximates current market interest rates for similar instruments. Management has concluded that it is not practical to determine the estimated fair value of amounts due to related parties because the transactions cannot be assumed to have been consummated at arm’s length, the terms are
not deemed to be market terms, there are no quoted values available for these instruments, and an independent valuation would not be practical due to the lack of data regarding similar instruments, if any, and the associated potential costs. The Company does not have any other assets or liabilities that are measured at fair value on a recurring or non-recurring basis.Recent Accounting Pronouncements Management has considered all recent accounting pronouncements issued since the last audit of the Company
’s consolidated financial statements, and believes that these recent pronouncements will
not have a material effect on the Company’s condensed consolidated financial statements. |