Quarterly report pursuant to Section 13 or 15(d)

Note 3 - Summary of Significant Accounting Policies

v3.8.0.1
Note 3 - Summary of Significant Accounting Policies
9 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Significant Accounting Policies [Text Block]
NOTE
3
- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
The 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, 2017.
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
March 31, 2018
and
2017,
basic and diluted weighted-average common shares outstanding were
25,112,349
and
25,038,256,
respectively. For the
nine
months ended
March 31, 2018
and
2017,
basic and diluted weighted-average common shares outstanding were
25,142,039
and
24,372,419,
respectively. The Company incurred a net loss for the
three
and
nine
months ended
March 31, 2018
and
2017,
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
March 31, 2018
and
2017,
excluded from diluted weighted-average common shares outstanding, which include common shares underlying outstanding convertible debt, stock options and warrants, were
17,987,632
and
9,317,423,
respectively.
 
Income Taxes
 
We follow the liability method of accounting for income taxes under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements and (ii) operating loss and tax credit carry-forwards for tax purposes. Deferred tax assets are reduced by a valuation allowance when, based upon management’s estimates, it is more likely than
not
that a portion of the deferred tax assets will
not
be realized in a future period. We recognized a full valuation allowance as of
March 31, 2018
and
June 30, 2017 
and have
not
recognized any tax provision or benefit for any of the periods presented. We review our tax positions quarterly for tax uncertainties. We did
not
have any uncertain tax positions as of 
March 31, 2018
or
June 30, 2017.  
 
In
December 2017,
the United States (“U.S.”) enacted the Tax Cuts and Jobs Act (the
“2017
Act”), which changes existing U.S. tax law and includes various provisions that are expected to affect companies. Among other things, the
2017
Act reduces the top U.S. corporate income tax rate from
35.0%
to
21.0%,
and makes changes to certain other business-related exclusions, deductions and credits. The Company is in the process of assessing the impact of the tax bill on the financial statements as of
June 30, 2018.   
Due to the Company's full valuation allowance, the tax effects of any changes are
not
expected to have a material impact on our consolidated financial statements.