Annual report pursuant to Section 13 and 15(d)

Note 2 - Going Concern

Note 2 - Going Concern
12 Months Ended
Jun. 30, 2016
Notes to Financial Statements  
Liquiditiy and Going Concern [Text Block]
The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal
course of business. The Company has incurred an accumulated deficit of $15,262,000 through June 30, 2016, and as of June 30, 2016 had a substantial working capital deficit. To date, our revenues and operating cash flows have not been sufficient to sustain our operations and we have relied on debt and equity financing to fund our operations. These factors raise substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent upon our ability to raise additional capital on a timely basis until such time as revenues and related cash flows are sufficient to fund our operations.
Management plans to raise additional required capital through private placements of equity securities and through draws on our existing related-party credit facility. We initiated a private placement of equity securities in April 2016 under which we are
authorized by the Board of Directors to raise up to $4,000,000 (See Note 7). Through June 30, 2016, a total of $2,425,000 was raised pursuant to this private placement. Of this total, $1,050,000 was received in cash and $1,375,000 represented the settlement of outstanding liabilities.  Between July 1, 2016 and August 31, 2016 a total of $1,475,000 was raised, of which $1,075,000 was received in cash and $400,000 represented the settlement of outstanding liabilities.
As of June 30, 2016, there was an aggregate of $2,300,000 available under our existing related-party credit facility. Future borrowing under this agreement are subject to approval by the lender. Between July 1, 2016 and August 31, 2016, w
e borrowed an aggregate of $120,000 under this agreement (See Notes 5 and 14). 
In addition, we are pursuing other investment structures that management believes may generate the necessary funding for the Company.
Although management believes that the additional required funding will be obtained, there is no guarantee we will be able to obtain the additional required funds on a timely basis or that funds will be available on terms acceptable to us. If such funds are not available when required, management will be required to curtail its investments in additional sales and marketing and product development resources, and capital expenditures, which may have a material adverse effect on our future cash flows and results of operations, and our ability to continue operating as a going concern. The accompanying financial statements do not include any adjustments that would be necessary should we be unable to continue as a going concern and, therefore, be required to liquidate its assets and discharge its liabilities in other than the normal course of business and at amounts that may differ from those reflected in the accompanying consolidated financial statements.