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Document and Entity Information
9 Months Ended
Mar. 31, 2013
May 20, 2013
Document and Entity Information [Abstract]
Entity Registrant Name QUICK-MED TECHNOLOGIES INC
Entity Central Index Key 0001088206
Current Fiscal Year End Date --06-30
Entity Well-known Seasoned Issuer No
Entity Voluntary Filers No
Entity Current Reporting Status Yes
Entity Filer Category Smaller Reporting Company
Entity Common Stock, Shares Outstanding 37,346,154
Document Fiscal Year Focus 2013
Document Fiscal Period Focus Q3
Document Type 10-Q
Amendment Flag false
Document Period End Date Mar 31, 2013
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BALANCE SHEETS (Unaudited) (USD $)
Mar. 31, 2013
Jun. 30, 2012
Current assets:
Cash and cash equivalents $ 151,833 $ 80,502
Accounts receivable 275,291 105,123
Total current assets 427,124 185,625
Property and equipment, net 3,485 1,084
Other assets:
Prepaid expenses 25,616 8,472
Intangible asset, net 399,026 416,669
Total other assets 424,642 425,141
Total assets 855,251 611,850
Current liabilities:
Accounts payable 324,611 714,110
Unearned revenue 1,341,110 100,957
Accrued expenses 99,412 188,275
Current maturity of note payable - related party 81,707 102,025
Current maturity of note payable - related party 6,166,181 5,913,737
Current maturity of note payable - related party 1,306,072 1,242,834
Total current liabilities 9,319,093 8,261,938
License payable 160,000 160,000
Long-term liability - convertible note payable 0 0
Long-term liability - convertible note payable 259,973 254,986
Total liabilities 9,739,066 8,676,924
Stockholders' deficit:
Common stock, $0.0001 par value; 100,000,000 authorized shares; 37,346,154 shares issued and outstanding at March 31, 2013 and June 30, 2012 3,735 3,735
Additional paid-in capital 15,448,353 15,448,353
Outstanding stock options 3,865,978 4,131,709
Accumulated deficit (28,201,881) (27,648,871)
Total stockholders' deficit (8,883,815) (8,065,074)
Total liabilities and stockholders' deficit $ 855,251 $ 611,850
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BALANCE SHEETS (Unaudited) (Parenthetical) (USD $)
Mar. 31, 2013
Jun. 30, 2012
Stockholders' deficit:
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 100,000,000 100,000,000
Common stock, shares issued (in shares) 37,346,154 37,346,154
Common stock, shares outstanding (in shares) 37,346,154 37,346,154
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STATEMENTS OF OPERATIONS (Unaudited) (USD $)
3 Months Ended 9 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Mar. 31, 2012
Revenues
Royalty and license fees $ 137,217 $ 117,867 $ 459,333 $ 319,604
Product sales 124,788 77,433 265,578 284,655
Research and development service 0 3,000 0 113,000
Total revenues 262,005 198,300 724,911 717,259
Expenses:
Cost of sales 6,475 6,358 17,483 17,724
Research and development 117,942 210,235 405,639 683,889
General and administrative expenses (142,039) 210,712 262,411 742,443
Licensing and patent expenses 53,743 62,323 194,734 230,233
Depreciation and amortization 32,487 15,757 63,939 48,583
Total operating expenses 68,608 505,385 944,205 1,722,872
Operating profit (loss) 193,397 (307,085) (219,294) (1,005,613)
Other income (expense):
Interest income 87 58 660 1,371
Interest expense (108,808) (111,819) (334,375) (338,153)
Total other expense (108,721) (111,761) (333,715) (336,782)
Profit (Loss) before provision (benefit) for income taxes 84,676 (418,846) (553,010) (1,342,395)
Provision (benefit) for income taxes 0 0 0 0
Net loss $ 84,676 $ (418,846) $ (553,010) $ (1,342,395)
Net loss per share - basic and diluted (in dollars per share) $ 0 $ (0.01) $ (0.01) $ (0.04)
Weighted average common shares outstanding - basic and diluted (in shares) 37,346,154 37,346,154 37,346,154 37,346,154
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STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT (Unaudited) (USD $)
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Deficit [Member]
Outstanding Stock Options [Member]
Total
Balance at Dec. 31, 2012 $ 3,735 $ 15,448,353 $ (28,286,557) $ 4,131,709 $ (8,702,760)
Balance (in shares) at Dec. 31, 2012 37,346,154
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Forfeited stock-based compensation (265,731) (265,731)
Net profit 0 84,676 0 84,676
Balance at Mar. 31, 2013 $ 3,735 $ 15,448,353 $ (28,201,881) $ 3,865,978 $ (8,883,815)
Balance (in shares) at Mar. 31, 2013 37,346,154 37,346,154
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STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
9 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Cash flows from operating activities:
Net loss $ (553,010) $ (1,342,395)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 63,939 48,583
Forfeited stock-based compensation (265,731) 45,901
(Increase) decrease in:
Accounts receivable (170,168) 144,089
Prepaid expenses (17,144) (6,161)
Increase in:
Accounts payable (389,402) (79,812)
Accrued interest 324,253 318,098
Unearned revenue 1,240,153
Accrued expenses and other current liabilities (88,863) 23,452
Net cash provided by (used in) operating activities 144,027 (848,245)
Cash flows from investing activities:
Property and equipment (3,211) (2,315)
Intangible assets (45,485) (93,259)
Net cash used in investing activities (48,696) (95,574)
Cash flows from financing activities:
Proceeds from stock issuance 0 28,000
Decrease in notes payable - officer (24,000) (12,000)
Net cash provided by financing activities (24,000) 16,000
Net increase (decrease) in cash and cash equivalents 71,330 (927,819)
Cash and cash equivalents at beginning of period 80,502 949,367
Cash and cash equivalents at end of period 151,833 21,548
Cash paid for:
Interest 10,122 10,027
Income taxes 0 0
Total 10,122 10,027
Non-cash disclosures of investing and financing activities:
Forfeited stock-based compensation $ (265,731) $ 45,901
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BASIS OF PRESENTATION
9 Months Ended
Mar. 31, 2013
BASIS OF PRESENTATION [Abstract]
BASIS OF PRESENTATION
NOTE 1 - BASIS OF PRESENTATION
 
The accompanying unaudited condensed financial statements of Quick-Med Technologies, Inc. (the "Company") have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements.  In the opinion of the management of the Company, the accompanying unaudited financial statements contain all the adjustments (which are of a normal recurring nature) necessary for a fair presentation.  Operating results for the nine months ended March 31, 2013 are not necessarily indicative of the results that may be expected for the year ending June 30, 2013. For further information, refer to the financial statements and the footnotes thereto contained in the Company's Annual Report on Form 10-K for the year ended June 30, 2012, as filed with the Securities and Exchange Commission.
 
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  The Company has continuing losses from operations, negative working capital and an accumulated deficit that raises substantial doubt about its ability to continue as a going concern.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
9 Months Ended
Mar. 31, 2013
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
Cash and Cash Equivalents
 
All highly liquid investments purchased with maturity of three months or less from the time of purchase are considered to be cash equivalents.
 
Use of Estimates
 
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
 
Intangible Assets
 
The costs of obtaining license agreements along with the costs to defend the patents underlying the license agreements are capitalized and amortized using the straight-line method over the estimated useful lives of the underlying license agreements.  The costs of obtaining and maintaining new patents are capitalized and amortized using the straight-line method over the estimated useful lives of the patents. The cost of patents in process is not amortized until the patent is issued.
 
Property and Equipment
 
Property and equipment are stated at cost.  Depreciation on property and equipment is computed using the straight-line method over the expected useful lives of the assets.
 
Accounts Receivable and Allowance for Doubtful Accounts
 
Accounts receivable as of March 31, 2013 represents amounts due from its customers and is reported on the balance sheet reduced by an allowance for doubtful accounts for estimated losses resulting from receivables not considered to be collectible.
 
Research and Development Costs
 
Research and development costs are expensed as incurred.
 
Earnings Per Share
 
Basic net loss per common share is computed by dividing net loss applicable to common shareholders by the weighted-average number of common shares outstanding during the period.  Diluted net loss per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents, consisting of shares that might be issued upon exercise of common stock options and warrants. For the period ended March 31, 2013 16,523,575 diluted common stock equivalents have been excluded from the calculation of diluted earnings per share, as their inclusion would have been anti-dilutive.
 
Fair Value Measurements
 
The Company adopted FASB ASC 820, Fair Value Measurements and Disclosures, which defines fair value, establishes guidelines for measuring fair value and expands disclosures regarding fair value measurements. This new accounting standard does not require any new fair value measurements, but rather eliminates inconsistencies in guidance found in various other accounting pronouncements.
 
This accounting standard establishes a hierarchy for information and valuations used in measuring fair value, which is broken down into three levels. Level 1 valuations are based on quoted prices in active markets for identical assets or liabilities. Level 2 valuations are based on inputs, other than quoted prices included within Level 1, which are observable, either directly or indirectly. Level 3 valuations are based on information that is unobservable and significant to the overall fair value measurement.
 
The Company also adopted FASB ASC 825, Financial Instruments, which allows companies to choose to measure eligible financial instruments and certain other items at fair value that are not required to be measured at fair value. The Company has not elected the fair value option for any eligible financial instruments. 
 
Revenue Recognition
 
The Company's revenues consist of the following sources: product sales, royalty and license fees, research and development service.
 
Under the agreement for product development, manufacturing and distribution  (the "Agreement") with BASF, the Company shares proportionately on the net sales and related expenses in accordance with the terms of the Agreement.  The Company recognizes revenue of its royalties from the sale of products by BASF when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable.
 
The Company recognizes royalty fee income based on the net sales of Bioguard® product by our licensee, Derma Sciences Inc. in accordance with the specified terms of the license agreement.
 
The Company recognizes revenue of its research and development service including the small business innovation research program and the US Army medical research program based on the research work performed in accordance with the program requirements or statements of work for the joint development agreements.
 
The Company also recognizes revenue from the non-refundable exclusivity license fee derived from its licensees on a pro rata basis over the term of the related exclusive license agreements.  Further, the Company recognizes the exclusive option fee as revenue on a pro rata basis over the term of the related exclusive option agreement.
 
Unearned Revenue
 
The amount of unearned revenue represents the exclusive option fee, the license fee, and advance royalty fee yet to be earned on a pro rata basis over the exclusive option period of the related option and license agreements.
 
Stock Compensation
 
The Company records share-based payment awards at fair value on the grant date of the awards, based on the estimated number of awards that are expected to vest. The fair value of stock options was determined using the Black-Scholes option-pricing model. The fair value of the restricted stock awards was based on the closing price of the Company's common stock on the date of grant.
 
Concentration of credit risk of financial instruments
 
Financial instruments that potentially subject the Company to credit risk consist of cash equivalents and accounts receivable.  As of March 31, 2013 and 2012, the Company's cash levels did not exceed the federally insured limit.
 
Income Taxes
 
The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.
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STOCK OPTIONS AND WARRANTS
9 Months Ended
Mar. 31, 2013
STOCK OPTIONS AND WARRANTS [Abstract]
STOCK OPTIONS AND WARRANTS
NOTE 3 – STOCK OPTIONS AND WARRANTS
 
The Company adopted a qualified equity incentive plan (the "Plan") on March 4, 2001. Under the Plan the Company is authorized to grant up to 3,000,000 shares of common stock. On December 13, 2004, the shareholders approved the Plan and ratified the amendment to increase the total number of shares to be granted under the Plan from 3,000,000 to 4,000,000 effective November 1, 2004.  On November 13, 2007 the shareholders ratified the amendment to increase the total number of shares to be granted under the Plan from 4,000,000 to 6,000,000. The plan expired on March 4, 2011.
 
On November 17, 2009, the Board of Directors (the "Board') granted 681,785 stock options to the board members, employees, and consultants as payments for their services and in recognition of individual performance for the year ended June 30, 2009. In addition, the Board granted 248,564 warrants payments to consultants for payments of their services and incentive performance awards.  Of 681,785 stock options grant, approximately 115,428 were awarded to the board members for their services and were vested on the date of grant. Of 248,564 warrants issued, 99,977 warrants were vested immediately on the grant date. The remainder 566,357 stock options and 148,587 warrants were vested one-third immediately, one-third were vested on November 17, 2010 and the remaining one-third were vested on November 17, 2011, assuming the person receiving the equity awards is employed or being utilized by the Company at the time of vesting.   The exercise price of those stock options and warrants is $0.77 per share.  The weighted average grant date fair value of options and warrants was $0.48 per share based on the Black-Scholes option-pricing model.  The options and warrants expire five years from the date of grant.
 
On October 27, 2008, the Board granted 1,335,102 stock options to the board members, employees, and consultants as payments for their services and in recognition of individual performance for the year ended June 30, 2008. In addition, the Board granted 705,302 warrants payments to consultants for payments of their services and incentive performance awards.  Further, 60,000 shares of restricted common stock were issued to a consultant as payment for services.  Of the 1,335,102 stock options grant, approximately 464,102 were awarded to the board members for their services and were vested on the date of grant. Of the 705,302 warrants issued, 240,302 warrants were vested immediately on the grant date.  The remainder 871,000 stock options and 465,000 warrants were vested one-third immediately, one-third were vested on October 27, 2009 and the remaining one-third were vested on October 27, 2010, assuming the person receiving the equity awards is employed or being utilized by the Company at the time of vesting.  The exercise price of those stock options and warrants is $0.20 per share, which was the closing price of the common stock on the date of grant.  The weighted average grant date fair value of options and warrants was $0.19 per share based on the Black-Scholes option-pricing model.  The options and warrants expire five years from the date of grant.
 
On April 18, 2008, the Board granted 148,571 shares of restricted common stock as payment for the services rendered by the board members for the year ended June 30, 2007 for those elected to receive common stocks and all shares were immediately vested.  In addition, the Board granted 1,074,666 stock options to the board members, employees, consultants as payments for their services and in recognition of individual performance for the year ended June 30, 2007.  The stock options were vested one-third immediately, one-third were vested on April 17, 2009 and the remaining one-third were vested on April 17, 2010, assuming the person receiving the equity awards is employed by the Company at the time of vesting.  The exercise price of those stock options is $0.42 per share, which was the closing price of the common stock on the date of grant.  The weighted average grant date fair value of options was $0.32 per share based on the Black-Scholes option-pricing model.  The options and warrants expire five years from the date of grant.
 
On August 6, 2007, the Board granted 484,056 non-qualified stock options to the Chief Executive Officer ("CEO") at an exercise price of $0.75 per share. These options were fully vested and immediately exercisable at the date of grant.  In addition, the Board granted 1,452,167 non-qualified stock options at an exercise price of $0.74 per share on September 25, 2007, as part of the CEO's employment agreement. The second stock options are vested and become exercisable 1/16th of the total 1,452,167 options on each three-month anniversary beginning on June 11, 2007.  The average grant date fair value of the options was $0.46 per share based on the Black-Scholes option-pricing model.  These options expire six years from the date of grant.
 
On December 20, 2006, the Company issued 790,770 stock options to board members, management, employees, and consultants for their services.  These options have an exercise price of $1.05 per share. The stock options were vested one-third immediately, one-third were vested on December 20, 2007 and the remaining one-third were vested on December 20, 2008, assuming the person receiving the equity awards is employed by the Company at the time of vesting.  The weighted average grant date fair value of options was $0.69 per share based on the Black-Scholes option-pricing model.  The options expire five years from the date of grant.  All of the options were forfeited or expired.
 
No options and warrants were granted during the nine months ended March 31, 2013 and 2012.
 
A summary of options for the periods ended March 31, 2013 and 2012 is shown below:
 
              
   
March 31, 2013
  
March 31, 2012
 
              
   
Number of Shares
  
Weighted-Average Exercise Price
  
Number of Shares
  
Weighted-Average Exercise Price
 
Outstanding at beginning of period
  4,341,115  $0.57   4,797,270  $0.57 
Granted
                
Exercised
                
Forfeited
  (861,153)  0.60         
Expired
  (257,145)  0.60   (456,155) $1.05 
Outstanding at end of period
  3,222,817  $0.60   4,341,115  $0.59 
Exercisable at end of period
  3,222,817       4,341,115     
Available for issuance at end of period
  -       -     
                  
                  
The following is a summary of warrants granted, exercised, canceled and outstanding involving the grants in the periods ended March 31, 2013 and 2012:
 
   
March 31, 2013
  
March 31, 2012
 
                  
   
Number of Shares
  
Weighted-Average Exercise Price
  
Number of Shares
  
Weighted-Average Exercise Price
 
                  
Outstanding at beginning of period
  958,299  $0.46   974,920  $0.47 
Granted
          10,714  $0.02 
Exercised
                
Expired
          (26,351) $1.02 
Outstanding at end of period
  958,299  $0.36   959,283  $0.45 
Exercisable at end of period
  958,299       959,283   
 
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NOTES PAYABLE
9 Months Ended
Mar. 31, 2013
NOTES PAYABLE [Abstract]
NOTES PAYABLE
NOTE 4 – NOTES PAYABLE
 
                
                
Related Party
Maturity
 
Interest Rate
  
Conversion Price
  
March 31, 2013
  
June 30, 2012
 
                
Senior Convertible Note
2013
  8% $0.60   1,053,000   1,053,000 
Accrued Interest
            253,072   189,834 
Total
            1,306,072   1,242,834 
Less current portion
            1,306,072   1,242,834 
Total long-term
            -   - 
                    
Others
                  
Senior Convertible Note
2014
  8% $0.50   150,000   150,000 
Senior Convertible Note
2014
  8%  0.50   100,000   100,000 
Acrued interest
            9,973   4,986 
Total long-term
            259,973   254,986 
                    
Related Party
                  
Note Payable
2013
  8%     $65,155   89,155 
Accrued interest
            16,552   12,870 
Total
            81,707   102,025 
Less current portion
            81,707   102,025 
Total long-term
            -   - 
                    
Related Party
                  
Senior Convertible Note
2013
  6-8% $0.18-0.74   3,547,580   3,547,580 
Senior Convertible Note Payable 2
  8%  0.42-0.63   375,000   375,000 
Senior Convertible Note Payable 3
  8%  0.60   600,000   600,000 
Accrued interest
            1,643,601   1,391,157 
Total
            6,166,181   5,913,737 
Less current portion
            6,166,181   5,913,737 
Total long-term
           $-   - 
 
On March 31, 2013, the Company restructured several of its outstanding and previously issued notes payable to the largest shareholder into a single senior convertible promissory note in the amount of $3,547,580. The original notes were issued on September 30, 2003, June 14, 2007, October 30, 2007, February 11, 2008, May 17, 2008, September 12, 2008, February 26, 2009, May 12, 2009 and March 15, 2010 in the principal amounts of $1,268,625, $208,955, $300,000, $370,000, $485,000, $150,000, $175,000, $375,000 and $215,000, respectively. This senior convertible note is secured by the Company's revenues and assets and is subordinate to the additional senior convertible notes issued to the various parties listed below. Interest rates for these convertible notes range from 6% to 8% and conversion rates range from $0.18 to $0.74.
 
On March 31, 2010, the Company issued a senior convertible promissory note to a major shareholder for the principal amount of $1,053,000, which consisted of $600,164 in cash, $375,000 principal balance of a prior senior convertible note together with unpaid accrued interest thereon of $77,836.  This senior convertible note is secured by the Company's revenues and assets with the same priority as the Notes 2 and 3 to the Shareholder and the senior convertible notes totaling $250,000.  This note has an annual interest rate of 8%, a maturity date of December 31, 2013.  This note has the conversion price of $0.60 per share of common stock.  The Company has recorded approximately $859,950 as an interest expense as a result of the beneficial conversion feature.
 
On March 31, 2010, the Company issued two senior convertible promissory notes totaling $250,000 to third parties.  These senior convertible notes are secured by the Company's revenues and assets with the same priority as the Note 2 and 3 to the Shareholder and the March 31, 2010 senior convertible note to a major shareholder. These notes have an annual interest rate of 8% with a maturity date of June 30, 2014.  These notes have the convertible price of $1.00 per share of common stock.  The Company has recorded approximately $22,500 as an interest expense as a result of the beneficial conversion feature.  During the year ended June 30, 2011, the conversion price of the $150,000 senior convertible promissory note was reduced to $0.50 per share of common stock as part of the arrangement of the additional investment in the Company's restricted common stock by the note holder. In addition, the conversion price on the $100,000 senior convertible promissory note was also reduced to $0.50 per share of common stock as a result of the additional investment in the Company's restricted common stock.
 
On December 16, 2010, the Company issued a promissory note to an officer for the principal amount of $113,155, which consisted of a total 100,000 principal balance of four prior convertible notes together with unpaid accrued interest thereon of $13,155.  This note has an annual interest rate of 8%, a maturity date of December 31, 2013.  The outstanding principal amount will be paid at a rate of $1,000, $2,000 and $3,000 each month for the first 12 months, the second 12 months and the third 12 months, respectively. As of March 31, 2013, the Company paid an aggregate principal amount of approximately $65,000 to the officer. The remaining outstanding principal balance and accrued interest will be paid on the maturity date.
 
In November 2009, the Company finalized and issued a $600,000 2009 senior convertible note payable ("Note 3") to the Shareholder.  The Company received the borrowings (the "Advances") in a series of $45,000 on September 8, 2009, $25,000 on September 11, 2009, $125,000 on September 23, 2009, $100,000 on October 14, 2009, $50,000 on October 28, 2009, $175,000 on November 12, 2009,   $50,000 on December 14, 2009, and $30,000 on February 26, 2010 totaling $600,000.   This senior convertible note is secured by the Company's revenues and assets with the same priority as the March 31, 2010 senior convertible notes, it has a 8% annual interest rate and has a maturity date of December 31, 2013.  This note has the conversion price of $0.60 per share of common stock.  The Company has recorded approximately $215,500 as an interest expense to date for the Advances received as a result of the beneficial conversion feature.  As part of the terms of this note, the maturity dates of all other outstanding senior convertible notes owed to the Shareholder were extended to December 31, 2013.  During the year ended June 30, 2011, the conversion price on a $135,000 portion of the Note 3 was also reduced to $0.50 per share of common stock as a result of the additional investment in the Company's restricted common stock.
 
Effective May 12, 2009, the Company issued a 2009 senior convertible note payable ("Note 2") to the Shareholder to combine the borrowings (the "Advances") in a series of $35,000 each from May 12, 2009 through August 12, 2009, $50,000 and $45,000 on August 14 and 27, 2009, respectively totaling $375,000. This senior convertible note is secured by the Company's revenues and assets with the same priority as the March 31, 2010 senior convertible notes and has a maturity date of December 31, 2013.  This note has the conversion prices determined by the closing trading prices of the Company's common stock on the dates the Advances were received.
 
At March 31, 2013, the Company accrued interest of $253,072, $9,973, $16,550, and $1,643,601 on the convertible notes with a related party, convertible notes with third parties, notes payable with related party, and the convertible notes payable with the Shareholder, respectively.
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FAIR VALUE MEASUREMENTS
9 Months Ended
Mar. 31, 2013
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS
NOTE 5  – FAIR VALUE MEASUREMENTS
 
The Company adopted FASB ASC 820, Fair Value Measurements and Disclosures, for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. FASB ASC 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  FASB ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk.
 
FASB ASC 820 also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is available and significant to the fair value measurement. FASB ASC 820 establishes and prioritizes three levels of inputs that may be used to measure fair value:
 
Level 1 - Quoted prices in active markets for identical assets or liabilities.
 
Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
 
Level 3 - Inputs that are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability.
 
The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of March 31, 2013:
 
           
   
Carrying Value
  
Level 1
 
Level 2
Level 3
           
Financial Assets
         
Cash equivalents (1)
 $176,914   176,914    
Total financial assets
 $176,914   176,914    
             
   
Carrying Value
  
Level 1
 
Level 2
Level 3
Financial Liabilities
           
Convertible notes payable (2)
 $7,732,226      
7,325,279
Total financial liabilities
 $7,732,226      
7,325,279
 
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RELATED PARTY TRANSACTIONS
9 Months Ended
Mar. 31, 2013
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS
NOTE 6  – RELATED PARTY TRANSACTIONS
 
As fully described in Note 4, the Company has several senior convertible note payables with the Shareholder, a major stockholder, and third parties and a promissory note with a related party during the periods ended March 31, 2013, and June 30, 2012.
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SUBSEQUENT EVENTS
9 Months Ended
Mar. 31, 2013
SUBSEQUENT EVENTS [Abstract]
SUBSEQUENT EVENTS [Text Block]
NOTE 7  – SUBSEQUENT EVENT
 
On May 14, 2013 the Company was awarded a contract by the U.S. Department of Defense for research on the "Development of Technologies to Control Scar Contracture after Burn Injuries." The Phase I research contract is valued at about $150,000.  Work is expected to commence on May 15, 2013 and is expected to take approximately 6 months.  Follow-on phases of the award could potentially bring the total value of the contract to approximately $1 million and would help develop the proof of concept to commercial readiness.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
9 Months Ended
Mar. 31, 2013
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Cash and Cash Equivalents
Cash and Cash Equivalents
 
All highly liquid investments purchased with maturity of three months or less from the time of purchase are considered to be cash equivalents.
Use of Estimates
Use of Estimates
 
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
Intangible Assets
Intangible Assets
 
The costs of obtaining license agreements along with the costs to defend the patents underlying the license agreements are capitalized and amortized using the straight-line method over the estimated useful lives of the underlying license agreements.  The costs of obtaining and maintaining new patents are capitalized and amortized using the straight-line method over the estimated useful lives of the patents. The cost of patents in process is not amortized until the patent is issued.
Property and Equipment
Property and Equipment
 
Property and equipment are stated at cost.  Depreciation on property and equipment is computed using the straight-line method over the expected useful lives of the assets.
Accounts Receivable and Allowance for Doubtful Accounts
Accounts Receivable and Allowance for Doubtful Accounts
 
Accounts receivable as of March 31, 2013 represents amounts due from its customers and is reported on the balance sheet reduced by an allowance for doubtful accounts for estimated losses resulting from receivables not considered to be collectible.
Research and Development Costs
Research and Development Costs
 
Research and development costs are expensed as incurred.
Earnings Per Share
Earnings Per Share
 
Basic net loss per common share is computed by dividing net loss applicable to common shareholders by the weighted-average number of common shares outstanding during the period.  Diluted net loss per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents, consisting of shares that might be issued upon exercise of common stock options and warrants. For the period ended March 31, 2013 16,523,575 diluted common stock equivalents have been excluded from the calculation of diluted earnings per share, as their inclusion would have been anti-dilutive.
Fair Value Measurements
Fair Value Measurements
 
The Company adopted FASB ASC 820, Fair Value Measurements and Disclosures, which defines fair value, establishes guidelines for measuring fair value and expands disclosures regarding fair value measurements. This new accounting standard does not require any new fair value measurements, but rather eliminates inconsistencies in guidance found in various other accounting pronouncements.
 
This accounting standard establishes a hierarchy for information and valuations used in measuring fair value, which is broken down into three levels. Level 1 valuations are based on quoted prices in active markets for identical assets or liabilities. Level 2 valuations are based on inputs, other than quoted prices included within Level 1, which are observable, either directly or indirectly. Level 3 valuations are based on information that is unobservable and significant to the overall fair value measurement.
 
The Company also adopted FASB ASC 825, Financial Instruments, which allows companies to choose to measure eligible financial instruments and certain other items at fair value that are not required to be measured at fair value. The Company has not elected the fair value option for any eligible financial instruments. 
Revenue Recognition
Revenue Recognition
 
The Company's revenues consist of the following sources: product sales, royalty and license fees, research and development service.
 
Under the agreement for product development, manufacturing and distribution  (the "Agreement") with BASF, the Company shares proportionately on the net sales and related expenses in accordance with the terms of the Agreement.  The Company recognizes revenue of its royalties from the sale of products by BASF when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable.
 
The Company recognizes royalty fee income based on the net sales of Bioguard® product by our licensee, Derma Sciences Inc. in accordance with the specified terms of the license agreement.
 
The Company recognizes revenue of its research and development service including the small business innovation research program and the US Army medical research program based on the research work performed in accordance with the program requirements or statements of work for the joint development agreements.
 
The Company also recognizes revenue from the non-refundable exclusivity license fee derived from its licensees on a pro rata basis over the term of the related exclusive license agreements.  Further, the Company recognizes the exclusive option fee as revenue on a pro rata basis over the term of the related exclusive option agreement.
Unearned Revenue
Unearned Revenue
 
The amount of unearned revenue represents the exclusive option fee, the license fee, and advance royalty fee yet to be earned on a pro rata basis over the exclusive option period of the related option and license agreements.
Stock Compensation
Stock Compensation
 
The Company records share-based payment awards at fair value on the grant date of the awards, based on the estimated number of awards that are expected to vest. The fair value of stock options was determined using the Black-Scholes option-pricing model. The fair value of the restricted stock awards was based on the closing price of the Company's common stock on the date of grant.
Concentration of credit risk of financial instruments
Concentration of credit risk of financial instruments
 
Financial instruments that potentially subject the Company to credit risk consist of cash equivalents and accounts receivable.  As of March 31, 2013 and 2012, the Company's cash levels did not exceed the federally insured limit.
Income Taxes
Income Taxes
 
The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.
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STOCK OPTIONS AND WARRANTS (Tables)
9 Months Ended
Mar. 31, 2013
STOCK OPTIONS AND WARRANTS [Abstract]
Summary of options
A summary of options for the periods ended March 31, 2013 and 2012 is shown below:
 
              
   
March 31, 2013
  
March 31, 2012
 
              
   
Number of Shares
  
Weighted-Average Exercise Price
  
Number of Shares
  
Weighted-Average Exercise Price
 
Outstanding at beginning of period
  4,341,115  $0.57   4,797,270  $0.57 
Granted
                
Exercised
                
Forfeited
  (861,153)  0.60         
Expired
  (257,145)  0.60   (456,155) $1.05 
Outstanding at end of period
  3,222,817  $0.60   4,341,115  $0.59 
Exercisable at end of period
  3,222,817       4,341,115     
Available for issuance at end of period
  -       -     
                  
                  
Summary of warrants granted, exercised, canceled and outstanding
The following is a summary of warrants granted, exercised, canceled and outstanding involving the grants in the periods ended March 31, 2013 and 2012:
 
   
March 31, 2013
  
March 31, 2012
 
                  
   
Number of Shares
  
Weighted-Average Exercise Price
  
Number of Shares
  
Weighted-Average Exercise Price
 
                  
Outstanding at beginning of period
  958,299  $0.46   974,920  $0.47 
Granted
          10,714  $0.02 
Exercised
                
Expired
          (26,351) $1.02 
Outstanding at end of period
  958,299  $0.36   959,283  $0.45 
Exercisable at end of period
  958,299       959,283   
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NOTES PAYABLE (Tables)
9 Months Ended
Mar. 31, 2013
NOTES PAYABLE [Abstract]
Long-Term Note
                
                
Related Party
Maturity
 
Interest Rate
  
Conversion Price
  
March 31, 2013
  
June 30, 2012
 
                
Senior Convertible Note
2013
  8% $0.60   1,053,000   1,053,000 
Accrued Interest
            253,072   189,834 
Total
            1,306,072   1,242,834 
Less current portion
            1,306,072   1,242,834 
Total long-term
            -   - 
                    
Others
                  
Senior Convertible Note
2014
  8% $0.50   150,000   150,000 
Senior Convertible Note
2014
  8%  0.50   100,000   100,000 
Acrued interest
            9,973   4,986 
Total long-term
            259,973   254,986 
                    
Related Party
                  
Note Payable
2013
  8%     $65,155   89,155 
Accrued interest
            16,552   12,870 
Total
            81,707   102,025 
Less current portion
            81,707   102,025 
Total long-term
            -   - 
                    
Related Party
                  
Senior Convertible Note
2013
  6-8% $0.18-0.74   3,547,580   3,547,580 
Senior Convertible Note Payable 2
  8%  0.42-0.63   375,000   375,000 
Senior Convertible Note Payable 3
  8%  0.60   600,000   600,000 
Accrued interest
            1,643,601   1,391,157 
Total
            6,166,181   5,913,737 
Less current portion
            6,166,181   5,913,737 
Total long-term
           $-   - 
 
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FAIR VALUE MEASUREMENTS (Tables)
9 Months Ended
Mar. 31, 2013
FAIR VALUE MEASUREMENTS [Abstract]
Fair value of assets and liabilities measured on a recurring basis
The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of March 31, 2013:
 
           
   
Carrying Value
  
Level 1
 
Level 2
Level 3
           
Financial Assets
         
Cash equivalents (1)
 $176,914   176,914    
Total financial assets
 $176,914   176,914    
             
   
Carrying Value
  
Level 1
 
Level 2
Level 3
Financial Liabilities
           
Convertible notes payable (2)
 $7,732,226      
7,325,279
Total financial liabilities
 $7,732,226      
7,325,279
 
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
9 Months Ended
Mar. 31, 2013
Earnings Per Share [Abstract]
Anti-dilutive common stock equivalents excluded from the calculation of diluted earnings per share (in shares) 16,523,575
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STOCK OPTIONS AND WARRANTS (Details) (USD $)
Nov. 13, 2007
Nov. 01, 2004
Mar. 04, 2001
Mar. 31, 2013
Stock Options [Member]
Mar. 31, 2012
Stock Options [Member]
Jun. 30, 2009
Stock Options [Member]
Jun. 30, 2008
Stock Options [Member]
Jun. 30, 2009
Stock Options [Member]
Board Members [Member]
Jun. 30, 2008
Stock Options [Member]
Board Members [Member]
Dec. 20, 2006
Stock Options [Member]
Board Members, Management Employees and Consultants [Member]
Jun. 30, 2009
Stock Options [Member]
Board Members, Management Employees and Consultants [Member]
Jun. 30, 2008
Stock Options [Member]
Board Members, Management Employees and Consultants [Member]
Jun. 30, 2007
Stock Options [Member]
Board Members, Management Employees and Consultants [Member]
Sep. 25, 2007
Non-qualified Stock Options [Member]
Chief Executive Officer [Member]
Aug. 06, 2007
Non-qualified Stock Options [Member]
Chief Executive Officer [Member]
Jun. 30, 2007
Restricted Common Stock [Member]
Board Members [Member]
Jun. 30, 2008
Restricted Common Stock [Member]
Consultants [Member]
Mar. 31, 2013
Warrants [Member]
Mar. 31, 2012
Warrants [Member]
Jun. 30, 2009
Warrants [Member]
Consultants [Member]
Jun. 30, 2008
Warrants [Member]
Consultants [Member]
Jun. 30, 2009
Warrants [Member]
Board Members, Management Employees and Consultants [Member]
Jun. 30, 2008
Warrants [Member]
Board Members, Management Employees and Consultants [Member]
Jun. 30, 2007
Warrants [Member]
Board Members, Management Employees and Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares) 6,000,000 4,000,000 3,000,000
Number of shares vested on grant date (in shares) 115,428 464,102 99,977 240,302
Number of remaining shares vesting after date of grant (in shares) 566,357 871,000 148,587 465,000
Options, weighted average exercise price (in dollars per share) $ 1.05 $ 0.77 $ 0.2 $ 0.42 $ 0.74 $ 0.75
Options, weighted average grant date fair value (in dollars per share) $ 0.69 $ 0.48 $ 0.19 $ 0.32 $ 0.46
Warrants, weighted average exercise price (in dollars per share) $ 0.77 $ 0.2
Warrants, weighted average grant date fair value (in dollars per share) $ 0.48 $ 0.19
Term of equity-based payment award 5 years 5 years 5 years 5 years 6 years 5 years 5 years 5 years
Shares granted (in shares) 148,571 60,000 0 0 248,564 705,302
Summary of options [Roll Forward]
Outstanding at beginning of period (in shares) 4,341,115 4,797,270
Granted (in shares) 0 0 115,428 464,102 790,770 681,785 1,335,102 1,074,666 1,452,167 484,056
Forfeited (in shares) (861,153)
Expired (in shares) (257,145) (456,155)
Outstanding at end of period (in shares) 3,222,817 4,341,115
Exercisable at end of period (in shares) 3,222,817 4,341,115
Available for issuance at end of period (in shares) 0 0
Options, weighted-average exercise price [Roll Forward]
Outstanding at beginning of period (in dollars per share) $ 0.57 $ 0.57
Forfeited (in dollars per share) $ 0.6
Expired (in dollars per share) $ 0.6 $ 1.05
Outstanding at end of period (in dollars per share) $ 0.6 $ 0.59
Non-option equity instruments, number of shares [ Roll Forward]
Outstanding at beginning of period (in shares) 958,299 974,920
Granted (in shares) 10,714
Expired (in shares) (26,351)
Outstanding at end of period (in shares) 958,299 959,283
Exercisable at end of period (in shares) 958,299 959,283
Equity instruments other than options, weighted-average exercise price [Roll Forward]
Outstanding at beginning of period (in dollars per share) $ 0.46 $ 0.47
Granted (in dollars per share) $ 0.02
Expired (in dollars per share) $ 1.02
Outstanding at end of period (in dollars per share) $ 0.36 $ 0.45
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NOTES PAYABLE (Details) (USD $)
9 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 0 Months Ended 12 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Senior Convertible Note 0.60 [Member]
Related Party [Member]
Jun. 30, 2012
Senior Convertible Note 0.60 [Member]
Related Party [Member]
Mar. 31, 2010
Senior Convertible Note 0.60 [Member]
Largest Shareholder [Member]
Mar. 31, 2010
Senior Convertible Note 0.60 [Member]
Major Shareholder [Member]
Mar. 31, 2013
Senior Convertible Note 0.50 1[Member]
Others [Member]
Jun. 30, 2012
Senior Convertible Note 0.50 1[Member]
Others [Member]
Mar. 31, 2013
Senior Convertible Note 0.50 2[Member]
Others [Member]
Jun. 30, 2012
Senior Convertible Note 0.50 2[Member]
Others [Member]
Mar. 31, 2010
Senior Convertible Note 0.50 Total [Member]
Others [Member]
SeniorConvertibleNote
Mar. 31, 2013
Senior Convertible Note 0.50 Total [Member]
Others [Member]
Jun. 30, 2012
Senior Convertible Note 0.50 Total [Member]
Others [Member]
Mar. 15, 2010
Note Payable [Member]
Largest Shareholder [Member]
May 12, 2009
Note Payable [Member]
Largest Shareholder [Member]
Feb. 26, 2009
Note Payable [Member]
Largest Shareholder [Member]
Sep. 12, 2008
Note Payable [Member]
Largest Shareholder [Member]
May 17, 2008
Note Payable [Member]
Largest Shareholder [Member]
Feb. 11, 2008
Note Payable [Member]
Largest Shareholder [Member]
Oct. 30, 2007
Note Payable [Member]
Largest Shareholder [Member]
Jun. 14, 2007
Note Payable [Member]
Largest Shareholder [Member]
Sep. 30, 2003
Note Payable [Member]
Largest Shareholder [Member]
Mar. 31, 2013
2013 Senior Convertible Note [Member]
Related Party [Member]
Jun. 30, 2012
2013 Senior Convertible Note [Member]
Related Party [Member]
Mar. 31, 2013
2013 Senior Convertible Note [Member]
Related Party [Member]
Minimum [Member]
Mar. 31, 2013
2013 Senior Convertible Note [Member]
Related Party [Member]
Maximum [Member]
Mar. 31, 2013
2013 Senior Convertible Note [Member]
Largest Shareholder [Member]
Dec. 16, 2010
Total of 4 Prior Senior Convertible Notes [Member]
Officer [Member]
SeniorConvertibleNote
Mar. 31, 2013
Total of 4 Prior Senior Convertible Notes [Member]
Officer [Member]
Jun. 30, 2011
Total of 4 Prior Senior Convertible Notes [Member]
Officer [Member]
Aug. 12, 2009
2009 Senior Convertible Note 2 0.48CP [Member]
Largest Shareholder [Member]
Aug. 12, 2009
2009 Senior Convertible Note 2 0.47CP [Member]
Largest Shareholder [Member]
Aug. 12, 2009
2009 Senior Convertible Note 2 0.42CP [Member]
Largest Shareholder [Member]
Aug. 12, 2009
2009 Senior Convertible Note 2 0.53CP [Member]
Largest Shareholder [Member]
Aug. 12, 2009
2009 Senior Convertible Note 2 0.58CP [Member]
Largest Shareholder [Member]
Aug. 12, 2009
2009 Senior Convertible Note 2 0.52CP [Member]
Largest Shareholder [Member]
Aug. 12, 2009
2009 Senior Convertible Note 2 0.46CP [Member]
Largest Shareholder [Member]
Aug. 12, 2009
2009 Senior Convertible Note 2 0.55CP [Member]
Largest Shareholder [Member]
Aug. 14, 2009
2009 Senior Convertible Note 2 0.63CP [Member]
Largest Shareholder [Member]
Aug. 27, 2009
2009 Senior Convertible Note 2 0.60CP [Member]
Largest Shareholder [Member]
Jun. 30, 2011
2009 Senior Convertible Note 3 0.50CP [Member]
Largest Shareholder [Member]
Mar. 31, 2013
Total of 2009 Senior Convertible Note 2 [Member]
Related Party [Member]
Jun. 30, 2012
Total of 2009 Senior Convertible Note 2 [Member]
Related Party [Member]
Mar. 31, 2013
Total of 2009 Senior Convertible Note 2 [Member]
Related Party [Member]
Minimum [Member]
Mar. 31, 2013
Total of 2009 Senior Convertible Note 2 [Member]
Related Party [Member]
Maximum [Member]
May 12, 2009
Total of 2009 Senior Convertible Note 2 [Member]
Largest Shareholder [Member]
Mar. 31, 2013
Total of 2009 Senior Convertible Note 3 [Member]
Related Party [Member]
Jun. 30, 2012
Total of 2009 Senior Convertible Note 3 [Member]
Related Party [Member]
Nov. 30, 2009
Total of 2009 Senior Convertible Note 3 [Member]
Largest Shareholder [Member]
Feb. 26, 2010
Total of 2009 Senior Convertible Note 3 [Member]
Largest Shareholder [Member]
Dec. 14, 2009
Total of 2009 Senior Convertible Note 3 [Member]
Largest Shareholder [Member]
Nov. 12, 2009
Total of 2009 Senior Convertible Note 3 [Member]
Largest Shareholder [Member]
Oct. 28, 2009
Total of 2009 Senior Convertible Note 3 [Member]
Largest Shareholder [Member]
Oct. 14, 2009
Total of 2009 Senior Convertible Note 3 [Member]
Largest Shareholder [Member]
Sep. 23, 2009
Total of 2009 Senior Convertible Note 3 [Member]
Largest Shareholder [Member]
Sep. 11, 2009
Total of 2009 Senior Convertible Note 3 [Member]
Largest Shareholder [Member]
Sep. 08, 2009
Total of 2009 Senior Convertible Note 3 [Member]
Largest Shareholder [Member]
Mar. 31, 2013
Total of 2013 and 2009 Senior Convertible Note [Member]
Related Party [Member]
Jun. 30, 2012
Total of 2013 and 2009 Senior Convertible Note [Member]
Related Party [Member]
Mar. 31, 2013
Total of Senior Convertible Note [Member]
Mar. 31, 2013
Long Term Notes Payable [Member]
Note Payable [Member]
Related Party [Member]
Jun. 30, 2012
Long Term Notes Payable [Member]
Note Payable [Member]
Related Party [Member]
Debt Instrument [Line Items]
Maturity date Dec 31, 2013 Jun 30, 2014 Jun 30, 2014 Dec 31, 2013 Dec 31, 2013 Dec 31, 2013 Dec 31, 2013
Interest rate (in hundredths) 8.00% 8.00% 8.00% 6.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00%
Conversion price (in dollars per share) $ 0.6 $ 0.5 $ 0.5 $ 1 $ 0.18 $ 0.74 $ 0.5 $ 0.42 $ 0.63 $ 0.6 $ 0.6
Long-term Debt $ 1,053,000 $ 1,053,000 $ 150,000 $ 150,000 $ 100,000 $ 100,000 $ 3,547,580 $ 3,547,580 $ 375,000 $ 375,000 $ 600,000 $ 600,000 $ 65,155 $ 89,155
Accrued interest 253,072 189,834 9,973 4,986 13,155 1,643,601 1,391,157 16,552 12,870
Total 1,306,072 1,242,834 6,166,181 5,913,737 81,707 102,025
Less current portion 1,306,072 1,242,834 6,166,181 5,913,737 81,707 102,025
Total long-term 0 0 259,973 254,986 0 0 0 0
Face amount of debt 1,053,000 250,000 215,000 375,000 175,000 150,000 485,000 370,000 300,000 208,955 1,268,625 3,547,580 100,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 50,000 45,000 135,000 375,000 600,000 30,000 50,000 175,000 50,000 100,000 125,000 25,000 45,000 250,000
Cash proceeds from debt 600,164
Notes reduction 375,000
Increase (decrease) in interest payable, net 324,253 318,098 77,836
Convertible debt beneficial conversion feature 859,950 22,500 215,500
Number of senior convertible notes issued 2 4
Total of senior convertible note issued 113,155
Principal payments by month for the first twelve months 1,000
Principal payments by month for the second twelve months 2,000
Principal payments by month for the third twelve months 3,000
Aggregate principal repaid $ 65,000
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FAIR VALUE MEASUREMENTS (Details) (Fair Value, Measurements, Recurring [Member], USD $)
Mar. 31, 2013
Financial Assets [Abstract]
Cash equivalents $ 176,914
Total financial assets 176,914
Financial Liabilities [Abstract]
Convertible notes payable 7,732,226
Total financial liabilities 7,732,226
Level 1 [Member]
Financial Assets [Abstract]
Cash equivalents 176,914
Total financial assets 176,914
Level 3 [Member]
Financial Liabilities [Abstract]
Convertible notes payable 7,325,279
Total financial liabilities $ 7,325,279
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