Annual report pursuant to Section 13 and 15(d)

Shareholders' Equity (Deficit)

v3.7.0.1
Shareholders' Equity (Deficit)
 12 Months Ended
Jun. 30, 2017
Stockholders' Equity Note [Abstract]  
Stockholders Equity Note Disclosure [Text Block]
Note 10 Shareholders’ Equity (Deficit)
 
Common Stock - The Company is authorized to issue 200,000,000 shares of $0.001 par-value common stock. All shares of the Company’s common stock have equal rights and privileges with respect to voting, liquidation and dividend rights. Each share of common stock entitles the holder thereof to:
 
a.
One non-cumulative vote for each share held of record on all matters submitted to a vote of the stockholders;
b.
To participate equally and to receive any and all such dividends as may be declared by the Board of Directors out of funds legally available therefore; and
c.
To participate pro rata in any distribution of assets available for distribution upon liquidation.
 
Stockholders have no pre-emptive rights to acquire additional shares of common stock or any other securities. Common shares are not subject to redemption and carry no subscription or conversion rights.
 
Preferred Stock – The Company is authorized to issue 20,000,000 shares of Preferred Stock with each share having a par value of $0.001. See Note 9 above for the Preferred Stock transaction during year ended June 30, 2016.
 
During 2016, the Company entered into a private placement transaction in which the Company issued 4,875,020 units to accredited investors. Each investor was issued either Class A Units or Class B units of the Company. Each Class A Unit received one share of common stock and one-half of one common share purchase warrant. If the investor had previously invested in the Company they were eligible for a Class B Unit which received one share of common stock and one common share purchase warrant. Each common share purchase warrant is exercisable at $1.65 per share and will expire 60 months following the issuance. As of June 30, 2016, the Company received net proceeds of approximately $4.8 million after the placement agent compensation and issuance costs paid of $553,428 and $500,320 of warrant expense recorded as issuance costs.
 
During 2017, the Company closed additional private placement transactions in which the Company issued 5,783,184 units to accredited investors. Each investor was issued either Class A Units or Class B units of the Company. Each Class A Unit received one share of common stock and one-half of one common share purchase warrant. If the investor had previously invested in the Company they were eligible for a Class B Unit which received one share of common stock and one common share purchase warrant. Each common share purchase warrant is exercisable at $1.65 per share and will expire 60 months following the issuance. As of June 30, 2017, the Company received net proceeds of approximately $5.2 million after the placement agent compensation and issuance costs paid of $683,194 and $516,550 of warrant expense recorded as issuance costs.
 
The Company also entered into a private placement transaction in which the Company issued common stock to accredited investors at an offering price of $1.00 per share. As of June 30, 2017, the Company received net proceeds of approximately $8.1 million after the placement agent compensation of $186,671 of warrant expense recorded as issuance costs. There was no cash placement agent compensation associated with this transaction. On July 17, 2017, the Company received an additional $4.5 million in gross proceeds on the offering.
 
The Company has not declared or paid any dividends or returned any capital to common stock shareholders as of June 30, 2017 and 2016.