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Income Taxes | 9 Months Ended | 12 Months Ended
--- | --- | ---
Mar. 31, 2015 | Jun. 30, 2014
Income Tax Disclosure [Abstract] |  |
Income Tax Disclosure [Text Block] | Note 9 Income Taxes Income tax expense during interim periods is based on applying an estimated annual effective income tax rate to year-to-date income, plus any significant unusual or infrequently occurring items which are recorded in the interim period. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in various jurisdictions, permanent and temporary differences, and the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is obtained, additional information becomes known or as the tax environment changes. In the three and nine months ended March 31, 2015, the Company did not record any income tax provision due to the expected future losses and full valuation allowance on its deferred tax assets.
| Note 11 Income Taxes Taxing jurisdictions related to income taxes are the Unites States Federal Government and the State of Colorado. The provision for income taxes is as follows:
|  | Year Ended June 30, |
|  | 2014 |  | 2013 |
Current tax benefit |  |  |  |  |  |  |
Federal |  | $ | - |  | $ | - |
State |  |  | - |  |  | - |
|  |  | - |  |  | - |
Deferred tax benefit |  |  |  |  |  |  |
Federal |  |  | 2,006,831 |  |  | 2,052,267 |
State |  |  | 79,548 |  |  | 184,451 |
Change in valuation allowance |  |  | (2,086,379) |  |  | (2,236,718) |
|  |  | - |  |  | - |
Total tax expense |  | $ | - |  | $ | - |
Deferred taxes are a result of differences between income tax accounting and GAAP with respect to income and expenses. The following is a summary of the components of deferred taxes recognized in the financial statements as of June 30, 2014 and 2013:
|  | As of June 30, |
|  | 2014 |  | 2013 |
Deferred tax assets |  |  |  |  |  |  |
Net operating loss carryforward |  | $ | 2,267,379 |  | $ | 562,335 |
Start-up and organizational expenses |  |  | 457,495 |  |  | 580,219 |
Stock-based compensation |  |  | 1,683,247 |  |  | 1,265,350 |
Derivative expense |  |  | 129,986 |  |  | 60,943 |
Other |  |  | 17,093 |  |  | (26) |
Total deferred tax assets |  |  | 4,555,200 |  |  | 2,468,821 |
Valuation allowance |  |  | (4,555,200) |  |  | (2,468,821) |
Net deferred taxes |  | $ | - |  | $ | - |
The valuation allowance was established because the Company had not reported earnings in order to support the recognition of the deferred tax asset. The Company has net operating loss carryforwards of approximately $5,869,000 for federal and state income tax purposes. Federal and state net operating loss carryforwards, to the extent not used, will expire starting in 2031. Under provisions of the Internal Revenue Code, substantial changes in the Company’s ownership may result in limitations on the amount of net operating loss carryforwards that can be utilized in future years. The Company is no longer subject to income tax examinations for federal income taxes before 2010 and for Colorado before 2009. The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate of 34% to pretax income for the following periods, due to the following:
|  | Year Ended June 30, |
|  | 2014 |  | 2013 |
Computed "expected" tax expense (benefit) |  | $ | (3,308,354) |  | $ | (2,293,815) |
Change in income taxes from: |  |  |  |  |  |  |
State taxes net of federal benefit |  |  | (79,549) |  |  | (184,451) |
Permanent differences |  |  | 1,301,524 |  |  | 241,548 |
Change in valuation allowance |  |  | 2,086,379 |  |  | 2,236,718 |
|  | $ | - |  | $ | - |

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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