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NOTE 6 - LIQUIDITY
9 Months Ended
Mar. 31, 2015
Going Concern Disclosure [Abstract]  
Going Concern Disclosure [Text Block]
NOTE 6 - LIQUIDITY

At March 31, 2015, our total cash was $280,828, none of which was restricted and our total indebtedness was $550,562, compared to total cash of $48,139 and total indebtedness of $1,618,305 at March 31, 2014.  Our total indebtedness at March 31, 2015 includes $482,793 of accounts payable and accrued expenses and $67,769 of long-term debt (of which $13,929 is current).  As a result, operations for the nine months ended March 31, 2015 consumed $447,757 of the Company’s limited cash resources.

In the third quarter fiscal 2015, our revenue fell short of expectations primarily due to a significant, long term customer not placing its customary order in the second and third quarters.  The lack of this customary order was a significant factor in the Company not achieving the expected milestone of positive cash flows from operations.  This revenue shortfall was partly offset by significant increases in sales of our agricultural pivot tires.

To help address our limited cash resources, we are in discussions with various third parties about potential opportunities to license our technology which we believe will bring in additional cash flows without diluting our common stock or requiring the addition of debt. We are in discussions with banks and other lenders regarding establishing a line of credit for short term cash needs, however at this time we have not succeeded in establishing such a line of credit.  Lastly, we have entered into a short term receivable factoring agreement with a third party to sell our receivable invoices.  This agreement enables us to sell individual customer invoices for faster cash flow to the Company as we deem needed.

At the Annual Stockholder’s Meeting held on December 4, 2014, management presented a plan focusing on “Profitability as a Mindset”.  To that end, management continues to sharpen our sales model to add sales resources. We have purchased a customer list and placed advertisements in trade magazines to introduce our agriculture products to our targeted customer base. We will continue to implement marketing efforts to develop these potential customers throughout the remainder of fiscal year 2015.

In connection with the preparation of our financial statements for the three and nine months ended March 31, 2015, we have analyzed our cash needs for the next twelve months. We have concluded that our available cash and accounts receivables are sufficient to meet our current minimum working capital, capital expenditure and other cash requirements for this period.