Annual report pursuant to Section 13 and 15(d)

Non-Controlling Interests in Consolidated Subsidiary and Deconsolidation

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Non-Controlling Interests in Consolidated Subsidiary and Deconsolidation
12 Months Ended
Jun. 30, 2017
Noncontrolling Interest [Abstract]  
Non-Controlling Interests in Consolidated Subsidiary and Deconsolidation

4.       Non-Controlling Interests in Consolidated Subsidiary and Deconsolidation

 

Following a series of transactions and capital contributions that occurred up to and including June 30, 2017, the Company no longer held a controlling financial interest in its previously consolidated affiliate, LocatorX, Inc. Accordingly, the results of operations of LocatorX, Inc. were consolidated in the accompanying consolidated financial statements up to June 30, 2017. The Company held a 73% equity interest in LocatorX, Inc. at June 30, 2016, and held a 15% equity interest at June 30, 2017. The Company accounts for this retained interest under the cost method for investments.

 

Mr. Meadows has voting control of LocatorX, Inc. via Series A Preferred Stock and is the chief executive officer of LocatorX, Inc. and MV Portfolios, Inc.

 

LocatorX, Inc. is developing and marketing new technologies using Miniature Atomic Clock (MAC) technology patented by the University of Oxford. The Company has an exclusive global license to this patent and others for the lifetime of the patent. A new, man-made, nitrogen encaged ‘Buckyball’ molecule is the core of the MAC. Currently, LocatorX, Inc. has no revenues and has general and administrative expenses as it is implementing its business plan.

 

We determined the fair value of our investment in and advances to LocatorX, Inc. to be $549,619 as of June 30, 2017 and we recorded a loss on deconsolidation of $396,538, subsequent to June 30, 2017, the Company received $427,000 from LocatorX as payment on such advances.