During 2010, the Company received $89,000 in advances from a director.  These advances are non-interest bearing.  The Company repaid a portion of these advances in fiscal 2011 and the total amount owed the director at December 31, 2012 and June 30, 2012 is $76,745 and $75,177, respectively.

During the six months ended December 31, 2012, the company received loans totaling $13,042 from a director accruing interest at 5.25% and repayable in October 2012. These terms are being renegotiated. The Company has recognized accrued interest expense of $250 through December 31, 2012.  The balance including principle and interest at December 31, 2012 was $13,292.

During the six months ended December 31, 2012, the company received loans, net of repayments, totaling $24,177 from a director accruing interest at 5.25%. The Company has recognized accrued interest expense of $633 through December 31, 2012. The balance including principle and interest at December 31, 2012 was $24,810.