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LOANS
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3 Months Ended | |
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Sep. 30, 2014
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| Receivables [Abstract] | ||
| Loans, Notes, Trade and Other Receivables Disclosure [Text Block] |
NOTE 4 – LOANS Loans from Directors - Related Parties Loans from Directors and an Officer at September 30, 2014 and June 30, 2014 were $46,240 and $161,975, respectively. The loans bear no interest and are all past their due date and in default. As part of the settlement and stipulation agreement noted in Note 7, the company reduced this liability by approximately $116,000 during the three months ended September 30, 2014.
Other Loans from Unrelated Parties Loans from two unrelated parties were received during 2013 totaling $33,614. They bear interest at 10% and as of June 30, 2014 one was past its due date and in default and the other, with a September 30, 2013 balance of $27,963 was exchanged for a convertible debenture as discussed below in Note 5. The remaining balance on these loans were removed as part of the settlement agreement and consolidated into one loan (See Note 7). A loan from an unrelated party was received during the year ended June 30, 2014 totaling $9,419. The balance on this loan was removed as part of the settlement agreement and consolidated into one loan (See Note 7). A Loan from an unrelated party was received during the year-ended June 30, 2014 totaling $18,839. The balance on this loan was removed as part of the settlement agreement and consolidated into one loan (See Note 7). Debt Settlement to be Paid in Stock, Net of Premium In July 2014, the company has consolidated outstanding debt and other liabilities as part of a settlement agreement (See Note 7) and was indebted to one unrelated party for approximately $1,033,000 which includes a $50,000 note payable issued as a fee to the lender, a $355,000 premium and $628,000 of principal, see below. The company has issued 7,426,000 shares of common stock as a settlement of a portion of that debt for a value of $48,981 on September 11, 2014 (see Note 6).
Accordingly, the debt settlement to be paid in stock totaled $979,312 at September 30, 2014.
On July 18, 2014 the Company paid a $50,000 fee to the investor in the form of a $50,000 promissory note, non-interest bearing and due January 31, 2015. |