LOANS AND NOTES PAYABLE
|6 Months Ended|
Dec. 31, 2014
|Notes and Loans Payable [Abstract]|
|Loans And Notes Payable Disclosure [Text Block]||
NOTE 4 LOANS AND NOTES PAYABLE
Loans from Directors - Related Parties
Loans from Directors and an Officer at December 31, 2014 and June 30, 2014 were $35,068 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 $127,000 during the six months ended December 31, 2014. Subsequent to December 31, 2014, the balance was settled as part of a Debt Settlement Agreement (See Note 11).
Other Loans from Unrelated Parties
During the six months ended December 31, 2014, the notes payable balance of $33,909 as of June 30, 2014 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 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. On September 11, 2014 and on November 4, 2014, the Company issued 7,426,000 and 8,161,000 shares of common stock as a settlement of a portion of that debt for a total value of $81,396 (See Note 6). Accordingly, the debt settlement to be paid in stock net of premium totaled $951,422 at December 31, 2014.
On July 18, 2014, the Company paid a $50,000 fee to the investor (See Note 7) in the form of a $50,000 promissory note, non-interest bearing and due January 31, 2015. Subsequent to December 31, 2014, this note was settled as part of a Settlement and Lock-Up Agreement (See Note 11).