Annual report pursuant to Section 13 and 15(d)

STOCKHOLDERS' DEFICIT

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STOCKHOLDERS' DEFICIT
12 Months Ended
Jun. 30, 2014
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
NOTE 8 – STOCKHOLDERS’ DEFICIT
 
In September 2012, the board authorized additional share issuances to three investors who previously converted convertible debentures at $1.50 per share per the terms of the debentures. The additional share issuance was to ratchet the prior conversions from $1.50 per share, down to $0.65 per share. As a result, the Company issued 147,052 additional shares of common stock valued at $0.65, based on contemporaneous cash offering prices, and recorded an expense of $95,611 as the original agreement didn't call for price protection.
 
In September 2012, a $75,000 convertible debenture was converted into shares of common stock pursuant to a conversion notice. $76,896 of principal and interest was converted at $1.50 into 51,264 shares. The original agreement stipulated a conversion price of $1.50 however, as the Company voluntary ratcheted down the conversion to $0.65, the Company recorded an additional expense of $43,547 (based on contemporaneous cash sales prices of $0.65) related to the additional 67,037 shares issued.
 
In September 2012, the Company entered into an agreement to issue 300,000 shares of common stock for services rendered during the three months ended September 30, 2012. The shares were valued at $0.65 based on contemporaneous cash offering prices and accordingly, the Company recognized an expense of $195,000.
 
In September 2012, the Company issued 30,000 shares of common stock for past services to a consultant. The shares were valued at $0.65 based on contemporaneous cash offering prices and accordingly, the Company recognized an expense of $19,500 related to the transaction.
 
In October 2012, the Company entered into an agreement to issue 300,000 shares of common stock for services rendered during the three months ended December 31, 2012. The shares were valued at $0.65 based on contemporaneous cash offering prices and accordingly, the Company recognized an expense of $195,000.
 
In November 2012, the Company entered into an agreement to issue 35,000 shares of common stock for services rendered during the three months ended December 31, 2012. The shares were valued at $0.65 based on contemporaneous cash offering prices and accordingly, the Company recognized an expense of $22,750.
 
In November 2012, the Company entered into an agreement to issue 50,000 shares of common stock for services rendered during the three months ended December 31, 2012. The shares were valued at $0.65 based on contemporaneous cash offering prices and accordingly, the Company recognized an expense of $32,500.
 
In November 2012, the Company issued 100,000 shares to settle approximately $21,000 of accounts payable. The Company recorded a loss on settlement of approximately $43,000 as the shares were valued at $0.65 per share or $65,000 based on contemporaneous cash offering prices.
 
In December 2012, the Company issued 10,000 shares of common stock for past services to a consultant. The shares were valued at $0.65 based on contemporaneous cash offering prices and accordingly, the Company recognized an expense of $6,500 related to the transaction.
 
In December 2012, the Company entered into an agreement to issue 50,000 shares of common stock for services rendered during the three months ended December 31, 2012. The shares were valued at $0.65 based on contemporaneous cash offering prices and accordingly, the Company recognized an expense of $32,500.
 
In December 2012, a total of 1,021,460 shares were returned to the Company in a settlement with a shareholder.
 
In March 2013, the Company entered into an agreement to issue 25,000 shares of common stock for services rendered during the three months ended March 31, 2013. The shares were valued at $0.65 based on contemporaneous cash offering prices and accordingly, the Company recognized an expense of $16,250.
 
In March 2013, the Company entered into an agreement to issue 125,000 shares of common stock to settle approximately $16,500 of accounts payable. The Company recorded a loss on settlement of approximately $65,000 as the shares were valued at $0.65 per share or $81,250 based on contemporaneous cash offering prices.
 
In March 2013, the Company entered into an agreement to issue 7,500 shares of common stock for services rendered during the three months ended March 31, 2013. The shares were valued at $0.65 per share or $4,875 based on contemporaneous cash offering prices and accordingly, the Company recognized an expense of $4,875.
 
In March 2013, a total of 2,560,571 shares were returned to the Company in a settlement with a shareholder.
 
In March 2013, the Company entered into an agreement to issue 200,000 shares of common stock for services rendered during the three months ended March 31, 2013. The shares were valued at $0.65 per share or $130,000 based on contemporaneous cash offering prices and accordingly, the Company recognized an expense of $130,000.
 
In March 2013, the Company entered into an agreement to issue 5,000 shares of common stock for services rendered during the three months ended March 31, 2013. The shares were valued at $0.65 per share or $3,250 based on contemporaneous cash offering prices and accordingly, the Company recognized an expense of $3,250.
 
In May 2013, the Company became obligated to issue 25,000 shares of common stock for services rendered by a consultant.  These shares were valued at $0.20 per share or $5,000 based on the quoted market price of the stock on the date of the grant.  These shares are reflected as common stock issuable and the Company recognized an expense of $5,000.
 
On June 6, 2013, the Company entered into a 60 day agreement with a consultant whereby they would issue that consultant 600,000 shares of the Company's common stock. These shares were valued at $0.20 per share or $120,000 based on the quoted market price of the stock on the date of the grant.  The Company is recognizing the expense pro rata over the 60 day term. As of June 30, 2013 the Company recognized $48,000 with a credit to additional paid-in-capital.
 
In July 2013, the Company issued 300,000 shares of common stock to a consultant related to a June 6, 2013 agreement. The shares were valued at $0.20 per share (based on current market price) and accordingly, the Company recognized an expense of $12,000 during the first quarter of fiscal 2014 and $48,000 was previously recognized during fiscal 2013 as the expense was amortized over the term of the agreement.
 
In July 2013, the Company issued 250,000 shares of common stock to a consultant for past services.  The shares are fully vested and valued at $0.20 per share (based on current market price) and accordingly, the Company recognized an expense of $50,000 related to the share issuance.
 
In July 2013, the Company issued 137,500 shares of common stock to a consultant in exchange for a $27,500 accounts payable relating to past services.  The shares are fully vested and valued at $0.20 per share (based on current market price) and accordingly there was no gain or loss on this settlement.
 
In July 2013, the Company issued 10,000 shares of common stock to a consultant for past services.  The shares are fully vested and valued at $0.20 per share (based on current market price) and accordingly, the Company recognized an expense of $2,000 related to the share issuance.
 
In July 2013, the Company issued 150,000 shares of common stock to a consultant for past services.  The shares are fully vested and valued at $0.20 per share (based on current market price) and accordingly, the Company recognized an expense of $30,000 related to the share issuance.
 
In September 2013, the Company issued the balance of 300,000 shares of common stock to a consultant related to a June 6, 2013 agreement. The shares were valued at $0.20 per share (based on current market price) and accordingly, the Company recognized an expense of $60,000 during the three months ended September 30, 2013.
 
On September 30, 2013, pursuant to a consulting agreement, the company issued 25,000 shares of common stock for past services performed during the quarter.  The shares were valued at $0.20 per share (based on current market price) and accordingly, the Company recognized an expense of $5,000 during the three months ended September 30, 2013.
 
In October 2013, the Company issued 500,000 vested shares of common stock as a non-refundable retainer in conjunction with a 90-day investment banking services agreement. The shares were valued at the market price on the day of the grant, $0.10, and the Company recorded an expense of $50,000.
 
In October 2013, the Company issued 200,000 shares of common stock to a consultant for services.  The shares were issued to the consultant and vest over the three year term of the agreement.  The shares were valued at $0.10 per share (based on current market price) and accordingly, the Company recognized an expense of $13,333 and has recorded $6,667 in prepaid expenses for January's services.
 
In October 2013, the Company issued 100,000 shares of common stock to a consultant for past services.  The shares are fully vested and valued at $0.10 per share (based on current market price) and accordingly, the Company recognized an expense of $10,000 related to the share issuance.
 
In November 2013, the Company issued 30,000 shares of common stock to a consultant for past services.  The shares are fully vested and valued at $0.10 per share (based on current market price) and accordingly, the Company recognized an expense of $3,000 related to the share issuance.
 
In November 2013, the Company issued 25,000 shares of common stock to a consultant for past services.  The shares are fully vested and valued at $0.10 per share (based on current market price) and accordingly, the Company recognized an expense of $2,500 related to the share issuance.
 
On May 9, 2014, the Company entered into an agreement with a consultant to provide services over a six month period. The Company agreed to issue the consultant 500,000 shares of common stock upon signing the agreement and 500,000 shares at the end of the six months. No shares were issued as of June 30, 2014 and accordingly the Company valued the 1,000,000 shares based on the market price on the agreement date of $0.10 and will recognize the resulting $100,000 of expense through November 2014.
 
Warrants:
 
In September, 2013, pursuant to convertible debenture, the Company issued 3,000,000 warrants to purchase common stock. These warrants have an initial exercise price of $0.0698 per share which is subject to adjustment and expire 5 years from the date of issuance (See Note 6).