13. SUBSEQUENT EVENTS
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12 Months Ended |
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Jun. 30, 2012
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Subsequent Events [Abstract] | |
13. SUBSEQUENT EVENTS |
In July 2012 the Company received an unsecured advances totaling $6,626 from the Company's Chief Executive Officer at no interest.
In July 2012 pursuant to a loan agreement, the company was loaned $10,296. The note calls for interest at 10% and is due within two months from when the funds were received or September 24, 2012. The note is currently in default
In August 2012, the Company was loaned $11,498 from a director of the Company. The promissory note is for a term of six months with interest at the Prime Rate plus two percent.
In August 2012, the Company was loaned $41,668 by the Company's Chief Executive Office. The promissory note is for a term of six months with interest at the Prime Rate plus two percent.
In September 2012, the $75,000 convertible debenture as discussed in footnote 7 was converted to shares of common stock pursuant to a conversion notice. $76,115 of principal and interest was converted at $0.65 into 117,099 shares. However, the original agreement stipulated a conversion price of $1.50 and thus, due to the voluntary ratchet down to $0.65, the Company will record an additional expense of $43,131 related to the additional 66,356 shares issued.
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 will issue 147,052 additional shares of common stock valued at $0.65, based on contemporaneous cash offering prices, and record an expense of $95,584 as the original agreement didn't call for price protection.
In September 2012, the Company issued 30,000 shares of common stock to a consultant for past services. The shares are fully vested and valued at $0.65 (based on contemporaneous cash sales prices) and accordingly, the Company recognized an expense of $19,500 related to the share issuance.
In September 2012, the Company entered into a two month loan agreement for $6,267 bearing interest at 10%. |