Loans from Directors - Related Parties

Loans from Directors and Officer at June 30, 2013 and 2012 were $130,689 and $75,177, respectively.  The loans bear interest at rates of prime + 2% (5.25% at June 30, 2013) and are all past their due date and in default.

Loans from Unrelated Parties

Loans from two unrelated parties were received during 2013 totaling $32,879.  They bear interest at 10% and as of June 30, 2013 were past their due date and in default.  (See Note 13)