Quarterly report pursuant to Section 13 or 15(d)

CONVERTIBLE DEBENTURES

CONVERTIBLE DEBENTURES	6 Months Ended
Dec. 31, 2011
Notes to Financial Statements
CONVERTIBLE DEBENTURES	In August and December 2011, the Company issued two convertible debentures in exchange for $42,000 and $30,000 of cash, respectively. The notes are convertible at $1.50 per share, due six months from the issuance date and carries an interest rate of 5% per annum. The Company evaluated ASC 815 and determined that the conversion features do not cause bifurcation and treatment of the embedded conversion option as a derivative liability. Furthermore, there was no beneficial conversion feature values associated with either note at the note date as the value of the debt converted was to be equal to the fair market value of the stock as evidenced by cash sales of common stock. The note balances (after giving effect to the foreign currency translation) as of December 31, 2011 is $69,012.

CONVERTIBLE DEBENTURES

6 Months Ended

Dec. 31, 2011

In August and December 2011, the Company issued two convertible debentures in exchange for $42,000 and $30,000 of cash, respectively. The notes are convertible at $1.50 per share, due six months from the issuance date and carries an interest rate of 5% per annum. The Company evaluated ASC 815 and determined that the conversion features do not cause bifurcation and treatment of the embedded conversion option as a derivative liability. Furthermore, there was no beneficial conversion feature values associated with either note at the note date as the value of the debt converted was to be equal to the fair market value of the stock as evidenced by cash sales of common stock. The note balances (after giving effect to the foreign currency translation) as of December 31, 2011 is $69,012.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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