Quarterly report pursuant to Section 13 or 15(d)

9. Advances by Affiliates

v2.4.0.8
9. Advances by Affiliates
3 Months Ended
Sep. 30, 2014
Notes to Financial Statements  
9. Advances by Affiliates

9. Advances by Affiliates

 

The Company received cash from Mr. Folkson, the Company’s Chief Executive Officer and a related party, in the amount of $15,000 during the three months ended September 30, 2014, to supplement the Company’s working capital. These advances are recorded in the line item: Advance- related party. The amounts included in short term borrowings – related party balances of $134,517 and 134,517 at September 30, 2014 and June 30, 2014, respectively, is a Note and is repayable to Mr. Folkson upon Mr. Folkson providing the Borrower with written notice of demand, according to certain terms. However Mr. Folkson may not demand repayment of the note until the Company is profitable, and in a positive cash flow position. At that time, Mr. Folkson may demand repayment. Company agrees to make payments equal to 10% of the monthly positive cash flow of the Company until balance is paid in full.

 

Included in advance- related party is $15,000 which is a short term advance to the company which is expected to be repaid during the second Quarter 2014.

 

Imputed interest expense accrued on the note payable to Mr. Folkson totaled $2,750 and $2,750 for the three months ended September 30, 2014 and 2013, respectively.