Quarterly report pursuant to Section 13 or 15(d)

Advances by Affiliates

Advances by Affiliates
6 Months Ended
Dec. 31, 2015
Advances by Affiliates [Abstract]  
Advances by Affiliates
10. Advances by Affiliates The Company received cash from Mr. Folkson, the Company’s Chief Executive Officer and related party, of which $0 and $5,000 was outstanding as of December 31, 2015 and 2014, respectively, to supplement the Company’s working capital.


    On May 27, 2015, Mr. Folkson converted the outstanding note payable of $134,517 into the 538,068 shares of the company’s $0.001 par value common stock.
    The amounts previously included in short term borrowings – related party of $0 and 134,517 in 2015 and 2014, respectively had represented a Note Payable which was to be repayable upon Mr.  Folkson providing the Borrower with written notice of demand, according to certain terms. However Mr. Folkson was not permitted to demand repayment of the Note until the Company was profitable, and in a positive cash flow position. At that time, Mr. Folkson would have been allowed to demand repayment. The Company had agreed to make payments equal to 10% of the monthly positive cash flow of the Company until balance would have been paid in full. Subsequently, on May 27, 2015, Mr. Folkson converted his note into shares of the company’s stock.
    During the third quarter 2015, Mr. Folkson began accruing a consulting fee of $6,000 per month which the aggregate of $36,000 and 72,000 is reflected in professional fees for the three and six months ended December 31, 2015 and reflected in the accrued expenses – related party with a balance of $72,000.
    Imputed interest expense accrued on the converted note payable to Mr. Folkson totaled $0 and $5,500 for the six months ended December 31, 2015 and 2014, respectively.