Quarterly report pursuant to Section 13 or 15(d)

Advances by Affiliates

Advances by Affiliates
9 Months Ended
Mar. 31, 2016
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 was outstanding as of March 31, 2016 and June 30, 2015, respectively, to supplement the Company’s working capital. Additionally, two of the Company’s shareholders also loaned funds to the Company of $14,000 during the three month period ended March 31, 2016


    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 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 $18,000 and $54,000 is reflected in professional fees for the three and nine months ended March 31, 2016 and reflected in the accrued expenses – related party with a balance of $90,000 and $36,000 at March 31, 2016 and June 30, 2015, respectively.
    Imputed interest expense accrued on the converted note payable to Mr. Folkson totaled $0 and $8,191 for the nine months ended March 31, 2016 and 2015, respectively.