9. Advances by Affiliates

The Company received cash from Mr. Folkson, the Company’s Chief Executive Officer and related party, $15,000 during the six months ended December 31, 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 December 31, 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 third quarter 2015.

Imputed interest expense accrued on the note payable to Mr. Folkson totaled $5,500 and $5,500 for the six months ended December 31, 2014 and 2013, respectively.