June 30,

2014

September 30,

2013

Loan from a significant shareholder with an interest rate of 8% per annum. Principal and interest due at maturity on December 30, 2015.

$

1,200,000

$

-

Promissory note with a significant shareholder with an interest rate of 8% per annum. Principal and interest due at maturity on November 19, 2015.

1,500,000

-

Convertible debenture of $16,700,000 from a significant shareholder with an interest rate of 8% per annum. On September 30, 2013, $16,640,000 plus accrued interest of $936,627 was converted into 3,905,917 shares of common stock and in October 2013, the Company paid $60,000 in cash to pay off the debenture.

-

60,000

Total related-party debt obligations

2,700,000

60,000

Less current portion

-

(60,000

)

Long-term debt, net of current portion

$

2,700,000

$

-