Related Party Disclosures

3 Months Ended

Sep. 30, 2011

Related Party Disclosures

Related Party Transactions Disclosure [Text Block]

Note 4.   Notes Receivable – Related Parties

                Notes  Receivable - On May 3, 2011, the Company entered into a promissory note agreement with Minot 123, LLC, a North Dakota limited liability company (“Minot”)  , under which HDI loaned Minot $125,000 toward the purchase of an office building (“M Building”) located in, Minot, North Dakota.   At the time the agreement was entered into, Kenneth W. Brimmer, a director of the Company, was one of the three principals of Minot. On July 13, 2011, the Company exercised its option to receive repayment of the Note and subsequently, in accordance with the repayment terms, $20,000 was paid to the Company. Six monthly payments of $12,500 are due beginning on August 15, 2011, and the final payment is due and payable February 15, 2012, which includes accrued interest and reimbursement of the Company’s legal fees. Minot’s obligation to repay the Note is secured by a second mortgage on M Building, second only to the first mortgage held by the seller of M Building to Minot. As of July 13, 2011, Mr. Brimmer was no longer affiliated with Minot. The balance outstanding at September 30, 2011 is $80,000.

                In connection with the Asset Purchase Agreement between HDI and Cohn Prevention Centers, LLC, Cohn paid HDI on the Effective Date a cash payment of $125,000 and issued a non-interest bearing secured promissory note due to HDI in the amount of either $150,000 in 12 months or $200,000 in 18 months, at the discretion of CPC.  The promissory note is reflected at an imputed discount rate of 15% based upon the amount due 12 months following the sale and is reflected as a net note receivable of $127,500.  The balance of the Note at September 30, 2011 is $129,100 after including $1,600 of accreted accrued interest.