5. Convertible Debentures	12 Months Ended
Jun. 30, 2015
Notes
5. Convertible Debentures	5. CONVERTIBLE DEBENTURES Convertible Debentures 2014 During June 2014, the Company issued $63,000 of convertible debt with a maturity date of March 20, 2015, of which interest accrues at 8%. The lender is entitled to convert the accrued interest and principal of the Convertible Debentures into common stock of the Company at a conversion price equal to 60% of the lowest daily volume weighted average price for the lowest three of the last ten trading days preceding conversion. Initial Accounting Under the initial accounting, the fair value of the embedded conversion derivative liability was $55,790, which resulted in a debt discount of $55,790. The discount is accreted to interest expense over the life of the Convertible Debt. This calculation was based on a measurement value of $.035, volatility of 118% and a risk free interest rate of 0.10%. Convertible Debentures 2015 During the quarter ended September 30, 2014, the Company issued $32,500 and $37,500 of convertible debt with maturity dates of May 20, 2015 and June 4, 2015, of which interest accrues on both notes at 8%. The lender is entitled to convert the accrued interest and principal of the Convertible Debentures into common stock of the Company at a conversion price equal to 60% of the lowest daily volume weighted average price for the lowest three of the last ten trading days preceding conversion. During the quarter ended June 30, 2015, the Company issued $63,500, $55,750 and $53,500 of convertible debt with maturity dates of March 3, 2016, March 5, 2016 and June 22, 2016, of which interest accrues at 8%, 10% and 12%, respectively. The lender is entitled to convert the accrued interest and principal of the Convertible Debentures into common stock of the Company at a conversion price equal to 50%-60% of the lowest daily volume weighted average price for the lowest of the last twenty five trading days preceding conversion. Initial Accounting Under the initial accounting for the convertible debt issued during the first quarter ended September 30, 2014, the fair value of the embedded conversion derivative liability exceeded the proceeds from the convertible debentures, which resulted in a debt discount of $70,000 and expense of $17,683. The discount is accreted to interest expense over the life of the Convertible Debt and the additional expense goes to gain/loss on derivative liability. This calculation was based on a measurement value ranging from $.05 to $.06, volatility ranging from 127% to 162% and a risk free interest rate of 0.10%. Under the initial accounting for the convertible debt issued during the fourth quarter ended June 30, 2015, the fair value of the embedded conversion derivative liability exceeded the proceeds from the convertible debentures, which resulted in a debt discount of $172,750 and expense of $311,420. The discount is accreted to interest expense over the life of the Convertible Debt and the additional expense goes to gain/loss on derivative liability. This calculation was based on a measurement value ranging from $.03 to $.04, volatility of 211% and a risk free interest rate of 0.26%. Convertible debentures as of June 30, 2015 During the year ended June 30, 2015, $133,000 of the convertible loans and the remaining derivative liability of $107,294 were converted into 16,174,830 shares of common stock. The unaccreted debt discount of $31,847 was charged to interest expense and the remaining derivative liability was charged to paid in capital at the time of conversion. As of June 30, 2015, the Company had an outstanding convertible debt in the amount of $17,708 of which $155,042 is attributable to the discount on debt. As of June 30, 2014, convertible debt totaled $7,210 of which $55,790 was attributable to the discount on debt.

5. Convertible Debentures

12 Months Ended

Jun. 30, 2015

5. CONVERTIBLE DEBENTURES

Convertible Debentures 2014

During June 2014, the Company issued $63,000 of convertible debt with a maturity date of March 20, 2015, of which interest accrues at 8%. The lender is entitled to convert the accrued interest and principal of the Convertible Debentures into common stock of the Company at a conversion price equal to 60% of the lowest daily volume weighted average price for the lowest three of the last ten trading days preceding conversion.

Initial Accounting

Under the initial accounting, the fair value of the embedded conversion derivative liability was $55,790, which resulted in a debt discount of $55,790. The discount is accreted to interest expense over the life of the Convertible Debt. This calculation was based on a measurement value of $.035, volatility of 118% and a risk free interest rate of 0.10%.

Convertible Debentures 2015

During the quarter ended September 30, 2014, the Company issued $32,500 and $37,500 of convertible debt with maturity dates of May 20, 2015 and June 4, 2015, of which interest accrues on both notes at 8%. The lender is entitled to convert the accrued interest and principal of the Convertible Debentures into common stock of the Company at a conversion price equal to 60% of the lowest daily volume weighted average price for the lowest three of the last ten trading days preceding conversion.

During the quarter ended June 30, 2015, the Company issued $63,500, $55,750 and $53,500 of convertible debt with maturity dates of March 3, 2016, March 5, 2016 and June 22, 2016, of which interest accrues at 8%, 10% and 12%, respectively. The lender is entitled to convert the accrued interest and principal of the Convertible Debentures into common stock of the Company at a conversion price equal to 50%-60% of the lowest daily volume weighted average price for the lowest of the last twenty five trading days preceding conversion.

Initial Accounting

Under the initial accounting for the convertible debt issued during the first quarter ended September 30, 2014, the fair value of the embedded conversion derivative liability exceeded the proceeds from the convertible debentures, which resulted in a debt discount of $70,000 and expense of $17,683. The discount is accreted to interest expense over the life of the Convertible Debt and the additional expense goes to gain/loss on derivative liability. This calculation was based on a measurement value ranging from $.05 to $.06, volatility ranging from 127% to 162% and a risk free interest rate of 0.10%.

Under the initial accounting for the convertible debt issued during the fourth quarter ended June 30, 2015, the fair value of the embedded conversion derivative liability exceeded the proceeds from the convertible debentures, which resulted in a debt discount of $172,750 and expense of $311,420. The discount is accreted to interest expense over the life of the Convertible Debt and the additional expense goes to gain/loss on derivative liability. This calculation was based on a measurement value ranging from $.03 to $.04, volatility of 211% and a risk free interest rate of 0.26%.

Convertible debentures as of June 30, 2015

During the year ended June 30, 2015, $133,000 of the convertible loans and the remaining derivative liability of $107,294 were converted into 16,174,830 shares of common stock. The unaccreted debt discount of $31,847 was charged to interest expense and the remaining derivative liability was charged to paid in capital at the time of conversion. As of June 30, 2015, the Company had an outstanding convertible debt in the amount of $17,708 of which $155,042 is attributable to the discount on debt. As of June 30, 2014, convertible debt totaled $7,210 of which $55,790 was attributable to the discount on debt.