1. Description of Business and Significant Accounting Policies: Debt Discount (Policies)

12 Months Ended

Jun. 30, 2015

Policies

Debt Discount

Debt Discount – Costs incurred with parties who are providing short-term financing, which include the fair value of an embedded derivative conversion, are reflected as a debt discount and are amortized over the life of the related debt. When the debt is repaid, the related debt discount is recorded as additional interest expense and the related derivative liability is relieved into additional paid in capital.

The Company valued the embedded derivative conversion using Black-Scholes method. The debt discount attributable to the embedded conversion derivative liability issued during the fourth quarter was $172,750. The accreted debt discount for the year ended June 30, 2015, was $143,499, which is included in interest expense.