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AMENDED PROMISSORY NOTES
12 Months Ended
Jun. 30, 2015
Debt Disclosure [Abstract]  
AMENDED PROMISSORY NOTES

NOTE 9.        AMENDED PROMISSORY NOTES

 

Between May 21, 2014 and December 17, 2014, the Company issued $1,500,000 in aggregate principal amount of the Investor Notes (10% Convertible Secured Promissory Notes), all, with eight month maturities. These Investor Notes became due and payable under their original terms between January 20, 2015 and, most recently, August 16, 2015. Of this $1,500,000, Investor Notes in the aggregate principal amount of $530,000 have been amended to extend their maturity dates and are not yet due and payable under their extended maturity date terms. Investor Notes in the aggregate principal amount of $816,000 have been amended to extend their maturity dates but the amended maturity dates for these Investor Notes have been reached and these Investor Notes are now due and payable in full, along with accrued interest, and are in default. An additional $154,000 in principal amount of the Investor Notes have reached their maturity dates, have not had their maturity dates extended and are in default as well.

 

The Company is in the process of asking the Investors in the defaulted Investor Notes to agree to further extend the maturity dates on their Investor Notes to a date after the currently projected closing date of the Merger (October 31, 3015), but there can be no assurance that any of such Investors will agree to such an additional extension. If one or more of such Investors demands payment of the principal and accrued interest on his defaulted Investor Note, the Company might not be able to meet such demand.