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Note 6 - Note Receivable and Employee Advances
12 Months Ended
Jun. 30, 2014
Receivables [Abstract]  
Financing Receivables [Text Block]

NOTE 6 – NOTE RECEIVABLE AND EMPLOYEE ADVANCES


On December 1, 2010, the Company’s subsidiary PSMI, formerly known as UCMC, executed a Promissory Note (“Note”) with an unrelated third party for a principal sum of $360,000. Interest shall accrue on the outstanding principal balance of the Note at a variable interest rate per annum equal to the sum of the LIBOR Rate plus 0.55%. Interest shall be paid quarterly in arrears commencing March 1, 2011 and continuing on the last business day of each fiscal quarter thereafter except that the entire unpaid interest on the Note shall be due and payable in full on or before the maturity date. The principal and any unpaid interest shall be due and payable in full on December 1, 2016. Based on the inconsistent pattern of interest payments received by the Company in the past, there exists substantial doubt about the ultimate collectability of this note. As such, the Company did not record any interest for the years ended June 30, 2014 or June 30, 2013 and has reserved 100% of the outstanding balance as uncollectible as of June 30, 2014.


On December 31, 2010, the Company’s subsidiary PSMI, formerly known as UCMC, executed a Letter of Repayment with three employees in the amount of $189,654 for funds advanced to them as a loan. These loans are unsecured, non-interest bearing and due on demand. Payments of these loans are made from a portion of commissions earned by these employees. If the employees’ employment is terminated for any reason, the loan outstanding will become due and payable in full or specific arrangements will be made. Two of these individuals have not been active in closing new loans, and thus substantial doubt exists about the ultimate collectability of the amounts due from these individuals. The Company increased the allowance for uncollectible advances to $158,664 as of June 30, 2014 (allowance was $33,862 as June 30, 2013). During the year ended June 30, 2014, these employees were terminated and the remaining outstanding balance of the loans were written-off.