NOTES PAYABLE - RELATED PARTIES

6 Months Ended

Dec. 31, 2015

Notes Payable - Related Parties [Abstract]

NOTE 3 – NOTES PAYABLE – RELATED PARTIES

Notes payable to related parties consist of the following as of December 31, 2015 and June 30, 2015:

	December 31, 2015		June 30, 2015
Loan payable – related party (a)	$	-	$	3,901
Unsecured promissory note due to related party (b)		120,000		150,000
Unsecured promissory note due to related party (c)		120,000		150,000
		240,000		303,901
Less: current portion		240,000		(153,901	)
Long-term portion	$	-	$	150,000

(a) As of June 30, 2015, the Company had a loan payable due to a family member of the former CEO in the amount of $3,901. During the period ended December 31, 2015, the $3,901 balance was repaid and no amount was owed under the agreement as of December 31, 2015.

(b) In February 2014, the Company entered into an unsecured promissory note agreement with a shareholder. The agreement allows for the Company to borrow up to $150,000 at an interest rate of 10 percent per year. On October 30, 2015, $30,000 principal and $25,039 interest were converted into 1,375,975 shares of the Company’s common stock. As at December 31, 2015 and June 30, 2015, the outstanding balance of the note was $120,000 and 150,000, respectively. The outstanding principal amount and all accrued and unpaid interest is due by December 2016.

(c) In February 2014, the Company entered into an unsecured promissory note agreement with a shareholder. The agreement allows for the Company to borrow up to $150,000 at an interest rate of 10 percent per year. On October 30, 2015, $30,000 principal and $24,754 interest were converted into 1,368,872 shares of the Company’s common stock. As at December 31, 2015 and June 30, 2015, the outstanding balance of the note was $120,000 and 150,000, respectively. The outstanding principal amount and all accrued and unpaid interest is due by January 2016.

During the period ended December 31, 2015 and 2014, the Company incurred $14,121 and $15,085, respectively, of interest expense relating to the unsecured promissory notes. The total amount of accrued interest payable relating to those notes at December 31, 2015 and June 30, 2015 was $6,201 and $39,684, respectively.