Related Party Transactions

3 Months Ended

Sep. 30, 2012

Investments, All Other Investments [Abstract]

Related Party Transactions

On August 30, 2010, the Company issued a promissory note of $15,000 to the Company’s President and received $15,000 cash in exchange. The note is unsecured, non-interest bearing and matures on September 30, 2012. During the three month period ended September 30, 2012 the Company has recorded an interest expense of $nil three month period ended September 30, 2011 - $226) and capital contribution of $nil. (three month period ended September 30, 2012 - $226) in respect of the imputed interest charge on this note payable.

On February 11, 2011, the Company issued a promissory note of $25,000 to the Company’s President and received $25,000 cash in exchange. The promissory note is unsecured, bears interest at 6% per annum, and matures on February 28, 2013. During the three month period ended September 30, 2012 the Company accrued $nil (three month period ended September 30, 2011 - $255) of interest expense in respect of this note payable.

On May 10, 2011, the Company issued a promissory note of $10,000 to the Company’s President and received $10,000 cash in exchange. The promissory note is unsecured, bears interest at 6% per annum, and matures on May 31, 2013. During the three month period ended September 30, 2012, the Company accrued $nil (three month period ended September 30, 2011 - $102) of interest expense in respect of this note payable.

On August 22, 2011, the Company issued a promissory note of $10,000 to the Company’s President and received $10,000 cash in exchange. The promissory note is unsecured, bears interest at 6% per annum, and matures on August 31, 2013. During the three month period ended September 30, 2012, the Company accrued $nil (three month period ended September 30, 2011 - $15) of interest expense in respect of this note payable.

On August 31, 2011, the Company entered into an Agreement of Conveyance, Transfer and Assignment of Membership Interests and Assumption of Obligations (the “Agreement”), with the former President of the Company. Pursuant to the agreement, the former President of the Company assumed $82,745 of accounts payable, related party notes payable and accrued interest. (Note 5)

On October 3, 2011, the Company issued 17,857,150 common shares pursuant to a share subscription agreement at $0.045 per share for total proceeds of $45,000. Shares were issued to a company managed by our President.

On January 26, 2012, the Company repurchased and cancelled 17,857,150 shares of its own stock and as consideration issued a $45,000 promissory note to a company managed by our President. The promissory note is unsecured, bears interest at 10% per annum, and is due on or before January 26, 2013. During the three month period ended September 30, 2012, the Company accrued $1,134 (three month period ended September 30, 2011 - $nil) of interest expense in respect of this note payable.

On February 8, 2012, the Company entered into an Employment Agreement with the President of the Company. Pursuant to the agreement the President will receive a signing bonus of $25,000 and $180,000 per annum February 8, 2012 until February 8, 2013 (the initial term) for services rendered plus reimbursement of the Company’s expenses. The initial term shall be automatically renewed for up to 3 years successive years in consecutive one year periods. The agreement will continue in force unless either party gives notice of termination not more than 270 days and not less than 30 days prior to the then existing term of employment.

The annual base compensation pursuant to the employment agreement is as follows:

$180,000 until February 8, 2013;

$200,000 until February 8, 2014;

$255,000 until February 8, 2015;

$255,000 per annum thereafter, - unless renewal terms are renegotiated

The Agreement also allows in addition to the base salary noted above for bonus payments to be made as deemed reasonable at the time by the Board of Directors either as cash, or grants of stock options.

As at September 30, 2012, accounts payable includes $3,750 (June 30, 2012 - $3,750) and management fees for the three month period ended September 30, 2012 include $45,000 (three month period to September 31, 2011 -$nil) pursuant to this agreement.