Note 6 - Financing Agreement

9 Months Ended

Mar. 31, 2013

Notes to Financial Statements

Financing Agreement

NOTE 6 – FINANCING AGREEMENT

On August 29, 2012, we entered into an Equity Based Financing Agreement with one non-US investor pursuant to which, the investor will make available up to $2,500,000 by way of advances until August 29, 2013 (the “Completion Date”) in accordance with the terms of the agreement. The Completion Date may be extended for an additional term of up to twelve months at the option of our company or the investor upon written notice on or before the Completion Date in accordance with the notice provisions of the Financing Agreement. We will issue, within ten (10) Banking Days following the date of the receipt by our company of any advance under the agreement, shares of our common stock at a price equal to 80% of the average of the closing prices of our common stock for the preceding 5 Banking Days immediately preceding the date of the notice, as quoted on Yahoo Finance or other source of stock quotes as agreed to by the parties.

During the six month period ended March 31, 2013, the Company received $500,000 under the financing agreement by way of an equity private placement for 781,250 shares of common stock at $0.64 per share.

The shares were issued as follows:

Issue Date	Shares Issued		Value Per Share		Issuance Valuation
September  4, 2012		781,250	$	0.64	$	500,000