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Convertible Notes Payable
9 Months Ended
Mar. 31, 2015
Notes to Financial Statements  
NOTE 3 - CONVERTIBLE NOTES PAYABLE

The Company has 16 convertible notes equaling $1,021,924. The notes are convertible at rates of 42% to 50% of the market price of the stock. The Company has calculated a derivative liability which at March 31, 2015 was $2,795,949 under the Black Sholes module. The assumptions used were a volatility rate of 654.31%, a risk free interest factor of .20% and an expected return of 0 to 1 year.

 

Convertible notes that ceased in becoming derivative liabilities are charged to additional paid in capital.

 

Management at March 31, 2015 remeasured their derivative liabilities under new assumptions and dates which resulted in charges to additional paid in capital and reductions in derivative liabilities.