Note Payable

9 Months Ended

Mar. 31, 2014

NOTE 4 NOTES PAYABLE

As of June 30, 2013, the Company had borrowed an aggregate of $280,000 pursuant to non-convertible promissory notes, bearing interest at 10% per annum. Interest is payable monthly and the principal, together with any unpaid interest, is due 48 months from the dates of the notes. During the nine month period ended March 31, 2014, the Company borrowed an additional $125,000 pursuant to non-convertible promissory notes with similar terms. In addition, the Company repaid $85,000 of the previously issued notes.

The notes are due as follows:

Year ending June 30, 2017

320,000

280,000

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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