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Note 8 - Secured Convertible Notes Payable To Related Parties	9 Months Ended
Mar. 31, 2014
Notes
Note 8 - Secured Convertible Notes Payable To Related Parties	NOTE 8 – SECURED CONVERTIBLE NOTES PAYABLE TO RELATED PARTIES On April 29, 2013, the Company borrowed $35,000 and $12,000 from companies that are affiliates of Robert Bench and Stephen Abu respectively, two of the Company’s officers. The Notes bear interest at 10% per quarter, with an original maturity date of October 30, 2013; the notes are classified as current liabilities on the balance sheets. The notes are secured by the assets of the Company. The notes and accrued interest are payable, at the Company’s option, in cash or by the issuance of shares of common stock of the Company at $0.30 per share for payment of the principal of the notes and $0.50 per share for the payment of accrued but unpaid interest. The fair value of the stock at the commitment date was $1.00 per share. The conversion price is not subject to re-pricing, and as such, these notes were deemed to be conventional convertible debt. As a result, a beneficial conversion feature was recorded in additional paid-in capital for $67,000 and the secured convertible notes payable was reduced by a debt discount of $67,000. The debt discount was accreted over the six-month term and included in interest expense on the Statements of Operations. On November 4, 2013 the Company issued 182,933 shares of its common stock in full payment of the principal and accrued interest of both secured convertible notes payable to related parties.

Note 8 - Secured Convertible Notes Payable To Related Parties

9 Months Ended

Mar. 31, 2014

Note 8 - Secured Convertible Notes Payable To Related Parties

NOTE 8 – SECURED CONVERTIBLE NOTES PAYABLE TO RELATED PARTIES

On April 29, 2013, the Company borrowed $35,000 and $12,000 from companies that are affiliates of Robert Bench and Stephen Abu respectively, two of the Company’s officers. The Notes bear interest at 10% per quarter, with an original maturity date of October 30, 2013; the notes are classified as current liabilities on the balance sheets. The notes are secured by the assets of the Company. The notes and accrued interest are payable, at the Company’s option, in cash or by the issuance of shares of common stock of the Company at $0.30 per share for payment of the principal of the notes and $0.50 per share for the payment of accrued but unpaid interest. The fair value of the stock at the commitment date was $1.00 per share. The conversion price is not subject to re-pricing, and as such, these notes were deemed to be conventional convertible debt. As a result, a beneficial conversion feature was recorded in additional paid-in capital for $67,000 and the secured convertible notes payable was reduced by a debt discount of $67,000. The debt discount was accreted over the six-month term and included in interest expense on the Statements of Operations. On November 4, 2013 the Company issued 182,933 shares of its common stock in full payment of the principal and accrued interest of both secured convertible notes payable to related parties.