Note 6 - Settlement of Liabilities

12 Months Ended

Jun. 30, 2015

Notes

Note 6 - Settlement of Liabilities

NOTE 6 – SETTLEMENT OF LIABILITIES

On June 20, 2014, the Company issued 267,108 shares of common stock in settlement of various liabilities owed to present and past affiliates of the Company as follows:

Nature and Amount of Liability
	Accounts	Accrued	Accrued	Notes	Total	Number
Name	Payable	Interest	Liabilities	Payable	liabilities	of shares
Stephen Abu	$116,609	$-	$-	$-	$116,609	116,667
Robert Bench	-	6,450	-	190,455	196,905	46,574
Alan Kronborg	-	-	60,000	60,000	120,000	30,038
Clearwater Law Group	-	2,795	-	48,001	50,796	12,731
Robyn Farnsworth	-	2,613	-	42,430	45,043	11,289
Rene Mikkelsen	-	1,353	3,500	36,462	41,315	10,355
James Jensen	-	2,272	4,500	33,305	40,077	10,049
Soren Jonassen	-	1,109	3,500	30,754	35,363	8,863
Peter Moller	20,000	-	-	-	20,000	6,667
Lars Nielsen	-	3,323	-	75,780	79,103	5,274
Peter Opata	-	120	3,500	8,000	11,620	2,912
John Thomas	-	2,715	-	6,000	8,715	2,184
John Knab	-	2,489	-	5,500	7,989	2,002
Andrew Goodman	6,500	-	-	-	6,500	1,504
Totals	$143,109	$25,239	$75,000	$536,687	$780,035	267,109

In addition to the settlement of the above liabilities all option holders cancelled all granted and outstanding options effective June 20, 2014. The shares of common stock were valued at $4.20 per share on June 20, 2014. The Company recognized additional share-based compensation of $400,249 on the 26,858 shares issued and $373,391 in stock expense for settlement of these liabilities for the fair value of the stock issued stock in excess of the fair value of the liabilities given up. The Company also recognized additional paid in capital of $58,431 for the fair value of the liabilities that were in excess of the fair value of the common stock issued.