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NOTES PAYABLE
3 Months Ended
Sep. 30, 2011
Notes Payable [Abstract] 
NOTES PAYABLE

 

NOTES PAYABLE

 

Notes payable consist of the following:

  30-Sep-11 30-Jun-11
  (Unaudited)  
     
Convertible notes payable (includes $118,915 and $116,899, respectively, to non-related parties), unsecured, interest at 8%, due September 2010 through November 2010. The principal and accrued interest are convertible at a conversion price of $0.30. The principal and interest is due immediately on the event of default or change of control. The holders also received warrants to purchase one share of common stock for every $2 of investment. The Company recorded a $20,981 discount on the notes payable for the value of the warrants issued. The discount was fully amortized over the term of the notes payable.  There was no unamortized discount as of September 30, 2011 and June 30, 2011, respectively.  The notes are now in default 662,719 651,629
     
Convertible notes payable to related parties, unsecured, principal and interest are convertible into common stock at $0.30 to $0.33 per share, interest at 8 % to 10%, due July to November 2010.  The notes are now in default 801,042 766,914
     
Convertible note payable to related party, secured by the Company’s intellectual property, principal and interest are convertible into common stock at $0.25 per share subject to board of directors’ approval, interest at 8%. The note was due November 2010 and is now in default 230,860 226,828
     
Note payable to related party, secured by the Company’s intellectual property, interest at 8% due August 2010 and is now is default 448,762 441,014
     
Notes payable to related parties, unsecured, interest at 0% to 8%, due on demand 120,425 118,408
     
Note payable, unsecured, interest at 10%, due January 2010 and is now in default 23,666 23,162
     
Convertible note payable, unsecured, principal and interest are convertible into common stock at $0.30 per share subject to board of directors’ approval, interest at 8%, due January 2011 and is now in default 11,385 11,183
     
Convertible note payable, unsecured, principal and interest are convertible into common stock at $1.00 per share subject to board of directors’ approval, interest at 8% due November 2009 and is now in default 1,523 1,523
     
Total 2,300,382 2,240,661

 

 

For the purposes of Balance Sheet presentation notes payable have been grouped as follows:

 

  September 30,   June 30,
  2011   2011
Notes payable  $     155,489   $   152,767
Notes payable, related party      2,144,893     2,087,894
   $  2,300,382   $ 2,240,661