Notes Payable

9 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Notes Payable

NOTE 3 – NOTES PAYABLE

Notes payable-in default

Notes payable includes principal and accrued interest and consists of the following at March 31, 2018 and June 30, 2017:

	March 31, 2018		June 30, 2017
(a) Convertible notes ($174,506 and $168,507 in default at March 31, 2018 and June 30, 2017, respectively)	$	212,211	$	205,116
(b) Notes payable-in default		383,315		370,207
Total notes-third parties	$	595,526	$	575,323

(a) The notes are unsecured, convertible into common stock at amounts ranging from $0.08 to $0.30 per share, and bear interest at rates ranging from 5% to 8% per annum. At June 30, 2017, convertible notes totaled $205,116. During the period ended March 31, 2018, interest of $7,096 was added to principal leaving a balance owed of $212,211 at March 31, 2018. At March 31, 2018, $174,506 of the convertible notes were in default, and convertible at a conversion price of $0.30 per share into 581,688 shares of the Company’s common stock. The balance of $37,705 is due on demand and convertible at a conversion price of $0.08 per share into 471,311 shares of the Company’s common stock.

(b) The notes are either secured by the Company’s intellectual property or unsecured and bear interest ranging from 6.5% to 10% per annum, due in 2012, and in default. At June 30, 2017, the notes totaled $370,207. During the period ended March 31, 2018, interest of $13,108 was added to principal, leaving a balance owed of $383,315 at March 31, 2018. At March 31, 2018, $347,032 of notes are secured by the Company’s intellectual property and $36,283 of notes are unsecured.

Notes payable-related party

Notes payable-related party includes principal and accrued interest and consists of the following at March 31, 2018, and June 30, 2017:

	March 31, 2018		June 30, 2017
(c) Convertible notes-The Matthews Group	$	1,317,822	$	1,236,943
(d) Notes payable-The Matthews Group		1,233,665		805,195
(e) Convertible notes-other related-in default		262,228		251,728
Total notes-related party	$	2,813,715	$	2,293,866

(c) The notes are unsecured, convertible into common stock at $0.08 per share, bear interest at rates ranging from 8% to 10% per annum, and are due on demand. The Matthews Group (see Note 7) is owned 50% by Ms. Van Tran, the Company’s CEO, and 50% by Larry Johanns, a significant shareholder of the Company. At June 30, 2017, convertible notes due to The Matthews Group was $1,236,943. During the period ended March 31, 2018, interest of $80,879 was added to principal leaving a balance owed of $1,317,823 at March 31, 2018. At March 31, 2018, $1,317,823 of the notes are convertible at a conversion price of $0.08 per share into 16,472,782 shares of the Company’s common stock.

(d) The notes are unsecured, accrue interest at 10% per annum, and are due on demand. The notes were issued relating to a management services agreement with The Matthews Group (see Note 7) dated September 30, 2015. At June 30, 2017, notes payable totaled $805,195. During the period ended March 31, 2018, $359,044 of notes payable were issued and interest of $69,426 was added to principal leaving a balance due of $1,233,665 at March 31, 2018.

(e) The notes are due to a current and a former director, are unsecured, convertible into common stock at per share amounts ranging from $0.08 to $0.30, and bear interest at rates ranging from 8% to 10% per annum. At June 30, 2017, convertible notes due other related parties totaled $251,728. During the period ended March 31, 2018, interest of $10,500 was added to principal leaving a balance owed of $262,228 at March 31, 2018. At March 31, 2018, the notes are convertible at conversion prices ranging from $0.08 per share to $0.30 per share into 1,491,506 shares of the Company’s common stock.