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Notes Payable (Details Narrative) - USD ($)
 9 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Jun. 30, 2017
Note Terms

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.

    
Notes Payable Related Party $ 2,813,715   $ 2,293,866
The Matthews Group      
Conversion price $ 0.08    
Accrued interest $ 69,426    
Shares issued upon conversion 16,472,782    
Interest rate 10.00%    
Note Terms

At December 31, 2017, $1,290,863 of the notes are convertible at a conversion price of $0.08 per share into 16,135,785 shares of the Company’s common stock.

    
Notes Payable Related Party $ 1,233,665    
Matthews Group #2      
Accrued interest   $ 43,347  
Interest rate   10.00%  
Notes payable issued   $ 241,590  
Minimum      
Conversion price $ .08    
Maximum      
Conversion price .10    
Convertible Notes Payable (In Default)      
Conversion price $ .30    
Notes payable $ 212,211   205,116
Accrued interest 7,096    
Notes in Default 174,506    
Balance due on demand $ 37,705    
Shares issued upon conversion 471,311    
Convertible Notes Payable (In Default) | Minimum      
Conversion price $ 0.08    
Shares issued upon conversion 466,746    
Interest rate 5.00%    
Convertible Notes Payable (In Default) | Maximum      
Conversion price $ 0.30    
Shares issued upon conversion 575,021    
Interest rate 8.00%    
Notes Payable (In Default)      
Notes in Default $ 383,315    
Notes Payable (In Default) | Minimum      
Interest rate 6.50%    
Notes Payable (In Default) | Maximum      
Interest rate 10.00%    
Secured or Unsecured Interest Bearing Notes      
Accrued interest $ 13,108    
Notes in Default     370,207
Note Terms

At September 30, 2017, $338,293 of notes are secured by the Company’s intellectual property and $36,283 of notes are unsecured.

    
Secured Interest Bearing Notes      
Notes in Default $ 347,032    
Unsecured Interest Bearing Notes      
Notes in Default $ 36,283    
Minimum      
Conversion price $ .08    
Interest rate 8.00%    
Maximum      
Conversion price $ .30    
Interest rate 10.00%    
The Matthews Group      
Convertible Notes, Related Party [1] $ 1,317,822   1,236,943
Notes Payable Related Party [2] $ 359,044   805,195
Other      
Conversion price $ 0.08    
Accrued interest $ 10,500    
Shares issued upon conversion 1,491,506    
Note Terms

At December 31, 2017, the notes are convertible at conversion prices ranging from $0.08 per share to $0.30 per share into 1,409,619 shares of the Company’s common stock.

    
Convertible Notes, Related Party [3] $ 262,228   $ 251,728
[1] (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 Companys 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 Companys common stock.
[2] (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.
[3] (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 Companys common stock.