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6. OTHER INCOME
6 Months Ended
Dec. 31, 2011
Interest and Other Income [Text Block]
6. OTHER INCOME

On September 27, 2011, the Company received a non-refundable option payment of $10,000 and entered into an Option Agreement with Michael McGuire, a private investor, whereby Mr. McGuire would have the right to License the Company’s technology (and to which the Company’s patent relates) for the Las Vegas, Nevada area by paying a second $10,000 payment to the Company and entering into a license agreement no later than November 1, 2011.  The second payment of $10,000 would be applied to any future royalties and the royalty period would be November 1, 2011 to November 1 2012 with a minimum royalty payment due the company each year of $10,000.  Mr. McGuire had until October 30, 2011 to conclude any due diligence. On November 1, 2011 the Company extended the due diligence period and the $10,000 second payment due date until December 1, 2011.  The Option  Agreement expired on December 31, 2011


On January 20, 2012 the Company received a demand letter from Michael McGuire to refund the $10,000 option payment paid to the Company in September 2011 for not providing adequate information within a specified time period  concerning  the Company’s technology.  The Company refunded $10,000 to Michael McGuire on January 20, 2012.

The Company has reversed the $10,000 option income in the quarter ended December 31, 2011 and a corresponding entry was recorded to establish a liability to Michael McGuire.