Investments and Notes Receivable

12 Months Ended

Jun. 30, 2018

Investments And Notes Receivable

Investments and Notes Receivable

NOTE 3 – INVESTMENTS AND NOTES RECEIVABLE

The Company’s legacy assets primarily consisted of prior investments that were composed of equity and debt securities that were either in default or distressed in nature. The Receiver liquidated the assets through negotiations and the investments are written down to their estimated net realizable value through recognizing other-than-temporary impairment losses. The activity in the investment account is as follows:

	Equity			Debt
	Securities			Securities		Total
Balance at June 30, 2016	$	110,000		$	-	$	110,000
Cash proceeds collected		(10,000	)		0		(10,000	)
Impairment recognized		(100,000	)		0		(100,000	)
Balance at June 30, 2017		-			-		-
Balance at June 30, 2018	$	-		$	-	$	-

As part of a settlement on an investment, during the year ended June 30, 2016 the Receiver exchanged part of an investment for two $75,000 notes receivable with consecutive 1 year terms. The first note receivable was repaid in fiscal 2017. The other $75,000 note receivable was transferred to the SBA to settle part of the accrued interest outstanding on the SBA judgment.

The Company’s legacy assets primarily consisted of prior investments that were composed of equity and debt securities. During the Receivership, the investments were either in default or distressed in nature. The Receiver liquidated the assets through negotiations and the investments were written down to their estimated net realizable value through recognizing other-than-temporary impairment losses. During the year ended June 30, 2016, the Receiver liquidated the remaining investment assets and recognized a loss of $100,425.

As part of a settlement on an investment, during the year ended June 30, 2016, the Receiver exchanged part of an investment for two $75,000 notes receivable with consecutive 1 year terms. The first note receivable was repaid during the period ended September 30, 2016. The other $75,000 note receivable was transferred to the SBA to settle part of the accrued interest outstanding on the SBA judgment later in the 2017 fiscal year.