American Citizen Center, LLC Note Receivable

9 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Note 5. American Citizen Center, LLC Note Receivable

On January 6, 2012, the Company provided $300,000 to American Citizenship Center, LLC (“ACC”), a private company that provides proprietary, automated on-line assistance for eligible immigrants to prepare for, and obtain, US citizenship.  The Company received a $300,000 Note and a two year warrant to purchase 240,000 membership units (currently would equate to approximately 20% ownership) of the private company at an exercise price of $1.25 per unit.  The Note accrues interest at 7.5% (paid quarterly) on the outstanding balance, is payable in monthly installments of $75,000 commencing on March 31, 2013 and continuing until paid in full, provides board of director representation and is secured by all assets and properties of ACC.  Mr. Robert Kauffman, CEO of the Company, has also made a personal investment in the membership units of ACC.