8. Notes Payable

6 Months Ended

Dec. 31, 2012

Debt Disclosure [Abstract]

NOTES PAYABLE

Notes payable at December 31, 2012 consists of a $28,000 convertible note, bearing interest at 8% and convertible into Class A Common Stock at $2.24 per share, issued to the Company’s Chief Financial Officer for additional working capital (see Form 10-K for the fiscal year ended June 30, 2012 for additional discussion of the outstanding note payable). Notes payable at June 30, 2012 of $228,000 included the $28,000 note discussed above plus a $200,000 note assumed in the April 2012 purchase of a 160 acre parcel of Colorado land referred to as Indian Mesa. The noninterest bearing note, due to Indian Mesa, Inc., a previous owner of the land, was paid under terms of the note in November 2012. Due to the short term nature of the note, no interest rate was imputed. During the six months ended December 31, 2012 the Company accrued approximately $1,100 in interest expense related to the $28,000 note. See Note L – Related Party Transactions for additional discussion of the note payable.