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11. RELATED PARTY TRANSACTIONS
12 Months Ended
Jun. 30, 2016
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

American Citizenship Center, LLC 

At June 30, 2016 and 2015 the Company had a note due from American Citizenship Center, LLC (“ACC”), a related party, with gross balances of $295,400 and $322,800, respectively. At June 30, 2016, the Company fully reserved the note balance. Refer to Note 3 – Note Receivable – Related Party for further discussion.

 

During the fiscal year 2016, the Company billed ACC a total of $29,100 which includes amounts for interest on the note and legal services. During the fiscal year 2015, the Company billed ACC a total of $46,300 which includes amounts for interest on the note, legal services related to note modifications and accounting services. At June 30, 2016, the Company had unpaid receivables from ACC in the amount of $2,800, consisting of $2,300 representing one month of interest plus $500 of legal services. Subsequent to year end, ACC made payments bringing these balances current. At June 30, 2015, the Company had unpaid receivables from ACC in the amount of $4,200, consisting of $2,500 representing one month of interest plus $1,700 of legal services.

 

Board of Directors

During fiscal 2016, the Company added a fifth member to the Board of Directors. During fiscal 2016, each of the four continuing directors earned $12,000 in fees of which cash payments of $9,000 were paid during the year and $3,000 was accrued at June 30, 2016. The new director earned $4,000 in fees of which cash payments of $2,000 were paid during the year and $2,000 was accrued at June 30, 2016.

 

During fiscal 2015, the Company made cash payments of $7,500 to each of the Company’s three independent members of the Board of Directors and issued each 25,000 stock grants for a total of 75,000 shares valued at $31,500. The Company recorded $16,500 of expense related to the stock grants during the current fiscal year and had accrued $15,000 at June 30, 2014. In addition, each independent director received 80,000 stock options during fiscal year 2015.

 

As of June 30, 2016 and 2015, the Company had accrued deferred compensation of $58,400 and $5,300 respectively, payable to John Carlson, the Company’s Chief Executive Officer and a Director of the Company.