C. Note Receivable - Related Party

6 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Note Receivable - Related Party

Note receivable at December 31, 2016 and June 30, 2016 represents a note due from American Citizenship Center, LLC (“ACC”), a related party. Note receivable at December 31, 2016 and June 30, 2016 consists of the following:

			December 31,		June 30,
			2016		2016
Note receivable, gross		$	295,400	$	295,400
	Accounting and loan fees reversed against deferred income		(29,000)		(29,000)
	Less reserve		(266,400)		(266,400)
Note receivable, net		$	-	$	-

The gross balance of $295,400 at December 31, 2016 and June 30, 2016 represents the outstanding amount drawn by ACC on a $295,400 credit line provided by the Company. The note is secured by all assets of ACC and bears interest at the rate of 9.5% per annum. Interest of $9,400 is unpaid and fully reserved at December 31, 2016.

ACC’s business plan is based on the Executive Action, known as DAPA, issued by President Obama in November 2014. In February 2015, twenty-six states filed a lawsuit to stop the program and the court granted an injunction meaning that the U.S. Government cannot proceed with rolling out the program. The U.S. government appealed the lawsuit which went to the 5^th Circuit Court of Appeals. The appeal was unsuccessful and in January 2016, the Supreme Court granted an oral hearing which was held in April 2016. In June 2016, the Supreme Court announced that the justice votes were even for and against the DAPA case, effectively a no decision. As a result, it is presumed that the case will go back to trial at the District Court in Texas. Due to the uncertainty of the court case, a change in administration and overall immigration reform, the Company has fully reserved for the amount of the note as of December 31, 2016 and June 30, 2016.