5. Long-Term Debt

The notes payable reflected in the table below originated from acquisitions of subscribers and equipment from third party internet service providers. Where the notes bear no interest the Company imputed interest, which was recorded as a debt discount that will be amortized to interest expense over the term of the note.

As of June 30, 2013 and 2012, long-term debt consisted of:

	June 30,			June 30,
	2013			2012
Note payable due February 15, 2015, payable in monthly payments of $4,346 with fixed interest at 4.5%	$	83,594		$	130,827
Note payable due February 15, 2015, payable in monthly payments of $11,189 with interest imputed at 3.25% (net of unamortized discount of $6,239 and $15,521, respectively)		217,544			342,532
Note payable due February 10, 2014, payable in monthly installments of $417 with fixed interest at 8.5%		2,985			7,157
Note payable due May 3, 2013, payable in monthly installments of $5,085 with interest imputed at 8.5% (net of unamortized discount of $0 and $2,306, respectively)		-			58,599
Note payable due January 1, 2014, payable in monthly installments of $615 with interest imputed at 8.5% (net of unamortized discount of $119 and $730, respectively)		4,182			10,947
Note payable due April 1, 2013, payable in monthly installments of $671 with no interest		-			6,718
Note payable due November 1, 2014, payable in monthly installments of $1,674 with interest imputed at 8% (net of unamortized discount of $1,638 and $0, respectively)		26,822			-
Note payable due May 1, 2015, payable in monthly installments of $2,067 with interest imputed at 8% (net of unamortized discount of $3,600 and $0, respectively)		43,933			-
		379,060			556,780
Less current portion		(226,383	)		(248,477	)
Total long-term debt, less current portion	$	152,677		$	308,303

The following is a schedule by fiscal year of the principal payments due under these loan arrangements as of June 30, 2013.

Fiscal year ending June 30:
2014	$	226,383
2015		152,677
Total principal payments	$	379,060