LINE OF CREDIT

3 Months Ended

Sep. 30, 2013

Notes

LINE OF CREDIT

NOTE 6 - LINE OF CREDIT

On March 22, 2013, the Company executed a line of credit agreement with a third party for $100,000 to be used as purchase order financing for the production of liquor brands. The line of credit bears interest at twenty percent (20%) on the advanced amount. In consideration for this line of credit, the company issued a warrant to purchase up to 300,000 shares of common stock valued at $21,000, at an exercise price of $1.00 per share. The value of these warrants estimated by using the Black-Scholes option pricing model with the following assumptions: expected life of 5 years; risk free interest rate of .95%; dividend yield of 0% and expected volatility of 954%. The Company issued 3,000,000 shares of preferred stock as collateral which are being held in trust.

As of September 30, 2013, there has been $89,640 received and $10,077 in payments made directly to the creditor on this line of credit. Upon receipt of these funds, the money was then advanced to the distribution company for use in production of the liquor brands in relation to purchase orders received from distributors.

As of September 30, 2013, the Company has recorded $16,266 in interest expense related the line of credit.

During October 2013, an additional $21,776 has been paid towards this line of credit.