Convertible Notes Payable (Tables)

6 Months Ended

Dec. 31, 2014

Convertible Notes Payable Tables

Schedule of Assumptions Used in Valuation of Derivatives

The significant assumptions used in the Black Scholes valuation of the derivative are as follows:

Stock price on the valuation dates	$	0.011
Conversion price for the debt	$	0.004 - 0.00745
Dividend yield		0%
Months to maturity		9 months - 18 months
Risk free rate		0.23% - 0.46%
Expected volatility		140.11% - 150.73%

Schedule of Maturity of Convertible Notes Payable

Following is the five year maturity schedule for our convertible notes payable:

Year ended June 30,	Principle		Discount			Net Book Value
2015	$	—	$	—		$	—
2016	$	842,310	$	(468,620	)	$	373,690
2017	$	—	$	—		$	—
2018	$	—	$	—		$	—
2019	$	—	$	—		$	—

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are as follows at December 31, 2014:

	Total		(Level 1)		(Level 2)		(Level 3)
Assets	$	—	$	—	$	—	$	—
Total assets measured at fair value	$	—	$	—	$	—	$	—
Liabilities
Derivative liability		1,608,677		—		—		1,608,677
Convertible notes, net of discount		373,690		—		—		373,690
Total liabilities measured at fair value	$	1,982,367	$	—	$	—	$	1,982,367

Assets and liabilities measured at fair value on a recurring basis are as follows at December 31, 2013:

	Total		(Level 1)		(Level 2)		(Level 3)
Assets	$	—	$	—	$	—	$	—
Total assets measured at fair value	$	—	$	—	$	—	$	—
Liabilities
Derivative liability		—		—		—		—
Convertible notes, net of discount		168,856		—		—		168,856
Total liabilities measured at fair value	$	168,856	$	—	$	—	$	168,856