CONVERTIBLE NOTES AND NOTES PAYABLE |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONVERTIBLE NOTES AND NOTES PAYABLE | NOTE 3 – CONVERTIBLE NOTES AND NOTES PAYABLE
Convertible notes and notes payable
Convertible notes and notes payable includes principal and accrued interest and consist of the following at June 30, 2024 and 2023:
(a) The notes are unsecured, convertible into common stock at amounts ranging from $0.08 to $0.30 per share, bear interest at rates ranging from 5% to 8% per annum, were due through 2011 and are in default or due on demand.
At June 30, 2023, convertible notes and accrued interest totaled $66,000. During the year ended June 30, 2024, interest of $3,000 was added to the principal resulting in a balance owed of $69,000 at June 30, 2024. On June 30, 2024, $21,000 of the convertible notes were in default and convertible at a conversion price of $0.30 per share into shares of the Company’s common stock. The balance of $48,000 is due on demand and convertible at a conversion price of $0.08 per share into shares of the Company’s common stock.
(b) The notes are either secured by the Company’s intellectual property or unsecured and bear interest ranging from 6.5% to 10% per annum, were due in 2012, and are in default.
At June 30, 2023, the notes and accrued interest totaled $475,000. During the year ended June 30, 2024, interest of $17,000 was added to principal resulting in a balance owed of $492,000 at June 30, 2024. At June 30, 2024, $443,000 of notes are secured by the Company’s intellectual property and $49,000 of notes are unsecured.
(c) The notes are unsecured and bear interest of 4% per annum and were due on March 17, 2020, and are in default.
At June 30, 2023 the notes and accrued interest totaled $29,000. During the year ended June 30, 2024, interest of $1,000 was added to the principal resulting in a balance owed of $30,000 at June 30, 2024.
Convertible notes and notes payable-related parties
Convertible and notes payable-related parties include principal and accrued interest and consist of the following at June 30, 2024 and 2023:
(a) The notes are unsecured, convertible into common stock at $0.08 per share, bear interest at rates ranging from 8% to 10% per annum and are due on demand.
The Matthews Group is a related party (see Note 6) and is owned 50% by Ms. Van Tran, the Company’s CEO, and 50% by Larry Johanns, a significant shareholder of the Company. At June 30, 2023, convertible notes and accrued interest due to The Matthews Group totaled $1,970,000. During the year ended June 30, 2024, $114,000 of interest was added to principal, resulting in a balance payable at June 30, 2024 of $2,084,000. At June 30, 2024, the notes are convertible at a conversion price of $0.08 per share into shares of the Company’s common stock.
(b) The notes are unsecured, accrue interest at 10% per annum, and are due on demand. The notes were issued relating to a management services agreement with The Matthews Group (see Note 6) dated September 30, 2015.
At June 30, 2023, notes and accrued interest due to The Matthews Group totaled $4,988,000. During the year ended June 30, 2024, $441,000 of notes payable were issued and interest of $392,000 was added to principal, resulting in a balance owed of $5,821,000 at June 30, 2024.
(c) The notes are due to a current and a former director, are unsecured, convertible into common stock at per share amounts ranging from $0.04 to $0.30, and bear interest at rates ranging from 8% to 10% per annum.
At June 30, 2023, convertible notes and accrued interest due to other related parties totaled $364,000. During the year ended June 30, 2024, $145,000 of notes payable were issued, $33,000 of notes payable were repaid, and interest of $24,000 was added to principal, resulting in a balance owed of $500,000 at June 30, 2024. At June 30, 2024, $251,000 of the notes were due in 2010 and are in default, and $249,000 is due on demand. At June 30, 2024, $251,000 of the notes are convertible at a conversion price of $0.30 per share into shares of the Company’s common stock, $67,000 of the notes are convertible at a conversion price of $0.08 per share into shares of the Company’s common stock, $29,000 of the notes are convertible at a conversion price of $0.10 per share into shares of the Company’s common stock, and $151,000 of the notes are convertible at a conversion price of $0.04 per share into shares of the Company’s common stock.
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