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Note 14 - Subsequent Events

12 Months Ended

Jun. 30, 2015

14.	SUBSEQUENT EVENTS:

The Company has evaluated events that occurred subsequent to June 30, 2015 for recognition and disclosure in the financial statements and notes to the financial statements.

From July 1, 2015 through September 21, 2014 the Company has issued 29,934 shares of the Company’s common shares to an employee and consultants valued at approximately $26,000.

From July 1, 2015 through September 21, 2015, the Company entered into subscription agreements to exercise certain warrants with expiry dates on or before December 31, 2015, into restricted shares of the Company’s common stock at a reduced exercise price of $1.05. As a result of the offering, 278,394 warrants were exercised and 278,394 shares of the Company’s restricted common stock were issued resulting in cash proceeds of approximately $187,300 and a collateralized promissory note for $105,000. The promissory note bears interest at 4% per annum and is payable in full on January 31, 2016.

From July 1, 2015 through September 21, 2015, consultants elected to convert approximately $88,800 of deferred compensation into 109,715 shares of the Company’s common shares.

From July 1, 2015 through September 21, 2015, Smith elected to convert approximately $82,900 of his deferred compensation into 99,159 shares of the Company’s common shares. As of September 18, 2015 Smith’s current deferred compensation balance is nil.

Effective September 8, 2015, the Company entered into convertible promissory notes with Bassani, Shafer and Shareholder which replace existing notes payable – affiliates (Note 5). The initial principal balances of such notes are $405,831, $16,382 and $82,921, respectively. The new convertible promissory notes bear interest at 4% per annum, have maturity dates of December 31, 2017 and may be converted at the sole election of the noteholders into restricted common shares of the Company at a conversion price of $0.60 per share.