Note 4 - Promissory Note Receivable

6 Months Ended

Dec. 31, 2015

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

4.	PROMISSORY NOTE RECEIVABLE:

During the six months ended December 31, 2015, the Company received an interest bearing, secured promissory note for $105,000. The promissory note bears interest at 4% per annum, is collateralized, and was payable on January 31, 2016. The promissory note receivable was issued as consideration for an unaffiliated investor’s subscription agreement to exercise warrants into 100,000 restricted common shares of the Company’s common stock at $1.05 per share. During January 2016, the Company received a $35,000 principal payment and entered into a new agreement with the borrowers which extended the maturity date of the remaining principal and interest until June 15, 2016. All the other terms of the original agreement remain unchanged. As of December 31, 2015, the Company has recorded the $35,000 as a promissory note receivable and the remaining unpaid principal and interest totaling $71,878, as a promissory note receivable for shares. The Company recorded interest income of $1,878 for the six months ended December 31, 2015.