Shares to be issued

9 Months Ended

Mar. 31, 2015

Notes to Financial Statements

Shares to be issued

15. Shares to be issued

In December 2014, the Company was obligated to issue 10,492,460 restricted common shares for employee compensation based on the Employee Retention Stock Award Program with fair value of $461,668.

In December 2014, the Company was obligated to issue 1,040,731 restricted common shares to settle a debt of $41,629. The shares were issued on April 24, 2015.

At March 31, 2015, the Company was obligated to issue 1,500,000 shares of Series B Convertible Preferred Stock for three EB-5 investments with the total amount of $1,500,000. The Company received $1,470,000 proceeds during the nine months ended March 31, 2015 with fair value of $1,470,000.

On January 1, 2015, the Company entered a consulting and marketing agreement with a consulting firm for the issuance of 2,000,000 restricted common shares in exchange for the marketing and sales related services. The Company was obligated to issue 2,000,000 restricted shares with fair value of $80,000 at March 31, 2015.

On February 1, 2015, the Company entered a consulting service agreement with an individual for the issuance of 1,000,000 restricted common shares as the compensation for its consulting service. The Company was obligated to issue 1,000,000 restricted shares with fair value of $30,000 at March 31, 2015.

On March 19, 2015, the Board approved the issuance of 1,000,000 restricted common shares as the compensation for consulting service. The stock price was $0.07 on the approval day. The Company was obligated to issue 1,000,000 restricted shares with fair value of $30,000 at March 31, 2015.