Convertible Notes

9 Months Ended

Mar. 31, 2016

Convertible Notes

Convertible Notes

5. Convertible Notes

As of March 31, 2016 and June 30, 2015 the balance owing on convertible notes was $394,167 and $419,167 respectively. The convertible promissory notes must be repaid by our Company within six months from the date of issuance; accrue interest at the rate of 14%; and are subject to conversion at the election of the investors at such time as our Company has raised a minimum of $500,000 in a subsequent equity financing. The conversion price will be the lower of 80% of the per share purchase price paid for by the new investors in the subsequent financing, or $0.50 per share. Unless these promissory notes are converted or repaid earlier, our Company must pay the note-holders the amount of the then accrued interest on the three, six, and nine month anniversaries of the issue date. As of March 31, 2016, one convertible promissory note, in the amount of $100,000, was converted to restricted common shares.

						As of March 31, 2016
Note Type and Investor
	Due Date			Balance		Discount		Carrying Value
Convertible Note		7	/1/2016	$	25,000	$	—	$	25,000
Convertible Note		7	/1/2016		40,000		—		40,000
Convertible Note		7	/1/2016		50,000		—		50,000
Convertible Note		7	/1/2016		25,000		—		25,000
Convertible Note		6	/18/2014		25,000		—		25,000
Convertible Note		6	/18/2014		25,000		—		25,000
Convertible Note		12	/28/2014		25,000		—		25,000
Convertible Note		7	/1/2016		8,333		—		8,333
Convertible Note		7	/1/2016		20,834		—		20,834
Convertible Note		7	/31/2014		25,000		—		25,000
Convertible Note		7	/1/2016		25,000		—		25,000
Convertible Note		7	/1/2016		100,000		—		100,000
Total Convertible Promissory Notes				$	394,167			$	394,167