Convertible Notes

3 Months Ended

Sep. 30, 2016

Convertible Notes

Convertible Notes

5. Convertible Notes

As of September 30, 2016 and June 30, 2016 the balance owing on convertible notes was $365,000 and 394,167 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 September 30, 2016, two convertible promissory in the amount of $29,167 with accrued interest $13,596.28, was converted to 1,503,928 restricted common shares.

As of September 30, 2016, the Company’s convertible notes consisted of following:

				As of September 30, 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		7	/1/2016		25,000		—		25,000
Convertible Note		7	/1/2016		25,000		—		25,000
Convertible Note		7	/1/2016		25,000		—		25,000
Convertible Note		7	/1/2016		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				$	365,000			$	365,000

As of June 30, 2016, the Company’s convertible notes consisted of following:

				As of June 30, 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		7	/1/2016		25,000		—		25,000
Convertible Note		7	/1/2016		25,000		—		25,000
Convertible Note		7	/1/2016		25,000		—		25,000
Convertible Note		7	/1/2016		25,000		—		25,000
Convertible Note		7	/1/2016		25,000		—		25,000
Convertible Note		7	/1/2016		100,000		—		100,000
Convertible Note		7	/1/2016		20,834		—		20,834
Convertible Note		7	/1/2016		8,333		—		8,333
Total Convertible Promissory Notes				$	394,167			$	394,167