Convertible Notes

9 Months Ended

Mar. 31, 2017

Convertible Notes

Convertible Notes

5. Convertible Notes

As of March 31, 2017 and June 30, 2016 the balance owing on convertible notes with term as describe below was $1,414,523 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 average rate from 8% - 12%; 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 45% 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, 2017, three (3) convertible promissory notes in the amount of $100,000 with accrued interest of $61,339, were converted to 12,738,334 restricted common shares as follows:

Principal amount of $25,000, interest in the amount of $15,295;

Principal amount of $50,000, interest in the amount of $30,819; and

Principal amount of $25,000, interest in the amount of S15,225.

Convertible notes issued during the nine months ended March 31, 2017:

On January 17, 2017, the Company entered into a convertible promissory note with an accredited investor for $25,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount to the then current market price of our shares.

On January 17, 2017, the Company entered into a convertible promissory note with an accredited investor for $20,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount to the then current market price of our shares.

On January 20, 2017, the Company entered into a convertible promissory note with an accredited investor for $80,000. The note has a term of seven (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount to the then current market price of our shares.

On January 24, 2017, the Company entered into a convertible promissory note with an accredited investor for $43,000. The note has a term of twelve (12) months with an interest of 8% and is convertible to common shares at a 45% discount to the then current market price of our shares.

On February 8, 2017, the Company entered into a convertible promissory note with an accredited investor for $50,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount to the then current market price of our shares.

On February 9, 2017, the Company entered into a convertible promissory note with an accredited investor for $50,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount to the then current market price of our shares.

On February 15, 2017, the Company entered into a convertible promissory note with an accredited investor for $63,000. The note has a term of nine (9) months with an interest rate of 8% and is convertible to common shares at 40% discount to the then current market price of our shares.

On February 16, 2017, the Company entered into a convertible promissory note with an accredited investor for $30,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount to the then current market price of our shares.

On February 24, 2017, the Company entered into a convertible promissory note with an accredited investor for $66,023. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount to the then current market price of our shares.

On February 28, 2017, the Company entered into a convertible promissory note with an accredited investor for $75,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount.

On March 1, 2017, the Company entered into a convertible promissory note with an accredited investor for $100,000. The note has a term of nine (9) months with an interest rate of 10% and is convertible to common shares at a 45% discount to the then current market price of our shares.

On March 23, 2017, the Company entered into a convertible promissory note with an accredited investor for $70,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount to the then current market price of our shares.

On March 31, 2017, the Company entered into a convertible promissory note with an accredited investor for $200,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount to the then current market price of our shares.

On October 18, 2016, the Company entered into a convertible promissory note with an accredited investor for $84,750. The note has a term of twelve (12) months with an interest rate of 10% and is convertible to common shares at a 50% discount.

On November 4, 2016, the Company entered into a convertible promissory note with an accredited investor for $84,750. The note has a term of nine (9) months with an interest rate of 10% and is convertible to common shares at a 50% discount.

On November 16, 2016, the Company entered into a convertible promissory note with an accredited investor for $110,000. The note has a term of nine (9) months with an interest rate of 10% and is convertible to common shares at a 45% discount.

On December 19, 2016, the Company entered into a convertible promissory note with an accredited investor for $20,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount.

On December 20, 2016, the Company entered into a convertible promissory note with an accredited investor for $38,000. The note has a term of nine (9) months with an interest rate of 10% and is convertible to common shares at a 45% discount.

On December 23, 2016, the Company entered into a convertible promissory note with an accredited investor for $55,000. The note has a term of nine (9) months with an interest rate of 8% and is convertible to common shares at a 42% discount.

During the nine months ended March 31,2017, the Company received cash proceeds of $1,264,523 from issuance of convertible notes.

As of March 31, 2017, the Company’s convertible notes consisted of following:

		As of March 31, 2017
Note Type and Investor	Due Date		Balance	Discount		Carrying Value
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	10/18/2017		84,750	—		84,750
Convertible Note	8/4/2017		84,750	—		84,750
Convertible Note	8/16/2017		110,000	—		110,000
Convertible Note	9/20/2017		38,000	—		38,000
Convertible Note	7/17/2017		20,000	—		20,000
Convertible Note	9/30/2017		55,000	—		55,000
Convertible Note	7/17/2017		25,000	—		25,000
Convertible Note	7/17/2017		20,000	—		20,000
Convertible Note	1/24/2018		43,000	—		43,000
Convertible Note	8/8/2017		50,000	—		50,000
Convertible Note	7/20/2017		80,000	—		80,000
Convertible Note	8/24/2017		66,023	—		66,023
Convertible Note	8/9/2017		50,000	—		50,000
Convertible Note	8/31/2017		75,000	—		75,000
Convertible Note	12/1/2017		100,000	—		100,000
Convertible Note	9/23/2017		70,000	—		70,000
Convertible Note	11/20/2017		63,000	—		63,000
Convertible Note	8/16/2017		30,000	—		30,000
Convertible Note	9/30/2017		200,000	—		200,000
Total Convertible Promissory Notes		$	1,414,523		$	1,414,523

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