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SUBSEQUENT EVENTS
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6 Months Ended | |
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Dec. 31, 2014
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| Subsequent Events [Abstract] | ||
| SUBSEQUENT EVENTS |
NOTE 11 SUBSEQUENT EVENTS On January 8, 2015, funding pursuant to a securities purchase agreement and a convertible debenture agreement with KBM Worldwide for a principal amount of $54,000 was received. The term sheet for these agreements was agreed to on December 23, 2014, and the related securities purchase agreement and convertible promissory note were signed December 31, 2014. The note matures on October 2, 2015 and bears interest at a rate of 8% per annum. The note is convertible into shares of the Company’s common stock at any time after the maturity date and is convertible at a rate of 61% of the market price (39% discount), which will be determined by taking an average of the lowest three trading prices for the common stock during the ten trading day period prior to the conversion date. In accordance with the terms of these agreements, the Company is required to maintain authorized and reserved shares of common stock equal to five times the number of shares issuable upon conversion of the note. The note provides for prepayment at 30 day intervals for the first six months, with a prepayment penalty starting at 10% up to 30 days after issuance of the note, with 5% increases to the penalty amount every 30 days, up to a maximum penalty of 35% if paid between days 151 and 180 of the note. After the 180 days, the Company will have no right of prepayment. As funding did not occur until after December 31, 2014, no assets or liabilities have been recorded by the Company as of December 31, 2014 in connection with this note.
On January 9, 2015, we borrowed $25,000 under the Frenkel line of credit. Accordingly, in connection with the advance of $25,000, Lender was issued a warrant certificate, pursuant to which he may exercise into 208,333 shares of common stock at $0.20 per share. SRA will be paid a cash commission of $1,250 and be entitled to 10,417 warrants exercisable at $0.12 per share in conjunction with this takedown. For the takedown, the interest rate is 8% and the note matures September 19, 2016.
Management has evaluated events subsequent to December 31, 2014, through the date of this filing with the Securities and Exchange Commission for transactions and other events that may require adjustment of and/or disclosure in such financial statements. On January 28, 2015, we borrowed $150,000 from “Esenjay” (Esenjay Investments, LLC) under our revolving promissory note agreement. This takedown results in a remaining balance of $2,925,000 under our three debt facilities with Esenjay. |