Notes Payable
 12 Months Ended
Jun. 30, 2015
Debt Disclosure [Abstract]  
Notes Payable

NOTE 7 – NOTES PAYABLE AND NOTES PAYABLE, RELATED PARTY

 

Notes payable includes accrued interest and consists of the following as of June 30, 2015 and 2014:

 

    2015   2014
                 
Convertible Notes Payable                
Convertible notes payable (includes $138,120 and $130,898, respectively, to non-related parties), unsecured, interest at 8%, due September 2010 through November 2010. The principal and accrued interest is convertible at a conversion price of $0.30. The principal and interest is due immediately on the event of default or change of control. The notes are currently in default.   $ 759,763     $ 720,302  
                 
Convertible notes payable to related parties, unsecured, principal and interest are convertible into common stock at $0.30 to $0.33 per share, interest at 8% to 10%, due on demand to November 2010. The notes are currently in default.     1,414,260       1,017,435  
                 
Convertible note payable to related party, secured by the Company’s intellectual property, principal and interest are convertible into common stock at $0.25 per share subject to board of directors’ approval, interest at 8%. The note was due November 2010 and is now in default.     290,871       274,871  
                 
Botes payable, secured by the Company's certificate of deposit with a financial institution and classified on the balance sheet as restricted cash, interest at 5%, convertible into common stock at $0.08 per share, due on demand     33,688       32,215  
                 
Convertible note payable, unsecured, principal and interest are convertible into common stock at $0.30 to $0.40 per share subject to board of directors’ approval, interest at 5% to 8%, due January 2011 to March 2013.     14,385       13,586  
                 
Convertible note payable, unsecured, principal and interest are convertible into common stock at $1.00 per share subject to board of directors’ approval, interest at 8%. The note was paid in full.     —         1,766  
Subtotal convertible notes     2,512,967       2,150,175  
                 
Promissory Notes                
Note payable to related party, secured by the Company’s intellectual property, interest at 8% due August 2010 and is now in default.     564,058       533,318  
                 
Notes payable to related parties, unsecured, interest at 0% to 8%, due on demand.     150,430       142,430  
                 
Note payable, unsecured, interest at 10%. The note was due in January 2010 and is now in default     31,783       29,167  
                 
                 
Note payable, secured by the Company's intellectual property, interest at variable rates starting September 1, 2012, due December 2012 and is now in default.     303,469       287,129  
Subtotal notes payable     1,049,740       992,044  
                 
Total   $ 3,562,707     $ 3,142,219  

 

During fiscal year 2015, the Company issued $365,000 of convertible notes payable that could be converted at a price of $0.08 per share. The market price on the date the convertible notes payable were issued was in excess of the conversion price. The difference between the conversion price of $0.08 per share and the market price was recognized as an expense of $297,875 and was included in interest expense in the Condensed Consolidated Statements of Operations for the year ended June 30, 2015. No similar activity occurred during fiscal year 2014.

 

For the purposes of Balance Sheet presentation notes payable have been presented as follows:

 

    June 30,
    2015   2014
         
Notes payable   $ 521,610     $ 493,017  
Notes payable, related party     3,041,097       2,649,202  
Total   $ 3,562,707     $ 3,142,219