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9. Related Party Transactions
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12 Months Ended |
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Jun. 30, 2012
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| Related Party Transactions [Abstract] | |
| 9. Related Party Transactions |
For the fiscal years ended June 30, 2012 and 2011, the Company accrued $252,000, each, in salaries payable to its officers and major shareholders, which are reflected in notes payable to those shareholders. $90,400 and $37,800 of accrued salaries were paid during the respective years.
As of June 30, 2012 and 2011, the balances of shareholder notes were $552,466 and $383,677, respectively. The balance included accrued salaries, along with various advances to and from the Company. The notes are unsecured, due upon demand and accrue interest at the end of each month on the then outstanding balance at the rate of 5.00% per annum. As of June 30, 2012 and 2011, accrued interest payable on the notes was $14,962 and $4,852, respectively. Interest paid during the fiscal years ended June 30, 2012 and 2011, was $12,412 and $13,687, respectively. These notes payable do not approximate fair value, as they are with related parties, and do not bear market rates of interest. |