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15. Subsequent Events
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12 Months Ended |
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Jun. 30, 2012
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| Subsequent Events [Abstract] | |
| 15. Subsequent Events |
Effective July 6, 2012, the Company filed an amendment with the Nevada Secretary of State to authorize Class B convertible preferred stock in the amount of 5,000,000 shares at $0.001 par value. Class B shares have no dividend rights, except as may be declared by the Board of Directors in its sole discretion. Class B stock is ranked junior and subsequent to Class A convertible preferred stock, but senior and prior to the Corporations common stock as to dividends and upon liquidation. Class B shares have liquidation rights of $0.10 per share, and are entitled to 100 votes each, on any matters requiring shareholders vote. One share of Class B stock can be converted into 10 shares of common stock at any time, upon demand from the holder.
On July 6, 2012, Renee Gilmore, our President, CEO and Director, and Danielle ONeal, our Secretary and Director, each, exchanged 10,000,000 shares of common stock for 1,000,000 shares of Class B convertible preferred stock, based on the conversion ratio designated for Class B shares.
Effective August 3, 2012, the Company filed an amendment with the Nevada Secretary of State to increase number of authorized Common Stock from 200,000,000 to 400,000,000 shares.
Effective July 1, 2012 the Company sold its first franchise. Out of the total $35,000 franchise fee, $28,000 were financed under a note, with a term of 38 months, and annual interest rate of 7%. The Company also sold to the franchisee various equipment, with the net basis of $19,315, for $6,000 in cash, and $9,185 in assumed liabilities.
On July 13, 2012, the Company issued a convertible promissory note in the amount of $32,500, bearing interest at a rate of 8% per annum. The note is unsecured and matures on March 29, 2013. The entire principal and accrued interest on the note are convertible into common stock of the Company at a variable conversion price, with 45% discount to the market price, at the point of conversion. The Company determined that the conversion feature of the Note should be accounted for as a convertible note derivative liability, and recorded at its fair value of $26,591.
During August and September of 2012, the Company issued 93,760,950 shares of common stock in partial satisfaction of principal balance outstanding under the convertible note payable, originated on January 1, 2011, in the amount of $112,850. |