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RELATED PARTY TRANSACTIONS
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6 Months Ended |
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Dec. 31, 2011
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| Notes to Financial Statements | |
| RELATED PARTY TRANSACTIONS |
For the six months ended December 31, 2011 and 2010, the Company accrued $64,000 and $126,000, respectively, in salaries payable to its officers and major shareholders, which are reflected in notes payable to those shareholders. $62,000 of current and $28,400 of accrued salaries were paid during the first six months of fiscal 2012.
As of December 31, 2011 and June 30, 2011, the balances of shareholder notes were $431,157 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 December 31, 2011 and June 30, 2011, accrued interest payable on the notes was $9,076 and $4,852, respectively. Interest paid during the six months ended December 31, 2011 and 2010, was $5,725 and $3,906, respectively. These notes payable do not approximate fair value, as they are with related parties, and do not bear market rates of interest. |