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RELATED PARTY TRANSACTIONS
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9 Months Ended |
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Mar. 31, 2012
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| Notes to Financial Statements | |
| RELATED PARTY TRANSACTIONS |
NOTE 9. RELATED PARTY TRANSACTIONS
For the nine months ended March 31, 2012 and 2011, the Company accrued $97,000 and $189,000, respectively, in salaries payable to its officers and major shareholders, which are reflected in notes payable to those shareholders. $66,600 of current and $28,400 of accrued salaries were paid during the first nine months of fiscal 2012.
As of March 31, 2012 and June 30, 2011, the balances of shareholder notes were $522,661 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 March 31, 2012 and June 30, 2011, accrued interest payable on the notes was $13,359 and $4,852, respectively. Interest paid during the nine months ended March 31, 2012 and 2011, was $7,334 and $5,958, respectively. These notes payable do not approximate fair value, as they are with related parties, and do not bear market rates of interest. |