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3. 10% SENIOR SECURED CONVERTIBLE NOTES
 3 Months Ended
Sep. 30, 2012
Debt Disclosure [Abstract]  
3. 10% SENIOR SECURED CONVERTIBLE NOTES

 

3. 10% SENIOR SECURED CONVERTIBLE NOTES

 

The 10% Senior Secured Convertible Notes (the “Notes”) consist of the following:

  

    September 30,
2012		     June 30,
2012		  
10% Senior Secured Convertible Notes issued on June 25, 2008, convertible into common stock at $1.25 per share, bearing interest at 10% per annum. Outstanding principal and accrued interest due at maturity, September 30, 2012   $ –     $ 50,000  
Accrued interest—10% coupon due on September 30, 2012     –       1,250  
                 
    $ –     $ 51,250  

  

On September 28, 2012, the Company repaid Mr. Schumsky the outstanding and accrued interest of $2,500 due under his Note and such payment satisfied its obligations in regards to the accrued interest due on the Note in full. On that same date, Mr. Schumsky presented the outstanding principal balance of the Note to the Company and agreed to exchange the $50,000 principal balance of his Note for participation in the Company’s September 2012 financing transaction (as described in further detail in Note 5, Sale of Stock) and was issued units consisting of 55,555 shares of common stock and 38,889 warrants upon the same terms as the units sold in the September 2012 financing transaction. Accordingly, the Note held by Mr. Schumsky has been satisfied in full and the obligations thereunder have been terminated.