Related Party Transactions

6 Months Ended

Dec. 31, 2016

Note 4 - Related Party Transactions

Related Parties

Related parties with whom the Company had transactions are:

Related Parties		Relationship

Anil R. Diwan		Chairman, President, significant stockholder and Director

Eugene Seymour		CEO, significant stockholder, Director

TheraCour Pharma, Inc.		An entity owned and controlled by a significant stockholder

InnoHaven, LLC		An entity owned and controlled by a significant stockholder

Milton Boniuk, MD		Director and significant stockholder

	For the three months ended				For the six months ended
	December 31,		December 31,		December 31,		December 31,
	2016		2015		2016		2015
Property and Equipment

During the reporting period, TheraCour Pharma, Inc. acquired property and equipment on behalf of the Company from third party vendors and sold such property and equipment, at cost, to the Company	$	-	$	6,747	$	17,995	$	14,648

	As of
	December 31,		June 30,
	2016		2016
Account Payable – Related Party

Pursuant to an Exclusive License Agreement we entered into with TheraCour Pharma, Inc., (TheraCour), the Company was granted exclusive licenses in perpetuity for technologies developed by TheraCour for the virus types: HIV, HCV, Herpes, Asian (bird) flu, Influenza and rabies. In consideration for obtaining this exclusive license, we agreed: (1) that TheraCour can charge its costs (direct and indirect) plus no more than 30% of direct costs as a development fee and such development fees shall be due and payable in periodic installments as billed, (2) we will pay $2,000 or actual costs each month, whichever is higher for other general and administrative expenses incurred by TheraCour on our behalf. Accounts payable due TheraCour Pharma Inc. on the reporting date was	$	32,624	$	767,454

	For the three months ended				For the six months ended
	December 31,		December 31,		December 31,		December 31,
	2016		2015		2016		2015

Research and Development Costs Paid to Related Parties

Development fees and other costs charged by and paid to TheraCour pursuant to exclusive License Agreements between TheraCour and the Company for the development of the Company’s drug pipeline. No royalties are due TheraCour from the Company at December 31, 2016 and June 30, 2016	$	978,501	$	996,398	$	1,840,116	$	2,012,614

	As of
	December 31,		June 30,
Debentures Payable to a Director	2016		2016

Series B Convertible Debentures - Milton Boniuk	$	4,000,000	$	4,000,000
Series C Convertible Debentures - Milton Boniuk		5,000,000		5,000,000

Total Debentures Payable to a Director	$	9,000,000	$	9,000,000

	As of
	December 31,		June 30,
Debenture Interest Payable to a Director	2016		2016

Coupon interest payable on $5,000,000 Series C Convertible Debentures and deferred. The deferred interest is paid out quarterly over the remaining term of the debenture commencing September 30, 2015:
Deferred interest payable - short-term	$	166,667	$	166,667
Deferred interest payable - long-term		83,333		166,667

Total Debenture Interest Payable to a Director	$	250,000	$	333,334

Coupon interest expense on the Series B Debentures to two holders controlled by Dr. Milton Boniuk for the three months ended December 31, 2016 and 2015 was $80,000 and $80,000, respectively, and for the six months ended December 31, 2016 and 2015 was $160,000 and $160,000, respectively.

Coupon interest expense on the Series C Debentures to Dr. Milton Boniuk for the three months ended December 31, 2016 and 2015 was $125,000 and $125,000, respectively, and for the six months ended December 31, 2016 and 2015 was $250,000 and $250,000, respectively.