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Debt
3 Months Ended
Sep. 30, 2011
Debt 
Debt Disclosure [Text Block]

NOTE 5 – DEBT

 

At September 30, 2011, the current portion of debt consisted of the following:

 

Unsecured term note payable to a finance company due March 2012 in monthly installments of $1,483, including interest at5.89% APR.

 

$8,746

 

 

 

Unsecured term note payable to a former shareholder due March 2008 in monthly installments of $10,000, plus interest at 8% APR, through April 2007, and monthly installments of $20,000, plus interest at 8% APR, beginning May 2007. Interest on overdue principal accruing at 15% APR.

 

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Unsecured term note payable to a former shareholder due January 2012, plus interest at 5% APR.

 

28,783

 

Current portion of debt

 

$37,529

 

In August 2011, we made a payment of $28,783 on our then delinquent, unsecured note payable to a former shareholder. In addition, we issued a new promissory note in the amount of $28,783, plus interest at 5% APR, through January 31, 2012, with such former shareholder. This promissory note cancelled the prior note payable with the former shareholder originally dated April 7, 2006, as well as all associated accrued interest. In accordance with ASC470-60, Troubled Debt Restructurings by Debtors, we recognized a gain of $28,627 on the restructuring of this note payable which has been included in Gain on debt settlement on our Condensed Consolidated Statement of Operations. See Note 7.

 

At September 30, 2011, we were current on the unsecured term notes payable to the finance company as well as the unsecured term notes payable to the former shareholder.