Annual report pursuant to Section 13 and 15(d)

Short Term Loan

v3.8.0.1
Short Term Loan
12 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]  
Short Term Loan
7. Short Term Loan

 

In May 2016, the Company issued a note for $25,000 with an annual rate of interest of 4.0%. Along with the debt offering, the Company also issued 1,666,667 warrants. The warrants are exercisable immediately with an exercise price of $0.06 per share and expire May 26, 2019. The Company used the Black-Scholes option pricing model to determine the relative fair value of the warrant and a debt discount of $19,938 was recorded.

 

During the years ended June 30, 2017 and 2016, the Company recognized amortization expense of $7,157 and $521 and the note balance as of June 30, 2017 was $12,240 or $25,000 net of discount of $12,760.