Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2015 | Feb. 08, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | StemGen, Inc. | |
Entity Central Index Key | 1,023,198 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Is Entity a Well-known Seasoned Issuer | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 14,083,927 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Jun. 30, 2015 |
CURRENT ASSETS | ||
Cash | $ 575 | |
Total Current Assets | 575 | |
TOTAL ASSETS | 575 | |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 109,621 | $ 236,666 |
Advances payable | $ 4,690 | |
Bank overdraft | $ 1,034 | |
Total current liabilities | $ 114,311 | 237,700 |
Accrued interest payable | 20,335 | 1,344 |
Convertible note payable, net of discount of $580,793 and $220,235, respectively | 21,292 | 1,570 |
TOTAL LIABILITIES | $ 155,938 | $ 240,614 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' (DEFICIT) | ||
Common stock, $0.001 par value; 20,000,000 shares authorized; 14,083,927 and 10,183,927 shares issued and outstanding at December 31, 2015 and June 30, 2015 | $ 14,084 | $ 10,184 |
Series E Preferred stock, $0.000001 stated value; 1,000,000 shares authorized; 1,000,000 and 1,000,000 shares issued and outstanding at December 31, 2015 and June 30, 2015, respectively | $ 1 | 1 |
Common stock payable | 19,500 | |
Additional Paid-in Capital | $ 1,442,122 | 1,046,242 |
Accumulated deficit | (1,611,570) | (1,316,541) |
Total stockholders' deficit | (155,363) | $ (240,614) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 575 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2015 | Jun. 30, 2015 |
Condensed Balance Sheets Parenthetical | ||
Convertible note payable, net of discount | $ 580,793 | $ 220,235 |
Series E Preferred Stock, stated value | $ 0.000001 | $ 0.000001 |
Series E Preferred Stock, Authorized | 1,000,000 | 1,000,000 |
Series E Preferred Stock, Issued | 1,000,000 | 1,000,000 |
Series E Preferred Stock, outstanding | 1,000,000 | 1,000,000 |
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, Authorized | 20,000,000 | 20,000,000 |
Common Stock, Issued | 14,083,927 | 10,183,927 |
Common Stock, outstanding | 14,083,927 | 10,183,927 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING EXPENSES: | ||||
General and administrative expenses | $ 132,487 | $ 54,705 | $ 256,316 | $ 92,372 |
LOSS FROM OPERATIONS | (132,487) | $ (54,705) | (256,316) | $ (92,372) |
OTHER EXPENSE | ||||
Interest expense | (25,579) | (38,713) | ||
NET LOSS | $ (158,066) | $ (54,705) | $ (295,029) | $ (92,372) |
NET LOSS PER COMMON SHARE - Basic and diluted | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.01) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - Basic and diluted | 14,083,927 | 10,183,927 | 13,172,514 | 10,183,927 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED) - USD ($) | 6 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (295,029) | $ (92,372) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Series E preferred stock issued for services | $ 10,000 | |
Amortization of discount on convertible note payable | $ 19,722 | |
Changes in operating assets and liabilities: | ||
Accounts payable and accrued liabilities | (127,045) | $ 82,292 |
Accrued interest payable | 18,991 | |
NET CASH USED IN OPERATING ACTIVITIES | (383,361) | $ (80) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from advances | 384,970 | |
Bank overdraft | (1,034) | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 383,936 | |
NET INCREASE (DECREASE) IN CASH | $ 575 | $ (80) |
CASH, at the beginning of the period | $ 80 | |
CASH, at the end of the period | $ 575 | |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid during the period for Interest | ||
Cash paid during the period for Taxes | ||
Noncash investing and financing transactions | ||
Issuance of Series E preferred stock for services | $ 10,000 | |
Refinancing of advances into convertible notes payable | $ 380,280 | |
Beneficial conversion discount on convertible note payable | $ 380,280 |
General Organization and Busine
General Organization and Business | 6 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 1 - General Organization and Business | StemGen, Inc (the "Company") was incorporated in Delaware in 1992, and in 1996 received all remaining assets of Infotechnology, Inc. ("Infotech"), a Delaware company, following the completion of Infotech's Chapter 11 Bankruptcy reorganization, in accordance with an Assignment and Assumption Agreement, dated October 11, 1996, and effective as of June 21, 1996. As a result of a series of transactions during the 1980's, Infotech, then principally engaged in the information and communications business, acquired equity interests in Comtex News Network, Inc. ("Comtex") and Analex Corporation ("Analex"), formerly known as Hadron, Inc. Our business was the maintenance of our equity interest in and note receivable from Comtex and equity interest in Analex. On September 25, 2006, we exchanged the equity investment in Comtex common stock and the Note Receivable from Comtex of $856,954, for 55,209 shares of the StemGen Series A Preferred stock. We no longer have an equity interest in either the common stock of Comtex or the Note from Comtex. During October 2006, we sold the remaining 21,000 shares of common stock of publicly held Analex, a defense contractor specializing in systems engineering and developing innovative technical intelligence solutions in support of U.S. national security. We no longer have an equity interest in Analex. On December 24, 2012, the Corporation received a nonrefundable deposit of $32,500 under a Letter of Intent ("LOI") which it entered into on December 11, 2012 with StemGen Inc. a Nevada corporation. Effective February 5, 2013, the Company amended its Certificate of Incorporation. As a result of the Amendment, the Company's corporate name changed from Amasys Corporation to StemGen, Inc. and a reverse stock split was effectuated where all the outstanding shares of the Company's common stock were exchanged at a ratio of one for eighty. The LOI was terminated on August 6, 2013. Since we redeemed and converted all of our outstanding Series A Preferred Stock at the end of September 2006, starting October 1, 2006 we have not conducted any business operations. On June 27, 2014, the board of directors designated 1,000,000 shares of Series E preferred stock. The Series E preferred stock has a par value of $0.01 and ranks subordinate to the Company's common stock as to distributions of assets upon liquidation, dissolution, or winding up of the Company, whether voluntary or involuntary. The outstanding shares of Series E preferred stock have the right to take action by written consent or vote based on the number of votes equal to twice the number of votes of all outstanding shares of capital stock. On the same date, the Company issued 1,000,000 shares of Series E Preferred stock to Landor Investment Corp. ("Landor") in exchange for services valued at $10,000. On the date of the transaction, Landor held 99.2% of our common stock. On May 15, 2015, we purchased 100% of the membership interests in Global Visionary Investments LLC, a business advisory services company, ("Global Visionary") as a means to facilitate the process of driving possible target leads and vetting potential investments in those targets. We purchased Global Visionary for cash payments of $50,000 and the issuance of a convertible note for $100,000. The convertible note matures on May 15, 2018 and bears interest at 10% per year. The note is convertible into shares of our common stock at 25% of the volume weighted average closing price of the Company's common stock for the five trading days prior to the notice of intent to convert. In no event shall the conversion rate be lower than $0.05 per share. Global Visionary has a limited exclusive license with SOKAP, a Canadian corporation. SOKAP provides business intelligence in deal sourcing and target vetting. Through their proprietary geo-targeting software platform, the acquisition targets have the opportunity to market their products and services in a unique way through licensing specific territories for the sale of their products or services. This creates a unique sales channel opportunity that does not currently have any competitors. We believe that the acquisition of Global Visionary represents a beneficial opportunity to diversify and expand our business platform to attract a larger audience of potential investment targets. |
Going Concern
Going Concern | 6 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 2 - Going Concern | The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. For the six months ended December 31, 2015, the Company had a net loss of $295,029. As of December 31, 2015, the Company had negative working capital of $113,736. Management does not anticipate having positive cash flow from operations in the near future. These factors raise a substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern. The Company does not have the resources at this time to repay its credit and debt obligations, make any payments in the form of dividends to its shareholders or fully implement its business plan. Without additional capital, the Company will not be able to remain in business. Management has plans to address the Company's financial situation as follows: In the near term, management plans to continue to focus on raising the funds necessary to implement the Company's business plan. Management will continue to seek out debt financing to obtain the capital required to meet the Company's financial obligations. There is no assurance, however, that lenders will continue to advance capital to the Company or that the new business operations will be profitable. The possibility of failure in obtaining additional funding and the potential inability to achieve profitability raise doubts about the Company's ability to continue as a going concern. In the long term, management believes that the Company's projects and initiatives will be successful and will provide cash flow to the Company, which will be used to finance the Company's future growth. However, there can be no assurances that the Company's planned activities will be successful, or that the Company will ultimately attain profitability. The Company's long-term viability depends on its ability to obtain adequate sources of debt or equity funding to meet current commitments and fund the continuation of its business operations, and the ability of the Company to achieve adequate profitability and cash flows from operations to sustain its operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 3 - Summary of Significant Accounting Policies | Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and such adjustments are of a normal recurring nature. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements for the fiscal year ended June 30, 2015 and notes thereto and other pertinent information contained in our Form 10-K the Company has filed with the Securities and Exchange Commission (the "SEC"). The results of operations for the six month period ended December 31, 2015 are not necessarily indicative of the results to be expected for the full fiscal year ending June 30, 2016. Principles of Consolidation The condensed consolidated financial statements include the accounts and operations of StemGen, Inc., and its wholly-owned subsidiary, Global Visionary Investments LLC (collectively referred to as the "Company"). All material intercompany accounts and transactions are eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash For the purpose of the financial statements, cash equivalents include all highly liquid investments with maturity of three months or less. Cash was $575 and $0 at December 31, 2015 and June 30, 2015, respectively. There are no cash equivalents as of December 31, 2015 and June 30, 2015. Impairment of Long-Lived and Intangible Assets Long-lived and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the long-lived or intangible asset may not be recoverable. The carrying amount of a long-lived or intangible asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If it is determined that an impairment loss has occurred, the loss is measured as the amount by which the carrying amount of the long-lived or intangible asset exceeds its fair value. Deferred Income Taxes and Valuation Allowance The Company accounts for income taxes under ASC 740 Income Taxes Revenue Recognition The Company follows ASC 605, Revenue Recognition Share-based Expense The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, Equity Based Payments to Non-Employees Share-based expense for the six months ended December 31, 2015 and 2014 was $0 and $10,000, respectively. Earnings (Loss) per Common Share The Company computes basic and diluted earnings per common share amounts in accordance with ASC Topic 260, Earnings per Share Financial Instruments The Company's balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period between the origination of these instruments and their expected realization. FASB Accounting Standards Codification (ASC) 820 Fair Value Measurements and Disclosures Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2015. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include accounts receivable, other current assets, accounts payable, and accrued expenses. The fair value of the Company's notes payable is estimated based on current rates that would be available for debt of similar terms that is not significantly different from its stated value. Recently Issued Accounting Pronouncements We have reviewed the FASB issued Accounting Standards Update ("ASU") accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation's reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration. |
Advances from Third Parties
Advances from Third Parties | 6 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 4 - Advances from Third Parties | During the six months ended December 31, 2015, Vista View Ventures, Inc. advanced $384,970 to the Company for working capital. These advances are non-interest bearing and payable on demand. During the same period, the Company refinanced $380,280 of the advances into convertible notes payable with Vista View Ventures, Inc. As of December 31, 2015 and June 30, 2015, advances in the amount of $4,690 and $0, respectively, are included in current liabilities on the consolidated balance sheets. |
Convertible Notes Payable
Convertible Notes Payable | 6 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 5 - Convertible Notes Payable | Convertible notes payable consisted of the following at December 31, 2015: December 31, 2015 June 30, 2015 Convertible note in the original principal amount of $36,340, issued March 31, 2015 and maturing March 31, 2017, bearing interest at 10% per year, and convertible into common stock at a rate of $0.90 per share. $ 36,340 $ 36,340 Convertible note in the original principal amount of $100,000, issued May 15, 2015 and maturing May 15, 2018, bearing interest at 10% per year, and convertible into common stock at a rate of $0.05 per share. 100,000 100,000 Convertible note in the original principal amount of $85,465, issued June 30, 2015 and maturing June 30, 2017, bearing interest at 10% per year, and convertible into common stock at a rate of $1.00 per share. 85,465 85,465 Convertible note in the original principal amount of $277,208, issued September 30, 2015 and maturing September 30, 2018, bearing interest at 10% per year, and convertible into common stock at a rate of $0.60 per share. 277,208 Convertible note in the original principal amount of $103,072, issued December 31, 2015 and maturing December 31, 2018, bearing interest at 10% per year, and convertible into common stock at a rate of $0.40 per share. 103,072 Total convertible notes payable $ 602,085 $ 221,805 Less: discount on noncurrent convertible notes payable (580,793 ) (220,235 ) Convertible notes payable, net of discount $ 21,292 $ 1,570 All principal along with accrued interest is payable on the maturity date. The notes are convertible into common stock at the option of the holder. The holder of the notes cannot convert the notes into shares of common stock if that conversion would result in the holder owning more than 4.99% of the outstanding stock of the Company. Convertible notes issued During the six months ended December 31, 2015, the Company signed convertible promissory notes of $380,280 in total with Vista View Ventures Inc., which refinanced non-interest bearing advances. These notes are payable at maturity and bear interest at 10% per annum. The holder of the notes may not convert the convertible promissory note into common stock if that conversion would result in the holder owing more than 4.99% of the number of shares of common stock outstanding on the conversion date. The convertible promissory notes are convertible into common stock at the option of the holder. Date Issued Maturity Date Interest Rate Conversion Rate Per Share Amount of Note September 30, 2015 September 30, 2018 10 % $ 0.60 $ 277,208 December 31, 2015 December 31, 2018 10 % 0.40 103,072 Total $ 380,280 We evaluated the application of ASC 470-50-40/55, Debtor's Accountingfor a Modification or Exchange of Debt Instrument We evaluated the terms of the new notes in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity's Own Stock |
Shareholders' Deficit
Shareholders' Deficit | 6 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 6 - Shareholders' Deficit | On March 11, 2015 we completed a private offering and sale of common stock to four accredited investors for gross proceeds to the Company of $19,500. In connection with the sale of the shares, we entered into a registration rights agreement with the investors, pursuant to which we agreed to register all of the investor's shares of our common stock on a Form S-1 registration statement to be filed with the SEC within 120 calendar days after use our commercially reasonable efforts to cause such registration statement to be declared effective under the 1933 Act as promptly as reasonably practicable after the filing. We issued 3,900,000 shares to the four accredited investors on August 12, 2015. |
Management Fees
Management Fees | 6 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 7 - Management Fees | During the year ended December 31, 2015, KM Delaney & Associates ("KMDA") has provided office space and certain administrative functions to us. The services provide include a furnished executive suite, use of office equipment and supplies, accounting and bookkeeping services, treasury and cash management services, financial reporting, and other support staffing requirements. We have agreed to pay KMDA $18,000 per month for these services during the calendar year ending December 31, 2015. During the six months ended December 31, 2015, KMDA billed us $108,000 for those services. As of December 31, 2015 and June 30, 2015, we owed KMDA $70,254 and $176,262, respectively. These amounts are included in accounts payable and accrued liabilities on the balance sheet. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 8 - Subsequent Events | The Company evaluated material events occurring during the six month period ended December 31, 2015, and through the date when the unaudited condensed consolidated financial statements were available to be issued for disclosure consideration. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies Policies | |
Interim Financial Statements | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and such adjustments are of a normal recurring nature. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements for the fiscal year ended June 30, 2015 and notes thereto and other pertinent information contained in our Form 10-K the Company has filed with the Securities and Exchange Commission (the "SEC"). The results of operations for the six month period ended December 31, 2015 are not necessarily indicative of the results to be expected for the full fiscal year ending June 30, 2016. |
Principles of Consolidation | The condensed consolidated financial statements include the accounts and operations of StemGen, Inc., and its wholly-owned subsidiary, Global Visionary Investments LLC (collectively referred to as the "Company"). All material intercompany accounts and transactions are eliminated in consolidation. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Cash | For the purpose of the financial statements, cash equivalents include all highly liquid investments with maturity of three months or less. Cash was $575 and $0 at December 31, 2015 and June 30, 2015, respectively. There are no cash equivalents as of December 31, 2015 and June 30, 2015. |
Impairment of Long-Lived and Intangible Assets | Long-lived and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the long-lived or intangible asset may not be recoverable. The carrying amount of a long-lived or intangible asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If it is determined that an impairment loss has occurred, the loss is measured as the amount by which the carrying amount of the long-lived or intangible asset exceeds its fair value. |
Deferred Income Taxes and Valuation Allowance | The Company accounts for income taxes under ASC 740 Income Taxes |
Revenue Recognition | The Company follows ASC 605, Revenue Recognition |
Share-based Expense | The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, Equity Based Payments to Non-Employees Share-based expense for the six months ended December 31, 2015 and 2014 was $0 and $10,000, respectively. |
Earnings (Loss) per Common Share | The Company computes basic and diluted earnings per common share amounts in accordance with ASC Topic 260, Earnings per Share |
Financial Instruments | The Company's balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period between the origination of these instruments and their expected realization. FASB Accounting Standards Codification (ASC) 820 Fair Value Measurements and Disclosures Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2015. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include accounts receivable, other current assets, accounts payable, and accrued expenses. The fair value of the Company's notes payable is estimated based on current rates that would be available for debt of similar terms that is not significantly different from its stated value. |
Recently Issued Accounting Pronouncements | We have reviewed the FASB issued Accounting Standards Update ("ASU") accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation's reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration. |
Convertible Notes Payable (Tabl
Convertible Notes Payable (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Convertible Notes Payable Tables | |
Convertible notes payable | Convertible notes payable consisted of the following at December 31, 2015: December 31, 2015 June 30, 2015 Convertible note in the original principal amount of $36,340, issued March 31, 2015 and maturing March 31, 2017, bearing interest at 10% per year, and convertible into common stock at a rate of $0.90 per share. $ 36,340 $ 36,340 Convertible note in the original principal amount of $100,000, issued May 15, 2015 and maturing May 15, 2018, bearing interest at 10% per year, and convertible into common stock at a rate of $0.05 per share. 100,000 100,000 Convertible note in the original principal amount of $85,465, issued June 30, 2015 and maturing June 30, 2017, bearing interest at 10% per year, and convertible into common stock at a rate of $1.00 per share. 85,465 85,465 Convertible note in the original principal amount of $277,208, issued September 30, 2015 and maturing September 30, 2018, bearing interest at 10% per year, and convertible into common stock at a rate of $0.60 per share. 277,208 Convertible note in the original principal amount of $103,072, issued December 31, 2015 and maturing December 31, 2018, bearing interest at 10% per year, and convertible into common stock at a rate of $0.40 per share. 103,072 Total convertible notes payable $ 602,085 $ 221,805 Less: discount on noncurrent convertible notes payable (580,793 ) (220,235 ) Convertible notes payable, net of discount $ 21,292 $ 1,570 |
Convertible notes issued | The convertible promissory notes are convertible into common stock at the option of the holder. Date Issued Maturity Date Interest Rate Conversion Rate Per Share Amount of Note September 30, 2015 September 30, 2018 10 % $ 0.60 $ 277,208 December 31, 2015 December 31, 2018 10 % 0.40 103,072 Total $ 380,280 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Going Concern Details Narrative | ||||
Net loss | $ (158,066) | $ (54,705) | $ (295,029) | $ (92,372) |
Working capital | $ (113,736) | $ (113,736) |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 6 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Significant Accounting Policies Details Narrative | ||||
Cash and cash equivalents | $ 575 | $ 80 | ||
Share-based expense | $ 0 | $ 10,000 |
Advances from Third Parties (De
Advances from Third Parties (Details Narrative) - USD ($) | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Advances From Third Parties Details Narrative | |||
Proceeds from advances | $ 384,970 | ||
Proceeds from convertible notes payable | 380,280 | ||
Advances payable | $ 4,690 |
Convertible Notes Payable (Deta
Convertible Notes Payable (Details) - USD ($) | Dec. 31, 2015 | Jun. 30, 2015 |
Total convertible notes payable | $ 602,085 | $ 221,805 |
Less: discount on noncurrent convertible notes payable | (580,793) | (220,235) |
Noncurrent convertible notes payable, net of discount | 21,292 | 1,570 |
Convertible notes payable [Member] | ||
Total convertible notes payable | 36,340 | 36,340 |
Convertible notes payable 1 [Member] | ||
Total convertible notes payable | 100,000 | 100,000 |
Convertible notes payable 2 [Member] | ||
Total convertible notes payable | 85,465 | $ 85,465 |
Convertible notes payable 3 [Member] | ||
Total convertible notes payable | 277,208 | |
Convertible notes payable 4 [Member] | ||
Total convertible notes payable | $ 103,072 |
Convertible Notes Payable (De20
Convertible Notes Payable (Details 1) | 6 Months Ended |
Dec. 31, 2015USD ($)$ / shares | |
Amount of Note | $ 380,280 |
September 30, 2015 [Member] | |
Maturity Date | Sep. 30, 2018 |
Interest Rate | 10.00% |
Conversion Rate Per Share | $ / shares | $ 0.60 |
Amount of Note | $ 277,208 |
December 31, 2015 [Member] | |
Maturity Date | Dec. 31, 2018 |
Interest Rate | 10.00% |
Conversion Rate Per Share | $ / shares | $ 0.40 |
Amount of Note | $ 103,072 |
Convertible Notes Payable (De21
Convertible Notes Payable (Details Narrative) - USD ($) | 6 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Convertible note payable | $ 380,280 | |
Amount of Note | 380,280 | |
September 30, 2015 [Member] | ||
Amount of Note | $ 277,208 | |
Effective interest rate | 223.53% | |
December 31, 2015 [Member] | ||
Amount of Note | $ 103,072 | |
Effective interest rate | 224.88% |
Management Fees (Details Narrat
Management Fees (Details Narrative) - KMDA [Member] - USD ($) | 6 Months Ended | |
Dec. 31, 2015 | Jun. 30, 2015 | |
Management fees | $ 108,000 | |
Owed to related party | $ 70,254 | $ 176,262 |