Quarterly report pursuant to Section 13 or 15(d)

Convertible Debt

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Convertible Debt
9 Months Ended
Mar. 31, 2017
Convertible Debt/Notes Payable [Abstract]  
CONVERTIBLE DEBT

NOTE 8

  CONVERTIBLE DEBT

 

Convertible debt consists of the following:

 

    March 31, 
2017
    June 30,
2016
 
             
Convertible notes payable, annual interest rate of 10% to 12%, due dates range from May 2010 to February 2019 and convertible into common stock at a rate of $0.04 to $1.00 per share.   $ 7,628,185     $ 8,625,015  
Convertible note payable, annual interest rate of 10%, convertible into common stock at a rate of $1.00 per share and due July 2017.     750,000       750,000  
Unamortized prepaid financing costs     (693,280 )     (1,287,109 )
Unamortized warrants discount to notes     (150,753 )     (363,663 )
Unamortized debt discount     (965,580 )     (1,308,872 )
      6,568,572       6,415,371  
Less current portion     (6,292,293 )     (609,905 )
Convertible debt, net of current portion and debt discount   $ 276,279     $ 5,805,466  

 

During the nine month period ended March 31, 2017 the few holders of the Notes converted $1,555,581 including accrued interest value into 15,124,939 shares of the Company's common stock. The determined fair value of the debt derivatives of $125,710 was reclassified into equity during the period ended March 31, 2017.

 

For the three and nine months ended March 31, 2017 and 2016, $70,970 and $69,701 and $212,910 and $133,128 were expensed in the statement of operation as amortization of warrant discount and shown as interest expenses, respectively. For the three and nine months ended March 31, 2017 and 2016, $284,799 and $9,982 and $648,199 and $68,658 was amortized of debt discount and shown as interest expenses, respectively.

 

The aggregate amortization of prepaid financing cost charged to operations was $209,959 and $169,417 and $622,329 and $344,750 for three and nine month period ended March 31, 2017 and 2016, respectively.

 

Accrued and unpaid interest for convertible notes payable at March 31, 2017 and June 30, 2016 was $1,678,212 and $1,678,138, respectively.

 

For the three and nine months ended March 31, 2017 and 2016, $235,263 and $94,744 and $685,759 and $350,530, was charged as interest on debt and shown as interest expenses, respectively.