Silverton Adventures (SVAD) 10-Q 19 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	3 Months Ended
	Mar. 31, 2014	15-May-14
Document and Entity Information:	'	'
Entity Registrant Name	'Silverton Adventures, Inc.	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Entity Central Index Key	'0001419122	'
Current Fiscal Year End Date	'--12-31	'
Entity Common Stock, Shares Outstanding	'	3,166,118
Entity Public Float	'	$3,166,118
Entity Filer Category	'Smaller Reporting Company	'
Entity Current Reporting Status	'No	'
Entity Voluntary Filers	'No	'
Entity Well-known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Jun. 30, 2013
ASSETS	'	'
Cash	$86	$937
Accounts receivable, net	8,315	9,534
Prepaid expenses	777	777
Prepaid royalties	166	8,999
Other assets	'	565
Total Current Assets	18,011	20,812
PROPERTY AND EQUIPMENT, net	'	1,557
TOTAL ASSETS	18,011	22,369
Accounts payable and accrued liabilities	414,835	327,841
Royalties payable	41,207	39,806
Bank overdraft	11,259	5,968
Derivative liability	440,350	278,122
Related party payables	'	1,100
Notes payable	13,966	40,564
Convertible notes, net of discount	226,438	126,823
Total Current Liabilities	1,148,055	820,224
Long-term note payable	50,000	'
TOTAL LIABILITIES	1,198,055	820,224
Series A Preferred stock, 10,000,000 shares authorized at par value of $0.001, 82,400 and 100,000 shares issued and outstanding, respectively	82	82
Series C Preferred stock, 10,000,000 shares authorized at par value of $0.0001, 238,649 and no shares issued and outstanding, respectively	23	23
Common stock, 75,000,000 shares authorized at par value of $0.00001; 3,166,121 shares issued and outstanding	32	6,783
Additional paid-in capital	2,749,229	2,384,320
Accumulated deficit	-3,929,410	-3,189,063
Total Stockholders' Deficit	-1,180,044	-797,855
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$18,011	$22,369

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
REVENUES	'	'	'	'
SALES INCOME	$3,041	$48,508	$40,026	$161,479
ROYALTY INCOME	2,696	10,433	25,069	32,808
TOTAL REVENUE	5,737	58,941	65,095	194,287
COST OF SALES	4,901	37,992	16,873	72,572
GROSS MARGIN	836	20,949	48,222	121,715
Depreciation expense	64	497	1,557	4,954
Royalty expense	177	2,208	1,938	13,582
Payroll expense	2,761	38,847	33,512	125,890
Professional fees	40,825	30,734	171,969	98,592
General and administrative	36,456	59,641	138,501	148,396
Total Operating Expenses	80,283	131,927	347,477	391,414
LOSS FROM OPERATIONS	-79,447	-110,978	-299,255	-269,699
Other income	'	'	20,331	'
Interest expense	-59,338	-172,462	-214,728	-208,612
Gain(loss) on derivative	-121,649	47,499	-225,663	52,248
Gain on disposal of assets	'	2,881	'	2,881
Loss on settlement of debt	-11,408	'	21,032	'
Total Other Income (Expenses)	-192,395	-122,082	-441,092	-153,483
LOSS BEFORE INCOME TAXES	-271,842	-233,060	-740,347	-423,182
PROFIT (LOSS)	($271,842)	($233,060)	($740,347)	($423,182)
BASIC AND DILUTED LOSS PER SHARE	($0.09)	($0.01)	($0.29)	($0.02)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING BASIC AND DILUTED	3,076,747	17,800,000	2,548,076	17,800,000

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net loss	($740,347)	($423,182)
Depreciation expense	1,557	2,073
Amortization of benefical conversion feature	25,500	43,851
(Gain)/loss on derivative liability	225,663	-52,248
Amortization of debt discount	158,544	40,601
Excess interest on initial derivative valuation	'	115,374
Expenses paid on behalf of the Company by a related party	19,235	'
Loss on settlement of debt	21,032	'
Accounts receivable	1,219	-708
Prepaid expenses	'	-436
Prepaid royalties	166	272
Accounts payable and accrued expenses	90,211	81,755
Royalties payable	1,401	13,604
Net Cash Used in Operating Activities	-195,819	-179,044
Disposal of fixed assets	'	11,783
Purchase of investments	565	'
Net Cash Provided By Investing Activities	565	11,783
Change in bank overdrafts	5,291	-9,891
Repayments to related-party payables	-1,100	-5,131
Proceeds from notes payable	52,212	54,599
Repayments on notes payable	-3,500	-38,499
Proceeds from convertible notes payable	141,500	181,351
Repayments on convertible notes payable	'	-10,000
Net Cash Provided by Financing Activities	194,403	172,429
NET DECREASE IN CASH	-851	4,543
CASH AT BEGINNING OF PERIOD	937	'
CASH AT END OF PERIOD	86	4,543
Interest	'	$2,634

Note_1_Condensed_Consolidated_

Note 1 - Condensed Consolidated Financial Statements	3 Months Ended
	Mar. 31, 2014
Notes	'
Note 1 - Condensed Consolidated Financial Statements	'
	NOTE 1 - CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
	The accompanying consolidated financial statements have been prepared by the Company without audit.  In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at March 31, 2014, and for all periods presented herein, have been made.
	Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's June 30, 2013 audited financial statements.  The results of operations for the periods ended March 31, 2014 and 2013 are not necessarily indicative of the operating results for the full years.

Note_2_Going_Concern

Note 2 - Going Concern	3 Months Ended
	Mar. 31, 2014
Notes	'
Note 2 - Going Concern	'
	NOTE 2 - GOING CONCERN
	The Company's financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs which raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.
	In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management's plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking equity and/or debt financing. However management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.
	The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Note_3_Significant_Accounting_

Note 3 - Significant Accounting Policies	3 Months Ended
	Mar. 31, 2014
Notes	'
Note 3 - Significant Accounting Policies	'
	NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES
	Use of Estimates
	The preparation of financial statements in conformity with generally accepted accounting principles 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 revenues and expenses during the reporting period.  Actual results could differ from those estimates.
	Recent Accounting Pronouncements
	Management has considered all recent accounting pronouncements issued since the last audit of its financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.
	Basic (Loss) per Common Share
	Basic loss per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are 54,964,247 common stock equivalents outstanding as of March 31, 2014.

Note_4_Relatedparty_Transactio

Note 4 - Related-party Transactions	3 Months Ended
	Mar. 31, 2014
Notes	'
Note 4 - Related-party Transactions	'
	NOTE 4 – RELATED-PARTY TRANSACTIONS
	Related party payables totaled $-0- and $1,100 at March 31, 2014 and June 30, 2013, respectively. These amounts payable bear no interest, are uncollateralized and due on demand.

Note_5_Royalties

Note 5 - Royalties	3 Months Ended
	Mar. 31, 2014
Notes	'
Note 5 - Royalties	'
	NOTE 5 – ROYALTIES
	The Company entered into several royalty agreements wherein the Company acquired rights to licensed content.  The Company intends to either reproduce and distribute the media or sublicense the rights to another party.  The agreements require the Company to pay an upfront royalty fee and then ongoing royalty fees of 15 to 30 percent of gross sales receipts over the life of the licensing agreement.  The agreements vary in length from three to five years.  Royalty expenses totaled $1,938 and $13,582 for the nine months ended March 31, 2014 and 2013, respectively.
	As of March 31, 2014 and June 30, 2013, royalty payables under these agreements totaled $41,207 and $39,806, respectively.
	Under some of these arrangements, the Company pays an upfront royalty fee that is applied to future royalties as the Company achieves sales and incurs corresponding royalty expense.  The upfront fees that are to be applied against future royalty expenses are capitalized and amortized as royalty expenses are applied.  As of March 31, 2014 and June 30, 2013, the Company has recorded $8,833 and $8,999 as prepaid royalties, respectively.
	The Company has also entered into similar royalty agreements wherein the Company licenses content rights to third parties in exchange for a royalty fee.  During the nine months ended March 31, 2014 and 2013, the Company recognized royalty revenue of $25,069 and $32,808, respectively.

Note_6_Convertible_Notes_Payab

Note 6 - Convertible Notes Payable	3 Months Ended
	Mar. 31, 2014
Notes	'
Note 6 - Convertible Notes Payable	'
	NOTE 6 – CONVERTIBLE NOTES PAYABLE
	On July 20, 2011, the Company entered into a convertible note payable in the amount of $10,000.  The note bears interest at 8.5 percent per annum and has a maturity date of July 20, 2014.  The creditor has the option at any time to convert the principal and any accrued interest into common stock of the Company according to the following stock prices: year one, $0.75 per share; year two, $1.00 per share; and year Three, $1.25 per share. During the fiscal year ended June 30, 2012 the entire note with a principal balance of $10,000 along with $1,306 in accrued interest was assigned to a third party; in addition the Company assigned another note payable in the amount of $30,000 and accrued interest of $2,544 to the third party. The total aggregate amount assigned to the third party was $43,851. The terms of the assigned notes were amended. The amended terms are:
	The assigned notes bear interest at 10%
	The assigned notes are due on demand
	The principal balance of the note along with accrued interest is convertible at any time, at the option of the note holder, into the Company's common stock at a price of 45 percent of the current market price.  The current market price is defined as the average of the lowest three trading prices for the Common Stock during the ten day period on the latest complete trading day prior to the conversion date.
	As of March 31, 2014 and June 30, 2013, the note balance was $28,851 and $28,851 respectively.
	On November 6, 2012, the Company borrowed $42,500 from an unrelated third party entity in the form of a convertible note, $33,000 of which was received in cash and $9,500 of which was for professional fees.  The note bears interest at 8 percent per annum with principal and interest due in full on August 8, 2013.
	During the nine months ended March 31, 2014 the Company issued 118,056 shares of common stock for conversion of debt in the amount of $42,500 which fully extinguished the debt.
	NOTE 6 – CONVERTIBLE NOTES PAYABLE (Continued)
	The principal balance of the note along with accrued interest is convertible at any time, at the option of the note holder, into the Company's common stock at a price of 55 percent of the current market price.  The current market price is defined as the average of the lowest three trading prices for the Common Stock during the ten day period on the latest complete trading day prior to the conversion date.
	Pursuant to this conversion feature, the Company recognized a discount on convertible debt in the amount of $42,500 on the note date.  As of March 31, 2014 the Company had amortized $42,500 of the debt discount to interest expense, leaving $-0- in unamortized debt discount at March 31, 2014.
	The fair value of the conversion option of the convertible note of $67,368 has been recognized as a derivative liability on the date of issuance with all future changes in the fair value of these conversion options being recognized in earnings in the Company’s statement of operations under the caption “Other income (expense) – Gain (loss) on derivative liability” until such time as the note is converted or the conversion feature expires.
	The Company uses the Black-Scholes option pricing model to value the derivative liability and subsequent remeasurements.  Included in the model are the following assumptions: stock price of $0.99, exercise price of $0.495, dividend yield of zero, years to maturity of 0.75, risk free rate of 0.10 percent, and annualized volatility of 237.60 percent.
	ASC 815 requires the Company to assess the fair market value of certain derivatives at each reporting period and recognize any change in the fair market value of the derivatives as gain (loss) on the income statements.  At December 31, 2013 the derivative liability was extinguished due to the conversion of debt, which led to the Company recording a gain on derivative liability in the amount of $32,749.
	On December 26, 2012 the Company entered into a convertible note agreement. Pursuant to the agreement, the agreement was consummated on January 2, 2013 upon the Company’s receipt of $32,500 cash proceeds from the note.   The note bears interest at 8 percent per annum with principal and interest due in full on December 31, 2013.  The principal balance of the note along with accrued interest is convertible after 180 days, at the option of the note holder, into the Company's common stock at a price of 55 percent of the current market price.  The current market price is defined as the average of the lowest three trading prices for the Common Stock during the ten day period on the latest complete trading day prior to the conversion date.
	During the nine months ended March 31, 2014 the Company issued 283,026 shares of common stock for conversion of debt in the amount of $32,500 which fully extinguished the debt.
	Pursuant to this conversion feature, the Company recognized a discount on convertible debt in the amount of $32,500 on the note date.  As of March 31, 2014 the Company had amortized $32,500 of the debt discount to interest expense, leaving $-0- in unamortized debt discount at March 31, 2014.
	The fair value of the conversion option of the convertible note of $46,796 has been recognized as a derivative liability on the date of issuance with all future changes in the fair value of these conversion options being recognized in earnings in the Company’s statement of operations under the caption “Other income (expense) – Gain (loss) on derivative liability” until such time as the note is converted or the conversion feature expires.
	The Company uses the Black-Scholes option pricing model to value the derivative liability and subsequent remeasurements.  Included in the model are the following assumptions: stock price of $0.55 to $0.005, exercise price of $0.3025 to $0.0002, dividend yield of zero, years to maturity of 0.74to 0.05, risk free rate of 0.14 to 0.01 percent, and annualized volatility of 247 to 350 percent.
	ASC 815 requires the Company to assess the fair market value of certain derivatives at each reporting period and recognize any change in the fair market value of the derivatives as gain (loss) on the income statements.   At December 31, 2013 the derivative liability was revalued at $-0-, which led to the Company recording a loss on derivative liability in the amount of $74,173.
	NOTE 6 – CONVERTIBLE NOTES PAYABLE (Continued)
	On February 1, 2013 the Company borrowed $43,581 from an unrelated third party entity in the form of a convertible note. The note bears interest at 10 percent per annum and is due on demand. The principal balance of the note along with accrued interest is convertible at the option of the note holder, into the Company's common stock at a price of 55 percent of the current market price.  The current market price is defined as the average of the lowest three trading prices for the Common Stock during the ten day period on the latest complete trading day prior to the conversion date.
	At March 31, 2014 the remaining note balance was $28,851.
	Pursuant to this conversion feature, the Company recognized a discount on convertible debt in the amount of $37,500 on the note date.  As of March 31, 2014 the Company had amortized $37,500 of the debt discount to interest expense, leaving $-0- in unamortized debt discount at March 31, 2014.
	The fair value of the conversion option of the convertible note of $44,256 has been recognized as a derivative liability at December 31, 2013 with all future changes in the fair value of these conversion options being recognized in earnings in the Company’s statement of operations under the caption “Other income (expense) – Gain (loss) on derivative liability” until such time as the note is converted or the conversion feature expires.
	The Company uses the Black-Scholes option pricing model to value the derivative liability and subsequent remeasurements.  Included in the model are the following assumptions: stock price of $.05, exercise price of $0.02, dividend yield of zero, years to maturity of 0.25, risk free rate of 0.07 percent, and annualized volatility of 496 percent.
	ASC 815 requires the Company to assess the fair market value of certain derivatives at each reporting period and recognize any change in the fair market value of the derivatives as gain (loss) on the income statements.   At December 31, 2013 the derivative liability was valued at $44,256, which led to the Company recording a loss on derivative liability in the amount of $44,256.
	On February 5, 2013 the Company borrowed $37,500 from an unrelated third party entity in the form of a convertible note. The note bears interest at 8 percent per annum with principal and interest due in full on November 7, 2013.  The principal balance of the note along with accrued interest is convertible after 180 days, at the option of the note holder, into the Company's common stock at a price of 55 percent of the current market price.  The current market price is defined as the average of the lowest three trading prices for the Common Stock during the ten day period on the latest complete trading day prior to the conversion date.
	On November 8, 2013 the Company became delinquent on the note and pursuant to the note agreement the Company incurred a penalty of $16,300 (150% of the outstanding principal balance).
	During the nine months ended March 31, 2014 the Company issued 269,164 shares of common stock for conversion of debt in the amount of $39,800 leaving a remaining note balance of $14,000 at March 31, 2014.
	Pursuant to this conversion feature, the Company recognized a discount on convertible debt in the amount of $37,500 on the note date.  As of March 31, 2014 the Company had amortized $37,500 of the debt discount to interest expense, leaving $-0- in unamortized debt discount at March 31, 2014.
	The fair value of the conversion option of the convertible note of $132,450 has been recognized as a derivative liability on the date of issuance with all future changes in the fair value of these conversion options being recognized in earnings in the Company’s statement of operations under the caption “Other income (expense) – Gain (loss) on derivative liability” until such time as the note is converted or the conversion feature expires.
	NOTE 6 – CONVERTIBLE NOTES PAYABLE (Continued)
	The Company uses the Black-Scholes option pricing model to value the derivative liability and subsequent remeasurements.  Included in the model are the following assumptions: stock price of $0.68 to $0.0003, exercise price of $0.1925 to $0.0001, dividend yield of zero, years to maturity of 0.75 to 0.10, risk free rate of 0.13 to 0.03 percent, and annualized volatility of 842.72 to 312.36 percent.
	ASC 815 requires the Company to assess the fair market value of certain derivatives at each reporting period and recognize any change in the fair market value of the derivatives as gain (loss) on the income statements.   At March 31, 2014 the derivative liability was revalued at $4,529, which led to the Company recording a gain on derivative liability in the amount of $543.
	On March 27, 2013 the Company borrowed $25,000 from an unrelated third party entity in the form of a convertible note. Pursuant to the note agreement the Company was charged a 10% original issue discount of $2,500. The note bears no interest for the first Three months. If the Company does not repay the note on or before 90 days from the effective date, a one-time interest charge of 12% shall be applied to the Principle sum of the note. Principal and interest on the note are due in full on March 27, 2014. The principal balance of the note along with accrued interest is convertible at any time at the option of the note holder, into the Company's common stock at a price of the lessor of, $0.09, or 60 percent of the lowest trading price for the Common Stock during the twenty five day period on the latest complete trading day prior to the conversion date.
	Pursuant to this conversion feature, the Company recognized a discount on convertible debt in the amount of $25,000 on the note date.  As of March 31, 2014 the Company had amortized $25,000 of the debt discount to interest expense, leaving $-0- in unamortized debt discount at March 31, 2014.
	The fair value of the conversion option of the convertible note of $36,222 has been recognized as a derivative liability on the date of issuance with all future changes in the fair value of these conversion options being recognized in earnings in the Company’s statement of operations under the caption “Other income (expense) – Gain (loss) on derivative liability” until such time as the note is converted or the conversion feature expires.
	The Company uses the Black-Scholes option pricing model to value the derivative liability and subsequent remeasurements.  Included in the model are the following assumptions: stock price of $0.9 to $0.0003, exercise price of $0.054 to $0.0002, dividend yield of zero, years to maturity of 1 to 0.24, risk free rate of 0.14 to 0.07 percent, and annualized volatility of 274 to 558 percent.
	ASC 815 requires the Company to assess the fair market value of certain derivatives at each reporting period and recognize any change in the fair market value of the derivatives as gain (loss) on the income statements.   At March 31, 2014 the derivative liability was revalued at $82,510, which led to the Company recording a loss on derivative liability in the amount of $40,952.
	During the nine months ended March 31, 2014 the Company issued 214,000 shares of common stock for conversion of debt in the amount of $10,700 leaving a remaining note balance of $14,300 at March 31, 2014.
	On May 1, 2013 the Company entered into a convertible note agreement to borrow $9,500. Pursuant to the agreement, the agreement was consummated on May 2, 2013 upon the Company’s receipt of $-0- cash proceeds and $9,500 of which was for professional fees. The note bears interest at 8 percent per annum with principal and interest due in full on February 3, 2014.  The principal balance of the note along with accrued interest is convertible after 180 days, at the option of the note holder, into the Company's common stock at a price of 55 percent of the current market price.  The current market price is defined as the average of the lowest three trading prices for the Common Stock during the ten day period on the latest complete trading day prior to the conversion date.
	Pursuant to this conversion feature, the Company recognized a discount on convertible debt in the amount of $633 on the note date.  As of March 31, 2014 the Company had amortized $633 of the debt discount to interest expense, leaving $-0- in unamortized debt discount at March 31, 2014.
	NOTE 6 – CONVERTIBLE NOTES PAYABLE (Continued)
	The fair value of the conversion option of the convertible note of $633 has been recognized as a derivative liability on the date of issuance with all future changes in the fair value of these conversion options being recognized in earnings in the Company’s statement of operations under the caption “Other income (expense) – Gain (loss) on derivative liability” until such time as the note is converted or the conversion feature expires.
	The Company uses the Black-Scholes option pricing model to value the derivative liability and subsequent remeasurements.  Included in the model are the following assumptions: stock price of $0.035 to $0.0003, exercise price of $0.3025 to $0.0001, dividend yield of zero, years to maturity of 0.76to 0.35, risk free rate of 0.1 to 003 percent, and annualized volatility of 311 to 486 percent.
	ASC 815 requires the Company to assess the fair market value of certain derivatives at each reporting period and recognize any change in the fair market value of the derivatives as gain (loss) on the income statements.   At March 31, 2014 the derivative liability was revalued at $13,820, which led to the Company recording a loss on derivative liability in the amount of $6,930.
	During the nine months ended March 31, 2014 the Company issued 287,273 shares of common stock for conversion of debt in the amount of $1,580 leaving a remaining note balance of $7,920 at March 31, 2014.
	On May 24, 2013 the Company entered into a convertible note agreement. Pursuant to the agreement, the agreement was consummated on June 3, 2013 upon the Company’s receipt of $32,830 cash proceeds and $14,670 of which was for professional fees. The note bears interest at 8 percent per annum with principal and interest due in full on February 28, 2014.  The principal balance of the note along with accrued interest is convertible after 180 days, at the option of the note holder, into the Company's common stock at a price of 55 percent of the current market price.  The current market price is defined as the average of the lowest three trading prices for the Common Stock during the ten day period on the latest complete trading day prior to the conversion date.
	Pursuant to this conversion feature, the Company recognized a discount on convertible debt in the amount of $47,500 on the note date.  As of March 31, 2014 the Company had amortized $47,500 of the debt discount to interest expense, leaving $-0- in unamortized debt discount at March 31, 2014.
	The fair value of the conversion option of the convertible note of $120,160 has been recognized as a derivative liability on the date of issuance with all future changes in the fair value of these conversion options being recognized in earnings in the Company’s statement of operations under the caption “Other income (expense) – Gain (loss) on derivative liability” until such time as the note is converted or the conversion feature expires.
	The Company uses the Black-Scholes option pricing model to value the derivative liability and subsequent remeasurements.  Included in the model are the following assumptions: stock price of $0299 to $0.0003, exercise price of $0.011 to $0.0001, dividend yield of zero, years to maturity of 0.74 to 0.41, risk free rate of 0.10 to 0.03 percent, and annualized volatility of 363 to 502 percent.
	ASC 815 requires the Company to assess the fair market value of certain derivatives at each reporting period and recognize any change in the fair market value of the derivatives as gain (loss) on the income statements.  At March 31, 2014 the derivative liability was revalued at $82,884, which led to the Company recording a loss on derivative liability in the amount of $30,656.
	On July 26, 2013 the Company entered into a convertible note agreement to borrow $37,500. Pursuant to the agreement, the Company received cash proceeds of $24,700 and $12,800 of which was for professional fees. The note bears interest at 8 percent per annum with principal and interest due in full on April 30, 2014.  The principal balance of the note along with accrued interest is convertible after 180 days, at the option of the note holder, into the Company's common stock at a price of 55 percent of the current market price.  The current market price is defined as the average of the lowest three trading prices for the Common Stock during the ten day period on the latest complete trading day prior to the conversion date.
	NOTE 6 – CONVERTIBLE NOTES PAYABLE (Continued)
	Pursuant to this conversion feature, the Company recognized a discount on convertible debt in the amount of $37,500 on the note date.  As of March 31, 2014 the Company had amortized $33,453 of the debt discount to interest expense, leaving $4,047 in unamortized debt discount at March 31, 2014.
	The fair value of the conversion option of the convertible note of $47,860 has been recognized as a derivative liability on the date of issuance with all future changes in the fair value of these conversion options being recognized in earnings in the Company’s statement of operations under the caption “Other income (expense) – Gain (loss) on derivative liability” until such time as the note is converted or the conversion feature expires.
	The Company uses the Black-Scholes option pricing model to value the derivative liability and subsequent remeasurements.  Included in the model are the following assumptions: stock price of $0.0011 to $0.0003, exercise price of $0.0008 to $0.0001, dividend yield of zero, years to maturity of 0.76 to 0.58, risk free rate of 0.10 to 0.04 percent, and annualized volatility of 407 to 463 percent.
	ASC 815 requires the Company to assess the fair market value of certain derivatives at each reporting period and recognize any change in the fair market value of the derivatives as gain (loss) on the income statements. At March 31, 2014 the derivative liability was revalued at $37,014, which led to the Company recording a gain on derivative liability in the amount of $21,948.
	On October 4, 2013 the Company entered into a convertible note agreement to borrow $14,500. Pursuant to the agreement, the Company received no cash and $14,500 which was for professional fees. The note bears interest at 8 percent per annum with principal and interest due in full on July 8, 2014.  The principal balance of the note along with accrued interest is convertible after 180 days, at the option of the note holder, into the Company's common stock at a price of 55 percent of the current market price.  The current market price is defined as the average of the lowest three trading prices for the Common Stock during the ten day period on the latest complete trading day prior to the conversion date.
	Pursuant to this conversion feature, the Company recognized a discount on convertible debt in the amount of $14,500 on the note date.  As of March 31, 2014 the Company had amortized $9,317 of the debt discount to interest expense, leaving $5,183 in unamortized debt discount at March 31, 2014.
	The fair value of the conversion option of the convertible note of $14,500 has been recognized as a derivative liability on the date of issuance with all future changes in the fair value of these conversion options being recognized in earnings in the Company’s statement of operations under the caption “Other income (expense) – Gain (loss) on derivative liability” until such time as the note is converted or the conversion feature expires.
	The Company uses the Black-Scholes option pricing model to value the derivative liability and subsequent remeasurements.  Included in the model are the following assumptions: stock price of $0.15 to $0.05, exercise price of $0.45 to $0.0275, dividend yield of zero, years to maturity of 0.76 to 0.52, risk free rate of 0.11 to 0.13 percent, and annualized volatility of 473 to 503 percent.
ASC 815 requires the Company to assess the fair market value of certain derivatives at each reporting period and recognize any change in the fair market value of the derivatives as gain (loss) on the income statements. At March 31, 2014 the derivative liability was revalued at $22,744, which led to the Company recording a gain on derivative liability in the amount of $2,269.
On November 13, 2013 the Company entered into a convertible note agreement to borrow $6,500. Pursuant to the agreement, the Company received no cash and $6,500 which was for professional fees. The note bears interest at 8 percent per annum with principal and interest due in full on August 15, 2014.  The principal balance of the note along with accrued interest is convertible after 180 days, at the option of the note holder, into the Company's common stock at a price of 31 percent of the current market price.  The current market price is defined as the average of the lowest three trading prices for the Common Stock during the ten day period on the latest complete trading day prior to the conversion date.
NOTE 6 – CONVERTIBLE NOTES PAYABLE (Continued)
Pursuant to this conversion feature, the Company recognized a discount on convertible debt in the amount of 6,500 on the note date.  As of March 31, 2014 the Company had amortized $3,262 of the debt discount to interest expense, leaving $3,238 in unamortized debt discount at March 31, 2014.
The fair value of the conversion option of the convertible note of $6,500 has been recognized as a derivative liability on the date of issuance with all future changes in the fair value of these conversion options being recognized in earnings in the Company’s statement of operations under the caption “Other income (expense) – Gain (loss) on derivative liability” until such time as the note is converted or the conversion feature expires.
The Company uses the Black-Scholes option pricing model to value the derivative liability and subsequent remeasurements.  Included in the model are the following assumptions: stock price of $0.2 to $0.05, exercise price of $0.015 to $0.0155, dividend yield of zero, years to maturity of 0.75 to 0.62, risk free rate of 0.11 to 0.13 percent, and annualized volatility of 494 to 505 percent.
ASC 815 requires the Company to assess the fair market value of certain derivatives at each reporting period and recognize any change in the fair market value of the derivatives as gain (loss) on the income statements. At March 31, 2014 the derivative liability was revalued at $19,301, which led to the Company recording a gain on derivative liability in the amount of $1,144.
On January 17, 2014 the Company entered into a convertible note agreement to borrow $37,500. Pursuant to the agreement, the Company received $18,500 cash and $19,000 which was for professional fees. The note bears interest at 8 percent per annum with principal and interest due in full on October 22, 2014.  The principal balance of the note along with accrued interest is convertible after 180 days, at the option of the note holder, into the Company's common stock at a price of 31 percent of the current market price.  The current market price is defined as the average of the lowest three trading prices for the Common Stock during the ten day period on the latest complete trading day prior to the conversion date.
Pursuant to this conversion feature, the Company recognized a discount on convertible debt in the amount of $37,500 on the note date.  As of March 31, 2014 the Company had amortized $9,847 of the debt discount to interest expense, leaving $27,653 in unamortized debt discount at March 31, 2014.
The fair value of the conversion option of the convertible note of $118,360 has been recognized as a derivative liability on the date of issuance with all future changes in the fair value of these conversion options being recognized in earnings in the Company’s statement of operations under the caption “Other income (expense) – Gain (loss) on derivative liability” until such time as the note is converted or the conversion feature expires.
The Company uses the Black-Scholes option pricing model to value the derivative liability and subsequent remeasurements.  Included in the model are the following assumptions: stock price of $0.15 to $0.05, exercise price of $0.45 to $0.0275, dividend yield of zero, years to maturity of 0.76 to 0.52, risk free rate of 0.11 to 0.13 percent, and annualized volatility of 470 to 487 percent.
ASC 815 requires the Company to assess the fair market value of certain derivatives at each reporting period and recognize any change in the fair market value of the derivatives as gain (loss) on the income statements. At March 31, 2014 the derivative liability was revalued at $117,881, which led to the Company recording a gain on derivative liability in the amount of $479.
NOTE 6 – CONVERTIBLE NOTES PAYABLE (Continued)
On November 1, 2013 the Company borrowed $5,000 in the form of a convertible note payable. The note bears no interest and is due on demand. The note is convertible into shares of the Company’s common stock at a conversion price of $.00001. The Company analyzed the convertible debt for a beneficial conversion feature under ASC 470-20 on the date of the note and determined that a beneficial conversion feature exists. The intrinsic value of the beneficial conversion feature was determined to be $5,000 and was recorded as debt discount. During the nine months ended March 31, 2014, debt discount of $5,000 was amortized, leaving $-0- of unamortized debt discount at March 31, 2014.
On November 8, 2013 the Company borrowed $12,000 in the form of a convertible note payable. The note bears no interest and is due on demand. The note is convertible into shares of the Company’s common stock at a conversion price of $.00001. The Company analyzed the convertible debt for a beneficial conversion feature under ASC 470-20 on the date of the note and determined that a beneficial conversion feature exists. The intrinsic value of the beneficial conversion feature was determined to be $12,000 and was recorded as debt discount. During the nine months ended March 31, 2014, debt discount of $12,000 was amortized, leaving $-0- of unamortized debt discount at March 31, 2014.
On November 18, 2013 the Company borrowed $5,000 in the form of a convertible note payable. The note bears no interest and is due on demand. The note is convertible into shares of the Company’s common stock at a conversion price of $.00001. The Company analyzed the convertible debt for a beneficial conversion feature under ASC 470-20 on the date of the note and determined that a beneficial conversion feature exists. The intrinsic value of the beneficial conversion feature was determined to be $5,000 and was recorded as debt discount. During the nine months ended March 31, 2014, debt discount of $5,000 was amortized, leaving $-0- of unamortized debt discount at March 31, 2014.
On March 5, 2014 the Company borrowed $1,000 in the form of a convertible note payable. The note bears no interest and is due on demand. The note is convertible into shares of the Company’s common stock at a conversion price of $.00001. The Company analyzed the convertible debt for a beneficial conversion feature under ASC 470-20 on the date of the note and determined that a beneficial conversion feature exists. The intrinsic value of the beneficial conversion feature was determined to be $1,000 and was recorded as debt discount. During the nine months ended March 31, 2014, debt discount of $1,000 was amortized, leaving $-0- of unamortized debt discount at March 31, 2014.
On March 24, 2014 the Company borrowed $2,500 in the form of a convertible note payable. The note bears no interest and is due on demand. The note is convertible into shares of the Company’s common stock at a conversion price of $.00001. The Company analyzed the convertible debt for a beneficial conversion feature under ASC 470-20 on the date of the note and determined that a beneficial conversion feature exists. The intrinsic value of the beneficial conversion feature was determined to be $2,500 and was recorded as debt discount. During the nine months ended March 31, 2014, debt discount of $48 was amortized, leaving $2,452 of unamortized debt discount at March 31, 2014.

Note_7_Stockholders_Deficit

Note 7 - Stockholders' Deficit	3 Months Ended
	Mar. 31, 2014
Notes	'
Note 7 - Stockholders' Deficit	'
	NOTE 7 – STOCKHOLDERS’ DEFICIT
	On December 2, 2011 the Company issued 100,000 shares of Series A preferred stock to two unrelated entities for cash at $0.10 per share in exchange for $3,500 and $6,500 in professional fees paid on behalf of the Company by the recipient of the shares.  According to the terms of the preferred stock, each share of Series A preferred stock is convertible into shares of the Company’s common stock at a conversion ratio of one hundred (100) shares of common stock for every one (1) shares of preferred stock.  The Company’s Series A preferred stock is not entitled to receive any dividends, has no liquidation rights, and is not entitled to any voting rights.
	During the year ended June 2013 17,600 shares of Series A preferred stock were converted into 3,520 shares of common stock.
	NOTE 7 – STOCKHOLDERS’ DEFICIT (continued)
	During the nine months ended March 31, 2014 the Company issued an aggregate of 1,809,519 shares of common stock to various entities upon conversion of various debts.  The common stock was valued at the value of the debt converted, in cases in which no derivative liability was associated with the converted debt, or at the fair market value of the shares issued in cases in which derivative liabilities were associated with the converted debt. The total value of common stock issued upon conversion of debt was $283,973.
	On November 1, 2013, the Company approved a 1 for 500 reverse stock split of the Company’s common stock. All references to share and per share amounts in the consolidated financial statements and accompanying notes to the consolidated financial statements have been retroactively restated to reflect the stock split.

Note_8_Segment_Disclosures

Note 8 - Segment Disclosures	3 Months Ended
	Mar. 31, 2014
Notes	'
Note 8 - Segment Disclosures	'
	NOTE 8 – SEGMENT DISCLOSURES
	Operating segments are defined as components of an enterprise about which separate and discreet financial information is available and is evaluated regularly by the chief operating decision-maker in assessing performance and determining how to best allocate Company resources. The Company’s chief operating decision makers direct the allocation of resources to operating segments based on the profitability and cash flows of each respective segment.
	The Company has two principal operating segments: (1) printing services, and (2) media development. These operating segments were delineated based on the nature of the products and services offered.
	The Company has determined that there are two reportable segments: (1) printing services and (2) media development and distribution.  The Company evaluates the financial performance of the respective segments based on several factors, of which the primary measure is business segment income before taxes. The following tables show the operations of the Company’s reportable segments for the nine months ended March 31, 2014 and 2013:
						Printing			Media Development
			Services				and Distribution			Consolidated
	March 31, 2014
	Revenues		$	19,716			$	45,379		$	65,095
	Cost of revenues			-				16,873			16,873
	Operating expenses			35,453				312,024			347,477
	Other income (expense)			-				(441,092)			(441,092)
	Net income (loss)		$	(15,737)			$	(724,610)		$	(740,347)
	Total assets		$	1,865			$	16,146		$	18,011
		Printing			Media Development
		Services			and Distribution		Consolidated
	March 31, 2013
	Revenues	$	67,411		$	126,876	$	194,287
	Cost of revenues		57,611			14,961		72,572
	Operating expenses		86,553			304,861		391,414
	Other income (expense)		2,669			-156,990		-154,321
	Net income (loss)	$	-74,248		$	-349,772	$	-424,020
	Total assets	$	4,778		$	27,892	$	32,670

Note_9_Fair_Value_Measurements

Note 9 - Fair Value Measurements and Derivative Liability

3 Months Ended

Mar. 31, 2014

Notes

'

Note 9 - Fair Value Measurements and Derivative Liability

'

NOTE 9 – FAIR VALUE MEASUREMENTS AND DERIVATIVE LIABILITY

The Company evaluates all of it financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income. For option-based derivative financial instruments, the Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date.

Under ASC-815 the conversion options embedded in the notes payable described in Note 6 require liability classification because they do not contain an explicit limit to the number of shares that could be issued upon settlement.

During the nine months ended March 31, 2014, certain notes payable were converted resulting in settlement of the related derivative liabilities.  The Company re-measured the embedded conversion options at fair value on the date of settlement and recorded these amounts to additional paid-in capital.

During the nine months ended March 31, 2014, the Company issued additional convertible notes.  The conversion options and warrants were classified as derivative liabilities at their fair value on the date of issuance.

As defined in FASB ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilized the market data of similar entities in its industry or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. FASB ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement).

The three levels of the fair value hierarchy are as follows:

Level 1    –

Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities.

Level 2     -

Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date.

Level 3     –

Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.

The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value as March 31, 2014.

Recurring Fair Value Measures

Level 1

Level 2

Level 3

Total

LIABILITIES:

Derivative liabilities, March 31, 2014

$

-

$

-

$

440,350

$

440,350

Note_10_Subsequent_Events

Note 10 - Subsequent Events	3 Months Ended
	Mar. 31, 2014
Notes	'
Note 10 - Subsequent Events	'
	NOTE 10 – SUBSEQUENT EVENTS
	The Company has evaluated subsequent events in accordance with ASC 855 and has not identified any reportable subsequent events.

Note_3_Significant_Accounting_1

Note 3 - Significant Accounting Policies: Use of Estimates (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with generally accepted accounting principles 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 revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Note_3_Significant_Accounting_2

Note 3 - Significant Accounting Policies: Recent Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	Management has considered all recent accounting pronouncements issued since the last audit of its financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

Note_3_Significant_Accounting_3

Note 3 - Significant Accounting Policies: Basic (loss) Per Common Share (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Basic (loss) Per Common Share	'
	Basic (Loss) per Common Share
	Basic loss per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are 54,964,247 common stock equivalents outstanding as of March 31, 2014.