Convertible Notes Payable | Note 5. Convertible Notes Payable Convertible notes payable consist of the following at December 31, 2015 and June 30, 2015: December 31, 2015 June 30, 2015 Convertible note dated September 30, 2014, bearing interest at 10% per annum, maturing on September 30, 2016 and convertible into shares of common stock at $0.50 per share $ 152,390 $ 152,390 Convertible note dated December 31, 2014, bearing interest at 10% per annum, maturing on December 31, 2016 and convertible into shares of common stock at $0.41 per share 108,259 108,259 Convertible note dated March 31, 2015, bearing interest at 10% per annum, maturing on March 31, 2017 and convertible into shares of common stock at $0.09 per share 49,659 49,659 Convertible note dated June 30, 2015, bearing interest at 10% per annum, maturing on June 30, 2017 and convertible into shares of common stock at $0.09 per share. 92,499 92,499 Convertible note dated September 30, 2015, bearing interest at 10% per annum, maturing on September 30, 2018 and convertible into shares of common stock at $0.03 per share. 216,621 Convertible note dated December 31, 2015, bearing interest at 10% per annum, maturing on December 31, 2018 and convertible into shares of common stock at $0.02 per share. 91,465 Total convertible notes payable $ 710,893 $ 402,807 Less: discount on convertible notes payable (654,352 ) (383,083 ) Less: current portion of convertible notes payable (40,627 ) Convertible notes payable, net of discount $ 15,914 $ 19,724 Advances Refinanced into Convertible Promissory Notes During the three months ended December 31, 2015, the Company has signed Convertible Promissory Notes that refinance non-interest bearing advances into convertible notes payable. The Convertible Promissory Notes bear interest at 10% per annum and are payable along with accrued interest. The Convertible Promissory Note and unpaid accrued interest are convertible into common stock at the option of the holder. Date Issued Maturity Date Interest Rate Conversion Rate Amount of Note Beneficial Conversion Feature September 30, 2015 September 30, 2018 10% $ 0.03 $ 216,621 $ 216,621 January 4, 2016 December 31, 2018 10% $ 0.02 $ 91,465 $ 91,465 Total $ 308,086 $ 308,086 The Company evaluated the application of ASC 470-50-40/55 , Debtors Accounting for a Modification or Exchange of Debt Instrument The Company evaluated the terms of the new note in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entitys Own Stock |