Annual report pursuant to Section 13 and 15(d)

Convertible Note Receivable - Related Party

v3.7.0.1
Convertible Note Receivable - Related Party
 12 Months Ended
Jun. 30, 2017
Receivables [Abstract]  
Convertible Note Receivable - Related Party

NOTE 6 – CONVERTIBLE NOTE RECEIVABLE – RELATED PARTY

 

The Company entered into an agreement with WRLD3D, whereby the Company was issued a Convertible Promissory Note (the “Convertible Note”) which was fully executed on May 25, 2017. The maximum principal amount of the Convertible Note is $750,000, and as of June 30, 2017, the Company had disbursed $200,000. The Convertible Note bears interest at 5% per annum and all unpaid interest and principal is due and payable upon the Company’s request on or after February 1, 2018. The Convertible Note is convertible into Series BB Preferred shares at the lesser of (i) the price paid per share for the equity security by the investors in the qualified financing and (ii) $0.6788 per share (adjusted for any stock dividends, combinations, splits, recapitalizations or the like with respect to WRLD3D’s Series BB Preferred Stock after the date of the Convertible Note). The Convertible Note is convertible upon the occurrence of the following events:

 

  1. Conversion upon a qualified financing which is an equity financing of at least $2,000,000.
  2. Optional conversion upon an equity financing less than $2,000,000.
  3. Optional conversion after the maturity date.
  4. Change of control.

 

Subsequent to June 30, 2017, the Company loaned an additional $500,000 to WRLD3D pursuant to the Convertible Promissory Note agreement. (See Note 21).