Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Mar. 31, 2023 | Feb. 13, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | GALAXY NEXT GENERATION, INC. | |
Trading Symbol | N/A | |
Document Type | 10-Q/A | |
Current Fiscal Year End Date | --06-30 | |
Entity Common Stock, Shares Outstanding | 69,872,693 | |
Amendment Flag | true | |
Amendment Description | The Amendment no. 1 to Form 10-Q is being file to include the iXBRL Interactive Table Exhibits; no other changes in the document. | |
Entity Central Index Key | 0001127993 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-56006 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 61-1363026 | |
Entity Address, Address Line One | 285 N Big A Road | |
Entity Address, City or Town | Toccoa | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30577 | |
City Area Code | (706) | |
Local Phone Number | 391-5030 | |
Title of 12(b) Security | N/A | |
Security Exchange Name | NONE | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Current Assets | ||
Cash | $ 170,096 | $ 300,899 |
Accounts receivable, net | 638,440 | 452,643 |
Inventories, net | 486,568 | 1,002,108 |
Other current assets | 3,950 | 3,950 |
Total Current Assets | 1,299,054 | 1,759,600 |
Property and Equipment, net (Note 2) | 318,694 | 348,869 |
Intangibles, net (Note 1) | 1,137,821 | 1,443,191 |
Goodwill (Note 1) | 834,220 | 834,220 |
Operating right of use asset (Note 7) | 129,758 | 179,512 |
Total Assets | 3,719,547 | 4,565,392 |
Current Liabilities | ||
Line of credit (Note 3) | 332,281 | |
Derivative liability, convertible debt features (Note 5) | 12,189 | |
Current portion long term notes payable (Note 4) | 3,795,339 | 2,815,231 |
Accounts payable | 883,078 | 737,948 |
Accrued expenses | 1,563,428 | 993,371 |
Deferred revenue | 175,436 | 175,436 |
Short term portion of related party notes and payables (Note 6) | 105,876 | 1,238,755 |
Total Current Liabilities | 6,867,627 | 5,960,741 |
Noncurrent Liabilities | ||
Related party notes payable, less current portion (Note 6) | 2,379,702 | 586,862 |
Notes payable, less current portion (Note 4) | 382,144 | 248,978 |
Total Liabilities | 9,629,473 | 6,796,581 |
Stockholders' Deficit | ||
Common stock | 330,873 | 321,134 |
Preferred stock – Series G, non-redeemable | ||
Preferred stock - Series F, subject to redemption | 10 | 11 |
Additional paid-in-capital | 53,901,728 | 51,629,750 |
Accumulated deficit | (60,142,537) | (54,182,084) |
Total Stockholders' Deficit | (5,909,926) | (2,231,189) |
Total Liabilities and Stockholders' Deficit | $ 3,719,547 | $ 4,565,392 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 657,235 | $ 1,268,447 | $ 1,705,319 | $ 3,857,273 |
Cost of Sales | 772,238 | 1,015,843 | 1,373,739 | 2,882,705 |
Gross Profit | (115,003) | 252,604 | 331,580 | 974,568 |
General and Administrative Expenses | ||||
Stock compensation and stock issued for services | 78,102 | 238,128 | 110,852 | |
Impairment expense | 46,869 | |||
General and administrative | 667,185 | 1,126,705 | 3,610,456 | 3,627,953 |
Total General and Administrative Expenses | 667,185 | 1,204,807 | 3,848,548 | 3,785,674 |
Loss from Operations | (782,188) | (952,203) | (3,517,004) | (2,811,106) |
Other Income (Expense) | ||||
Other income | 504 | 2,000 | 3,304 | 7,878 |
Expenses related to convertible notes payable: | ||||
Change in fair value of derivative liability | 61,553 | (12,189) | 1,842,000 | |
Interest accretion | (153,515) | (25,370) | (389,628) | (49,660) |
Interest expense related to Equity Purchase Agreement (Note 11) | (2,143,500) | |||
Interest expense | (606,740) | (101,766) | (2,044,936) | (724,129) |
Total Other Income (Expense) | (698,198) | (125,136) | (2,443,449) | (1,067,411) |
Net Loss before Income Taxes | (1,480,386) | (1,077,339) | (5,960,453) | (3,878,517) |
Income taxes (Note 9) | ||||
Net Loss | $ (1,480,386) | $ (1,077,339) | $ (5,960,453) | $ (3,878,517) |
Net Basic and Fully Diluted Loss Per Share (in Dollars per share) | $ (0.0693) | $ (0.0636) | $ (0.2791) | $ (0.2325) |
Weighted average common shares outstanding | ||||
Basic (in Shares) | 21,353,550 | 16,939,276 | 21,353,550 | 16,679,847 |
Fully diluted (in Shares) | 22,953,550 | 16,945,205 | 22,953,550 | 16,683,828 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||||
Net Basic and Fully Diluted Loss Per Share | $ (0.1280) | $ (0.2128) | $ (0.1931) | $ (0.1741) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Deficit (Unaudited) - USD ($) | Series G Preferred Stock | Series F Preferred Stock | Series E Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total | ||
Balance at Jun. 30, 2021 | $ 50 | $ 280,744 | [1] | $ 46,215,049 | $ (47,931,128) | $ (1,435,285) | |||
Balance (in Shares) at Jun. 30, 2021 | 500,000 | 15,699,414 | [1] | ||||||
Common stock issued for services | $ 1,470 | [1] | 109,382 | 110,852 | |||||
Common stock issued for services (in Shares) | [1] | 73,517 | |||||||
Commitment shares issued | $ 6,250 | [1] | 350,000 | 356,250 | |||||
Commitment shares issued (in Shares) | [1] | 312,500 | |||||||
Common Stock Cancelled | [1] | ||||||||
Common Stock Cancelled (in Shares) | [1] | (241,303) | |||||||
Common stock issued under Equity Purchase Agreement | $ 32,500 | [1] | 2,611,000 | 2,643,500 | |||||
Common stock issued under Equity Purchase Agreement (in Shares) | [1] | 1,625,000 | |||||||
Preferred Series F issued in exchange for debt | $ 11 | [1] | 1,824,989 | 1,825,000 | |||||
Preferred Series F issued in exchange for debt (in Shares) | 11,414 | [1] | |||||||
Retirement of Preferred Series E | $ (50) | [1] | (50) | ||||||
Retirement of Preferred Series E (in Shares) | (500,000) | [1] | |||||||
Consolidated net loss | (3,878,517) | (3,878,517) | |||||||
Balance at Mar. 31, 2022 | $ 11 | $ 320,964 | [1] | 51,110,420 | (51,809,645) | (378,250) | |||
Balance (in Shares) at Mar. 31, 2022 | 11,414 | 17,469,128 | [1] | ||||||
Balance at Jun. 30, 2022 | $ 11 | $ 321,134 | 51,629,750 | (54,182,084) | (2,231,189) | ||||
Balance (in Shares) at Jun. 30, 2022 | 51 | 11,414 | 19,169,128 | ||||||
Common stock issued for services | $ 307 | 237,821 | 238,128 | ||||||
Common stock issued for services (in Shares) | 3,070,922 | ||||||||
Commitment shares issued | $ 280 | 202,170 | 202,450 | ||||||
Commitment shares issued (in Shares) | 2,800,000 | ||||||||
Common stock issued for charitable donation | $ 535 | 96,965 | 97,500 | ||||||
Common stock issued for charitable donation (in Shares) | 5,350,000 | ||||||||
Common stock issued for debt reduction | $ 5,320 | 627,472 | 632,792 | ||||||
Common stock issued for debt reduction (in Shares) | 53,206,652 | ||||||||
Common stock issued to convert Preferred Stock Series F | $ (1) | $ 2,354 | 449,624 | 451,977 | |||||
Common stock issued to convert Preferred Stock Series F (in Shares) | (8,710) | 23,540,539 | |||||||
Fair value of warrants issued | 492,434 | 492,434 | |||||||
Return of common stock | |||||||||
Return of common stock (in Shares) | (36,500) | ||||||||
Common stock issued under Equity Purchase Agreement | $ 942 | 165,492 | 166,434 | ||||||
Common stock issued under Equity Purchase Agreement (in Shares) | 429,130 | ||||||||
Consolidated net loss | (5,960,453) | (5,960,453) | |||||||
Balance at Mar. 31, 2023 | $ 10 | $ 330,873 | $ 53,901,728 | $ (60,142,537) | $ (5,909,926) | ||||
Balance (in Shares) at Mar. 31, 2023 | 51 | 2,704 | 116,529,871 | ||||||
[1]All share amounts, including those in the accompanying notes, have been adjusted to reflect a 1:200 reverse split effective March 7, 2022. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities | ||
Net loss | $ (5,960,453) | $ (3,878,517) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 543,790 | 387,421 |
Amortization of debt discounts | 333,592 | 49,660 |
Impairment expense | 46,869 | |
Change in fair value of derivative liability | 12,189 | (1,842,000) |
Fair value of warrants | ||
Stock issued to reduce debt | 1,093,223 | |
Changes in assets and liabilities: | ||
Accounts receivable | (185,797) | 206,990 |
Inventories | 515,540 | 2,320,680 |
Intangibles | (48,894) | |
Right of use assets | 49,222 | |
Accounts payable | 145,130 | (203,221) |
Accrued expenses | 570,057 | 610,016 |
Deferred revenue | (453,862) | |
Net cash used in operating activities | (2,932,729) | (2,755,636) |
Cash Flows from Investing Activities | ||
Purchases of capitalized development costs | (208,245) | (363,319) |
Purchases of property and equipment | (194,326) | |
Net cash used in investing activities | (208,245) | (557,645) |
Cash Flows from Financing Activities | ||
Principal payments on financing lease obligations | 49,754 | |
Proceeds from notes payable | 1,255,935 | 500,000 |
Principal payments on notes payable | (284,685) | (217,546) |
Proceeds (payments) on notes and advances from stockholders, net | (37,170) | (74,026) |
Proceeds from convertible notes payable | 1,075,000 | |
Proceeds (payments) on line of credit, net | 332,281 | (991,598) |
Proceeds from sale of common stock under Equity Purchase Agreement | 842,000 | 1,633,700 |
Net cash provided by financing activities | 2,158,115 | 1,925,530 |
Net Decrease in Cash | (982,859) | (1,387,751) |
Cash, Beginning of Period | 300,899 | 541,591 |
Cash, End of Period | (681,960) | (846,160) |
Supplemental and Non Cash Disclosures | ||
Stock issued under Equity Purchase Agreement | 167,378 | 2,676,000 |
Stock issued for services and donated | 335,434 | (1,350,217) |
Legal fees netted from loan proceeds | 56,233 | 78,750 |
Cash paid for interest | 78 | 54,756 |
Stock issued to reduce notes payable | 627,958 | |
Interest on shares issued under Equity Purchase Agreement | 2,143,500 | |
Stock issued for services | 238,128 | 110,852 |
Property leased with financing lease | 97,253 | |
Change in fair value of derivatives | 1,842,000 | |
Preferred stock issued in exchange for debt reduction | 1,825,000 | |
Stock issued to convert Preferred Series F | $ 451,977 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 – Summary of Significant Accounting Policies Corporate History, Nature of Business, Mergers and Acquisitions Galaxy Next Generation LTD CO. ("Galaxy CO") was organized in the state of Georgia in February 2017 while R&G Sales, Inc. ("R&G") was organized in the state of Georgia in August 2004. Galaxy CO merged with R&G ("common controlled merger") on March 16, 2018, with R&G becoming the surviving company. R&G subsequently changed its name to Galaxy Next Generation, Inc. ("Private Galaxy"). FullCircle Registry, Inc., ("FLCR") is a holding company created for the purpose of acquiring small profitable businesses to provide exit plans for those company's owners. FLCR's subsidiary, FullCircle Entertainment, Inc. ("Entertainment" or "FLCE"), owned and operated Georgetown 14 Cinemas, a fourteen-theater movie complex located in Indianapolis, Indiana. On June 22, 2018, Private Galaxy consummated a reverse triangular merger whereby Private Galaxy merged with and into FLCR by the stockholders of Private Galaxy transferring all of the shares of stock of Private Galaxy into a newly formed subsidiary which was formed specifically for the transaction ("Private Galaxy MS") and the stockholders receiving shares of stock of FLCR. The merger resulted in Private Galaxy MS becoming a wholly-owned subsidiary of FLCR. For accounting purposes, the acquisition of Private Galaxy by FLCR is considered a reverse acquisition, an acquisition transaction where the acquired company, Private Galaxy, is considered the acquirer for accounting purposes, notwithstanding the form of the transaction. The primary reason the transaction is being treated as a purchase by Private Galaxy rather than a purchase by FLCR is that FLCR is a public reporting company, and Private Galaxy's stockholders gained majority control of the outstanding voting power of FLCR's equity securities. Consequently, the assets and liabilities and the operations that are reflected in the historical financial statements of the Company prior to the merger are those of Private Galaxy. The financial statements after the completion of the merger included the combined assets and liabilities of the combined company (collectively Private Galaxy, FLCR and FLCE). In recognition of Private Galaxy's merger with FLCR, several things occurred: (1) FLCR amended its articles of incorporation to change its name from FullCircle Registry, Inc. to Galaxy Next Generation, Inc.; (2) the Company changed its fiscal year end to June 30, effective June 2018; (3) the Company's authorized shares of preferred stock were increased to 200,000,000 and authorized shares of common stock were increased to 4,000,000,000, (prior to the Reverse Stock Split) both with a par value of $0.0001; and (4) the Board of Directors and Executive Officers appointed Gary LeCroy, President and Director; Magen McGahee, Secretary and Director; and Carl Austin, Director; and (5) the primary business operated by the combined company became the business that was operated by Private Galaxy. On September 3, 2019, Galaxy acquired 100% of the stock of Interlock Concepts, Inc. ("Concepts") and Ehlert Solutions Group, Inc. ("Solutions"). The purchase price for the acquisition was 1,350,000 (6,750 post March 7, 2022 reverse stock split) shares of common stock and a two year note payable to the seller for $3,000,000. The note payable to the seller is subject to adjustment based on the achievement of certain future gross revenues and successful completion of certain pre-acquisition withholding tax issues of Concepts and Solutions. Solutions and Concepts are Utah-based audio design and manufacturing companies creating innovative products that provide fundamental tools for building notification systems primarily to K-12 education market customers located primarily in the north and northwest United States. Solutions and Concepts' products and services allow institutions access to intercom, scheduling, and notification systems with improved ease of use. The products provide an open architecture solution to customers which allows the products to be used in both existing and new environments. Intercom, public announcement (PA), bell and control solutions are easily added and integrated within the open architecture design and software model. These products combine elements over a common internet protocol (IP) network, which minimizes infrastructure requirements and reduces costs by combining systems. On October 15, 2020, Galaxy acquired the assets of Classroom Technologies Solutions, Inc. ("Classroom Tech") for consideration of (a) paying off a secured Classroom Tech loan, not to exceed the greater of 50% of the value of the Classroom Tech assets acquired or $120,000; (b) the issuance of a promissory note in the amount of $44,526 to a Classroom Tech designee; and (c) the issuance of 10 million (50,000 post March 7, 2022 reverse stock split) shares of common stock to the seller of Classroom Tech. Classroom Tech provides cutting-edge presentation products to schools, training facilities, churches, corporations and retail establishments. Their high-quality solutions are customized to meet a variety of needs and budgets in order to provide the best in education and presentation technology. Classroom Tech direct-sources and imports many devices and components which allows the Company to be innovative, nimble, and capable of delivering a broad range of cost-effective solutions. Classroom Tech also offers in-house service and repair facilities and carries many top brands. Galaxy is a manufacturer and U.S. distributor of interactive learning technologies and enhanced audio solutions. Galaxy is engaged in a full range of activities: marketing and sales, engineering and product design and development, manufacturing, and distributing. Galaxy develops both hardware and software that allows the presenter and participant to engage in a fully collaborative instructional environment. Galaxy also develops award winning classroom audio solutions, school public address (“PA”) and intercom products, and emergency communication applications creating a full line card offering for classrooms to its channel partners. Its product offerings include its own private-label interactive touch screen panel, its own intercom, bell, and paging solution, as well as an audio amplification line of products that is currently supported by both direct sales and through original equipment manufacturer (“OEM”) relationships. Its distribution channel consists of a direct sales model, as well as approximately 44 resellers across the U.S. that primarily sell the products offered by us within the commercial and educational market. Galaxy does not control where the resellers focus their reselling efforts; however, the K-12 education market is the largest customer base for its products comprising nearly 90% of our sales. In addition, its OEM division manufactures products for other vendors in our industry and white labels the products under other brands. The Entertainment segment was sold on February 6, 2019 in exchange for 193 (post March 7, 2022 reverse stock split) Galaxy common shares. Impact COVID-19 Aid, Relief and Economic Security Act The Cares Act allowed employers to defer the deposit and payment of the employer’s share of Social Security taxes from March 27, 2020 through March 31, 2021. The deferred deposits of the employer’s share of Social Security tax must be deposited 50% by March 31, 2021, and 50% by March 31, 2023. The Company’s remaining deferred deposits and current payments due amounted to approximately $1,044,947 and $490,790 at March 31, 2023 and June 30, 2022, respectively. During the three and Nine Months ended March 31, 2023 and 2021, the Company applied for Employee Retention Credits and has recognized approximately $0 and $40,000 as a reduction to operating expenses in the consolidated statements of operations. The Covid-19 pandemic that began in early 2020 caused shelter-in-place policies, unexpected factory closures, supply chain disruptions, and market volatilities across the globe. As a result of the economic disruptions and unprecedented market volatilities and uncertainties driven by the Covid-19 outbreak, the Company experienced some supply chain disruptions. The Company continues to experience supply chain disruption resulting in a decrease in revenue and increases in deferred revenue. The full impact of the Covid-19 outbreak continues to evolve as of the date of this report. The depth and duration of the pandemic remains unknown. Despite the availability of vaccines, recent surges in the infection rate and the detection of new variants of the virus have reinforced the general consensus that the containment of Covid-19 remains a challenge. Management is actively monitoring the global situation and its effect on its financial condition, liquidity, operations, suppliers, industry, and workforce. Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. Any reference in these footnotes to applicable guidance is meant to refer to the authoritative U.S. generally accepted accounting principles ("GAAP") as found in the Accounting Standards Codification ("ASC") and Accounting Standards Update ("ASU") of the Financial Accounting Standards Board ("FASB"). The financial statements include the consolidated assets and liabilities of the combined company (collectively Private Galaxy FLCR, Interlock Concepts, Inc., Ehlert Solutions Group, Inc., and Classroom Tech, referred to collectively as the "Company"). All intercompany transactions and accounts have been eliminated in the consolidation. The Company is an over-the-counter public company traded under the stock symbol listing GAXY (formerly FLCR). Use of Estimates The preparation of consolidated financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates used in preparing the consolidated financial statements include those assumed in computing valuation of goodwill and intangible assets, valuation of convertible notes payable and warrants, collectability of receivables, inventory valuation and the valuation of deferred tax assets. It is reasonably possible that the significant estimates used will change within the next year. Reverse Stock Split Unless otherwise noted, all share and per share data referenced in the consolidated financial statements and the notes thereto have been retroactively adjusted to reflect the one-for-two hundred reverse stock split effective March 7, 2022 of our authorized and outstanding shares of common stock. As a result of the reverse stock split, certain amounts in the consolidated financial statements and the notes thereto may be slightly different than previously reported due to rounding of fractional shares, and adjustment for the reverse split. Capital Structure The Company's capital structure is as follows: March 31, 2023 Authorized Issued Outstanding Common stock 3,000,000,000 116,529,871 116,529,871 $.0001 par value, one vote per share Preferred stock-All Series 200,000,000 - - $.0001 par value Preferred stock - Series A 750,000 - - $.0001 par value; no voting rights Preferred stock - Series B 1,000,000 - - $.0001 par value, voting rights of 10 votes for 1 Series B share; 2% preferred dividend payable annually Preferred stock - Series C 9,000,000 - - $.0001 par value; 500 votes per share, convertible to common stock Preferred stock - Series F 15,000 2,704 2,704 $.0001 par value; no voting right, convertible to common at a fixed price of $0.37 per share, stated value is $1,000 per share Preferred stock - Series G 51 51 51 $.0001 par value; no dividend rights, voting rights with common stock as a single series, one share equals 1% of the total voting rights, not subject to splits June 30, 2022 Authorized Issued Outstanding Common stock 20,000,000 19,169,128 19,168,935 $.0001 par value, one vote per share Preferred stock - All Series 200,000,000 - - $.0001 par value Preferred stock - Series A 750,000 - - $.0001 par value; no voting rights Preferred stock - Series B 1,000,000 - - $.0001 par value, voting rights of 10 votes for 1 Series B share; 2% preferred dividend payable annually Preferred stock - Series C 9,000,000 - - $.0001 par value; 500 votes per share, convertible to common stock Preferred stock - Series F 15,000 11,414 11,414 $.0001 par value; no voting right, convertible to common at a fixed price of $0.37 per share, stated value is $1,000 per share Preferred stock - Series G 51 51 51 $.0001 par value; no dividend rights, voting rights with common stock as a single series, one share equals 1% of the total voting rights, not subject to splits Authorized common stock increased from 20,000,000 to 200,000,000 on August 31, 2022. There was a 1:200 reverse split of the authorized and outstanding shares of common stock that was effective on March 7, 2022. There is no publicly traded market for the preferred shares. The Preferred Series D and E were retired in December 2021. Preferred Series G were issued in June 2022, pursuant to Employment Agreements (Note 11). There are 1,286,624,175 common shares reserved at March 31, 2023 under terms of notes payable agreements, and the Stock Plan (see Notes 4, 6 and 12). There are 32,254,235 issued common shares that are restricted as of March 31, 2023. The shares will become free-trading upon satisfaction of certain terms within the debt agreements or within free trading rules related to SEC Rule 144 six month hold. Authorized common stock increased from 200,000,000 to 3,000,000,000 on January 31, 2023 following approval of the holders of a majority of the Company’s voting power. Supplier Agreement Contract assets and contract liabilities are as follows: March 31, 2023 June 30, 2022 Contract assets $ 55,125 $ 55,125 Contract liabilities $ - $ - For the three months ended March 31, 2023 and 2022, the Company recognized $0 and $463,301 of revenues related to supplier agreements. For the Nine Months ended March 31, 2023 and 2021 the Company recognized $0 and $1,116,219 of revenues related to supplier agreements. Accounts Receivable Management deemed no allowance for doubtful accounts was necessary at March 31, 2023 and June 30, 2022. At March 31, 2023 and June 30, 2022, $175,436 and $175,436 of total accounts receivable were recorded as deferred revenue. Inventories Management estimates $116,362 and $116,362 of inventory reserves at March 31, 2023 and June 30, 2022, respectively. Goodwill, Intangible Assets and Product Development Costs Goodwill, intangible assets, and product development costs are comprised of the following at March 31, 2023: Cost Accumulated Amortization Net Book Value Total Goodwill $ 834,220 - $834,220 $ 834,220 Finite-lived assets: Customer list $ 881,000 $ (595,486) $ 285,514 $ 285,514 Vendor relationships 479,000 (336,415) 142,585 142,585 Capitalized product development cost 1,487,931 (778,209) 709,722 709,722 $ 2,847,931 $(1,710,110) $ 1,137,821 $1,137,821 Goodwill, intangible assets, and product development costs are comprised of the following at June 30, 2022: Cost Accumulated Amortization Net Book Value Impairment Total Goodwill $ 834,220 $ - $ 834,220 $ - $ 834,220 Finite-lived assets: Customer list $ 922,053 $ (472,320) $ 449,733 $ (33,184) $ 416,549 Vendor relationships 484,816 (264,565) 220,251 (4,701) 215,550 Product development costs 1,279,686 (468,594) 811,092 - 811,092 $ 2,686,555 $ (1,205,479) $ 1,481,076 $ (37,885) $ 1,443,191 Intangible assets such as customer lists and vendor relationships are stated at the lower of cost or fair value. They are amortized on a straight-line basis over periods ranging from three to six years, representing the period over which the Company expects to receive future economic benefits from these assets. The Company acquired certain intangible assets. During the year ended June 30, 2022, the Company impaired $37,885 of the intangible assets related to the acquisition of Classroom Tech. Amortization of these intangible assets amounted to $68,000 and $44,700 for the three months ended March 31, 2023 and 2022. Amortization of these intangible assets amounted to $136,000 and $180,243 for the Nine Months ended March 31, 2023 and 2022. Costs incurred in designing and developing classroom technology products are expensed as research and development until technological feasibility has been established. Technological feasibility is established upon completion of a detail product design, or in its absence, completion of a working model. Upon the achievement of technological feasibility, development costs are capitalized and subsequently reported at the lower of unamortized cost or net realizable value. Management’s judgment is required in determining whether a product provides new or additional functionality, the point at which various products enter the stages at which costs may be capitalized, assessing the ongoing value and impairment of the capitalized costs and determining the estimated useful lives over which the costs are amortized. Annual amortization expense is calculated based on the straight-line method over the product’s estimated economic lives, which are typically three to six years. Amortization of product development costs incurred begins when the related products are available for general release to customers. Amortization of product development costs of $105,216 and $69,042 for the three months ended March 31, 2023 and 2022. Amortization of product development cost of $204,399 and $184,170 for the Nine Months ended March 31, 2023 and 2022, is included in cost of revenues in the Company’s unaudited condensed consolidated statements of operations. Estimated amortization expense related to finite-lived intangible assets for the next five years is: $549,264 for fiscal year 2024, $314,373 for fiscal year 2025, $119,340 for fiscal year 2026, $94,213 for fiscal year 2027, and $60,631 for fiscal year 2028 and $0 thereafter. Recent Accounting Pronouncements The Company has implemented all new applicable accounting pronouncements that are in effect and applicable. These pronouncements did not have any material impact on the consolidated financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. In December 2019, the FASB issued ASU No. 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) by removing certain exceptions to the general principles. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early adoption of the amendments is permitted. Depending on the amendment, adoption may be applied on a retrospective, modified retrospective or prospective basis. The Company adopted the new guidance on July 1, 2022 in its consolidated financial statements. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Mar. 31, 2023 | |
Property and Equipment [Abstract] | |
Property and Equipment | Note 2 – Property and Equipment Property and equipment are comprised of the following at: March 31, 2023 June 30, 2022 Vehicles $ 212,658 $ 212,658 Building 201,823 201,823 Equipment 16,192 16,192 Leasehold improvements 31,000 31,000 Furniture and fixtures 28,321 28,321 489,994 489,994 Accumulated depreciation (171,300) (141,125) Property and equipment, net $ 318,694 $ 348,869 |
Lines of Credit
Lines of Credit | 9 Months Ended |
Mar. 31, 2023 | |
Lines of Credit [Abstract] | |
Lines of Credit | Note 3 – Lines of Credit The Company had up to $1,000,000 available credit line under an accounts receivable factoring agreement through July 30, 2022. This agreement automatically renews for a two year period unless notice is given. Total available credit under the factoring agreement was $901,045.19 and $989,680 as of March 31, 2023 and June 30, 2022, respectively. See Note 11. On August 31, 2022, the Company received proceeds of $155,837 under an equity line of credit with a bank – First Citizens Bank. The $160,000 line of credit bears interest at prime plus 1% and matures August 25, 2027. Collateral on the line of credit includes certain fixed asset of the Company. The outstanding balance was $155,500 and $0 at March 31, 2023 and June 30, 2022, respectively. On November 1, 2022, the Company entered into financing and security agreement with a financial technology company. Collateral on the line incudes inventory and certain fixed assess of the Company. Each draw on the line of credit bears interest at a variable rate based on the date of draw, plus a fee and matures in Nine Months. The outstanding balance was $180,042 at March 31, 2023. |
Notes Payable
Notes Payable | 9 Months Ended |
Mar. 31, 2023 | |
Notes Payable [Abstract] | |
Notes Payable | Note 4 – Notes Payable Long Term Notes Payable March 31 , 2023 June 30, 2022 Note payable with a bank bearing interest at 4% and maturing on June 26, 2020. The note was renewed by the lender with a revised maturity of June 26, 2021 and an interest rate to 3%. In July 2021, the note was renewed by the lender with a revised maturity date of July 7, 2026. The renewal provides for $4,405 monthly payments of principal and interest through maturity. The note is collateralized by a certificate of deposit owned by a related party. $ 174,900 $ 207,058 Note payable to an investor of $360,000 bearing interest at 12% and maturing February 28, 2023. Monthly installments of $30,000 beginning May 2022. The loan was issued at a discount of $60,000 and has a convertible default provision in the event the Company does not make the monthly payments. In July 2022, payments for June, July, and August 2022 were deferred to September 30, 2022 by the lender in exchange for $30,000 increase in the principal and a change in terms of certain default provisions. On November 7, 2022, the note was amended whereby deferred and future payments on the note will be paid from future equity purchase agreement proceeds, and lowered the conversion price in the event of a default to $0.03 per share, subject to adjustment. The Company issued 883,333 shares of common stock to the investor as additional commitment fees. The note is convertible as of March 31, 2023. 225,000 269,432 Note payable to an investor bearing interest at 12% and maturing March 18, 2023. Monthly installments of $22,558 begin on May 2022. The loan was issued at a discount of $24,450 and has a convertible default provision in the event the Company does not make the monthly payments. The note was repaid in full by conversion to stock. - 158,745 Note payable to an investor of $88,760 with ten installment payments of $9,941 due each month starting in January 15, 2023. The loan was issued at a discount of $9,510, bears 12% interest and has a convertible default provision in the event the company does not make the scheduled monthly payments. Interest for twelve months of 10,651 is immediately due on the issue date and payable at maturity. 83,213 - Note payable to an investor of $59,250 convertible after 180 days from issue on July 1, 2023. The loan bears 12% interest and converts at a conversion price equal to 65% of the average of the two lowest trading prices for the stock during the 10 trading day period prior to conversion. Prepayment of the loan within 60 days of issue results in a 115% premium, and prepayment within 61 to 180 days of issue results in a 125% premium. 59,250 - Note payable to an investor in the principal amount of 1,350,000, bearing interest at 12% and maturing on May 26, 2023 with monthly installments of principal and interest of $120,185 beginning in May 2022. On May 25, 2022, the June, July, and August 2022 payments were deferred in exchange for 750,000 shares of common stock and a $146,667 increase to the principal balance. The October and November 2022 payments were deferred by the lender. On November 15, 2022, the Company issued a $150,000 forberance note to the investor and extending the maturity date to June 30, 2023. The note is convertible as of March 31, 2023. 1,128,642 1,294,198 Note payable to an investor in the principal amount of $600,000 due December 21, 2022, issued at a discount of $60,000, bearing 12% annual interest. A warrant for the purchase of 600,000 common shares at an exercise price of $0.50 per share was issued as a commitment fee. Principal and interest on the note are due at maturity. An additional warrant for the purchase of 400,000 shares and an amended exercise price of $0.01 for all warrants was issued effective June 21, 2022. 200,000 540,000 Note payable to an investor in the principal amount of $450,000 with payments of $62,438 due each month starting on September 22, 2022. The loan was issued at a discount of $49,500, bears 11% interest and has a convertible default provision in the event the Company does not make the monthly payments. The note is convertible as of March 31, 2023. 450,000 400,500 Note payable to an investor in the principal amount of $810,000 bearing interest at 12%, due August 31, 2023. A warrant for the purchase of 1,000,000 common shares at an exercise price of $.01 per share was issued as a commitment fee to the investor. The note has a convertible default provision. 843,750 - Note payable to an investor in the principal amount of $310,000 issued at a discount of $31,000, due November 8, 2023, bearing 12% interest. Principal and interest is payable on 4 dates over the term of the note. A payment of $46,500 plus accrued interest is due on February 3, 2023 and May 4, 2023. A payment of $93,000 plus accrued interest is due on August 4, 2023, with the remaining principal and interest due on November 4, 2023. The note is convertible to stock if there is a default on the note, including payments and reserving shares in accordance with the note payable. The Company received a waiver for reserving shares from the investor. The note is convertible due to an uncured violation of debt covenants to reserve shares in an amount equal to five times what is necessary to convert the loan and interest. 291,917 - Investor advance on Equity Purchase Agreement. 676,565 - Long term loan under Section 7(b) of the Economic Injury Disaster Loan program bearing interest at 3.75% and maturing in May 2050. Monthly installments of principal and interest of $731 begin November 21, 2022. 150,000 150,000 Financing lease liabilities for offices and warehouses with monthly installments of $22,810 (ranging from $245 to $9,664) over terms expiring through December 2024. 129,758 179,512 Note payable with a finance company for delivery vehicle with monthly installments totaling $679 including interest at 8.99% over a 6 year term expiring in December 2025. 18,888 25,771 Note payable with a finance company for delivery vehicle with monthly installments totaling $948 including interest at 5.9% over a 6 year term expiring in January 2027. 43,425 51,826 Note payable with a bank for delivery vehicle with monthly installments totaling $844 including interest at 6% over a 4 year term expiring in August 2025. 23,159 29,696 Total Notes Payable 4,498,467 3,306,738 Less: Unamortized original issue discount 109,408 242,529 Less: Fair value of warrants 211,576 - Current Portion of Notes Payable 3,795,339 2,815,231 Long-term Portion of Notes Payable $ 382,144 $ 248,978 Future minimum principal payments on the long-term notes payable to unrelated parties are as follows: Period ending March 31, 2024 $ 3,795,339 2025 124,100 2026 76,383 2027 38,794 2028 8,179 Thereafter 134,685 $ 4,117,483 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 31, 2023 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 5 – Fair Value Measurements The following table presents information about the assets and liabilities that are measured at fair value on a recurring basis at March 31, 2023 and June 30, 2022 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. At March 31, 2023: Total Level 1 Level 2 Level 3 Convertible debt features $ 12,189 $ - $ - $ 12,189 At June 30, 2022: Total Level 1 Level 2 Level 3 Convertible debt features $ - $ - $ - $ - The Company measures the fair market value of the Level 3 liability components using the Monte Carlo model and projected discounted cash flows, as appropriate. These models were prepared by an independent third party and consider management's best estimate of the conversion price of the stock, an estimate of the expected time to conversion, an estimate of the stock's volatility, and the risk-free rate of return expected for an instrument with a term equal to the duration of the convertible note. The derivative liability was valued using the Monte Carlo pricing model with the following inputs: At March 31, 2023 Risk-free interest rate: 0.17% Expected dividend yield: 0.00% Expected stock price volatility: 295.00% Expected option life in years: .90 year At June 30, 2022 Risk-free interest rate: 0.00% Expected dividend yield: 0.00% Expected stock price volatility: 0.00% Expected option life in years: 0 years The following table sets forth a reconciliation of changes in the fair value of the Company's convertible debt components classified as Level 3 in the fair value hierarchy at March 31, 2023 and June 30, 2022: Balance at June 30, 2022 $ - Realized - Unrealized 12,189 Balance at March 31, 2023 $ 12,189 Balance at July 1, 2021 $ 1,842,000 Realized (1,842,000) Unrealized - Balance at June 30, 2022 $ - As of March 31, 2023 and June 30, 2022, the only asset required to be measured on a nonrecurring basis was goodwill and the fair value of the asset amounted to $834,220 using level 3 valuation techniques. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 6 - Related Party Transactions Notes Payable March 31, 2023 June 30, 2022 Fair value of unsecured notes payable to seller of Concepts and Solutions, a related party, bearing interest at 3% per year, payable in annual installments through November 30, 2021. Payment is subject to adjustment based on the achievement of minimum gross revenues and successful completion of certain pre-acqusition withholding tax issues of Concepts and Solutions. $ 1,030,079 $ 1,030,079 Note payable to a stockholder in which the note principal plus interest at 15% is payable the earlier of 60 days after invoicing a certain customer, or April, 2022 due to an extension granted by the lender. On December 23, 2021, an amendment extended the maturity to March 30, 2025, changed the interest rate to 10% with monthly payments of principal and interest of $8,823 beginning in June 2022. The note is collateralized by a security interest in a certain customer purchase order. Monthly payments were deferred by the lender. 385,000 385,000 Note payable related to acquisition of Classroom Tech in which the note principal is payable in 2021 with no interest obligations, upon the shareholder's resolution of a pre-acquisition liability with a bank. - 55,000 Notes payable to two stockholders, bearing interest at 12% and payable from future equity advances where 20% of each advance will be used to pay the notes down until paid in full and to pay back within six month of an active equity purchase agreement. 225,000 - Long term note bearing interest at 6% and maturing March 31, 2024 and other short-term payables due to stockholders and related parties 845,499 355,538 Total Related Party Notes Payable 2,485,578 1,825,617 Current Portion of Related Party Notes Payable 105,876 1,238,755 Long-term Portion of Related Party Notes Payable $ 2,379,702 $ 586,862 As of March 31, 2023, related party notes payable maturities are as follows: Period ending March 31, 2024 105,876 2025 1,070,923 2026 - 2027 1,308,779 2,485,578 Related Party Leases The Company leases property used in operations from a related party under terms of a financing lease. The term of the lease expired on March 31, 2021 and is continuing on a month to month basis. The monthly lease payment is $9,664 plus maintenance and property taxes, as defined in the amended lease agreement. Rent expense for this lease was $28,992 and $28,992 for the three months ended March 31, 2023 and 2022, respectively. Rent expense for this lease was $86,976 and $86,976 for the Nine Months ended March 31, 2023 and 2022, respectively Other Related Party Agreements A related party collateralizes the Company's short-term note with a certificate of deposit in the amount of $274,900, held at the same bank. The related party will receive a $7,500 collateral fee for this service (see Note 4). |
Lease Agreements
Lease Agreements | 9 Months Ended |
Mar. 31, 2023 | |
Lease Agreements [Abstract] | |
Lease Agreements | Note 7 - Lease Agreements Financing Lease Agreements The Company leases offices, warehouses and equipment under financing lease agreements with monthly installments of $22,723 (ranging from $245 to $9,664), expiring through December 2024. March 31, 2023 June 30, 2022 Right-of-use assets: Operating right-of-use assets $129,758 $179,512 Operating lease liabilities: Current portion of long term payable 82,284 80,096 Financing leases payable, less current portion 47,474 99,416 Total operating lease liabilities $129,758 $179,512 As of March 31, 2023, financing lease maturities are as follows: Period ending March 31, 2024 $ 82,284 2025 45,106 2026 2,368 $129,758 As of March 31, 2023, the weighted average remaining lease term was 1.08 years. |
Equity
Equity | 9 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Equity | Note 8 – Equity All share amounts have been adjusted to reflect a 1:200 reverse stock split of the authorized and outstanding shares of common stock that was effective March 7, 2022. For the Nine Months ended March 31, 2023: During the Nine Months ended March 31, 2023, the Company issued 53,206,652 shares of common stock in exchange for debt reduction. During the Nine Months ended March 31, 2023, the Company issued 9,429,130 shares of common stock in exchange for proceeds under the Equity Purchase Agreement. These shares were valued at $166,435 upon issuance. During the Nine Months ended March 31, 2023, the Company issued 2,800,000 shares of common stock for commitment fees under notes payable. During the Nine Months ended March 31, 2023, the Company issued 3,070,922 shares of common stock for professional consulting services. The shares were valued at $238,128 upon issuance. During the Nine Months ended March 31, 2023, the Company issued 23,540,539 shares of common stock in exchange for Preferred Series F stock. During the Nine Months ended March 31, 2023, the Company issued warrants to investors to purchase common stock. The warrants were valued at $492,434 upon issuance. During the Nine Months ended March 31, 2023, the Company issued 350,000 shares of common stock as a charitable donation. The shares were valued at $52,500 upon issuance. During the Nine Months ended March 31, 2023, the Company received 36,500 shares of common stock from a former investor. The shares can be re-issued. During the Nine Months ended March 31, 2023, the Company issued 5,000,000 shares of common stock under two retirement agreements. For the Nine Months ended March 31, 2022: During the nine months ended March 31, 2022, the Company issued 73,517 shares of common stock for services. During the nine months ended March 31, 2022, the Company issued 1,625,000 shares of common stock in exchange for proceeds under the Equity Purchase Agreement. These shares were valued at $2,643,500 upon issuance. During the nine months ended March 31, 2022, the Company issued 312,500 shares of common stock as commitment shares in a structured loan agreement. These shares were valued at $356,250 upon issuance. During the nine months ended March 31, 2022, the Company cancelled 241,303 shares of common stock representing fractional shares resulting from the 200:1 reverse split. During the nine months ended March 31, 2022, the Company entered into exchange agreements to issue 11,414 shares of Preferred Series F stock. During the nine months ended March 31, 2022, the Company cancelled 500,000 shares of Preferred Series E stock. -23- Warrants are granted with an exercise price no less than the fair market value of the warrant on the date of the grant and generally vest immediately. A June 2022 warrant, as amended on November 8, 2022, is entitled to convert into one common share at an exercise price of $0.01. The November 8, 2022 amendment increased the June 2022 warrants by 400,000 and changed the exercise price from $0.50 to $0.01. An August 2022 warrant is entitled to convert into one common share at an exercise price of $0.01. A November 1, 2022 warrant is entitled to convert into one common share at an exercise price of $0.10. All warrant exercise prices are subject to adjustment. The Company granted investors 600,000 warrants on June 21, 2022; 1,000,000 warrants on August 31, 2022; increased the June 21, 2022 warrants by 400,000 on November 1, 2022; and issued 2,100,000 warrants on November 8, 2022, pursuant to three notes payable (Note 4). The fair value of the warrants was $365,091 and $0 at March 31, 2023 and June 30, 2022, respectively. There are 2,100,000 unvested warrants issued on November 1, 2022 to an investor that will go into effect in the event of a default on the related note. The fair value of each equity-based award is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table at March 31, 2023: Stock price volatility 175% Expected term 5 years Discount rate 3.38% Expected dividends 0% The fair value of each equity-based award is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table at June 30, 2022: Stock price volatility 190% Expected term 1 year Risk-free interest rate 3.21% Expected dividends 0% A summary of the warrant status at March 31,2022 and June 30, 2022 and changes during the Nine Months ended is presented below. There were no warrants outstanding during the Nine Months ended March 31, 2021. Warrants Weighted Average Exercise Price Outstanding, June 30, 2022 600,000 $0.01 Granted 1,400,000 0.01 Granted 2,100,000 0.10 Forfeited - - Outstanding, March 31, 2023 4,100,000 $0.09 Exercisable, end of period $3,100,000 - A further summary of warrants outstanding at March 31, 2023 is as follows: Exercise Number Number Weighted Average Intrinsic Warrants Price Exercisable Outstanding Remaining Life Value 600,000 $ 0.01 600,000 600,000 4.5 years $ - 1,000,000 $ 0.01 - 1,000,000 4.7 years $ 150,000 400,000 $ 0.01 400,000 400,000 4.5 years $ 243,250 2,100,000 $ 0.10 2,100,000 2,100,000 4.9 years $ 99,184 2,100,000 $ 0.10 - - 5 years $ - |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | Note 9 - Income Taxes The Company's effective tax rate differed from the federal statutory income tax rate for the three and Nine Months ended March 31, 2023 as follows: Federal statutory rate 21% State tax, net of federal tax effect 5% Valuation allowance 26% Effective tax rate 0% The Company had no federal or state income tax (benefit) for the three and Nine Months ended March 31, 2023 or 2022. The Company's deferred tax assets and liabilities as of March 31, 2023 and June 30, 2022, are summarized as follows: March 31, 2023 June 30, 2022 Federal Deferred tax assets $8,802,100 $ 7,781,500 Less valuation allowance (8,802,100) (7,781,500) Deferred tax liabilities - - - - State Deferred tax assets $1,619,300 1,966,600 Less valuation allowance (1,619,300) (1,966,600) Deferred tax liabilities - - - - Net Deferred Tax Assets $ - $ - The Company's policy is to provide for deferred income taxes based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates that will be in effect when the differences are expected to reverse. The Company has not generated taxable income and has not recorded any current income tax expense at March 31, 2023 and 2022, respectively. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred taxes is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers projected future taxable income and tax planning strategies in making this assessment. The Company's deferred tax assets are primarily comprised of net operating losses ("NOL") that give rise to deferred tax assets. The NOL carryforwards expire over a range from 2023 to 2037, with certain NOL carryforwards that have no expiration. There is no tax benefit for goodwill impairment, which is permanently non-deductible for tax purposes. Additionally, due to the uncertainty of the utilization of NOL carry forwards, a valuation allowance equal to the net deferred tax assets has been recorded. The significant components of deferred tax assets as of March 31, 2023 and June 30, 2022 are as follows: March 31, 2023 June 30, 2022 Net operating loss carryforwards $ $10,161,400 $ 9,539,900 Valuation allowance (10,421,400) (9,748,100) Goodwill (4,500) 11,000 Property and equipment (26,800) (32,000) Development costs 72,800 124,600 Intangible assets 160,100 46,100 Inventory allowance 30,300 30,300 Warranty accrual and other 28,100 28,200 Net Deferred Tax Assets $ - $ - As of March 31, 2023, the Company does not believe that it has taken any tax positions that would require the recording of any additional tax liability nor does it believe that there are any unrealized tax benefits that would either increase or decrease within the next twelve months. As of March 31, 2023, the Company's income tax returns generally remain open for examination for three years from the date filed with each taxing jurisdiction. |
Commitments, Contingencies, and
Commitments, Contingencies, and Concentrations | 9 Months Ended |
Mar. 31, 2023 | |
Commitments, Contingencies, and Concentrations [Abstract] | |
Commitments, Contingencies, and Concentrations | Note 10 - Commitments, Contingencies, and Concentrations Contingencies Certain conditions may exist as of the date the unaudited condensed consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. On September 4, 2019, the Company recorded a pre-acquisition liability for approximately $591,000 relative to unpaid payroll tax liabilities and associated penalties and fees of Concepts and Solutions. The liability is included in the note payable to seller of $1,030,079 at March 31, 2023 and June 30, 2022 (Note 6). Concentrations Galaxy contracts the manufacture of its products with domestic and overseas suppliers. The Company's sales could be adversely impacted by a supplier's inability to provide Galaxy with an adequate supply of inventory. Galaxy has one vendor that accounted for approximately 87% of purchases for the three months ended March 31, 2023. Galaxy had one vendor that accounted for approximately 36% of purchases for the three months ended March 31, 2022. Galaxy has two customers that accounted for approximately 57% of accounts receivable at March 31, 2023 and two customers that accounted for approximately 80% of accounts receivable at June 30, 2022. Galaxy has two customers that accounted for 54% for the three months ended March 31, 2023. Galaxy has three customers that accounted for approximately 78% and two customers that accounted for approximately 55% of total revenue for the Nine Months ended March 31, 2023 and 2022, respectively. |
Material Agreements
Material Agreements | 9 Months Ended |
Mar. 31, 2023 | |
Material Agreements [Abstract] | |
Material Agreements | Note 11 - Material Agreements Manufacturer and Distributorship Agreement On September 15, 2018, the Company signed an agreement with a company in China for the manufacture of Galaxy’s SLIM series of interactive panels. The manufacturer agreed to manufacture, and the Company agreed to be the sole distributor of the interactive panels in the United States for a term of two years. The agreement includes a commitment by Galaxy to purchase $2 million of product during the first year beginning September 2018. If the minimum purchase is not met, the manufacturer can require the Company to establish a performance improvement plan, and the manufacturer has the right to terminate the agreement. The payment terms are 20% in advance, 30% after the product is ready to ship, and the remaining 50% 45 days after receipt. The manufacturer provides Galaxy with the product, including a three-year manufacturer’s warranty from the date of shipment. The agreement renews automatically in two year increments unless three months’ notice is given by either party. The Company has met the requirements of the agreement. Equity Purchase Agreements On May 31, 2020, the Company entered into a two year purchase agreement (the "Equity Purchase Agreement") with an investor, which was amended and restated on July 9, 2020 and then again on December 29, 2020. Pursuant to the terms of the Equity Purchase Agreement, the investor agreed to purchase up to $10 million of the Company's common stock (subject to certain limitations) from time to time during the term of the Equity Purchase Agreement. During the three months ended March 31, 2023 and 2022, the Company issued 0 and 500,000 shares of common stock to the investor in exchange for proceeds for working capital. During the Nine Months ended March 31, 2022 and 2022, the Company issued 0 and 1,625,000 shares of common stock to the investor in exchange for proceeds for working capital. On November 7, 2022, the Company signed a two year purchase agreement (“Equity Purchase Agreement”) with an investor. Pursuant to the terms of the Equity Purchase Agreement, the investor agreed to purchase up to $5 million of the Company’s common stock (subject to certain limitations) from time to time during the term of the Equity Purchase Agreement. The common stock transactions will be “put” to the investor, at the option of the Company, at a discount equal to 80% of the average of the two lowest daily stock prices during a ten day period, in exchange for working capital proceeds. The Company will register the shares before puts are allowed. There is a commitment fee of 500,000 shares that will be issued to the investor. During the three months ended March 31, 2023 and 2022, the Company issued 4,429,130 and 0 shares of common stock to the investor in exchange for proceeds for working capital. During the Nine Months ended March 31, 2023 and 2022, the Company issued 9,429,130 and 0 shares of common stock to the investor in exchange for proceeds for working capital. Accounts Receivable Factoring Agreement On July 30, 2020, the Company entered into a two-year accounts receivable factoring agreement with a financial services company to provide working capital. Pursuant the agreement, the financial services company will pay the Company an amount up to eighty percent (80%) of the purchase price for the purchased accounts. Factoring fees are 2.5% of the face value of the account receivable sold to the factoring agent per month until collected. For collections over 90 days from the invoice date, the fee increases to 3.5%. The agreement contains a credit line of $1,000,000 and requires a minimum of $300,000 of factored receivables per calendar quarter. The agreement includes early termination fees and is guaranteed by the Company and by two of the stockholders individually. The Company paid collection fees of $30,964 and $11,216 during the three months ended March 31, 2023 and 2022, respectively. The Company paid collection fees of $150,183 and $36,244 during the Nine Months ended March 31, 2023 and 2022, respectively. Employment Agreements On January 1, 2020, the Company entered into an employment agreement with the Chief Executive Officer (CEO) of the Company for a two-year term which was amended on September 1, 2020, and further amended in 2022 to extend the term for an additional three-years. Under the amended employment agreement, the CEO will receive annual compensation of $500,000, and an annual discretionary bonus based on profitability and revenue growth and preferred stock to maintain, together with the CFO, a minimum 26% of the total voting rights. The agreement includes a non-compete agreement and severance benefits of $90,000. In June 2022, 26 shares of Preferred Series G stock were issued to the CEO under terms of this agreement, which represents 26% of the voting power. On January 1, 2020, the Company entered into an employment agreement with the Chief Finance Officer/Chief Operations Officer (CFO/COO) of the Company for a two-year term, which was amended on September 1, 2020, and further amended in 2022 to extend the term for an additional three-years. Under the amended employment agreement, the CFO/COO will receive annual compensation of $250,000, and an annual discretionary bonus based on profitability and revenue growth and preferred stock to maintain, together with the CEO, a minimum 25% of the total voting rights. The agreement includes a non-compete agreement and severance benefits of $72,000. In June 2022, 25 shares of Preferred Series G stock were issued to the CFO under terms of this agreement, which represents 25% of the voting power. Investor Relations Agreement The Company signed an agreement with an investment relations firm, commencing on May 1, 2022, requiring $10,000 per month and $20,000 worth of restricted stock issued 4 times in 2022, beginning May 1, 2022, June 1, September 1, and December 1, 2022. The agreement will automatically renew annually unless 60 days’ notice is given by either party. The Company paid $20,000 and issued 70,922 shares for investment relations services during the three months ended March 31, 2023. The Company paid $20,000 and issued 70,922 shares for investment relations services during the Nine Months ended March 31, 2023. No fees or shares were issued during the three and Nine Months ended March 31, 2021. Capital Markets Advisory Agreement The Company signed an eight month Strategic Services agreement with an investor, commencing on May 1, 2022, requiring fees of 1,000,000 shares of common stock. The Company issued 1,000,000 shares for strategic services on August 1, 2022. Advisory Services In May 2020, an advisor agreed to be a non-exclusive advisor with respect to the identification and evaluation of potential business acquisition opportunities. In consideration for its services, the advisor may receive a cash fee equal to 3.5% of the purchase price if we close on a transaction with a target during the term of the agreement or within 12 months thereafter. In addition, (i) we will pay the advisor a cash fee payable at the closing equal to 1.5% of the gross proceeds we receive at each closing; (ii) (i) for an issuance of debt securities, a cash fee payable at the closing equal to 2.5% of the gross proceeds we receive at each closing; (iii) for an issuance of equity securities, a cash fee payable at the closing equal to 7.0% of the gross proceeds we receive at each closing. We will also reimburse the advisor for certain out of pocket expenses. |
Stock Plan
Stock Plan | 9 Months Ended |
Mar. 31, 2023 | |
Stock Plan [Abstract] | |
Stock Plan | Note 12 - Stock Plan The Company established a 2022 Equity Stock Purchase Plan to encourage the purchase of shares of common stock by eligible employees and participating companies. No shares have been purchased under the Plan to date. The Company established a 2022 Equity Incentive Plan to enable the Company to award long term performance-based equity incentives to employees and others. No equity awards have been issued under the Plan to date. |
Going Concern
Going Concern | 9 Months Ended |
Mar. 31, 2023 | |
Going Concern [Abstract] | |
Going Concern | Note 13 - Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As reflected in the accompanying consolidated financial statements, the Company had negative working capital of approximately $6,200,000, and cash used in operations of approximately $2,300,000 at March 31, 2023. Accumulated deficit increased from June 30, 2022 to March 31, 2023 by approximately $5,900,000 to a deficit of approximately $60,000,000 at March 31, 2023. The Company's operational activities have primarily been funded through issuance of common stock for services, related party advances, equity purchase agreement transactions for proceeds, accounts receivable factoring, debt financing and through the deferral of accounts payable and other expenses. The Company intends to raise additional capital through the sale of equity securities or borrowings from financial institutions and investors and possibly from related and nonrelated parties who may in fact lend to the Company on reasonable terms. Management believes that its actions to secure additional funding will allow the Company to continue as a going concern. There is no guarantee the Company will be successful in achieving any of these objectives. These sources of working capital are not assured, and consequently do not sufficiently mitigate the risks and uncertainties disclosed above. The ability of the Company to continue as a going concern is dependent upon management's ability to raise capital from the sale of its equity and, ultimately, the achievement of operating revenues. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14 - Subsequent Events On April 1, 2023, the Company executed amendments and issued pre-funded warrants to purchase up to shares of the Company’s common stock in exchange for two promissory notes and two stock purchase agreements for $100,000 of additional capital. On April 11, 2023, the Company issued 10,000,000 shares of common stock in exchange for $100,000 of debt reduction. On April 10, 2023, the Company issued 5,757,576 shares of common stock in exchange for $19,000 of debt reduction. On May 10, 2023, the Company entered into a financing agreement with a related party for a $1,500,000 loan. The related party funded $1,000,000 of the total available amount at closing. The financing agreement is a combination of debt and equity. The debt portion is a 5 year term loan at 12% interest. The lender has a preferred stock option as well depending on when the loan portion is paid back. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Corporate History, Nature of Business, Mergers and Acquisitions | Corporate History, Nature of Business, Mergers and Acquisitions Galaxy Next Generation LTD CO. ("Galaxy CO") was organized in the state of Georgia in February 2017 while R&G Sales, Inc. ("R&G") was organized in the state of Georgia in August 2004. Galaxy CO merged with R&G ("common controlled merger") on March 16, 2018, with R&G becoming the surviving company. R&G subsequently changed its name to Galaxy Next Generation, Inc. ("Private Galaxy"). FullCircle Registry, Inc., ("FLCR") is a holding company created for the purpose of acquiring small profitable businesses to provide exit plans for those company's owners. FLCR's subsidiary, FullCircle Entertainment, Inc. ("Entertainment" or "FLCE"), owned and operated Georgetown 14 Cinemas, a fourteen-theater movie complex located in Indianapolis, Indiana. On June 22, 2018, Private Galaxy consummated a reverse triangular merger whereby Private Galaxy merged with and into FLCR by the stockholders of Private Galaxy transferring all of the shares of stock of Private Galaxy into a newly formed subsidiary which was formed specifically for the transaction ("Private Galaxy MS") and the stockholders receiving shares of stock of FLCR. The merger resulted in Private Galaxy MS becoming a wholly-owned subsidiary of FLCR. For accounting purposes, the acquisition of Private Galaxy by FLCR is considered a reverse acquisition, an acquisition transaction where the acquired company, Private Galaxy, is considered the acquirer for accounting purposes, notwithstanding the form of the transaction. The primary reason the transaction is being treated as a purchase by Private Galaxy rather than a purchase by FLCR is that FLCR is a public reporting company, and Private Galaxy's stockholders gained majority control of the outstanding voting power of FLCR's equity securities. Consequently, the assets and liabilities and the operations that are reflected in the historical financial statements of the Company prior to the merger are those of Private Galaxy. The financial statements after the completion of the merger included the combined assets and liabilities of the combined company (collectively Private Galaxy, FLCR and FLCE). In recognition of Private Galaxy's merger with FLCR, several things occurred: (1) FLCR amended its articles of incorporation to change its name from FullCircle Registry, Inc. to Galaxy Next Generation, Inc.; (2) the Company changed its fiscal year end to June 30, effective June 2018; (3) the Company's authorized shares of preferred stock were increased to 200,000,000 and authorized shares of common stock were increased to 4,000,000,000, (prior to the Reverse Stock Split) both with a par value of $0.0001; and (4) the Board of Directors and Executive Officers appointed Gary LeCroy, President and Director; Magen McGahee, Secretary and Director; and Carl Austin, Director; and (5) the primary business operated by the combined company became the business that was operated by Private Galaxy. On September 3, 2019, Galaxy acquired 100% of the stock of Interlock Concepts, Inc. ("Concepts") and Ehlert Solutions Group, Inc. ("Solutions"). The purchase price for the acquisition was 1,350,000 (6,750 post March 7, 2022 reverse stock split) shares of common stock and a two year note payable to the seller for $3,000,000. The note payable to the seller is subject to adjustment based on the achievement of certain future gross revenues and successful completion of certain pre-acquisition withholding tax issues of Concepts and Solutions. Solutions and Concepts are Utah-based audio design and manufacturing companies creating innovative products that provide fundamental tools for building notification systems primarily to K-12 education market customers located primarily in the north and northwest United States. Solutions and Concepts' products and services allow institutions access to intercom, scheduling, and notification systems with improved ease of use. The products provide an open architecture solution to customers which allows the products to be used in both existing and new environments. Intercom, public announcement (PA), bell and control solutions are easily added and integrated within the open architecture design and software model. These products combine elements over a common internet protocol (IP) network, which minimizes infrastructure requirements and reduces costs by combining systems. On October 15, 2020, Galaxy acquired the assets of Classroom Technologies Solutions, Inc. ("Classroom Tech") for consideration of (a) paying off a secured Classroom Tech loan, not to exceed the greater of 50% of the value of the Classroom Tech assets acquired or $120,000; (b) the issuance of a promissory note in the amount of $44,526 to a Classroom Tech designee; and (c) the issuance of 10 million (50,000 post March 7, 2022 reverse stock split) shares of common stock to the seller of Classroom Tech. Classroom Tech provides cutting-edge presentation products to schools, training facilities, churches, corporations and retail establishments. Their high-quality solutions are customized to meet a variety of needs and budgets in order to provide the best in education and presentation technology. Classroom Tech direct-sources and imports many devices and components which allows the Company to be innovative, nimble, and capable of delivering a broad range of cost-effective solutions. Classroom Tech also offers in-house service and repair facilities and carries many top brands. Galaxy is a manufacturer and U.S. distributor of interactive learning technologies and enhanced audio solutions. Galaxy is engaged in a full range of activities: marketing and sales, engineering and product design and development, manufacturing, and distributing. Galaxy develops both hardware and software that allows the presenter and participant to engage in a fully collaborative instructional environment. Galaxy also develops award winning classroom audio solutions, school public address (“PA”) and intercom products, and emergency communication applications creating a full line card offering for classrooms to its channel partners. Its product offerings include its own private-label interactive touch screen panel, its own intercom, bell, and paging solution, as well as an audio amplification line of products that is currently supported by both direct sales and through original equipment manufacturer (“OEM”) relationships. Its distribution channel consists of a direct sales model, as well as approximately 44 resellers across the U.S. that primarily sell the products offered by us within the commercial and educational market. Galaxy does not control where the resellers focus their reselling efforts; however, the K-12 education market is the largest customer base for its products comprising nearly 90% of our sales. In addition, its OEM division manufactures products for other vendors in our industry and white labels the products under other brands. The Entertainment segment was sold on February 6, 2019 in exchange for 193 (post March 7, 2022 reverse stock split) Galaxy common shares. |
Impact COVID-19 Aid, Relief and Economic Security Act | Impact COVID-19 Aid, Relief and Economic Security Act The Cares Act allowed employers to defer the deposit and payment of the employer’s share of Social Security taxes from March 27, 2020 through March 31, 2021. The deferred deposits of the employer’s share of Social Security tax must be deposited 50% by March 31, 2021, and 50% by March 31, 2023. The Company’s remaining deferred deposits and current payments due amounted to approximately $1,044,947 and $490,790 at March 31, 2023 and June 30, 2022, respectively. During the three and Nine Months ended March 31, 2023 and 2021, the Company applied for Employee Retention Credits and has recognized approximately $0 and $40,000 as a reduction to operating expenses in the consolidated statements of operations. The Covid-19 pandemic that began in early 2020 caused shelter-in-place policies, unexpected factory closures, supply chain disruptions, and market volatilities across the globe. As a result of the economic disruptions and unprecedented market volatilities and uncertainties driven by the Covid-19 outbreak, the Company experienced some supply chain disruptions. The Company continues to experience supply chain disruption resulting in a decrease in revenue and increases in deferred revenue. The full impact of the Covid-19 outbreak continues to evolve as of the date of this report. The depth and duration of the pandemic remains unknown. Despite the availability of vaccines, recent surges in the infection rate and the detection of new variants of the virus have reinforced the general consensus that the containment of Covid-19 remains a challenge. Management is actively monitoring the global situation and its effect on its financial condition, liquidity, operations, suppliers, industry, and workforce. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. Any reference in these footnotes to applicable guidance is meant to refer to the authoritative U.S. generally accepted accounting principles ("GAAP") as found in the Accounting Standards Codification ("ASC") and Accounting Standards Update ("ASU") of the Financial Accounting Standards Board ("FASB"). The financial statements include the consolidated assets and liabilities of the combined company (collectively Private Galaxy FLCR, Interlock Concepts, Inc., Ehlert Solutions Group, Inc., and Classroom Tech, referred to collectively as the "Company"). All intercompany transactions and accounts have been eliminated in the consolidation. The Company is an over-the-counter public company traded under the stock symbol listing GAXY (formerly FLCR). |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates used in preparing the consolidated financial statements include those assumed in computing valuation of goodwill and intangible assets, valuation of convertible notes payable and warrants, collectability of receivables, inventory valuation and the valuation of deferred tax assets. It is reasonably possible that the significant estimates used will change within the next year. |
Reverse Stock Split | Reverse Stock Split Unless otherwise noted, all share and per share data referenced in the consolidated financial statements and the notes thereto have been retroactively adjusted to reflect the one-for-two hundred reverse stock split effective March 7, 2022 of our authorized and outstanding shares of common stock. As a result of the reverse stock split, certain amounts in the consolidated financial statements and the notes thereto may be slightly different than previously reported due to rounding of fractional shares, and adjustment for the reverse split. |
Capital Structure | Capital Structure The Company's capital structure is as follows: March 31, 2023 Authorized Issued Outstanding Common stock 3,000,000,000 116,529,871 116,529,871 $.0001 par value, one vote per share Preferred stock-All Series 200,000,000 - - $.0001 par value Preferred stock - Series A 750,000 - - $.0001 par value; no voting rights Preferred stock - Series B 1,000,000 - - $.0001 par value, voting rights of 10 votes for 1 Series B share; 2% preferred dividend payable annually Preferred stock - Series C 9,000,000 - - $.0001 par value; 500 votes per share, convertible to common stock Preferred stock - Series F 15,000 2,704 2,704 $.0001 par value; no voting right, convertible to common at a fixed price of $0.37 per share, stated value is $1,000 per share Preferred stock - Series G 51 51 51 $.0001 par value; no dividend rights, voting rights with common stock as a single series, one share equals 1% of the total voting rights, not subject to splits June 30, 2022 Authorized Issued Outstanding Common stock 20,000,000 19,169,128 19,168,935 $.0001 par value, one vote per share Preferred stock - All Series 200,000,000 - - $.0001 par value Preferred stock - Series A 750,000 - - $.0001 par value; no voting rights Preferred stock - Series B 1,000,000 - - $.0001 par value, voting rights of 10 votes for 1 Series B share; 2% preferred dividend payable annually Preferred stock - Series C 9,000,000 - - $.0001 par value; 500 votes per share, convertible to common stock Preferred stock - Series F 15,000 11,414 11,414 $.0001 par value; no voting right, convertible to common at a fixed price of $0.37 per share, stated value is $1,000 per share Preferred stock - Series G 51 51 51 $.0001 par value; no dividend rights, voting rights with common stock as a single series, one share equals 1% of the total voting rights, not subject to splits Authorized common stock increased from 20,000,000 to 200,000,000 on August 31, 2022. There was a 1:200 reverse split of the authorized and outstanding shares of common stock that was effective on March 7, 2022. There is no publicly traded market for the preferred shares. The Preferred Series D and E were retired in December 2021. Preferred Series G were issued in June 2022, pursuant to Employment Agreements (Note 11). There are 1,286,624,175 common shares reserved at March 31, 2023 under terms of notes payable agreements, and the Stock Plan (see Notes 4, 6 and 12). There are 32,254,235 issued common shares that are restricted as of March 31, 2023. The shares will become free-trading upon satisfaction of certain terms within the debt agreements or within free trading rules related to SEC Rule 144 six month hold. Authorized common stock increased from 200,000,000 to 3,000,000,000 on January 31, 2023 following approval of the holders of a majority of the Company’s voting power. |
Supplier Agreement | Supplier Agreement Contract assets and contract liabilities are as follows: March 31, 2023 June 30, 2022 Contract assets $ 55,125 $ 55,125 Contract liabilities $ - $ - For the three months ended March 31, 2023 and 2022, the Company recognized $0 and $463,301 of revenues related to supplier agreements. For the Nine Months ended March 31, 2023 and 2021 the Company recognized $0 and $1,116,219 of revenues related to supplier agreements. |
Accounts Receivable | Accounts Receivable Management deemed no allowance for doubtful accounts was necessary at March 31, 2023 and June 30, 2022. At March 31, 2023 and June 30, 2022, $175,436 and $175,436 of total accounts receivable were recorded as deferred revenue. |
Inventories | Inventories Management estimates $116,362 and $116,362 of inventory reserves at March 31, 2023 and June 30, 2022, respectively. |
Goodwill, Intangible Assets and Product Development Costs | Goodwill, Intangible Assets and Product Development Costs Goodwill, intangible assets, and product development costs are comprised of the following at March 31, 2023: Cost Accumulated Amortization Net Book Value Total Goodwill $ 834,220 - $834,220 $ 834,220 Finite-lived assets: Customer list $ 881,000 $ (595,486) $ 285,514 $ 285,514 Vendor relationships 479,000 (336,415) 142,585 142,585 Capitalized product development cost 1,487,931 (778,209) 709,722 709,722 $ 2,847,931 $(1,710,110) $ 1,137,821 $1,137,821 Goodwill, intangible assets, and product development costs are comprised of the following at June 30, 2022: Cost Accumulated Amortization Net Book Value Impairment Total Goodwill $ 834,220 $ - $ 834,220 $ - $ 834,220 Finite-lived assets: Customer list $ 922,053 $ (472,320) $ 449,733 $ (33,184) $ 416,549 Vendor relationships 484,816 (264,565) 220,251 (4,701) 215,550 Product development costs 1,279,686 (468,594) 811,092 - 811,092 $ 2,686,555 $ (1,205,479) $ 1,481,076 $ (37,885) $ 1,443,191 Intangible assets such as customer lists and vendor relationships are stated at the lower of cost or fair value. They are amortized on a straight-line basis over periods ranging from three to six years, representing the period over which the Company expects to receive future economic benefits from these assets. The Company acquired certain intangible assets. During the year ended June 30, 2022, the Company impaired $37,885 of the intangible assets related to the acquisition of Classroom Tech. Amortization of these intangible assets amounted to $68,000 and $44,700 for the three months ended March 31, 2023 and 2022. Amortization of these intangible assets amounted to $136,000 and $180,243 for the Nine Months ended March 31, 2023 and 2022. Costs incurred in designing and developing classroom technology products are expensed as research and development until technological feasibility has been established. Technological feasibility is established upon completion of a detail product design, or in its absence, completion of a working model. Upon the achievement of technological feasibility, development costs are capitalized and subsequently reported at the lower of unamortized cost or net realizable value. Management’s judgment is required in determining whether a product provides new or additional functionality, the point at which various products enter the stages at which costs may be capitalized, assessing the ongoing value and impairment of the capitalized costs and determining the estimated useful lives over which the costs are amortized. Annual amortization expense is calculated based on the straight-line method over the product’s estimated economic lives, which are typically three to six years. Amortization of product development costs incurred begins when the related products are available for general release to customers. Amortization of product development costs of $105,216 and $69,042 for the three months ended March 31, 2023 and 2022. Amortization of product development cost of $204,399 and $184,170 for the Nine Months ended March 31, 2023 and 2022, is included in cost of revenues in the Company’s unaudited condensed consolidated statements of operations. Estimated amortization expense related to finite-lived intangible assets for the next five years is: $549,264 for fiscal year 2024, $314,373 for fiscal year 2025, $119,340 for fiscal year 2026, $94,213 for fiscal year 2027, and $60,631 for fiscal year 2028 and $0 thereafter. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has implemented all new applicable accounting pronouncements that are in effect and applicable. These pronouncements did not have any material impact on the consolidated financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. In December 2019, the FASB issued ASU No. 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) by removing certain exceptions to the general principles. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early adoption of the amendments is permitted. Depending on the amendment, adoption may be applied on a retrospective, modified retrospective or prospective basis. The Company adopted the new guidance on July 1, 2022 in its consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of capital structure | March 31, 2023 Authorized Issued Outstanding Common stock 3,000,000,000 116,529,871 116,529,871 $.0001 par value, one vote per share Preferred stock-All Series 200,000,000 - - $.0001 par value Preferred stock - Series A 750,000 - - $.0001 par value; no voting rights Preferred stock - Series B 1,000,000 - - $.0001 par value, voting rights of 10 votes for 1 Series B share; 2% preferred dividend payable annually Preferred stock - Series C 9,000,000 - - $.0001 par value; 500 votes per share, convertible to common stock Preferred stock - Series F 15,000 2,704 2,704 $.0001 par value; no voting right, convertible to common at a fixed price of $0.37 per share, stated value is $1,000 per share Preferred stock - Series G 51 51 51 $.0001 par value; no dividend rights, voting rights with common stock as a single series, one share equals 1% of the total voting rights, not subject to splits June 30, 2022 Authorized Issued Outstanding Common stock 20,000,000 19,169,128 19,168,935 $.0001 par value, one vote per share Preferred stock - All Series 200,000,000 - - $.0001 par value Preferred stock - Series A 750,000 - - $.0001 par value; no voting rights Preferred stock - Series B 1,000,000 - - $.0001 par value, voting rights of 10 votes for 1 Series B share; 2% preferred dividend payable annually Preferred stock - Series C 9,000,000 - - $.0001 par value; 500 votes per share, convertible to common stock Preferred stock - Series F 15,000 11,414 11,414 $.0001 par value; no voting right, convertible to common at a fixed price of $0.37 per share, stated value is $1,000 per share Preferred stock - Series G 51 51 51 $.0001 par value; no dividend rights, voting rights with common stock as a single series, one share equals 1% of the total voting rights, not subject to splits |
Schedule of contract assets and contract liabilities | March 31, 2023 June 30, 2022 Contract assets $ 55,125 $ 55,125 Contract liabilities $ - $ - |
Schedule of goodwill and intangible assets | Cost Accumulated Amortization Net Book Value Total Goodwill $ 834,220 - $834,220 $ 834,220 Finite-lived assets: Customer list $ 881,000 $ (595,486) $ 285,514 $ 285,514 Vendor relationships 479,000 (336,415) 142,585 142,585 Capitalized product development cost 1,487,931 (778,209) 709,722 709,722 $ 2,847,931 $(1,710,110) $ 1,137,821 $1,137,821 Cost Accumulated Amortization Net Book Value Impairment Total Goodwill $ 834,220 $ - $ 834,220 $ - $ 834,220 Finite-lived assets: Customer list $ 922,053 $ (472,320) $ 449,733 $ (33,184) $ 416,549 Vendor relationships 484,816 (264,565) 220,251 (4,701) 215,550 Product development costs 1,279,686 (468,594) 811,092 - 811,092 $ 2,686,555 $ (1,205,479) $ 1,481,076 $ (37,885) $ 1,443,191 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Property and Equipment [Abstract] | |
Schedule of property and equipment | March 31, 2023 June 30, 2022 Vehicles $ 212,658 $ 212,658 Building 201,823 201,823 Equipment 16,192 16,192 Leasehold improvements 31,000 31,000 Furniture and fixtures 28,321 28,321 489,994 489,994 Accumulated depreciation (171,300) (141,125) Property and equipment, net $ 318,694 $ 348,869 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Notes Payable [Abstract] | |
Schedule of long-term notes payable | March 31 , 2023 June 30, 2022 Note payable with a bank bearing interest at 4% and maturing on June 26, 2020. The note was renewed by the lender with a revised maturity of June 26, 2021 and an interest rate to 3%. In July 2021, the note was renewed by the lender with a revised maturity date of July 7, 2026. The renewal provides for $4,405 monthly payments of principal and interest through maturity. The note is collateralized by a certificate of deposit owned by a related party. $ 174,900 $ 207,058 Note payable to an investor of $360,000 bearing interest at 12% and maturing February 28, 2023. Monthly installments of $30,000 beginning May 2022. The loan was issued at a discount of $60,000 and has a convertible default provision in the event the Company does not make the monthly payments. In July 2022, payments for June, July, and August 2022 were deferred to September 30, 2022 by the lender in exchange for $30,000 increase in the principal and a change in terms of certain default provisions. On November 7, 2022, the note was amended whereby deferred and future payments on the note will be paid from future equity purchase agreement proceeds, and lowered the conversion price in the event of a default to $0.03 per share, subject to adjustment. The Company issued 883,333 shares of common stock to the investor as additional commitment fees. The note is convertible as of March 31, 2023. 225,000 269,432 Note payable to an investor bearing interest at 12% and maturing March 18, 2023. Monthly installments of $22,558 begin on May 2022. The loan was issued at a discount of $24,450 and has a convertible default provision in the event the Company does not make the monthly payments. The note was repaid in full by conversion to stock. - 158,745 Note payable to an investor of $88,760 with ten installment payments of $9,941 due each month starting in January 15, 2023. The loan was issued at a discount of $9,510, bears 12% interest and has a convertible default provision in the event the company does not make the scheduled monthly payments. Interest for twelve months of 10,651 is immediately due on the issue date and payable at maturity. 83,213 - Note payable to an investor of $59,250 convertible after 180 days from issue on July 1, 2023. The loan bears 12% interest and converts at a conversion price equal to 65% of the average of the two lowest trading prices for the stock during the 10 trading day period prior to conversion. Prepayment of the loan within 60 days of issue results in a 115% premium, and prepayment within 61 to 180 days of issue results in a 125% premium. 59,250 - Note payable to an investor in the principal amount of 1,350,000, bearing interest at 12% and maturing on May 26, 2023 with monthly installments of principal and interest of $120,185 beginning in May 2022. On May 25, 2022, the June, July, and August 2022 payments were deferred in exchange for 750,000 shares of common stock and a $146,667 increase to the principal balance. The October and November 2022 payments were deferred by the lender. On November 15, 2022, the Company issued a $150,000 forberance note to the investor and extending the maturity date to June 30, 2023. The note is convertible as of March 31, 2023. 1,128,642 1,294,198 Note payable to an investor in the principal amount of $600,000 due December 21, 2022, issued at a discount of $60,000, bearing 12% annual interest. A warrant for the purchase of 600,000 common shares at an exercise price of $0.50 per share was issued as a commitment fee. Principal and interest on the note are due at maturity. An additional warrant for the purchase of 400,000 shares and an amended exercise price of $0.01 for all warrants was issued effective June 21, 2022. 200,000 540,000 Note payable to an investor in the principal amount of $450,000 with payments of $62,438 due each month starting on September 22, 2022. The loan was issued at a discount of $49,500, bears 11% interest and has a convertible default provision in the event the Company does not make the monthly payments. The note is convertible as of March 31, 2023. 450,000 400,500 Note payable to an investor in the principal amount of $810,000 bearing interest at 12%, due August 31, 2023. A warrant for the purchase of 1,000,000 common shares at an exercise price of $.01 per share was issued as a commitment fee to the investor. The note has a convertible default provision. 843,750 - Note payable to an investor in the principal amount of $310,000 issued at a discount of $31,000, due November 8, 2023, bearing 12% interest. Principal and interest is payable on 4 dates over the term of the note. A payment of $46,500 plus accrued interest is due on February 3, 2023 and May 4, 2023. A payment of $93,000 plus accrued interest is due on August 4, 2023, with the remaining principal and interest due on November 4, 2023. The note is convertible to stock if there is a default on the note, including payments and reserving shares in accordance with the note payable. The Company received a waiver for reserving shares from the investor. The note is convertible due to an uncured violation of debt covenants to reserve shares in an amount equal to five times what is necessary to convert the loan and interest. 291,917 - Investor advance on Equity Purchase Agreement. 676,565 - Long term loan under Section 7(b) of the Economic Injury Disaster Loan program bearing interest at 3.75% and maturing in May 2050. Monthly installments of principal and interest of $731 begin November 21, 2022. 150,000 150,000 Financing lease liabilities for offices and warehouses with monthly installments of $22,810 (ranging from $245 to $9,664) over terms expiring through December 2024. 129,758 179,512 Note payable with a finance company for delivery vehicle with monthly installments totaling $679 including interest at 8.99% over a 6 year term expiring in December 2025. 18,888 25,771 Note payable with a finance company for delivery vehicle with monthly installments totaling $948 including interest at 5.9% over a 6 year term expiring in January 2027. 43,425 51,826 Note payable with a bank for delivery vehicle with monthly installments totaling $844 including interest at 6% over a 4 year term expiring in August 2025. 23,159 29,696 Total Notes Payable 4,498,467 3,306,738 Less: Unamortized original issue discount 109,408 242,529 Less: Fair value of warrants 211,576 - Current Portion of Notes Payable 3,795,339 2,815,231 Long-term Portion of Notes Payable $ 382,144 $ 248,978 |
Schedule of future minimum principal payments on the long-term notes payable to unrelated parties | Period ending March 31, 2024 $ 3,795,339 2025 124,100 2026 76,383 2027 38,794 2028 8,179 Thereafter 134,685 $ 4,117,483 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Fair Value Measurements [Abstract] | |
Schedule of fair values determined by level 3 inputs | At March 31, 2023: Total Level 1 Level 2 Level 3 Convertible debt features $ 12,189 $ - $ - $ 12,189 At June 30, 2022: Total Level 1 Level 2 Level 3 Convertible debt features $ - $ - $ - $ - |
Schedule of derivative liability valued using monte carlo pricing model | At March 31, 2023 Risk-free interest rate: 0.17% Expected dividend yield: 0.00% Expected stock price volatility: 295.00% Expected option life in years: .90 year At June 30, 2022 Risk-free interest rate: 0.00% Expected dividend yield: 0.00% Expected stock price volatility: 0.00% Expected option life in years: 0 years |
Schedule of reconciliation of changes in fair value of convertible debt | Balance at June 30, 2022 $ - Realized - Unrealized 12,189 Balance at March 31, 2023 $ 12,189 Balance at July 1, 2021 $ 1,842,000 Realized (1,842,000) Unrealized - Balance at June 30, 2022 $ - |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of notes payable | March 31, 2023 June 30, 2022 Fair value of unsecured notes payable to seller of Concepts and Solutions, a related party, bearing interest at 3% per year, payable in annual installments through November 30, 2021. Payment is subject to adjustment based on the achievement of minimum gross revenues and successful completion of certain pre-acqusition withholding tax issues of Concepts and Solutions. $ 1,030,079 $ 1,030,079 Note payable to a stockholder in which the note principal plus interest at 15% is payable the earlier of 60 days after invoicing a certain customer, or April, 2022 due to an extension granted by the lender. On December 23, 2021, an amendment extended the maturity to March 30, 2025, changed the interest rate to 10% with monthly payments of principal and interest of $8,823 beginning in June 2022. The note is collateralized by a security interest in a certain customer purchase order. Monthly payments were deferred by the lender. 385,000 385,000 Note payable related to acquisition of Classroom Tech in which the note principal is payable in 2021 with no interest obligations, upon the shareholder's resolution of a pre-acquisition liability with a bank. - 55,000 Notes payable to two stockholders, bearing interest at 12% and payable from future equity advances where 20% of each advance will be used to pay the notes down until paid in full and to pay back within six month of an active equity purchase agreement. 225,000 - Long term note bearing interest at 6% and maturing March 31, 2024 and other short-term payables due to stockholders and related parties 845,499 355,538 Total Related Party Notes Payable 2,485,578 1,825,617 Current Portion of Related Party Notes Payable 105,876 1,238,755 Long-term Portion of Related Party Notes Payable $ 2,379,702 $ 586,862 |
Schedule of related party notes payable maturities | Period ending March 31, 2024 105,876 2025 1,070,923 2026 - 2027 1,308,779 2,485,578 |
Lease Agreements (Tables)
Lease Agreements (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of under financing lease agreements | March 31, 2023 June 30, 2022 Right-of-use assets: Operating right-of-use assets $129,758 $179,512 Operating lease liabilities: Current portion of long term payable 82,284 80,096 Financing leases payable, less current portion 47,474 99,416 Total operating lease liabilities $129,758 $179,512 |
Schedule of financing lease maturities | Period ending March 31, 2024 $ 82,284 2025 45,106 2026 2,368 $129,758 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Equity Table [Abstract] | |
Schedule of black-scholes option pricing model | Stock price volatility 175% Expected term 5 years Discount rate 3.38% Expected dividends 0% Stock price volatility 190% Expected term 1 year Risk-free interest rate 3.21% Expected dividends 0% |
Schedule of warrant status | Warrants Weighted Average Exercise Price Outstanding, June 30, 2022 600,000 $0.01 Granted 1,400,000 0.01 Granted 2,100,000 0.10 Forfeited - - Outstanding, March 31, 2023 4,100,000 $0.09 Exercisable, end of period $3,100,000 - |
Schedule of warrants outstanding | Exercise Number Number Weighted Average Intrinsic Warrants Price Exercisable Outstanding Remaining Life Value 600,000 $ 0.01 600,000 600,000 4.5 years $ - 1,000,000 $ 0.01 - 1,000,000 4.7 years $ 150,000 400,000 $ 0.01 400,000 400,000 4.5 years $ 243,250 2,100,000 $ 0.10 2,100,000 2,100,000 4.9 years $ 99,184 2,100,000 $ 0.10 - - 5 years $ - |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Income Taxes [Abstract] | |
Schedule of effective tax rate differed from the federal statutory income tax rate | Federal statutory rate 21% State tax, net of federal tax effect 5% Valuation allowance 26% Effective tax rate 0% |
Schedule of deferred tax assets and liabilities | March 31, 2023 June 30, 2022 Federal Deferred tax assets $8,802,100 $ 7,781,500 Less valuation allowance (8,802,100) (7,781,500) Deferred tax liabilities - - - - State Deferred tax assets $1,619,300 1,966,600 Less valuation allowance (1,619,300) (1,966,600) Deferred tax liabilities - - - - Net Deferred Tax Assets $ - $ - |
Schedule of significant components of deferred tax assets | March 31, 2023 June 30, 2022 Net operating loss carryforwards $ $10,161,400 $ 9,539,900 Valuation allowance (10,421,400) (9,748,100) Goodwill (4,500) 11,000 Property and equipment (26,800) (32,000) Development costs 72,800 124,600 Intangible assets 160,100 46,100 Inventory allowance 30,300 30,300 Warranty accrual and other 28,100 28,200 Net Deferred Tax Assets $ - $ - |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Mar. 07, 2022 | Oct. 15, 2020 | Sep. 03, 2019 | Feb. 06, 2019 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | Jan. 31, 2023 | Aug. 31, 2022 | Mar. 31, 2021 | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Preferred stock, shares authorized (in Shares) | 200,000,000 | 200,000,000 | 200,000,000 | |||||||||
Common stock, shares authorized (in Shares) | 4,000,000,000 | 4,000,000,000 | ||||||||||
Par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | ||||||||||
Acquired percentage | 50% | 100% | ||||||||||
Reserve stock split (in Shares) | 6,750 | |||||||||||
Note payable | $ 3,000,000 | |||||||||||
Product sales percentage | 90% | |||||||||||
Sale of common shares (in Shares) | 193 | |||||||||||
Security tax deposited percentage | 50% | 50% | 50% | |||||||||
Deferred deposits and payments due | $ 1,044,947 | $ 1,044,947 | $ 490,790 | |||||||||
Employee retention credits | $ 0 | $ 0 | $ 40,000 | |||||||||
Common shares reserved (in Shares) | 1,286,624,175 | |||||||||||
Restricted common shares issued (in Shares) | 32,254,235 | |||||||||||
Common stock, shares authorized (in Shares) | 3,000,000,000 | 3,000,000,000 | 20,000,000 | |||||||||
Recognized revenue | $ 0 | $ 463,301 | ||||||||||
Allowance for doubtful accounts | 0 | $ 0 | $ 1,116,219 | |||||||||
Accounts receivable - unbilled | 175,436 | 175,436 | $ 175,436 | |||||||||
Inventory reserves | 116,362 | 116,362 | 116,362 | |||||||||
Amortization expense | 68,000 | 44,700 | $ 37,885 | |||||||||
Amortization of intangible assets | 136,000 | $ 180,243 | ||||||||||
Amortization cost | 105,216 | $ 69,042 | ||||||||||
Amortization of product development costs | 204,399 | $ 184,170 | ||||||||||
Estimated amortization expense related to intangible assets 2024 | 549,264 | 549,264 | ||||||||||
Estimated amortization expense related to intangible assets 2025 | 314,373 | 314,373 | ||||||||||
Estimated amortization expense related to intangible assets 2026 | 119,340 | 119,340 | ||||||||||
Estimated amortization expense related to intangible assets 2027 | 94,213 | 94,213 | ||||||||||
Estimated amortization expense related to intangible assets 2028 | 60,631 | 60,631 | ||||||||||
Estimated amortization expense related to intangible assets thereafter | $ 0 | $ 0 | ||||||||||
Minimum [Member] | ||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Common stock authorized (in Shares) | 20,000,000 | |||||||||||
Common stock, shares authorized (in Shares) | 200,000,000 | |||||||||||
Maximum [Member] | ||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Common stock authorized (in Shares) | 200,000,000 | |||||||||||
Common stock, shares authorized (in Shares) | 3,000,000,000 | |||||||||||
Business combination [Member] | ||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Common stock, shares acquisition (in Shares) | 1,350,000 | |||||||||||
Classroom Technologies Solutions, Inc. [Member] | ||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Assets acquired | $ 120,000 | |||||||||||
Promissory note | $ 44,526 | |||||||||||
Issuance of shares (in Shares) | 10,000,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of capital structure - shares | Mar. 31, 2023 | Jun. 30, 2022 |
Summary of Significant Accounting Policies (Details) - Schedule of capital structure [Line Items] | ||
Common Stock, shares Authorized | 3,000,000,000 | 20,000,000 |
Common stock, shares Issued | 116,529,871 | 19,169,128 |
Common stock, shares Outstanding | 116,529,871 | 19,168,935 |
Common stock Common stock, par or stated value per share | $.0001 par value, one vote per share | $.0001 par value, one vote per share |
Common Stock, shares Authorized | 200,000,000 | 200,000,000 |
Common stock, shares Issued | ||
Common stock, shares Outstanding | ||
Preferred stock, par or stated value per share | $.0001 par value | $.0001 par value |
Preferred stock - Series A [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of capital structure [Line Items] | ||
Common Stock, shares Authorized | 750,000 | 750,000 |
Common stock, shares Issued | ||
Common stock, shares Outstanding | ||
Preferred stock, par or stated value per share | $.0001 par value; no voting rights | $.0001 par value; no voting rights |
Preferred stock - Series B [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of capital structure [Line Items] | ||
Common Stock, shares Authorized | 1,000,000 | 1,000,000 |
Common stock, shares Issued | ||
Common stock, shares Outstanding | ||
Preferred stock, par or stated value per share | $.0001 par value, voting rights of 10 votes for 1 Series B share; 2% preferred dividend payable annually | $.0001 par value, voting rights of 10 votes for 1 Series B share; 2% preferred dividend payable annually |
Preferred stock - Series C [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of capital structure [Line Items] | ||
Common Stock, shares Authorized | 9,000,000 | 9,000,000 |
Common stock, shares Issued | ||
Common stock, shares Outstanding | ||
Preferred stock, par or stated value per share | $.0001 par value; 500 votes per share, convertible to common stock | $.0001 par value; 500 votes per share, convertible to common stock |
Preferred stock - Series F [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of capital structure [Line Items] | ||
Common Stock, shares Authorized | 15,000 | 15,000 |
Common stock, shares Issued | 2,704 | 11,414 |
Common stock, shares Outstanding | 2,704 | 11,414 |
Preferred stock, par or stated value per share | $.0001 par value; no voting right, convertible to common at a fixed price of $0.37 per share, stated value is $1,000 per share | $.0001 par value; no voting right, convertible to common at a fixed price of $0.37 per share, stated value is $1,000 per share |
Preferred stock - Series G [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of capital structure [Line Items] | ||
Common Stock, shares Authorized | 51 | 51 |
Common stock, shares Issued | 51 | 51 |
Common stock, shares Outstanding | 51 | 51 |
Preferred stock, par or stated value per share | $.0001 par value; no dividend rights, voting rights with common stock as a single series, one share equals 1% of the total voting rights, not subject to splits | $.0001 par value; no dividend rights, voting rights with common stock as a single series, one share equals 1% of the total voting rights, not subject to splits |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of contract assets and contract liabilities - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Schedule of contract assets and contract liabilities [Abstract] | ||
Contract assets | $ 55,125 | $ 55,125 |
Contract liabilities |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of goodwill and intangible assets - USD ($) | Jun. 30, 2022 | Mar. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 2,686,555 | $ 2,847,931 |
Accumulated Amortization | (1,205,479) | (1,710,110) |
Net Book Value | 1,481,076 | 1,137,821 |
Impairment | (37,885) | |
Total | 1,443,191 | 1,137,821 |
Goodwill [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 834,220 | 834,220 |
Accumulated Amortization | ||
Net Book Value | 834,220 | 834,220 |
Impairment | ||
Total | 834,220 | 834,220 |
Customer list [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 922,053 | 881,000 |
Accumulated Amortization | (472,320) | (595,486) |
Net Book Value | 449,733 | 285,514 |
Impairment | (33,184) | |
Total | 416,549 | 285,514 |
Vendor relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 484,816 | 479,000 |
Accumulated Amortization | (264,565) | (336,415) |
Net Book Value | 220,251 | 142,585 |
Impairment | (4,701) | |
Total | 215,550 | 142,585 |
Capitalized product development cost [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,487,931 | |
Accumulated Amortization | (778,209) | |
Net Book Value | 709,722 | |
Total | $ 709,722 | |
Product development costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,279,686 | |
Accumulated Amortization | (468,594) | |
Net Book Value | 811,092 | |
Impairment | ||
Total | $ 811,092 |
Property and Equipment (Details
Property and Equipment (Details) - Schedule of property and equipment - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 489,994 | $ 489,994 |
Accumulated depreciation | (171,300) | (141,125) |
Property and equipment, net | 318,694 | 348,869 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 212,658 | 212,658 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 201,823 | 201,823 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 16,192 | 16,192 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 31,000 | 31,000 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 28,321 | $ 28,321 |
Lines of Credit (Details)
Lines of Credit (Details) - USD ($) | 9 Months Ended | ||
Aug. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2023 | |
Lines of Credit [Abstract] | |||
Renewal period | 2 years | ||
Line of credit | $ 160,000 | ||
Proceeds received | $ 155,837 | ||
Interest percentage | 1% | ||
Maturity date | Aug. 25, 2027 | ||
Outstanding balance | $ 0 | $ 155,500 | |
Outstanding | $ 180,042 | ||
Line of Credit Interest Bearing [Member] | |||
Lines of Credit [Abstract] | |||
Debt maturity | Jul. 30, 2022 | ||
Accounts Receivable Factoring Agreement [Member] | |||
Lines of Credit [Abstract] | |||
Available credit line | $ 1,000,000 | ||
Line of credit | $ 989,680 | $ 901,045.19 |
Notes Payable (Details) - Sched
Notes Payable (Details) - Schedule of long-term notes payable - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Debt Instrument [Line Items] | ||
Total Notes Payable | $ 4,498,467 | $ 3,306,738 |
Less: Unamortized original issue discount | 109,408 | 242,529 |
Less: Fair value of warrants | 211,576 | |
Current Portion of Notes Payable | 3,795,339 | 2,815,231 |
Long-term Portion of Notes Payable | 382,144 | 248,978 |
Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | 174,900 | 207,058 |
Notes Payable One [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | 225,000 | 269,432 |
Notes Payable Two [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | 158,745 | |
Notes Payable Three [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | 83,213 | |
Notes Payable Four [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | 59,250 | |
Notes Payable Five [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | 1,128,642 | 1,294,198 |
Notes Payable Six [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | 200,000 | 540,000 |
Notes Payable Seven [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | 450,000 | 400,500 |
Notes Payable Eight [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | 843,750 | |
Notes Payable Nine [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | 291,917 | |
Notes Payable Ten [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | 676,565 | |
Notes Payable Eleven [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | 150,000 | 150,000 |
Notes Payable Twelve [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | 129,758 | 179,512 |
Notes Payable Thirteen [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | 18,888 | 25,771 |
Notes Payable Fourteen [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | 43,425 | 51,826 |
Notes Payable Fifteen [Member] | ||
Debt Instrument [Line Items] | ||
Total Notes Payable | $ 23,159 | $ 29,696 |
Notes Payable (Details) - Sch_2
Notes Payable (Details) - Schedule of long-term notes payable (Parentheticals) - USD ($) | 9 Months Ended | |
Jun. 30, 2022 | Mar. 31, 2023 | |
Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Bearing interest rate | 4% | 4% |
Maturity date | June 26, 2020 | June 26, 2020 |
Interest rate | 3% | 3% |
Monthly installments | $ 4,405 | $ 4,405 |
Notes Payable One [Member] | ||
Debt Instrument [Line Items] | ||
Bearing interest rate | 12% | 12% |
Maturity date | February 28, 2023 | February 28, 2023 |
Monthly installments | $ 30,000 | $ 30,000 |
Expiring term | May 2022 | May 2022 |
Issued at a discount | $ 60,000 | $ 60,000 |
Increase principals | 30,000 | 30,000 |
Investor | $ 360,000 | $ 360,000 |
Notes Payable Two [Member] | ||
Debt Instrument [Line Items] | ||
Bearing interest rate | 12% | 12% |
Maturity date | March 18, 2023 | March 18, 2023 |
Monthly installments | $ 22,558 | $ 22,558 |
Expiring term | May 2022 | May 2022 |
Issued at a discount | $ 24,450 | $ 24,450 |
Notes Payable Three [Member] | ||
Debt Instrument [Line Items] | ||
Issued at a discount | 9,510 | 9,510 |
Installment payments | 9,941 | 9,941 |
Investor payments | $ 88,760 | $ 88,760 |
Notes Payable Four [Member] | ||
Debt Instrument [Line Items] | ||
Bearing interest rate | 12% | 12% |
Issued at a discount | $ 49,500 | $ 49,500 |
Investor payments | 59,250 | 59,250 |
Payments of due | 62,438 | 62,438 |
Notes payable | $ 450,000 | $ 450,000 |
Notes Payable Five [Member] | ||
Debt Instrument [Line Items] | ||
Bearing interest rate | 12% | 12% |
Maturity date | May 26, 2023 | May 26, 2023 |
Expiring term | May 2022 | May 2022 |
Increase principals | $ 146,667 | $ 146,667 |
Principal and interest | $ 120,185 | $ 120,185 |
Common stock (in Shares) | 750,000 | 750,000 |
Principal amount | $ 1,350,000 | $ 1,350,000 |
Notes Payable Six [Member] | ||
Debt Instrument [Line Items] | ||
Bearing interest rate | 12% | 12% |
Issued at a discount | $ 60,000 | $ 60,000 |
Common stock (in Shares) | 600,000 | 600,000 |
Principal amount | $ 600,000 | $ 600,000 |
Note payable due | $ 600,000 | $ 600,000 |
Exercise price (in Dollars per share) | $ 0.5 | $ 0.5 |
Notes Payable Seven [Member] | ||
Debt Instrument [Line Items] | ||
Bearing interest rate | 11% | 11% |
Issued at a discount | $ 49,500 | $ 49,500 |
Payments of due | 62,438 | 62,438 |
Notes payable | $ 450,000 | $ 450,000 |
Notes Payable Eight [Member] | ||
Debt Instrument [Line Items] | ||
Bearing interest rate | 12% | 12% |
Common stock (in Shares) | 1,000,000 | 1,000,000 |
Principal amount | $ 810,000 | $ 810,000 |
Exercise price (in Dollars per share) | $ 0.01 | $ 0.01 |
Notes Payable Nine [Member] | ||
Debt Instrument [Line Items] | ||
Bearing interest rate | 12% | 12% |
Maturity date | November 8,2023 | November 8,2023 |
Issued at a discount | $ 310,000 | $ 310,000 |
Principal amount | $ 310,000 | $ 310,000 |
Notes Payable Eleven [Member] | ||
Debt Instrument [Line Items] | ||
Bearing interest rate | 3.75% | 3.75% |
Principal and interest | $ 731 | $ 731 |
Expiring | May 2050 | May 2050 |
Notes Payable Twelve [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | December 2024 | December 2024 |
Monthly installments | $ 22,810 | $ 22,810 |
Notes Payable Twelve [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Monthly installments range | 245 | 245 |
Notes Payable Twelve [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Monthly installments range | 9,664 | 9,664 |
Notes Payable Thirteen [Member] | ||
Debt Instrument [Line Items] | ||
Monthly installments | $ 679 | $ 679 |
Expiring term | December 2025 | December 2025 |
Interest percentage | 8.99% | 8.99% |
Debt term | 6 years | 6 years |
Notes Payable Fourteen [Member] | ||
Debt Instrument [Line Items] | ||
Monthly installments | $ 948 | $ 948 |
Expiring term | January 2027 | January 2027 |
Interest percentage | 5.90% | 5.90% |
Debt term | 6 years | 6 years |
Notes Payable Fifteen [Member] | ||
Debt Instrument [Line Items] | ||
Monthly installments | $ 844 | $ 844 |
Expiring term | August 2025 | August 2025 |
Interest percentage | 6% | 6% |
Debt term | 4 years | 4 years |
Notes Payable (Details) - Sch_3
Notes Payable (Details) - Schedule of future minimum principal payments on the long-term notes payable to unrelated parties - Long-term Notes Payable [Member] | Mar. 31, 2023 USD ($) |
Notes Payable (Details) - Schedule of future minimum principal payments on the long-term notes payable to unrelated parties [Line Items] | |
2024 | $ 3,795,339 |
2025 | 124,100 |
2026 | 76,383 |
2027 | 38,794 |
2028 | 8,179 |
Thereafter | 134,685 |
Total | $ 4,117,483 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Jun. 30, 2022 | |
Fair Value Measurements [Abstract] | ||
Nonrecurring basis goodwill and fair value of the asset | $ 834,220 | $ 834,220 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details) - Schedule of fair values determined by level 3 inputs - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Schedule of Fair Values Determined by Level 3 Inputs [Abstract] | ||
Convertible debt features | $ 12,189 | |
Level 1 [Member] | ||
Schedule of Fair Values Determined by Level 3 Inputs [Abstract] | ||
Convertible debt features | ||
Level 2 [Member] | ||
Schedule of Fair Values Determined by Level 3 Inputs [Abstract] | ||
Convertible debt features | ||
Level 3 [Member] | ||
Schedule of Fair Values Determined by Level 3 Inputs [Abstract] | ||
Convertible debt features | $ 12,189 |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details) - Schedule of derivative liability valued using monte carlo pricing model | 9 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Jun. 30, 2022 | |
Schedule of Derivative Liability Valued Using Monte Carlo Pricing Model [Abstract] | ||
Risk-free interest rate: | 0.17% | 0% |
Expected dividend yield: | 0% | 0% |
Expected stock price volatility: | 295% | 0% |
Expected option life in years: | 90 years | 0 years |
Fair Value Measurements (Deta_4
Fair Value Measurements (Details) - Schedule of reconciliation of changes in fair value of convertible debt - Level 3 [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Jun. 30, 2022 | |
Schedule of Reconciliation of Changes in Fair Value of Convertible Debt [Abstract] | ||
Beginning balance | $ 1,842,000 | |
Realized | (1,842,000) | |
Unrealized | 12,189 | |
Ending balance | $ 12,189 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Related Party Transactions (Details) [Line Items] | ||||
Rent expense | $ 28,992 | |||
Rent expense | $ 28,992 | $ 86,976 | $ 86,976 | |
Short term commercial deposit | $ 274,900 | 274,900 | ||
Other Agreements [Member] | ||||
Related Party Transactions (Details) [Line Items] | ||||
Collateral fee | 7,500 | |||
Related Party Leases [Member] | ||||
Related Party Transactions (Details) [Line Items] | ||||
Monthly lease payment | $ 9,664 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of notes payable - USD ($) | 6 Months Ended | 9 Months Ended |
Jun. 30, 2022 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | ||
Total Related Party Notes Payable | $ 1,825,617 | $ 2,485,578 |
Current Portion of Related Party Notes Payable | 1,238,755 | 105,876 |
Long-term Portion of Related Party Notes Payable | 586,862 | 2,379,702 |
Long-term Note Payable to Related Party - 1 [Member] | ||
Related Party Transaction [Line Items] | ||
Total Related Party Notes Payable and Other Payables | 1,030,079 | 1,030,079 |
Long-term Note Payable to Related Party - 2 [Member] | ||
Related Party Transaction [Line Items] | ||
Total Related Party Notes Payable and Other Payables | 385,000 | 385,000 |
Long-term Note Payable to Related Party - 3 [Member] | ||
Related Party Transaction [Line Items] | ||
Total Related Party Notes Payable and Other Payables | 55,000 | |
Long-term Note Payable to Related Party - 5 [Member] | ||
Related Party Transaction [Line Items] | ||
Total Related Party Notes Payable and Other Payables | 225,000 | |
Long-term Note Payable to Related Party - 4 [Member] | ||
Related Party Transaction [Line Items] | ||
Long term note bearing interest at 6% and maturing December 31, 2024 and other short-term payables due to stockholders and related parties | $ 355,538 | $ 845,499 |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of notes payable (Parentheticals) - USD ($) | 6 Months Ended | 9 Months Ended |
Jun. 30, 2022 | Mar. 31, 2023 | |
Long-term Note Payable to Related Party - 1 [Member] | ||
Related Party Transaction [Line Items] | ||
Interest rate | 3% | 3% |
Debt maturity | Nov. 30, 2021 | Nov. 30, 2021 |
Long-term Note Payable to Related Party - 2 [Member] | ||
Related Party Transaction [Line Items] | ||
Interest rate | 15% | 15% |
Debt maturity | Apr. 30, 2022 | Apr. 30, 2022 |
Long-term Note Payable to Related Party - 2 [Member] | December 23, 2021 [Member] | ||
Related Party Transaction [Line Items] | ||
Interest rate | 10% | 10% |
Debt maturity | Mar. 30, 2025 | Mar. 30, 2025 |
Monthly lease payment (in Dollars) | $ 8,823 | $ 8,823 |
Long-term Note Payable to Related Party - 5 [Member] | ||
Related Party Transaction [Line Items] | ||
Interest rate | 20% | 20% |
Long-term Note Payable to Related Party - 5 [Member] | December 23, 2021 [Member] | ||
Related Party Transaction [Line Items] | ||
Interest rate | 12% | 12% |
Long-term Note Payable to Related Party - 4 [Member] | ||
Related Party Transaction [Line Items] | ||
Interest rate | 6% | 6% |
Debt maturity | Dec. 31, 2024 | Dec. 31, 2024 |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of related party notes payable maturities | Mar. 31, 2023 USD ($) |
Schedule of Related Party Notes Payable Maturities [Abstract] | |
2024 | $ 105,876 |
2025 | 1,070,923 |
2026 | |
2027 | 1,308,779 |
Related party notes payable | $ 2,485,578 |
Lease Agreements (Details)
Lease Agreements (Details) | 9 Months Ended |
Mar. 31, 2023 USD ($) | |
Lease Agreements (Details) [Line Items] | |
Weighted average remaining lease term | 1 year 29 days |
Financial Institution [Member] | |
Lease Agreements (Details) [Line Items] | |
Monthly lease payment | $ 22,723 |
Lease expiration date | December 2024 |
Financial Institution [Member] | Minimum [Member] | |
Lease Agreements (Details) [Line Items] | |
Monthly lease payment | $ 245 |
Financial Institution [Member] | Maximum [Member] | |
Lease Agreements (Details) [Line Items] | |
Monthly lease payment | $ 9,664 |
Lease Agreements (Details) - Sc
Lease Agreements (Details) - Schedule of under financing lease agreements - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Right-of-use assets: | ||
Operating right-of-use assets | $ 129,758 | $ 179,512 |
Operating lease liabilities: | ||
Current portion of long term payable | 82,284 | 80,096 |
Financing leases payable, less current portion | 47,474 | 99,416 |
Total operating lease liabilities | $ 129,758 | $ 179,512 |
Lease Agreements (Details) - _2
Lease Agreements (Details) - Schedule of financing lease maturities | Mar. 31, 2023 USD ($) |
Schedule of Financing Lease Maturities [Abstract] | |
2024 | $ 82,284 |
2025 | 45,106 |
2026 | 2,368 |
Total financing lease payments | $ 129,758 |
Equity (Details)
Equity (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Nov. 08, 2022 | Nov. 01, 2022 | Jun. 21, 2022 | Mar. 07, 2022 | Aug. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Equity (Details) [Line Items] | ||||||||
Share issued | 53,206,652 | 73,517 | ||||||
Share issued value (in Dollars) | $ 492,434 | |||||||
Increased warrants shares | 400,000 | 400,000 | ||||||
Issued warrants shares | 2,100,000 | |||||||
Unvested warrants issued | 2,100,000 | |||||||
Common Stock [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Number of common stock shares | 36,500 | |||||||
Fractional Shares [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Cancellation of common stock | 241,303 | |||||||
Warrants [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Increased warrants shares (in Dollars per share) | $ 0.01 | $ 0.1 | $ 0.01 | |||||
Maximum [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Increased warrants shares (in Dollars per share) | 0.5 | |||||||
Minimum [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Increased warrants shares (in Dollars per share) | $ 0.01 | |||||||
Preferred Stock Series F [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Share issued | 23,540,539 | 11,414 | ||||||
Preferred Series E Stock [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Cancellation of common stock | 500,000 | |||||||
Equity [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Reverse split, description | All share amounts have been adjusted to reflect a 1:200 reverse stock split of the authorized and outstanding shares of common stock that was effective March 7, 2022. | |||||||
Proceeds Under the Equity Purchase Agreement [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Share issued | 9,429,130 | 1,625,000 | ||||||
Share issued value (in Dollars) | $ 166,435 | $ 2,643,500 | ||||||
Commitment Fees Under Notes Payable [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Share issued | 2,800,000 | |||||||
Professional Consulting Services [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Share issued | 3,070,922 | |||||||
Share issued value (in Dollars) | $ 238,128 | |||||||
Charitable Donation [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Share issued | 350,000 | |||||||
Share issued value (in Dollars) | $ 52,500 | |||||||
Line of Credit [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Common stock issued as collateral | 5,000,000 | |||||||
Commitment Shares Under Equity Purchase Agreement [Member] | Common Stock [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Share issued | 312,500 | |||||||
Share issued value (in Dollars) | $ 356,250 | |||||||
Investor [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Share issued | 600,000 | 1,000,000 | 365,091 | 0 |
Equity (Details) - Schedule of
Equity (Details) - Schedule of black-scholes option pricing model - Black-Scholes Option Pricing Model [Member] | 9 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Jun. 30, 2022 | |
Equity (Details) - Schedule of black-scholes option pricing model [Line Items] | ||
Stock price volatility | 175% | 190% |
Expected term | 5 years | 1 year |
Risk-free interest rate | 3.21% | |
Discount rate | 3.38% | |
Expected dividends | 0% | 0% |
Equity (Details) - Schedule o_2
Equity (Details) - Schedule of warrant status | 9 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Schedule of Warrant Status [Abstract] | |
Warrants, Outstanding, beginning of year | shares | 600,000 |
Weighted Average Exercise Price, Outstanding, beginning of year | $ / shares | $ 0.01 |
Warrants, Granted | shares | 1,400,000 |
Weighted Average Exercise Price, Granted | $ / shares | $ 0.01 |
Warrants, Granted | shares | 2,100,000 |
Weighted Average Exercise Price, Granted | $ / shares | $ 0.1 |
Warrants, Forfeited | shares | |
Weighted Average Exercise Price, Forfeited | $ / shares | |
Warrants, Outstanding, end of year | shares | 4,100,000 |
Weighted Average Exercise Price, Outstanding, end of year | $ / shares | $ 0.09 |
Warrants, Exercisable, end of year | shares | 3,100,000 |
Weighted Average Exercise Price, Exercisable, end of year | $ / shares |
Equity (Details) - Schedule o_3
Equity (Details) - Schedule of warrants outstanding | 9 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | |
Exercise Price 0.01 [Member] | |
Equity (Details) - Schedule of warrants outstanding [Line Items] | |
Warrants | 600,000 |
Exercise Price (in Dollars per share) | $ / shares | $ 0.01 |
Number Exercisable | 600,000 |
Number Outstanding | 600,000 |
Weighted Average Remaining Life | 4 years 6 months |
Intrinsic Value (in Dollars) | $ | |
Exercise Price 0.01 One [Member] | |
Equity (Details) - Schedule of warrants outstanding [Line Items] | |
Warrants | 1,000,000 |
Exercise Price (in Dollars per share) | $ / shares | $ 0.01 |
Number Exercisable | |
Number Outstanding | 1,000,000 |
Weighted Average Remaining Life | 4 years 8 months 12 days |
Intrinsic Value (in Dollars) | $ | $ 150,000 |
Exercise Price 0.01 Two [Member] | |
Equity (Details) - Schedule of warrants outstanding [Line Items] | |
Warrants | 400,000 |
Exercise Price (in Dollars per share) | $ / shares | $ 0.01 |
Number Exercisable | 400,000 |
Number Outstanding | 400,000 |
Weighted Average Remaining Life | 4 years 6 months |
Intrinsic Value (in Dollars) | $ | $ 243,250 |
Exercise Price 0.10 [Member] | |
Equity (Details) - Schedule of warrants outstanding [Line Items] | |
Warrants | 2,100,000 |
Exercise Price (in Dollars per share) | $ / shares | $ 0.1 |
Number Exercisable | 2,100,000 |
Number Outstanding | 2,100,000 |
Weighted Average Remaining Life | 4 years 10 months 24 days |
Intrinsic Value (in Dollars) | $ | $ 99,184 |
Exercise Price 0.10 One [Member] | |
Equity (Details) - Schedule of warrants outstanding [Line Items] | |
Warrants | 2,100,000 |
Exercise Price (in Dollars per share) | $ / shares | $ 0.1 |
Number Exercisable | |
Number Outstanding | |
Weighted Average Remaining Life | 5 years |
Intrinsic Value (in Dollars) | $ |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of effective tax rate differed from the federal statutory income tax rate | 9 Months Ended |
Mar. 31, 2023 | |
Schedule of Effective Tax Rate Differed From the Federal Statutory Income Tax Rate [Abstract] | |
Federal statutory rate | 21% |
State tax, net of federal tax effect | 5% |
Valuation allowance | 26% |
Effective tax rate | 0% |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of deferred tax assets and liabilities - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Federal | ||
Less valuation allowance | $ (10,421,400) | $ (9,748,100) |
Net Deferred Tax Assets | ||
Federal [Member] | ||
Federal | ||
Deferred tax assets | 8,802,100 | 7,781,500 |
Less valuation allowance | (8,802,100) | (7,781,500) |
Deferred tax liabilities | ||
Total | ||
State [Member] | ||
Federal | ||
Deferred tax assets | 1,619,300 | 1,966,600 |
Less valuation allowance | (1,619,300) | (1,966,600) |
Deferred tax liabilities | ||
Total |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of significant components of deferred tax assets - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Schedule of Significant Components of Deferred Tax Assets [Abstract] | ||
Net operating loss carryforwards | $ 10,161,400 | $ 9,539,900 |
Valuation allowance | (10,421,400) | (9,748,100) |
Goodwill | (4,500) | 11,000 |
Property and equipment | (26,800) | (32,000) |
Development costs | 72,800 | 124,600 |
Intangible assets | 160,100 | 46,100 |
Inventory allowance | 30,300 | 30,300 |
Warranty accrual and other | 28,100 | 28,200 |
Net Deferred Tax Assets |
Commitments, Contingencies, a_2
Commitments, Contingencies, and Concentrations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | Sep. 04, 2019 | |
Commitments, Contingencies, and Concentrations (Details) [Line Items] | ||||||
Accrued liability (in Dollars) | $ 1,563,428 | $ 1,563,428 | $ 993,371 | |||
Note payable (in Dollars) | $ 2,379,702 | $ 2,379,702 | $ 586,862 | |||
Customer Concentration Risk [Member] | One Vendor [Member] | ||||||
Commitments, Contingencies, and Concentrations (Details) [Line Items] | ||||||
Concentrations risk | 87% | |||||
Customer Concentration Risk [Member] | Two Vendors [Member] | ||||||
Commitments, Contingencies, and Concentrations (Details) [Line Items] | ||||||
Concentrations risk | 36% | |||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two Customers [Member] | ||||||
Commitments, Contingencies, and Concentrations (Details) [Line Items] | ||||||
Concentrations risk | 57% | 80% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Two Customers [Member] | ||||||
Commitments, Contingencies, and Concentrations (Details) [Line Items] | ||||||
Concentrations risk | 54% | 55% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | ||||||
Commitments, Contingencies, and Concentrations (Details) [Line Items] | ||||||
Concentrations risk | 78% | |||||
Concepts and Solutions [Member] | ||||||
Commitments, Contingencies, and Concentrations (Details) [Line Items] | ||||||
Accrued liability (in Dollars) | $ 591,000 | |||||
Note payable (in Dollars) | $ 1,030,079 | $ 1,030,079 | $ 1,030,079 |
Material Agreements (Details)
Material Agreements (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Nov. 07, 2022 | May 01, 2022 | Jan. 01, 2020 | Jun. 30, 2022 | Jul. 30, 2020 | May 31, 2020 | Sep. 15, 2018 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Aug. 01, 2022 | |
Material Agreements (Details) [Line Items] | ||||||||||||
Common stock, shares issued (in Shares) | 53,206,652 | 73,517 | ||||||||||
Equity purchase agreement | the Company signed a two year purchase agreement (“Equity Purchase Agreement”) with an investor. Pursuant to the terms of the Equity Purchase Agreement, the investor agreed to purchase up to $5 million of the Company’s common stock (subject to certain limitations) from time to time during the term of the Equity Purchase Agreement. The common stock transactions will be “put” to the investor, at the option of the Company, at a discount equal to 80% of the average of the two lowest daily stock prices during a ten day period, in exchange for working capital proceeds. The Company will register the shares before puts are allowed. There is a commitment fee of 500,000 shares that will be issued to the investor. During the three months ended March 31, 2023 and 2022, the Company issued 4,429,130 and 0 shares of common stock to the investor in exchange for proceeds for working capital. During the Nine Months ended March 31, 2023 and 2022, the Company issued 9,429,130 and 0 shares of common stock to the investor in exchange for proceeds for working capital. | |||||||||||
Percentage of purchase price | 3.50% | |||||||||||
Preferred stock, share issued (in Shares) | ||||||||||||
Investor relations agreement description | on May 1, 2022, requiring $10,000 per month and $20,000 worth of restricted stock issued 4 times in 2022, beginning May 1, 2022, June 1, September 1, and December 1, 2022. The agreement will automatically renew annually unless 60 days’ notice is given by either party. The Company paid $20,000 and issued 70,922 shares for investment relations services during the three months ended March 31, 2023. The Company paid $20,000 and issued 70,922 shares for investment relations services during the Nine Months ended March 31, 2023. No fees or shares were issued during the three and Nine Months ended March 31, 2021. | |||||||||||
Shares issued (in Shares) | 1,000,000 | 1,000,000 | ||||||||||
Gross proceeds | 1.50% | |||||||||||
Closing equal percentage | 2.50% | |||||||||||
Issuance of equity securities | 7% | |||||||||||
Series G Preferred Stock [Member] | ||||||||||||
Material Agreements (Details) [Line Items] | ||||||||||||
Preferred stock, share issued (in Shares) | 25 | |||||||||||
Chief Executive Officer [Member] | ||||||||||||
Material Agreements (Details) [Line Items] | ||||||||||||
Annual compensation (in Dollars) | $ 500,000 | |||||||||||
Voting rights percentage | 26% | |||||||||||
Non-compete agreement and severance benefits (in Dollars) | $ 90,000 | |||||||||||
Voting power percentage | 26% | |||||||||||
Chief Executive Officer [Member] | Series G Preferred Stock [Member] | ||||||||||||
Material Agreements (Details) [Line Items] | ||||||||||||
Preferred stock, share issued (in Shares) | 26 | |||||||||||
Chief Financial Officer [Member] | ||||||||||||
Material Agreements (Details) [Line Items] | ||||||||||||
Annual compensation (in Dollars) | $ 250,000 | |||||||||||
Voting rights percentage | 25% | |||||||||||
Non-compete agreement and severance benefits (in Dollars) | $ 72,000 | |||||||||||
Voting power percentage | 25% | |||||||||||
Manufacturing And Distributorship Agreement [Member] | ||||||||||||
Material Agreements (Details) [Line Items] | ||||||||||||
Minimum purchase commitment (in Dollars) | $ 2,000,000 | |||||||||||
Payment term percentage | 20% | |||||||||||
Advance payment percentage | 30% | |||||||||||
Remaining payment percentage | 50% | |||||||||||
Agreement term | 2 years | |||||||||||
Equity Purchase Agreement [Member] | ||||||||||||
Material Agreements (Details) [Line Items] | ||||||||||||
Purchase agreement term | 2 years | |||||||||||
Value of shares purchased (in Dollars) | $ 10,000,000 | |||||||||||
Common stock, shares issued (in Shares) | 0 | 500,000 | 0 | 1,625,000 | ||||||||
Accounts Receivable Factoring Agreement [Member] | ||||||||||||
Material Agreements (Details) [Line Items] | ||||||||||||
Percentage of purchase price | 80% | |||||||||||
Percentage of factoring fees | 2.50% | |||||||||||
Percentage of factoring fees increases | 3.50% | |||||||||||
Credit line (in Dollars) | $ 1,000,000 | |||||||||||
Factored receivables (in Dollars) | $ 300,000 | |||||||||||
Collection fees (in Dollars) | $ 30,964 | $ 11,216 | $ 150,183 | $ 36,244 |
Going Concern (Details)
Going Concern (Details) | Mar. 31, 2023 USD ($) |
Going Concern [Abstract] | |
Working capital deficit | $ 6,200,000 |
Cash used in operations | 2,300,000 |
Accumulated deficit increased | 5,900,000 |
Total deficit | $ 60,000,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) | May 10, 2023 | Apr. 11, 2023 | Apr. 10, 2023 | Apr. 01, 2023 |
Subsequent Events (Details) [Line Items] | ||||
Additional capital | $ 100,000 | |||
Company issued shares (in Shares) | 10,000,000 | 5,757,576 | ||
Debt reduction fees | $ 100,000 | $ 19,000 | ||
Related party loans | $ 1,500,000 | |||
Related party fund | $ 1,000,000 | |||
Debt instrument term | 5 years | |||
Debt instrument rate | 12% |