Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2020 | Apr. 28, 2021 | Dec. 31, 2020 | |
Document And Entity Information | |||
Entity Registrant Name | Genesys Industries, Inc. | ||
Entity Central Index Key | 0001683131 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth | true | ||
Entity Extended Transition Period | false | ||
Entity Well Known Seasoned Issuer? | No | ||
Entity Voluntary Filer? | No | ||
Entity Shell Company? | false | ||
Entity Public Float | $ 239,337 | ||
Entity Common Stock, Shares Outstanding | 27,870,000 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Entity Incorporation, State or Country Code | WY | ||
Entity File Number | 000-56131 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Current assets: | ||
Cash | $ 174,879 | $ 170,205 |
Accounts receivable | 86,375 | 52,811 |
Total current assets | 261,254 | 223,016 |
Machinery and equipment, net | 360,431 | 163,028 |
Real property & plant, net | 226,553 | 239,377 |
Total Assets | 848,238 | 625,421 |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 63,868 | 25,137 |
Accrued interest, related party | 11,279 | 5,463 |
Accrued compensation | 6,548 | 3,642 |
Line of credit - current portion | 37,547 | 42,071 |
Loans payable - current portion | 47,377 | 24,329 |
Convertible note payable, net of discount of $12,500 | 137,500 | 0 |
Due to related party | 122,729 | 102,129 |
Income tax accrual | 0 | 38,484 |
Total current liabilities | 426,848 | 241,255 |
Long term liabilities: | ||
Line of credit | 70,246 | 101,192 |
Loans payable | 290,734 | 184,556 |
Total liabilities | 787,828 | 527,003 |
Commitments and contingencies | ||
Stockholders' equity (deficit) | ||
Class B Preferred stock, $0.001 par value, 25,000,000shares authorized; 10,000,000 and 10,000,000 issued and outstanding, respectively | 10,000 | 10,000 |
Common stock, $0.001 par value, 100,000,000 shares authorized; 18,100,000 and 17,870,000 shares issued and outstanding, respectively | 18,100 | 17,870 |
Additional paid-in capital | 383,900 | 101,130 |
Accumulated deficit | (351,590) | (30,582) |
Total stockholders' equity (deficit) | 60,410 | 98,418 |
Total liabilities and stockholders' equity (deficit) | $ 848,238 | $ 625,421 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Common Stock Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock Shares Issued | 18,100,000 | 17,870,000 |
Common Stock Shares Outstanding | 18,100,000 | 17,870,000 |
Common Stock Par Value | $ 0.001 | $ .001 |
Debt discount | $ 12,500 | |
Class B Preferred Stock | ||
Preferred Stock Shares Authorized | 25,000,000 | 25,000,000 |
Preferred Stock Shares Issued | 10,000,000 | 10,000,000 |
Preferred Stock Shares Outstanding | 10,000,000 | 10,000,000 |
Preferred Stock Par Value | $ 0.001 | $ 0.001 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 605,433 | $ 768,787 |
Cost of revenue | 398,385 | 458,066 |
Gross Margin | 207,048 | 310,721 |
Operating Expenses: | ||
Professional fees | 37,055 | 26,475 |
Payroll expense | 82,113 | 42,680 |
General & administrative expenses | 112,550 | 79,153 |
Total operating expenses | 231,718 | 148,308 |
(Loss) Income from operations | (24,670) | 162,413 |
Other expense: | ||
Interest expense | (43,838) | (21,186) |
Debt discount amortization | 137,500 | 0 |
Loss on issuance of common stock | (40,000) | 0 |
Loss on issuance of convertible debt | 75,000 | 0 |
Total other expense | (296,338) | (21,186) |
Income (Loss) before income taxes | (321,008) | 141,227 |
Provision for income taxes | 0 | (38,484) |
Net income (loss) | $ (321,008) | $ 102,743 |
Net Loss Per Common Share, basic | $ (0.02) | $ 0.01 |
Net Loss Per Common Share, diluted | $ 0 | $ 0 |
Weighted Common Shares Outstanding, basic | 18,033,808 | 17,870,000 |
Weighted Common Shares Outstanding, diluted | 68,033,808 | 67,870,000 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Deficit - USD ($) | Common Stock [Member] | Preferred Stock [Member] | Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, Shares at Jun. 30, 2018 | 17,870,000 | 10,000,000 | |||
Beginning Balance, Amount at Jun. 30, 2018 | $ 17,870 | $ 10,000 | $ 101,130 | $ (133,325) | $ (4,325) |
Net Loss | 102,743 | 102,743 | |||
Ending Balance, shares at Jun. 30, 2019 | 17,870,000 | 10,000,000 | |||
Ending Balance, Amount at Jun. 30, 2019 | $ 17,870 | $ 10,000 | 101,130 | (30,582) | 98,418 |
Common stock issued for cash, Shares | 230,000 | ||||
Common stock issued for cash, Value | $ 230 | 82,770 | 83,000 | ||
Beneficial conversion feature | 200,000 | 200,000 | |||
Net Loss | (321,008) | (321,008) | |||
Ending Balance, shares at Jun. 30, 2020 | 18,100,000 | 10,000,000 | |||
Ending Balance, Amount at Jun. 30, 2020 | $ 18,100 | $ 10,000 | $ 383,900 | $ (351,590) | $ 60,410 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net (Loss) Income | $ (321,008) | $ 102,743 |
Adjustments to reconcile net (loss) income to net cash used: | ||
Inventory impairment | 0 | 7,939 |
Depreciation expense | 71,648 | 40,880 |
Provision for income taxes | (38,484) | 0 |
Stock compensation expense | 43,000 | 0 |
Loss on issuance of common stock | 40,000 | 0 |
Loss on issuance of convertible debt | 75,000 | 0 |
Debt discount amortization | 137,500 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (33,564) | 61,407 |
Accounts payable and accruals | 38,800 | 11,300 |
Accrued interest, related party | 5,815 | 3,746 |
Accrued compensation | 2,906 | (2,858) |
Net cash provided by (used in) operating activities | 21,613 | 225,157 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (256,227) | (57,763) |
Net cash used in investing activities | (256,227) | (57,763) |
Cash flows from financing activities: | ||
Advances from a related party | 20,600 | 34,830 |
Repayments on line of credit | (35,470) | (34,090) |
Proceeds from convertible debt | 125,000 | 0 |
Proceeds from loan | 178,385 | 0 |
Principal payment on loan payable | (49,227) | (15,795) |
Net cash (used in) provided by financing activities | 239,288 | (15,055) |
Net increase (decrease) in cash | 4,674 | 152,339 |
Cash, beginning of year | 170,205 | 17,866 |
Cash, end of year | 174,879 | 170,205 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 30,704 | 17,498 |
Cash paid for taxes | $ 0 | $ 0 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | NOTE 1 - NATURE OF OPERATIONS Genesys Industries, Inc. (the “Company”), was incorporated on December 9, 2014 under the laws of the State of Florida. Genesys Industries is a diversified multi-industry manufacturer of complex metal components and products. We serve all general industrial markets such as Aerospace, Automotive, Commercial, Food Processing, Firearms, Industrial, Maritime, Medical, Railroad, Oil and Gas, Packaging, Telecom, Textiles, Robotics, Space Travel, Transportation and many more. We are a vertically integrated precision CNC manufacturing and fabrication company with core emphasis on product design, engineering and precision manufacturing of complex components and products. On February 5, 2018, the Company formed Genesys Industries, LLC as a wholly owned subsidiary in the state of Missouri. The Company’s headquarters are in Palmetto, Florida. The Company has adopted its fiscal year end to be June 30. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the estimated useful lives of property and equipment. Actual results could differ from those estimates. Concentrations of Credit Risk We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any losses in our accounts. We believe we are not exposed to any significant credit risk on cash. Reclassifications Certain reclassifications have been made to the prior period financial information to conform to the presentation used in the financial statements for the year ended June 30, 2020. Inventories Inventories are valued at the lower of cost or market. Management compares the cost of inventories with the market value and allowance is made for writing down their inventories to market value, if lower. During the year ended June 30, 2019 the Company determined that its inventory on hand was impaired and wrote off $9,696 of inventory. Property, Plant and Equipment Property and equipment are carried at the lower of cost or net realizable value. Major betterments that extend the useful lives of assets are also capitalized. Normal maintenance and repairs are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in operations. Accounts Receivable Revenues that have been recognized but not yet received are recorded as accounts receivable. Losses on receivables will be recognized when it is more likely than not that a receivable will not be collected. An allowance for estimated uncollectible amounts will be recognized to reduce the amount of receivables to its net realizable value. The allowance for uncollectible amounts is evaluated quarterly. Revenue Recognition Revenue is recognized goods are shipped or services performed and is recognized in an amount that reflects the consideration that an entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company's performance obligations are transferred to customers at a point in time, typically upon Shipment. During the year ended June 30, 2020, the Company recognized $368,112 and $93,833 of sales from two of its customers. This represents 60.8% and 15.7%, respectively, of total sales. During the year ended June 30, 2019, the Company recognized $275,430 and $138,633 of sales from two of its customers. This represents 35.6% and 17.9%, respectively, of total sales. Right of Return From time to time, the Company in the normal course of business encounters product returns. The Company policy is to identify the reason of return and to either replace product, rework product or cancel the order at the request of the customer. As of June 30, 2020 and 2019, there were no substantial claims for rework or replacement in the normal course of business. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Genesys Industries, LLC, and have been prepared in conformity with accounting principles generally accepted in the United States of America. All significant intercompany transactions and balances have been eliminated. Fair value of financial instruments The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1: Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2: Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3: Pricing inputs that are generally unobservable inputs and not corroborated by market data. The carrying amount of the Company’s financial assets and liabilities, such as cash, prepaid expenses and accrued expenses approximate their fair value because of the short maturity of those instruments. The Company’s notes payable approximates the fair value of such instruments based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangements at June 30, 2020. The Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis as of June 30, 2020 or 2019. Fixed Assets Fixed assets are carried at the lower of cost or net realizable value. All fixed assets with a cost of $2,000 or greater are capitalized. Major betterments that extend the useful lives of assets are also capitalized. Normal maintenance and repairs are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in operations. Website development Website development is carried at cost. Major betterments that would extend the useful life are capitalized. Normal maintenance and repairs are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and accumulated amortization are removed from the accounts and any resulting gain or loss is recognized in operations. Website development costs are being amortized on a straight-line basis over three years. Income taxes The Company follow ASC 740-10-30, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Income in the period that includes the enactment date. On December 22, 2017, the Tax Cuts and Jobs Act (TCJA) was signed into law by the President of the United States. TCJA is a tax reform act that among other things, reduced corporate tax rates to 21 percent effective January 1, 2018. FASB ASC 740, Income Taxes, requires deferred tax assets and liabilities to be adjusted for the effect of a change in tax laws or rates in the year of enactment, which is the year in which the change was signed into law. Accordingly, the Company adjusted its deferred tax assets and liabilities at December 31,2017, using the new corporate tax rate of 21 percent. The Company adopted ASC 740-10-25 (“ASC 740-10-25”) with regard to uncertainty income taxes. ASC 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740-10-25, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740-10-25 also provides guidance on derecognition, classification, interest and penalties on income taxes, and accounting in interim periods and requires increased disclosures. We had no material adjustments to our liabilities for unrecognized income tax benefits according to the provisions of ASC 740-10-25. Stock-based Compensation We account for equity-based transactions with nonemployees under the provisions of ASC Topic No. 505-50, Equity-Based Payments to Non-Employees Net income (loss) per common share Net income (loss) per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period. The weighted average number of common shares outstanding and potentially outstanding common shares assumes that the Company incorporated as of the beginning of the first period presented. As of June 30, 2020, the Company has 50,000,000 potentially dilutive common share from its convertible preferred stock. Any potentially dilutive shares have not been included due to their anti-dilutive effect, as the Company as a net loss Recently Adopted Accounting Standards The Company has implemented all new applicable accounting pronouncements that are in effect. These pronouncements did not have any material impact on the 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. |
Going Concern
Going Concern | 12 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | NOTE 3 - GOING CONCERN The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the accompanying consolidated financial statements, the Company has experienced a significant increase in revenue since commencing it operations in 2018. The accumulated deficit of $351,590, consists of $252,500 of non-cash expense for the issuance of common stock for services and a convertible note. We received cash from operations of $21,613. Although the Company’s financial position is steadily improving our operations are still relatively new, circumstances may still occur that would raise substantial doubt about the Company’s ability to continue as a going concern. While the Company is successfully executing its growth strategy, its cash position may not still be sufficient to support the Company’s daily operations without additional financing. While the Company believes in the viability of its strategy to produce sales volume and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient 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. Management believes that the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the Company to continue as a going concern. |
Property & Equipment
Property & Equipment | 12 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property & Equipment | NOTE 4 - PROPERTY & EQUIPMENT Long lived assets, including property and equipment and certain intangible assets to be held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Impairment losses are recognized if expected future cash flows of the related assets are less than their carrying values. Measurement of an impairment loss is based on the fair value of the asset. Long-lived assets and certain identifiable intangibles to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Property and Equipment and intangible assets are first recorded at cost. Depreciation and/or amortization is computed using the straight-line method over the estimated useful lives of the various classes of assets between three and five years. Leasehold improvements are being depreciated over ten years, and the building over twenty years. Maintenance and repair expenses, as incurred, are charged to expense. Betterments and renewals are capitalized in plant and equipment accounts. Cost and accumulated depreciation applicable to items replaced or retired are eliminated from the related accounts with any gain or loss on the disposition included as income. Property, Plant and equipment stated at cost, less accumulated depreciation consisted of the following: June 30, 2020 June 30, 2019 Leasehold Improvements $ 100,965 $ 62,261 Machinery and Equipment 353,888 136,365 Real Property & Plant 256,443 256,443 Less: accumulated depreciation (124,312 ) (52,664 ) Fixed assets, net $ 586,984 $ 402,405 Depreciation expense Depreciation expense for the years ended June 30, 2020 and 2019 was $71,648 and $40,880, respectively. |
Line of Credit
Line of Credit | 12 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Lines of Credit | NOTE 5 – LINES OF CREDIT The Company has established a line of credit with a commercial bank in the amount of $50,000. This is a revolving business line of credit (BLOC) and bears a fixed interest rate of 7%. The Company has also established a corporate business credit card for use in travel related purposes. That line of credit is established at $20,000. The Company has also established a renewable Bank Term Loan Facility in the approximate amount of $200,000 with a fixed interest rate of 5%. Total consolidated revolving credit available under all credit arrangements is approximately $270,000. On March 9, 2018, the Company obtained a $180,000 loan against the bank term loan. The loan has a term of five years and requires interest only payments of $600 until May 26, 2018, thereafter payments of principal and interest of $3,396.82. As of June 30, 2020 and 2019, the balance on the loan is $107,793 and $143,263, respectively. Future minimum payments of principal and interest for the fiscal years ended are as follows: Fiscal Year Amount 2021 $ 42,071 2022 $ 42,071 Thereafter $ 31,150 Total $ 115,292 |
Loans Payable
Loans Payable | 12 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Loan Payable | NOTE 6 – LOANS PAYABLE On February 28, 2018, the Company purchased certain real property and approximately 2 acres of land in Missouri. The total acquisition cost including all closing costs and fees was $256,443. The purchase price was partially financed with a $200,000 loan from the Company’s primary bank. The loan has a term of 5-years, at an interest rate of 4.09% and requires monthly payments of interest and principal of $1,494.59 with a final payment of approximately $148,063 due March 1, 2023. As of June 30, 2020 and 2019, the balance on the loan is $177,232 and $186,655, respectively. Future minimum payments of principal and interest for the fiscal years ended are as follows: Fiscal Year Amount 2021 $ 17,935 2022 $ 17,935 2023 $ 17,935 2024 $ 17,935 2025 $ 17,935 Thereafter $ 105,126 Total $ 194,801 In April 2018 the Company purchased equipment to be used in their operations for a total acquisition price of $32,792. The equipment was purchased with a combination of cash and loan financing. The Company obtained a loan for $27,500 from their primary bank. The loan, dated May 7, 2018, matures on May 7, 2023, interest at 6% per annum and requires monthly payments of interest and principal of $532.84. During the quarter ended December 31, 2019, this loan was repaid in full. As of June 30, 2020, and 2019, the balance on the loan is $0 and $22,230, respectively. In September 2019 the Company purchased equipment to be used in their operations for a total acquisition price of $87,000. The equipment was purchased with a combination of cash and loan financing. The Company obtained a loan for $70,147. The loan, dated August 12, 2019, matures on August 12, 2024, bears interest at 6.6% per annum and requires monthly payments of interest and principal of $1,379.09. As of June 30, 2020 the balance on the loan is $60,027. Future minimum payments of principal and interest for the fiscal years ended are as follows: Fiscal Year Amount 2021 $ 16,549 2022 $ 16,549 2023 $ 16,549 2024 $ 16,549 2025 $ 2,518 Total $ 68,714 On December 18, 2019, the Company received a $38,000 loan disbursement from American Express. The loan bears interest at 8.98% per annum, is to be paid in full by December 23, 2022 and requires monthly payments of interest and principal of $1,208.23. As of June 30, 2020 the balance on the loan is $32,352. Future minimum payments of principal and interest for the fiscal years ended are as follows: Fiscal Year Amount 2021 $ 14,499 2022 $ 14,499 2023 $ 7,232 Total $ 36.230 On March 27, 2020, the Company received a $37,000 loan disbursement from American Express. The loan bears interest at 8.98% per annum, is to be paid in full by April 1, 2023 and requires monthly payments of interest and principal of $1,176.43. As of June 30, 2020 the balance on the loan is $35,195. Future minimum payments of principal and interest for the fiscal years ended are as follows: Fiscal Year Amount 2021 $ 14,117 2022 $ 14,117 2023 $ 11,748 Total $ 39,982 On April 21, 2020, the Company received a Paycheck Protection Program loan under the CARES Act for $33,237.50 (the “PPP Loan”). The Paycheck Protection Program provides that the use of PPP Loan proceeds are limited to certain qualifying expenses and may be partially or wholly forgiven in accordance with the requirements set forth in the CARES Act. The Company currently intends to use the PPP Loan for permitted uses, although no assurance can be given that the Company will obtain forgiveness of all or any portion of amounts due under the PPP Loan. If not forgiven the loan bears interest at 1% per annum and matures in five years. |
Convertible Debt
Convertible Debt | 12 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Convertible Debt | NOTE 7 – CONVERTIBLE DEBT On January 2, 2020, the Company executed a 10% convertible promissory note in which it agreed to borrow up to $300,000. The note is convertible at a price per share equal to the lower of (a) the Fixed Conversion Price (which is fixed at a price equal to $0.30); or (b) 80% of the lowest trading price of the Company’s common stock during the 5 consecutive trading days prior to the date on which lender elects to convert all or part of the Note. |
Common Stock
Common Stock | 12 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Common Stock | NOTE 8 – COMMON STOCK Common stock Common stock includes 100,000,000 shares authorized at a par value of $0.001. During the year ended June 30, 2020, the Company granted 130,000 shares of common stock for services to two individuals. The shares were valued at $0.10, for total non-cash expense of $13,000. During the year ended June 30, 2020, the Company granted 100,000 shares of common stock for services valued at $30,000. The shares were valued at $0.70, the closing stock price on the date of grant, for total non-cash expense of $70,000, $40,000 of which was recorded as a loss on the issuance of common stock. |
Preferred stock
Preferred stock | 12 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Preferred stock | NOTE 9 – PREFERRED STOCK Preferred stock includes 25,000,000 shares of authorized at a par value of $0.001. Preferred stock includes 25,000,000 shares of Class B authorized at a par value of $0.001. The Preferred Stock constitutes a convertible stock in which (1) one Preferred Share is convertible into (5) five Common Shares. The Preferred Stockholders are entitled to vote on any matters on which the common stockholders are entitled to vote. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 10 - RELATED PARTY TRANSACTIONS On November 5, 2017, to fund its working capital requirements the Company obtained a Special Line of Credit (“LOC”) also recognized as a Blanket Secured Promissory Note for the total draw down amount of up to $500,000, from Twiga Capital Partners, LLC (“TCP”), an entity controlled by the Company’s sole officer and largest stockholder, Shefali Vibhakar. This Note is secured by all of the assets of the Company in accordance with the Security Agreement by and between the Company and the Holder dated as of November 5, 2017. The LOC bears interest at 5% per annum and is due on demand. As of June 30, 2020 and 2019, the Company owed $122,729 and $122,729 of principal and $11,279 and $9,749 of accrued interest on the LOC, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 11 – INCOME TAXES Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has evaluated Staff Accounting Bulletin No. 118 regarding the impact of the decreased tax rates of the Tax Cuts & Jobs Act. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The U.S. federal income tax rate of 21% is being used for the fiscal year ended June 30, 2020 and 2019. Net deferred tax assets consist of the following components as of June 30: 2020 2019 Deferred Tax Assets: NOL Carryover $ 73,800 $ 6,400 Deferred tax liabilities: Less valuation allowance (73,800 ) $ (6,400 ) Net deferred tax assets $ — $ — The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the period ended June 30, due to the following: 2020 2019 Federal income tax benefit attributable to: Current operations $ (67,400 ) $ 29,700 Less: Valuation allowance 67,400 (29,700 ) Net provision for Federal income taxes $ — $ — At June 30, 2020, the Company had net operating loss carry forwards of approximately $73,800 that may be offset against future taxable income from the year 2021 to 2039. No tax benefit has been reported in the June 30, 2020 financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards for Federal Income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 11 - SUBSEQUENT EVENTS In accordance with SFAS 165 (ASC 855-10) management has performed an evaluation of subsequent events through the date that the financial statements were available to be issued and has determined that it has the following material subsequent events to disclose in these financial statements. On January 21, 2021, Shefali Vibhakar, President of the Company closed a Share Purchase Agreement (the “Agreement”) that she entered into with Johnny Forzani to sell all of her 17,000,000 common shares and 10,000,000 preferred shares to Johnny Forzani for cash consideration of $177,000. Further, as part of the Agreement, Ms. Vibhakar agrees to spin out all of the Company’s assets (except for certain machinery valued at $40,000 – which is subject to a separate purchase agreement) as well as all of the Company’s liabilities (except the Company’s note with Tangiers Capital, LLC). The value date of the assets and liabilities will be January 21, 2021. Also, as of January 21, 2021, the Company entered into an acquisition agreement with Mr. Forzani to acquire all of the ownership and the rights to certain late developmental stage products, including the J4 Sport, J4 X and J4 Fitbelt in exchange for the issuance of 1,000,000 common shares. As a result of this acquisition, the Company is moving out of the precision CNC manufacturing and fabrication business and moving into the health-tech wearable performance business. On January 21, 2021, a change in control of the Company occurred pursuant to the Agreement. Mr. Forzani now has voting control over 93.9% of the Company’s issued and outstanding common stock. On January 21, 2021, the Company received the resignation of Shefali Vibhakar as the Company’s President, Chief Executive Officer, Treasurer, Chief Financial Officer, Secretary and Director and appointed Johnny Forzani as its President, Chief Executive Officer, Treasurer, Chief Financial Officer and Secretary. Effective January 21, 2021, the Company’s new address is 30 Forzani Way NW, Calgary, Alberta, Canada T3Z 1L5. On January 21, 2021, the Company entered into an acquisition agreement with Mr. Forzani to acquire all of the ownership and the rights to certain late developmental stage products, including the J4 Sport, J4 X and J4 Fitbelt in exchange for the issuance of 10,000,000 common shares. As a result of this acquisition, the Company is moving out of the precision CNC manufacturing and fabrication business and moving into the health-tech wearable performance business. On February 17, 2021, the Company filed Articles of Continuance with the Secretary of State for the state of Wyoming. Accordingly, the Company transferred its state of formation from Florida to Wyoming and became a Wyoming entity. On February 18, 2021, the Company filed a Certificate of Dissolution with the Secretary of State for the State of Florida, effectively dissolving the Company's existence in Florida. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Use of estimates | Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the estimated useful lives of property and equipment. Actual results could differ from those estimates. |
Concentrations of Credit Risk | Concentrations of Credit Risk We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any losses in our accounts. We believe we are not exposed to any significant credit risk on cash. |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior period financial information to conform to the presentation used in the financial statements for the year ended June 30, 2020. |
Inventories | Inventories Inventories are valued at the lower of cost or market. Management compares the cost of inventories with the market value and allowance is made for writing down their inventories to market value, if lower. During the year ended June 30, 2019 the Company determined that its inventory on hand was impaired and wrote off $9,696 of inventory. |
Property, Plant and Equipment | Property, Plant and Equipment Property and equipment are carried at the lower of cost or net realizable value. Major betterments that extend the useful lives of assets are also capitalized. Normal maintenance and repairs are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in operations. |
Accounts Receivable | Accounts Receivable Revenues that have been recognized but not yet received are recorded as accounts receivable. Losses on receivables will be recognized when it is more likely than not that a receivable will not be collected. An allowance for estimated uncollectible amounts will be recognized to reduce the amount of receivables to its net realizable value. The allowance for uncollectible amounts is evaluated quarterly. |
Revenue Recognition | Revenue Recognition Revenue is recognized goods are shipped or services performed and is recognized in an amount that reflects the consideration that an entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company's performance obligations are transferred to customers at a point in time, typically upon Shipment. During the year ended June 30, 2020, the Company recognized $368,112 and $93,833 of sales from two of its customers. This represents 60.8% and 15.7%, respectively, of total sales. During the year ended June 30, 2019, the Company recognized $275,430 and $138,633 of sales from two of its customers. This represents 35.6% and 17.9%, respectively, of total sales. |
Right of Return | Right of Return From time to time, the Company in the normal course of business encounters product returns. The Company policy is to identify the reason of return and to either replace product, rework product or cancel the order at the request of the customer. As of June 30, 2020 and 2019, there were no substantial claims for rework or replacement in the normal course of business. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Genesys Industries, LLC, and have been prepared in conformity with accounting principles generally accepted in the United States of America. All significant intercompany transactions and balances have been eliminated. |
Fair value of financial instruments | Fair value of financial instruments The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1: Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2: Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3: Pricing inputs that are generally unobservable inputs and not corroborated by market data. The carrying amount of the Company’s financial assets and liabilities, such as cash, prepaid expenses and accrued expenses approximate their fair value because of the short maturity of those instruments. The Company’s notes payable approximates the fair value of such instruments based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangements at June 30, 2020. The Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis as of June 30, 2020 or 2019. |
Fixed Assets | Fixed Assets Fixed assets are carried at the lower of cost or net realizable value. All fixed assets with a cost of $2,000 or greater are capitalized. Major betterments that extend the useful lives of assets are also capitalized. Normal maintenance and repairs are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in operations. |
Website development | Website development Website development is carried at cost. Major betterments that would extend the useful life are capitalized. Normal maintenance and repairs are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and accumulated amortization are removed from the accounts and any resulting gain or loss is recognized in operations. Website development costs are being amortized on a straight-line basis over three years. |
Income taxes | Income taxes The Company follow ASC 740-10-30, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Income in the period that includes the enactment date. On December 22, 2017, the Tax Cuts and Jobs Act (TCJA) was signed into law by the President of the United States. TCJA is a tax reform act that among other things, reduced corporate tax rates to 21 percent effective January 1, 2018. FASB ASC 740, Income Taxes, requires deferred tax assets and liabilities to be adjusted for the effect of a change in tax laws or rates in the year of enactment, which is the year in which the change was signed into law. Accordingly, the Company adjusted its deferred tax assets and liabilities at December 31,2017, using the new corporate tax rate of 21 percent. The Company adopted ASC 740-10-25 (“ASC 740-10-25”) with regard to uncertainty income taxes. ASC 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740-10-25, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740-10-25 also provides guidance on derecognition, classification, interest and penalties on income taxes, and accounting in interim periods and requires increased disclosures. We had no material adjustments to our liabilities for unrecognized income tax benefits according to the provisions of ASC 740-10-25. |
Stock-based Compensation | Stock-based Compensation We account for equity-based transactions with nonemployees under the provisions of ASC Topic No. 505-50, Equity-Based Payments to Non-Employees |
Net income (loss) per common share | Net income (loss) per common share Net income (loss) per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period. The weighted average number of common shares outstanding and potentially outstanding common shares assumes that the Company incorporated as of the beginning of the first period presented. As of June 30, 2020, the Company has 50,000,000 potentially dilutive common share from its convertible preferred stock. Any potentially dilutive shares have not been included due to their anti-dilutive effect, as the Company as a net loss |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards The Company has implemented all new applicable accounting pronouncements that are in effect. These pronouncements did not have any material impact on the 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. |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and equipment | Property, Plant and equipment stated at cost, less accumulated depreciation consisted of the following: June 30, 2020 June 30, 2019 Leasehold Improvements $ 100,965 $ 62,261 Machinery and Equipment 353,888 136,365 Real Property & Plant 256,443 256,443 Less: accumulated depreciation (124,312 ) (52,664 ) Fixed assets, net $ 586,984 $ 402,405 |
Lines of Credit (Tables)
Lines of Credit (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Future minimun payments of principal and interest | Future minimum payments of principal and interest for the fiscal years ended are as follows: Fiscal Year Amount 2021 $ 42,071 2022 $ 42,071 Thereafter $ 31,150 Total $ 115,292 |
Loans Payable (Tables)
Loans Payable (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Future minimun payments of principal and interest | Future minimum payments of principal and interest for the fiscal years ended are as follows: Fiscal Year Amount 2021 $ 42,071 2022 $ 42,071 Thereafter $ 31,150 Total $ 115,292 |
Real Property | |
Future minimun payments of principal and interest | Future minimum payments of principal and interest for the fiscal years ended are as follows: Fiscal Year Amount 2021 $ 17,935 2022 $ 17,935 2023 $ 17,935 2024 $ 17,935 2025 $ 17,935 Thereafter $ 105,126 Total $ 194,801 |
Equipment | |
Future minimun payments of principal and interest | Future minimum payments of principal and interest for the fiscal years ended are as follows: Fiscal Year Amount 2021 $ 16,549 2022 $ 16,549 2023 $ 16,549 2024 $ 16,549 2025 $ 2,518 Total $ 68,714 |
Loan Disbursement | |
Future minimun payments of principal and interest | Future minimum payments of principal and interest for the fiscal years ended are as follows: Fiscal Year Amount 2021 $ 14,499 2022 $ 14,499 2023 $ 7,232 Total $ 36.230 |
Loan Disbursement #2 | |
Future minimun payments of principal and interest | Future minimum payments of principal and interest for the fiscal years ended are as follows: Fiscal Year Amount 2021 $ 14,117 2022 $ 14,117 2023 $ 11,748 Total $ 39,982 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Net deferred tax assets | 2020 2019 Deferred Tax Assets: NOL Carryover $ 73,800 $ 6,400 Deferred tax liabilities: Less valuation allowance (73,800 ) $ (6,400 ) Net deferred tax assets $ — $ — |
Income tax provision | 2020 2019 Federal income tax benefit attributable to: Current operations $ (67,400 ) $ 29,700 Less: Valuation allowance 67,400 (29,700 ) Net provision for Federal income taxes $ — $ — |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Inventory written off | $ 9,696 | |
Atidilutive shares | 50,000,000 | |
Customer 1 [Member] | ||
Sales | $ 368,112 | $ 275,430 |
Sales Percentage | 60.80% | 35.60% |
Customer 2 [Member] | ||
Sales | $ 93,833 | $ 138,633 |
Sales Percentage | 15.70% | 17.90% |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated Deficit | $ (351,590) | $ (30,582) |
Issuance of common stock for services | 252,500 | |
Cash received from operations | $ 21,613 | $ 225,157 |
Property & Equipment - Less acc
Property & Equipment - Less accumulated depreciation (Details) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Property, Plant and Equipment [Abstract] | ||
Leasehold Improvements | $ 100,965 | $ 62,261 |
Machinery and Equpment | 353,888 | 136,365 |
Real Property & Plant | 256,443 | 256,443 |
Less: accumulated depreciation | (124,312) | (52,664) |
Fixed assets, net | $ 586,984 | $ 402,405 |
Property & Equipment (Details N
Property & Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation Expense | $ 71,648 | $ 40,880 |
Lines of Credit - Future minimu
Lines of Credit - Future minimum payments of principal and interest (Details) | Jun. 30, 2020USD ($) |
Lines Of Credit - Future Minimum Payments Of Principal And Interest | |
2021 | $ 42,071 |
2022 | 42,071 |
Thereafter | 31,150 |
Total | $ 115,292 |
Line of Credit (Details Narrati
Line of Credit (Details Narrative) - USD ($) | 3 Months Ended | 56 Months Ended | |||
May 26, 2018 | Mar. 09, 2023 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 09, 2018 | |
Consolidated revolving credit | $ 270,000 | ||||
Loan | 107,793 | $ 143,263 | |||
Commercial Bank | |||||
Consolidated revolving credit | $ 50,000 | ||||
Interest rate | 7.00% | ||||
Credit Card | |||||
Consolidated revolving credit | $ 20,000 | ||||
Bank Term Loan Facility | |||||
Consolidated revolving credit | $ 200,000 | ||||
Interest rate | 5.00% | ||||
Loan | $ 180,000 | ||||
Interest payments | $ 600 | ||||
Principal and interest payments | $ 3,397 |
Loans Payable - Future minimum
Loans Payable - Future minimum payments of principal and interest (Details) | Jun. 30, 2020USD ($) |
Real Property | |
2021 | $ 17,935 |
2022 | 17,935 |
2023 | 17,935 |
2024 | 17,935 |
2025 | 17,935 |
Thereafter | 105,126 |
Total | 194,801 |
Equipment | |
2021 | 16,549 |
2022 | 16,549 |
2023 | 16,549 |
2024 | 16,549 |
2025 | 2,518 |
Total | 68,714 |
Loan Disbursement | |
2021 | 14,499 |
2022 | 14,499 |
2023 | 7,232 |
Total | 36,230 |
Loan Disbursement #2 | |
2021 | 14,117 |
2022 | 14,117 |
2023 | 11,748 |
Total | $ 39,982 |
Loans Payable (Details Narrativ
Loans Payable (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2020 | Mar. 01, 2023 | Jun. 30, 2019 | |
Principal amount | $ 125,000 | ||
Loan Payable | 47,377 | $ 24,329 | |
Real Property | |||
Acquisition cost | 256,443 | ||
Principal amount | $ 200,000 | ||
Interest rate | 4.09% | ||
Interest and principal payments | $ 1,495 | ||
Final payment | 148,063 | $ 148,063 | |
Loan Payable | 177,232 | 186,655 | |
Equipment | |||
Acquisition cost | 32,792 | ||
Principal amount | $ 27,500 | ||
Interest rate | 6.00% | ||
Maturity date | May 7, 2023 | ||
Interest and principal payments | $ 533 | ||
Loan Payable | 0 | $ 22,230 | |
Equipment 2 | |||
Acquisition cost | 87,000 | ||
Principal amount | $ 70,147 | ||
Interest rate | 6.60% | ||
Maturity date | Aug. 12, 2024 | ||
Interest and principal payments | $ 1,379 | ||
Loan Payable | 60,027 | ||
Loan Disbursement | |||
Principal amount | $ 38,000 | ||
Interest rate | 8.98% | ||
Maturity date | Dec. 23, 2022 | ||
Interest and principal payments | $ 1,208 | ||
Loan Payable | 32,352 | ||
Loan Disbursement #2 | |||
Principal amount | $ 37,000 | ||
Interest rate | 8.98% | ||
Maturity date | Apr. 1, 2023 | ||
Interest and principal payments | $ 1,176 | ||
Loan Payable | 35,195 | ||
PPP Loan | |||
Principal amount | $ 33,237 | ||
Interest rate | 1.00% | ||
Term | 5 years |
Convertible Debt (Details Narra
Convertible Debt (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Notes to Financial Statements | ||
Promissory note | Company executed a 10% convertible promissory note in which it agreed to borrow up to $300,000. The note is convertible at a price per share equal to the lower of (a) the Fixed Conversion Price (which is fixed at a price equal to $0.30); or (b) 80% of the lowest trading price of the Company’s common stock during the 5 consecutive trading days prior to the date on which lender elects to convert all or part of the Note. | |
Principal amount | $ 125,000 | |
Original debt discount | 25,000 | |
Beneficial conversion feature | 200,000 | |
Debt discount | 150,000 | |
Loss on issuance of convertible debt | 75,000 | $ 0 |
Debt discount amortization | $ 137,500 | $ 0 |
Common Stock (Details Narrative
Common Stock (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Common Stock Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock Par Value | $ 0.001 | $ .001 |
Common stock issued for services, shares | 100,000 | |
Common stock issued for services, value | $ 30,000 | |
Non-cash expense | 70,000 | |
Loss on issuance of common stock | $ 40,000 | $ 0 |
Share Price | $ 0.70 | |
Two Individuals | ||
Common stock issued for services, shares | 130,000 | |
Non-cash expense | $ 13,000 | |
Share Price | $ 0.10 |
Preferred stock (Details Narrat
Preferred stock (Details Narrative) - Class B Preferred Stock - $ / shares | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Preferred Stock Shares Authorized | 25,000,000 | 25,000,000 |
Preferred Stock Par Value | $ 0.001 | $ 0.001 |
Stock Conversion | The Preferred Stock constitutes a convertible stock in which (1) one Preferred Share is convertible into (5) five Common Shares. The Preferred Stockholders are entitled to vote on any matters on which the common stockholders are entitled to vote. |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Special Line of Credit description | Company executed a 10% convertible promissory note in which it agreed to borrow up to $300,000. The note is convertible at a price per share equal to the lower of (a) the Fixed Conversion Price (which is fixed at a price equal to $0.30); or (b) 80% of the lowest trading price of the Company’s common stock during the 5 consecutive trading days prior to the date on which lender elects to convert all or part of the Note. | |
TCP | ||
Special Line of Credit description | On November 5, 2017, to fund its working capital requirements the Company obtained a Special Line of Credit (“LOC”) also recognized as a Blanket Secured Promissory Note for the total draw down amount of up to $500,000, from Twiga Capital Partners, LLC (“TCP”), an entity controlled by the Company’s sole officer and largest stockholder, Shefali Vibhakar. This Note is secured by all of the assets of the Company in accordance with the Security Agreement by and between the Company and the Holder dated as of November 5, 2017. | |
Interest rate | 5.00% | |
Loans payable | $ 122,729 | $ 122,729 |
Accrued interest | $ 11,279 | $ 9,749 |
Income Taxes - Net deferred tax
Income Taxes - Net deferred tax assets (Details) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Deferred Tax Assets: | ||
NOL Carryover | $ 73,800 | $ 6,400 |
Deferred tax liabilities: | ||
Less valuation allowance | (73,800) | (6,400) |
Net deferred tax assets |
Income Taxes - Income tax provi
Income Taxes - Income tax provision (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Federal income tax benefit attributable to: | ||
Current operations | $ (67,400) | $ 29,700 |
Less: Valuation allowance | 67,400 | (29,700) |
Net provision for Federal income taxes |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal income tax rate | 21.00% | 21.00% |
Net operating loss carry forwards | $ 73,800 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] | 1 Months Ended |
Jan. 21, 2021USD ($)shares | |
Share Purchase Agreement [Member] | Shefali Vibhakar [Member] | |
Cash consideration | $ | $ 177,000 |
Share Purchase Agreement [Member] | Shefali Vibhakar [Member] | Common Stock [Member] | |
Number of stock sold | 17,000,000 |
Share Purchase Agreement [Member] | Shefali Vibhakar [Member] | Preferred Stock [Member] | |
Number of stock sold | 10,000,000 |
Acquisition Agreement [Member] | Forzani [Member] | |
Stock Issued During Period, Shares, Acquisitions | 1,000,000 |
Common Stock, Voting Rights | Mr. Forzani now has voting control over 93.9% of the Company’s issued and outstanding common stock. |