Cover
Cover - shares | 3 Months Ended | |
Sep. 30, 2020 | Feb. 23, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Hawkeye Systems, Inc. | |
Entity Central Index Key | 0001750777 | |
Document Type | 10-Q/A | |
Amendment Flag | true | |
Amendment Description | This Amendment No. 2 to the periodic report on Form 10-Q for the period ended September 30, 2020 is filed to respond to a request for further conclusions as to disclosure controls and procedures in Item 4. | |
Current Fiscal Year End Date | --06-30 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Current Reporting Status | No | |
Document Period End Date | Sep. 30, 2020 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Entity Ex Transition Period | false | |
Entity Common Stock Shares Outstanding | 16,649,659 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | No |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2020 | Jun. 30, 2020 |
Current assets: | ||
Cash | $ 51,256 | $ 911,747 |
Accounts receivable | 49,471 | 47,656 |
Inventory, net | 1,371,066 | 509,517 |
Prepaid expenses | 19,879 | 6,667 |
Total current assets | 1,491,672 | 1,475,587 |
Equipment, net | 135 | 737 |
Note receivable - Radiant Images, Inc., net of allowance of $1,459,842 | 0 | 0 |
Total assets | 1,491,807 | 1,476,324 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 517,410 | 332,327 |
Convertible note payable, net of discount | 0 | 137,625 |
Convertible note payable, net of discount - related party | 224,204 | 211,305 |
Note payable - related parties | 0 | 200,000 |
Common stock payable | 9,000 | 6,000 |
Common stock payable - related parties | 630,000 | 430,000 |
Total current liabilities | 1,380,614 | 1,317,257 |
Total liabilities | 1,380,614 | 1,317,257 |
Stockholders' equity: | ||
Preferred stock, $0.0001 par value, 50,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $0.0001 par value, 400,000,000 shares authorized; 15,837,659 and 14,828,036 shares issued and outstanding, respectively | 1,584 | 1,483 |
Additional paid-in capital | 6,934,597 | 4,527,925 |
Common stock to be issued - 60,000 and 425,000 shares, respectively | 30,000 | 139,500 |
Accumulated deficit | (6,854,988) | (4,509,841) |
Total stockholders' equity | 111,193 | 159,067 |
Total liabilities and stockholders' equity | $ 1,491,807 | $ 1,476,324 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Non Current liabilities: | ||
Note receivable, net of allowance | $ 1,459,842 | $ 0 |
Stockholder's Equity | ||
Preferred stock, shares par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 15,837,659 | 14,828,036 |
Common stock, shares outstanding | 15,837,659 | 14,828,036 |
Common stock to be issued shares | 60,000 | 425,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||
Sales | $ 382,346 | $ 0 |
Cost of sales | 320,379 | 0 |
Gross profit | 61,967 | 0 |
Operating expenses: | ||
General and administrative | 13,797 | 18,412 |
Management compensation | 153,662 | 0 |
Professional fees | 38,024 | 290,485 |
Professional fees - related party | 139,340 | 0 |
Marketing | 48,418 | 0 |
Write-down of inventory | 40,164 | 0 |
Total operating expenses | 433,405 | 308,897 |
Loss from operations | (371,438) | (308,897) |
Other expense: | ||
Interest expense | (26,833) | 0 |
Interest expense - related party | (12,899) | 0 |
Financing expense | (55,497) | 0 |
Financing expense - related party | (1,508,211) | 0 |
Loss on settlement of debt | (370,269) | 0 |
Total other expense | (1,973,709) | 0 |
Net loss | $ (2,345,147) | $ (308,897) |
Net loss per common share - basic and diluted | $ (0.15) | $ (0.03) |
Weighted average common shares outstanding - basic and diluted | 15,562,663 | 11,164,921 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (Unaudited) - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Common Stock To Be Issued [Member] | Accumulated Deficit [Member] |
Balance, shares at Jun. 30, 2019 | 9,897,116 | ||||
Balance, amount at Jun. 30, 2019 | $ 460,508 | $ 990 | $ 2,198,891 | $ 170,000 | $ (1,909,373) |
Common stock issued for cash, shares | 449,333 | ||||
Common stock issued for cash, amount | 40,583 | $ 45 | 40,538 | 0 | 0 |
Common stock issued as compensation, shares | 1,222,000 | ||||
Common stock issued as compensation, amount | 540,988 | $ 116 | 540,872 | 0 | 0 |
Warrants issued, shares | 617,333 | ||||
Warrants issued, amount | 7,511 | $ 0 | 7,511 | 0 | 0 |
Stock options, shares | 100,000 | ||||
Stock options, amount | 1,918 | $ 0 | 1,918 | 0 | 0 |
Stock subscription received | 43,000 | 0 | 0 | 43,000 | 0 |
Stock subscription receivable | (2,787) | 0 | 0 | (2,787) | 0 |
Net loss | (308,897) | $ 0 | 0 | 0 | (308,897) |
Balance, shares at Sep. 30, 2019 | 12,285,782 | ||||
Balance, amount at Sep. 30, 2019 | 782,824 | $ 1,151 | 2,789,730 | 210,213 | (2,218,270) |
Balance, shares at Jun. 30, 2020 | 14,828,036 | ||||
Balance, amount at Jun. 30, 2020 | 159,067 | $ 1,483 | 4,527,925 | 139,500 | (4,509,841) |
Stock subscription receivable | 0 | ||||
Net loss | (2,345,147) | $ 0 | (2,345,147) | ||
Common shares issued for stock to be issued, shares | 365,000 | ||||
Common shares issued for stock to be issued, amount | 0 | $ 37 | 109,463 | (109,500) | |
Warrants exercised for cash, shares | 175,000 | ||||
Warrants exercised for cash, amount | 67,500 | $ 17 | 67,483 | 0 | 0 |
Common shares issued for conversion of debt, shares | 469,623 | ||||
Common shares issued for conversion of debt, amount | 525,978 | $ 47 | 525,931 | 0 | 0 |
Stock based compensation - options | 119,155 | 0 | 119,155 | 0 | 0 |
Stock based compensation - warrant | 1,563,708 | 0 | 1,563,708 | 0 | 0 |
Debt forgiveness | 20,932 | $ 0 | 20,932 | 0 | 0 |
Balance, shares at Sep. 30, 2020 | 15,837,659 | ||||
Balance, amount at Sep. 30, 2020 | $ 111,193 | $ 1,584 | $ 6,934,597 | $ 30,000 | $ (6,854,988) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (2,345,147) | $ (308,897) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 602 | 603 |
Write-down of inventory | 40,164 | 0 |
Loss on settlement of debt | 370,269 | 0 |
Amortization of debt discount | 25,274 | 0 |
Stock based compensation - options and warrant | 1,682,863 | 0 |
Common stock issued and warrants exercised for services | 0 | 260,000 |
Change in operating assets and liabilities: | ||
Accounts receivable | (1,815) | 0 |
Inventory | (901,713) | 0 |
Prepaid expense | (13,212) | 4,855 |
Accounts payable and accrued liabilities | 211,724 | (20,369) |
Common stock payable | 3,000 | 0 |
Net cash used in operating activities | (927,991) | (63,808) |
Cash flows from investing activities: | ||
Shares issued for Radiant Images, Inc. deposit | 0 | 70,000 |
Investment in Radiant Images, Inc. | 0 | (114,000) |
Net cash used in investing activities | 0 | (44,000) |
Cash flows from financing activities: | ||
Sales of common stock and warrants, net of issuance costs | 0 | 50,000 |
Proceeds from exercise of warrants | 67,500 | 0 |
Stock subscription receivable | 0 | (2,787) |
Stock subscriptions received | 0 | 43,000 |
Net cash provided by financing activities | 67,500 | 90,213 |
Net change in cash | (860,491) | (17,595) |
Cash beginning of period | 911,747 | 18,372 |
Cash end of period | 51,256 | 777 |
Supplemental cash flow information | ||
Cash paid for interest | 0 | 0 |
Cash paid for taxes | 0 | 0 |
Non-cash investing and financing activities: | ||
Common stock issued on conversion of note payable | 525,978 | 0 |
Reclassification from note payable related party to stock payable | 200,000 | 0 |
Reclassification from common stock to be issued to common stock | 109,500 | 0 |
Debt forgiveness | $ 20,932 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2020 | |
Summary of Significant Accounting Policies | |
Note 1 - Summary of Significant Accounting Policies | Basis of presentation The accompanying unaudited condensed interim financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the unaudited condensed interim financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the unaudited condensed interim financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. The accompanying unaudited condensed interim financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K, for the year ended June 30, 2020, as filed with the SEC on February 1, 2021. Use of estimates The preparation of consolidated financial statements in conformity with GAAP 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. Significant estimates in the accompanying financial statements include useful lives of property and equipment, fair value assumptions used for stock-based compensation, and the valuation allowance on deferred tax assets. Accounts receivable and allowance for doubtful accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments for services or goods. Accounts with known financial issues are first reviewed and specific estimates are recorded. The remaining accounts receivable balances are then grouped in categories by the number of days the balance is past due, and the estimated loss is calculated as a percentage of the total category based upon past history. Account balances are charged against the allowance when it is probable that the receivable will not be recovered. The Company had no allowance for doubtful accounts at September 30, 2020 or June 30, 2020. Fair value measurements When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. The Company has no assets or liabilities that are adjusted to fair value on a recurring basis. Revenue recognition Revenue is recorded in accordance with Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Topic 606 Cost of sales Cost of sales includes inventory costs and shipping and freight expenses. Basic and diluted earnings per share Basic earnings per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including stock options, warrants to purchase the Company’s common stock, and convertible note payable. For the three months ended September 30, 2020 and 2019, potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share because they were anti-dilutive are as follows: September 30, September 30, 2020 2019 Warrants 8,939,131 15,272,997 Options 5,255,000 772,000 Convertible notes 1,000,000 200,000 Total possible dilutive shares 15,194,131 16,244,997 Reclassification Certain amounts from prior periods have been reclassified to conform to the current period presentation. The reclassification have no effect on previously reported results of operations or cash flows. Recent Accounting Pronouncements Management has considered all recent accounting pronouncements issued and their potential effect on our financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s unaudited condensed consolidated financial statements. |
Going Concern
Going Concern | 3 Months Ended |
Sep. 30, 2020 | |
Going Concern | |
Note 2 - Going Concern | The Company’s unaudited condensed consolidated financial statements are prepared using GAAP, applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. During the three month period ended September 30, 2020, the Company had a net loss of $2,345,147. As of September 30, 2020, the Company had an accumulated deficit of $6,854,988. The Company has not established sufficient revenue to cover its operating costs and will require additional capital to continue its operating plan. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. These factors raise substantial doubt about its ability to continue as a going concern. In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan to obtain such resources for the Company includes: sales of equity instruments; traditional financing, such as loans; and obtaining capital from management and significant stockholders sufficient to meet its minimum operating expenses. However, management cannot provide any assurance that the Company will be successful in accomplishing this plan. There is no assurance that the Company will be able to obtain sufficient additional funds when needed or that such funds, if available, will be obtainable on terms satisfactory to the Company. In addition, profitability will ultimately depend upon the level of revenues received from business operations. However, there is no assurance that the Company will attain profitability. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
Inventory
Inventory | 3 Months Ended |
Sep. 30, 2020 | |
Inventory | |
Note 3 - Inventory | Inventory at September 30, 2020 and June 30, 2020 consists of the following: September 30, June 30, 2020 2020 Finished goods $ 1,537,230 $ 545,112 Goods in transit - 90,405 Less: Obsolescence (166,164 ) (126,000 ) Inventory, net $ 1,371,066 $ 509,517 During the year ended June 30, 2020, the Company purchased inventory of $153,000 for issuance of common stock. As at September 30, 2020 and June 30, 2020, the Company recorded $153,000 common stock payable. |
Advances to Radiant Images, Inc
Advances to Radiant Images, Inc. | 3 Months Ended |
Sep. 30, 2020 | |
Advances to Radiant Images, Inc. | |
Note 4 - Advances to Radiant Images, Inc. | Note Receivable – Radiant Images, Inc . In contemplation of the closing of the Radiant Agreement, the advance balance of $920,800 was formalized in a secured revolving promissory note (“Radiant Note)” dated April 26, 2019. Further advances to Radiant prior to the closing of the acquisition would increase the balance of the promissory note. The interest rate on the note was 12% and accrues daily on the outstanding balance and is collateralized by all of the assets of Radiant pursuant to a Security Agreement. The purchase price would be offset by the balance of the promissory note and interest upon closing. Through June 30, 2020, additional cash advances under the note receivable totaled $385,000 in equity-related transactions. In April 2020, the Company received notice from Radiant of its intent to terminate the Radiant Agreement. As per terms of the agreement, the Radiant Note and related interest became due. The Company has ceased further discussions with respect to the acquisition and is pursuing litigation for repayment of amounts due by Radiant. The Company’s investment in Radiant was structured as a revolving note and has been classified as a Note Receivable from Radiant due with accrued but unpaid interest. Pursuant to the terms of the revolving note, Radiant is required to repay the money already invested to Hawkeye with interest. The note receivable was issued on April 26, 2019, is due upon demand of the Company at any time commencing April 26, 2020. The interest rate on the note is 12% and accrues daily on the outstanding balance. During the fiscal year ended June 30, 2020, total contributions of $337,000 were made to Radiant, bringing the balance of the note receivable to $1,305,800 at June 30, 2020 (not including interest). Because of the ongoing litigation with Radiant, the Company recorded an allowance for note receivable of $1,305,800 and interest receivable of $154,042, during the year ended June 30, 2020. The Company has not calculated any additional interest or allowance for the three months ended September 30, 2020. Nevertheless, the Company intends to vigorously pursue the litigation and expects to fully collect these amounts from Radiant and/or its principals. As of September 30, 2020 and June 30, 2020, note receivable and interest receivable are as follows: September 30, June 30, 2020 2020 Note receivable $ 1,305,800 $ 1,305,800 Interest receivable 154,042 154,042 1,459,842 1,459,842 Allowance for note receivable (1,305,800 ) (1,305,800 ) Allowance for interest receivable (154,042 ) (154,042 ) $ - $ - |
Note Payable - Related Party
Note Payable - Related Party | 3 Months Ended |
Sep. 30, 2020 | |
Note Payable - Related Party | |
Note 5 - Note Payable - Related Party | On June 13, 2019, the Company entered into a Securities Purchase Agreement with a shareholder pursuant to which it issued a Promissory Note for $200,000 due on the second anniversary of issuance. The note bears interest at 10%. In connection with the Securities Purchase Agreement, the Company issued 100,000 shares of its common stock and a warrant to purchase 400,000 shares at $1.50 per share exercisable for two years from issuance. On June 13, 2020, the note matured, became due on demand and as a condition of maturity became convertible with a 40% discount to market price, but not lower than $1.00 per share. On July 1, 2020, the Company and note holder agreed to convert the note of $200,000 into 800,000 shares of common stock and accrued interest of $20,932 was forgiven. As a result, the Company reclassed note payable – related party of $200,000 to common stock payable and recorded debt forgiveness of $20,932 as additional paid in capital. |
Convertible Notes Payable
Convertible Notes Payable | 3 Months Ended |
Sep. 30, 2020 | |
Convertible Notes Payable | |
Note 6 - Convertible Notes Payable | Convertible note On March 17, 2020, the Company entered into a Securities Purchase Agreement with Eagle Equities LLC pursuant to which the Company issued a 10% Convertible Redeemable Note (“Convertible Note”) for the original principal amount of $150,000. The Convertible Note is due on March 17, 2021 and on the sixth month anniversary of the Note may be converted into shares of Common Stock of the Company at a 40% discount to the lowest Volume Weighted Average Price for the Company’s common stock for the 15 days preceding the conversion. The Convertible Note may be prepaid prior to the six-month anniversary at 115% of the face if paid within 30 days, and an additional 5% every 30 days thereafter with a cap of 140%. Interest accrual and debt amortization would have begun in April 2020. Financing fees associated with the note totaled $16,500 resulting in net proceeds to the Company of $133,500. The financing fees were recognized as a discount on debt is being amortized over the term of the note. On August 4, 2020, the note of $150,000 and accrued interest of $5,708 were converted into 469,623 shares of common stock resulting in a loss of settlement of debt totaling $370,269. During the three months ended September 30, 2020, amortization of $12,375 was recognized as interest expense. As of September 30, 2020 and June 30, 2020, the balance of the note payable is $0 and $150,000 less unamortized debt discount of $0 and $12,375, respectively. Interest expense of $1,958 was recognized on the convertible note during the three months ended September 30, 2020. Convertible note – related party On April 6, 2020, the Company issued convertible note payable of $250,000 with simple interest at 10% per annum if repaid within 90 days, and simple interest at 20% per annum thereafter. The convertible note is due on April 6, 2021. At the option of holder, this note is convertible at any time which is six months from the date of issuance through that date which is one year from the date of issuance at a conversion price of $0.25 per share. In consideration for the loan of $250,000, the Borrower also granted to the Lender 100,000 stock options exercisable at $0.25 for a two-year term. The options vested upon issuance. The fair value of the options was $13,297 and was recognized as debt discount as a part of beneficial conversion feature in the year ended June 30, 2020. The Company recorded a discount on the convertible note due to a beneficial conversion feature of $51,594, which is being amortized over the term of the note. During the three months ended September 30, 2020, amortization of $12,899 was recognized as interest expense. As of September 30, 2020 and June 30, 2020, the balance of the note payable is $250,000 less unamortized debt discount of $25,796 and $38,695 or $224,204 and $211,305, respectively. Interest expense of $12,500 was recognized on the convertible notes during the three months ended September 30, 2020. |
Common stock payable
Common stock payable | 3 Months Ended |
Sep. 30, 2020 | |
Common stock payable | |
Note 6 - Common stock payable | As of September 30, 2020 and June 30, 2020, common stock payable are as follows: September 30, June 30, 2020 2020 Purchase of inventory – related party $ 153,000 $ 153,000 Related parties 477,000 277,000 Commitments 9,000 6,000 $ 639,000 $ 436,000 |
Stockholders Equity
Stockholders Equity | 3 Months Ended |
Sep. 30, 2020 | |
Stockholders' equity: | |
Note 8 - Stockholders' Equity | Common Stock During the three months ended September 30, 2020, the Company had the following common stock transactions: • Issued 469,623 shares of its common stock in exchange for conversion of debt and accrued interest of $525,978. • Issued 175,000 shares of its common stock associated with the exercise of warrants for $67,500. • Issued 365,000 shares of common stock for stock subscriptions of $109,500 received prior to June 30, 2020. During the three months ended September 30, 2019 the Company had the following common stock transactions: • Effective July 3, 2019 the Company issued 333,333 shares to an accredited investor for $50,000. As part of the investment, the investor was also issued 333,333 warrants to purchase shares of common stock for two years at $.50 per share and 100,000 options to purchase shares of common stock for two years at $.25 per share • On July 19, 2019 the Company issued 260,000 shares to Michael Mansouri and 260,000 shares to Gianna Wolfe as consulting expense in connection with the acquisition of Radiant Images, Inc. • Effective July 28, 2019 the Company issued 200,000 shares to a related party in consideration for the payment of $50,000 to the Joint Venture, 80,000 shares to an accredited investor in consideration for $20,000 paid on behalf of the Joint Venture, and 22,000 shares to a related party for legal services valued at $11,000. • On August 2, 2019 the investor who acquired a note on January 22, 2019 converted that note to 400,000 shares of common stock. • Effective July 9, 2019 an investor subscribed to purchase: (i) 60,000 shares of common stock, and (ii) 60,000 Series C Warrants that are exercisable for 2 years from this date for an exercise price of $.50 per share. The purchase is at a price of $.25 per unit, for a total purchase price of $15,000, of which $2,787 was receivable at September 30, 2019. • On September 10, 2019 the Company sold 56,000 shares to an accredited investor for $28,000. Included with the purchase was warrants to 112,000 shares at $1.00 per year for two years and warrants to purchase 112,000 shares at $2.00 per year for two years. Common Stock to be Issued As of September 30, 2020 and June 30, 2020, the Company received payment for unissued capital stock resulting in 60,000 and 425,000 share of common stock to be issued for payments of $30,000 and $139,500, respectively. Balance at June 30, 2020 139,500 Received on subscription - Common stock certificates issued (109,500 ) Balance at September 30, 2020 $ 30,000 Stock Purchase Warrants Transactions in stock purchase warrants for the three months ended September 30, 2020 are as follows: Number of Weighted Average Warrants Exercise Price Balance at June 30, 2020 7,047,135 $ 1.52 Granted 2,178,996 $ 1.10 Exercised – shares issued (175,000 ) $ 0.39 Expired (112,000 ) $ 1.00 Balance at September 30, 2020 8,939,131 $ 1.57 The composition of the Company’s warrants outstanding at September 30, 2020 are as follows: Exercise Price Number of Warrants Weighted Average Remaining Life (in years) $ 0.30 349,998 3,58 $ 0.50 1,059,999 2.53 $ 1.00 3,097,317 1.25 $ 1.50 20,000 1.00 $ 2.00 4,260,666 1.44 $ 2.50 151,151 0.27 8,939,131 1.57 During the three months ended September 30, 2020, the Company issued 2,178,996 warrants to purchase common stock. The fair value of the warrants was determined using the Black-Scholes option pricing model with the following assumptions: Three months ended September 30, 2020 Year ended June 30, 2020 Year ended June 30, 2019 Exercise price $ 0.30 to 2.00 $ 1.00 $ 1.00 to $2.00 Expected term (in years) 0.04 – 2.00 years 1.00 years 0.75 years Risk-free rate 0.12 – 0.17 % 0.13 to 0.18 % 2.00 % Volatility 440 - 660 % 111 to 190 % 233 % Dividend yield - - - During the three months ended September 30, 2020, $1,563,708 was expensed for the extension of warrants that had expired, of which $1,508,211 was to a related party. Stock Options During the three months ended September 30, 2020 and year ended June 30, 2020, 0 and 3,800,000 options were granted, respectively. The fair value of the options was determined using the Black-Scholes option pricing model with the following assumptions: June 30, 2020 Trading price $ 0.06-$0.47 Exercise price $ 0.10-$0.50 Expected term (in years) 1.0 to 5.0 Risk-free rate 0.19%-2.46 Volatility 97%-174 Dividend yield - The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected life of the awards in effect at the time of grant. The Company has no history or expectation of paying cash dividends on its common stock. Transactions in stock options for the three months ended September 30, 2020 are as follows: Number of options Weighted average exercise price Weighted average remaining life (in years) Outstanding, June 30, 2020 5,255,000 $ 0.25 4.28 Granted - - - Expired or Forfeited - - - Exercised - - - Outstanding, September 30, 2020 5,255,000 0.25 4.03 Vested, September 30, 2020 3,815,000 $ 0.29 3.86 During the three months ended September 30, 2020, $119,155 was expensed, of which $85,100 was to related parties, and as of September 30, 2020, $238,307 remains unamortized, of which $170,198 is with related parties. At September 30, 2020, the intrinsic value of the 5,255,000 outstanding options was $1,424,127. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions | |
Note 9 - Related Party Transactions | As of September 30, 2020 and June 30, 2020, the Company recorded $277,000 in common stock payable to a related party investor. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Note 10 - Commitments and Contingencies | On August 1, 2019, the Company entered into an agreement with Stratcon Advisory and Tysadco Partners. Pursuant to the agreement, the Company will pay $6,000 per month for twelve months for corporate development, investment advisory, and investor relations services, payable $3,000 in restricted common stock and $3,000 in cash. Total expense recognized under this agreement during the three months ended September 30, 2020 and 2019 was $6,000 and $12,000, respectively. As of September 30, 2020 and June 30, 2020, the Company had a balance of $30,000 and $27,000 in accounts payable and $9,000 and $6,000 worth of common stock payable, respectively. On June 11, 2020, the Company formalized an employment agreement with its chief executive officer which provides for annual salary of $250,000 beginning with the calendar year 2020. The agreement also specified that the CEO would receive $180,000 of salary that was earned during the calendar year 2019. During the three months ended September 30, 2020, compensation expense of $30,000 was recognized under this agreement. As of September 30, 2020 and June 30, 2020, the Company has a payable due to its CEO of $30,000 and $150,000, respectively. The agreement contained provisions for severance, health benefits, and a car allowance. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2020 | |
Subsequent Events | |
Note 11 - Subsequent Events | Effective November 25, 2020, the Company’s chief executive officer converted $180,000 of unpaid salary into 515,000 shares of common stock. Effective December 3, 2020, the Company issued 100,000 shares of common stock to an accredited investor for $20,000. Included with the purchase were 100,000 options to purchase common stock at $0.20 per share exercisable for two years. Effective December 15, 2020, the Company issued 612,000 shares of common stock to an accredited investor upon conversion of $153,000 in debt. Effective December 15, 2020, the Company issued a 1 year convertible promissory note for $250,000. The promissory note incurs interest at 10%, if repaid within 90 days, and simple interest at 20% per annum thereafter. At the option of the holder this note is convertible at any time which is six months from the date of the issuance through the date which is one year from the date of issuance at a conversion price of $0.25 per share. Included with the convertible promissory note were 100,000 options to purchase common stock at $0.25 per share exercisable for two years. On February 19, 2021, a related party advanced $1 million to the Company. The purpose of the advance is to purchase inventory to satisfy a customer order. The advance will be repaid upon cash being received from the end customer. In addition to the principal amount of the advance, the related party will be entitled to 1/3 of the gross profit earned on the transaction. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2020 | |
Summary of Significant Accounting Policies | |
Basis of presentation | The accompanying unaudited condensed interim financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the unaudited condensed interim financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the unaudited condensed interim financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. The accompanying unaudited condensed interim financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K, for the year ended June 30, 2020, as filed with the SEC on February 1, 2021. |
Use of estimates | The preparation of consolidated financial statements in conformity with GAAP 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. Significant estimates in the accompanying financial statements include useful lives of property and equipment, fair value assumptions used for stock-based compensation, and the valuation allowance on deferred tax assets. |
Accounts receivable and allowance for doubtful accounts | Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments for services or goods. Accounts with known financial issues are first reviewed and specific estimates are recorded. The remaining accounts receivable balances are then grouped in categories by the number of days the balance is past due, and the estimated loss is calculated as a percentage of the total category based upon past history. Account balances are charged against the allowance when it is probable that the receivable will not be recovered. The Company had no allowance for doubtful accounts at September 30, 2020 or June 30, 2020. |
Fair value measurements | When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. The Company has no assets or liabilities that are adjusted to fair value on a recurring basis. |
Revenue recognition | Revenue is recorded in accordance with Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Topic 606 |
Cost of sales | Cost of sales includes inventory costs and shipping and freight expenses. |
Basic and diluted earnings per share | Basic earnings per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including stock options, warrants to purchase the Company’s common stock, and convertible note payable. For the three months ended September 30, 2020 and 2019, potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share because they were anti-dilutive are as follows: September 30, September 30, 2020 2019 Warrants 8,939,131 15,272,997 Options 5,255,000 772,000 Convertible notes 1,000,000 200,000 Total possible dilutive shares 15,194,131 16,244,997 |
Reclassifications | Certain amounts from prior periods have been reclassified to conform to the current period presentation. The reclassification have no effect on previously reported results of operations or cash flows. |
Recent accounting pronouncements | Management has considered all recent accounting pronouncements issued and their potential effect on our financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s unaudited condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Summary of Significant Accounting Policies | |
Schedule Of Basic and Diluted Earnings Per Share | September 30, September 30, 2020 2019 Warrants 8,939,131 15,272,997 Options 5,255,000 772,000 Convertible notes 1,000,000 200,000 Total possible dilutive shares 15,194,131 16,244,997 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Inventory | |
Schedule of inventry | September 30, June 30, 2020 2020 Finished goods $ 1,537,230 $ 545,112 Goods in transit - 90,405 Less: Obsolescence (166,164 ) (126,000 ) Inventory, net $ 1,371,066 $ 509,517 |
Advances to Radiant Images, I_2
Advances to Radiant Images, Inc. (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Advances to Radiant Images, Inc. | |
Schdeule of note receivable and interest receivable | September 30, June 30, 2020 2020 Note receivable $ 1,305,800 $ 1,305,800 Interest receivable 154,042 154,042 1,459,842 1,459,842 Allowance for note receivable (1,305,800 ) (1,305,800 ) Allowance for interest receivable (154,042 ) (154,042 ) $ - $ - |
Common stock payable (Tables)
Common stock payable (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Convertible Notes Payable | |
Note 6 - Common stock payable | As of September 30, 2020 and June 30, 2020, common stock payable are as follows: September 30, June 30, 2020 2020 Purchase of inventory – related party $ 153,000 $ 153,000 Related parties 477,000 277,000 Commitments 9,000 6,000 $ 639,000 $ 436,000 |
Stockholders Equity (Tables)
Stockholders Equity (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Schedule of payment received for unissued capital stock | Balance at June 30, 2020 139,500 Received on subscription - Common stock certificates issued (109,500 ) Balance at September 30, 2020 $ 30,000 |
Schedule of financial derivative activity | Number of Weighted Average Warrants Exercise Price Balance at June 30, 2020 7,047,135 $ 1.52 Granted 2,178,996 $ 1.10 Exercised – shares issued (175,000 ) $ 0.39 Expired (112,000 ) $ 1.00 Balance at September 30, 2020 8,939,131 $ 1.57 |
Schedule of warrants outstanding | Exercise Price Number of Warrants Weighted Average Remaining Life (in years) $ 0.30 349,998 3,58 $ 0.50 1,059,999 2.53 $ 1.00 3,097,317 1.25 $ 1.50 20,000 1.00 $ 2.00 4,260,666 1.44 $ 2.50 151,151 0.27 8,939,131 1.57 |
Schedule of fair value of derivatives | Three months ended September 30, 2020 Year ended June 30, 2020 Year ended June 30, 2019 Exercise price $ 0.30 to 2.00 $ 1.00 $ 1.00 to $2.00 Expected term (in years) 0.04 – 2.00 years 1.00 years 0.75 years Risk-free rate 0.12 – 0.17 % 0.13 to 0.18 % 2.00 % Volatility 440 - 660 % 111 to 190 % 233 % Dividend yield - - - |
Stock option [Member] | |
Schedule of financial derivative activity | Number of options Weighted average exercise price Weighted average remaining life (in years) Outstanding, June 30, 2020 5,255,000 $ 0.25 4.28 Granted - - - Expired or Forfeited - - - Exercised - - - Outstanding, September 30, 2020 5,255,000 0.25 4.03 Vested, September 30, 2020 3,815,000 $ 0.29 3.86 |
Schedule of fair value of derivatives | June 30, 2020 Trading price $ 0.06-$0.47 Exercise price $ 0.10-$0.50 Expected term (in years) 1.0 to 5.0 Risk-free rate 0.19%-2.46 Volatility 97%-174 Dividend yield - |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - shares | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Total possible dilutive shares | 15,194,131 | 16,244,997 |
Convertible Notes [Member] | ||
Total possible dilutive shares | 1,000,000 | 200,000 |
Options [Member] | ||
Total possible dilutive shares | 5,255,000 | 772,000 |
Warrant [Member] | ||
Total possible dilutive shares | 8,939,131 | 15,272,997 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | |
Going Concern | ||
Accumulated deficit | $ (6,854,988) | $ (4,509,841) |
Net loss | $ (2,345,147) |
Inventory (Details)
Inventory (Details) - USD ($) | Sep. 30, 2020 | Jun. 30, 2020 |
Inventory | ||
Finished goods | $ 1,537,230 | $ 545,112 |
Goods in transit | 0 | 90,405 |
Less: Obsolescence | (166,164) | (126,000) |
Inventory, Net | $ 1,371,066 | $ 509,517 |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) | Sep. 30, 2020 | Jun. 30, 2020 |
Inventory purchased | $ 153,000 | $ 153,000 |
Common stock payable | 9,000 | 6,000 |
Purchase of inventory - related party [Member] | ||
Common stock payable | $ 153,000 | $ 153,000 |
Advances to Radiant Images, I_3
Advances to Radiant Images, Inc. (Details) - USD ($) | Sep. 30, 2020 | Jun. 30, 2020 |
Note receivable | $ 0 | $ 0 |
Joint Venture Agreement [Member] | ||
Note receivable | 1,305,800 | 1,305,800 |
Interest receivable | 154,042 | 154,042 |
Total receivables | 1,459,842 | 1,459,842 |
Allowance for note receivable | (1,305,800) | (1,305,800) |
Allowance for interest receivable | (154,042) | (154,042) |
Total Allowance for receivable | $ 0 | $ 0 |
Advances to Radiant Images, I_4
Advances to Radiant Images, Inc. (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended |
Apr. 26, 2019 | Jun. 30, 2020 | |
Radiant Images, Inc [Member] | ||
Description of radiant note | In contemplation of the closing of the Radiant Agreement, the advance balance of $920,800 was formalized in a secured revolving promissory note (“Radiant Note)” dated April 26, 2019. | |
Additional cash advances | $ 385,000 | |
Advances to Radiant Images, Inc. | $ 920,800 | |
Radiant Agreement [Member] | April 2020 [Member] | ||
Interest rate | 12.00% | |
Total contribution | $ 337,000 | |
Note receivable | 1,305,800 | |
Allowance for note receivable | 1,305,800 | |
Allowance for interest receivable | $ 154,042 |
Notes Payable Related Party (De
Notes Payable Related Party (Details Narrative) - USD ($) | Jun. 13, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 |
Note payable - related parties | $ 0 | $ 200,000 | ||
Debt forgiveness | $ 20,932 | $ 0 | ||
July 1 2020 [Member] | ||||
Conversion of common stock, shares | 800,000 | |||
Conversion of common stock, amount | $ 200,000 | |||
Note payable - related parties | 200,000 | |||
Debt forgiveness | 20,932 | |||
Accrued interest forgiven | $ 20,932 | |||
Securities Purchase Agreement [Member] | On June 13, 2019 [Member] | ||||
Related Party Note 2 | $ 200,000 | |||
Origination shares issued | 100,000 | |||
Purchase shares of warrant | 400,000 | |||
Debt instrument interest rate | 10.00% | |||
Purchase price per share | $ 1.50 | |||
Term of debt, description | On June 13, 2020, the note matured and became due on demand and became convertible with a 40% discount to market price, but not lower than $1.00 per share. |
Convertible Notes Payable (Deta
Convertible Notes Payable (Details Narrative) - USD ($) | Aug. 04, 2020 | Apr. 06, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 |
Note payable, net of discount | $ 224,204 | $ 211,305 | |||
Finance fees | 16,500 | ||||
Amortization of interest expense | 12,899 | ||||
Unamortized debt discount | 25,796 | 38,695 | |||
Notes payable, balance | 250,000 | 250,000 | |||
Interest expense | 12,500 | ||||
Notes payable descriptions | the Company issued convertible note payable of $250,000 with simple interest at 10% per annum if repaid within 90 days, and simple interest at 20% per annum thereafter. The convertible note is due on April 6, 2021. | ||||
Conversion price | $ 0.25 | ||||
Net proceeds of the fees | 133,500 | ||||
Note issued | $ 250,000 | ||||
Debt forgiveness | $ 20,932 | $ 0 | |||
Securities Purchase Agreement [Member] | March 17, 2020 [Member] | |||||
Maturity date | Mar. 17, 2021 | ||||
Debt instrument descriptions | Note may be converted into shares of Common Stock of the Company at a 40% discount to the lowest Volume Weighted Average Price for the Company’s common stock for the 15 days preceding the conversion. The Company will recognize the derivative liability when the Note becomes convertible. The Convertible Note may be prepaid prior to the six-month anniversary at 115% of the face if paid within 30 days, and an additional 5% every 30 days thereafter with a cap of 140%. Interest accrual and debt amortization would have begun in April 2020. | ||||
Debt instrument principal amount | $ 150,000 | ||||
Lender [Member] | |||||
Consideration amount | $ 250,000 | ||||
Stock option exercisable | 100,000 | ||||
Exercisable price | $ 0.25 | ||||
Term of option | 2 years | ||||
Fair value of options | 13,297 | ||||
Beneficial conversion feature | 51,594 | ||||
Convertible Notes [Member] | |||||
Amortization of interest expense | 12,375 | ||||
Unamortized debt discount | 0 | 12,375 | |||
Notes payable, balance | 0 | $ 150,000 | |||
Interest expense | $ 1,958 | ||||
Debt conversion, converted instrument, amount | $ 150,000 | ||||
Debt conversion, converted instrument, shares issued | 469,623 | ||||
Accrued interest | $ 5,708 | ||||
Debt forgiveness | $ 370,269 |
Common stock payable (Details)
Common stock payable (Details) - USD ($) | Sep. 30, 2020 | Jun. 30, 2020 |
Common stock payable | $ 639,000 | $ 436,000 |
Purchase of inventory - related party [Member] | ||
Common stock payable | 153,000 | 153,000 |
Related Parties [Member] | ||
Common stock payable | 477,000 | 277,000 |
Commitments [Member] | ||
Common stock payable | $ 9,000 | $ 6,000 |
Stockholders Equity (Details)
Stockholders Equity (Details) | 3 Months Ended |
Sep. 30, 2020USD ($) | |
Stockholders' equity: | |
Beginning balance | $ 139,500 |
Received on subscription | 0 |
Common stock certificates issued | (109,500) |
Ending balance | $ 30,000 |
Stockholders Equity (Details1)
Stockholders Equity (Details1) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Jun. 30, 2020 | |
Warrant Shares | ||
Warrant shares, Granted | 0 | 3,800,000 |
Warrant [Member] | ||
Warrant Shares | ||
Warrants shares, beginnig balance | 7,047,135 | |
Warrant shares, Granted | 2,178,996 | |
Warrant shares, Exercised - shares issued | 175,000 | |
Warrant shares, expired | $ (112,000) | |
Warrants shares, ending balance | 8,939,131 | 7,047,135 |
Weighted Average Exercise Price | ||
Weighted average exercise price, beginning | $ 1.52 | |
Weighted average exercise price, Granted | 1.10 | |
Weighted average exercise price, Exercised | 0.39 | |
Weighted average exercise price, Expired | 1 | |
Weighted average exercise price, Ending | $ 1.57 | $ 1.52 |
Stockholders Equity (Details 2)
Stockholders Equity (Details 2) | 3 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Number of Warrants | 8,939,131 |
Weighted Average Remaining Life (in years) | 1 year 6 months 26 days |
Warrants outsanding 5 [Member] | |
Number of Warrants | 151,151 |
Weighted Average Remaining Life (in years) | 3 months 7 days |
Exercise Price | $ / shares | $ 2.50 |
Warrants outsanding 4 [Member] | |
Number of Warrants | 4,260,666 |
Weighted Average Remaining Life (in years) | 1 year 5 months 9 days |
Exercise Price | $ / shares | $ 2 |
Warrants outsanding 3 [Member] | |
Number of Warrants | 20,000 |
Weighted Average Remaining Life (in years) | 1 year |
Exercise Price | $ / shares | $ 1.50 |
Warrants outsanding 2 [Member] | |
Number of Warrants | 3,097,317 |
Weighted Average Remaining Life (in years) | 1 year 2 months 30 days |
Exercise Price | $ / shares | $ 1 |
Warrants outsanding 1 [Member] | |
Number of Warrants | 1,059,999 |
Weighted Average Remaining Life (in years) | 2 years 6 months 11 days |
Exercise Price | $ / shares | $ 0.50 |
Warrants outsanding [Member] | |
Number of Warrants | 349,998 |
Weighted Average Remaining Life (in years) | 3 years 6 months 29 days |
Exercise Price | $ / shares | $ 0.30 |
Stockholders Equity (Details 3)
Stockholders Equity (Details 3) - Warrant [Member] - $ / shares | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Volatility: | 233.00% | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
Exercise price | $ 1 | ||
Expected term (in years) | 1 year | 8 months 30 days | |
Risk-free rate | 2.00% | ||
Minimum [Member] | |||
Volatility: | 440.00% | 111.00% | |
Exercise price | $ 0.30 | $ 1 | |
Expected term (in years) | 15 days | ||
Risk-free rate | 0.12% | 0.13% | |
Maximum [Member] | |||
Volatility: | 660.00% | 190.00% | |
Exercise price | $ 2 | $ 2 | |
Expected term (in years) | 2 years | ||
Risk-free rate | 0.17% | 0.18% |
Stockholders Equity (Details 4)
Stockholders Equity (Details 4) - Stock option [Member] | 12 Months Ended |
Jun. 30, 2020$ / shares | |
Dividend yield | 0.00% |
Minimum [Member] | |
Exercise price | $ 0.10 |
Expected term (in years) | 1 year |
Trading price | $ 0.06 |
Risk-free rate | 0.19% |
Volatility | 97.00% |
Maximum [Member] | |
Exercise price | $ 0.50 |
Expected term (in years) | 5 years |
Trading price | $ 0.47 |
Risk-free rate | 2.46% |
Volatility | 174.00% |
Stockholders Equity (Details 5)
Stockholders Equity (Details 5) - Stock option [Member] | 3 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Warrants shares, beginnig balance | 5,255,000 |
Number of options, Granted | |
Number of options, Expired or Forfeited | |
Number of options, Exercised | |
Warrants shares, ending balance | 5,255,000 |
Number of options, Vested | 3,815,000 |
Weighted Average Exercise Price | |
Weighted average exercise price, beginning | $ / shares | $ 0.25 |
Weighted average exercise price, Granted | $ / shares | 0 |
Weighted average exercise price, Ending | $ / shares | 0.25 |
Weighted Average Exercise Price, vested | $ / shares | $ 0.29 |
Weighted average remaining life, beginning | 4 years 3 months 11 days |
Weighted average remaining life, ending | 4 years 11 days |
Weighted average remaining life, vested | 3 years 10 months 10 days |
Stockholders Equity (Details Na
Stockholders Equity (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Sep. 10, 2019 | Jul. 28, 2019 | Jul. 19, 2019 | Jul. 03, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Intrinsic shares of the outstanding options | 5,255,000 | |||||||
Accrued interest | $ 525,978 | |||||||
Common stock, shares issued in exchange for convertible note payable | 469,623 | |||||||
Common stock, shares issued for subscriptions, amount | $ 109,500 | |||||||
Common stock, shares issued for subscriptions, shares | 365,000 | |||||||
Warrants exercised for cash, amount | $ 67,500 | |||||||
Warrants exercised for cash, shares | 175,000 | |||||||
Intrinsic value of the outstanding options | $ 1,424,127 | |||||||
Unissued capital stock | 60,000 | 425,000 | ||||||
Common stock to be issued for payments | $ 30,000 | $ 139,500 | ||||||
Warrants issued to purchase common stock | 2,178,996 | |||||||
Expensed for extension of warrants, expired | 1,563,708 | |||||||
Stock options, expensed | 119,155 | |||||||
Stock options, unamortized | $ 238,307 | |||||||
Stock options, granted | 0 | 3,800,000 | ||||||
Outstanding options, intrinsic value | $ 1,424,127 | |||||||
Outstanding options | 5,255,000 | |||||||
Common stock, shares issued | 15,837,659 | 14,828,036 | ||||||
Common stock, value | $ 1,584 | $ 1,483 | ||||||
Joint Venture [Member] | ||||||||
Common stock, shares issued | 200,000 | |||||||
Repayment of related party | $ 50,000 | |||||||
Warrant [Member] | ||||||||
Stock options, granted | 2,178,996 | |||||||
Expected life | 1 year | 8 months 30 days | ||||||
Accredited Investor [Member] | Warrant One [Member] | ||||||||
Warrants issued to purchase common stock | $ 112,000 | |||||||
Common stock, price per share | $ 2 | |||||||
Accredited Investor [Member] | Warrant [Member] | ||||||||
Warrants issued to purchase common stock | $ 112,000 | |||||||
Common stock, price per share | $ 1 | |||||||
Related Party [Member] | ||||||||
Expensed for extension of warrants, expired | $ 1,508,211 | |||||||
Stock options, expensed | 85,100 | |||||||
Stock options, unamortized | $ 170,198 | |||||||
Shares issued for legal services, value | $ 11,000 | |||||||
Shares issued for legal services, shares | 22,000 | |||||||
Accredited Investor [Member] | ||||||||
Warrants issued to purchase common stock | $ 333,333 | |||||||
Expected life | 2 years | |||||||
Share issued price per share for investor two | $ 0.25 | |||||||
Common stock, shares issued | 56,000 | 80,000 | 333,333 | |||||
Common stock, value | $ 28,000 | $ 50,000 | ||||||
Payment on behalf of joint venture | $ 20,000 | |||||||
Options to purchase common stock | 100,000 | |||||||
Share issued price per share | $ 0.50 | |||||||
Investor [Member] | Effective July 9, 2019 [Member] | ||||||||
Common stock subscribed to purchase description | i) 60,000 shares of common stock, and (ii) 60,000 Series C Warrants that are exercisable for 2 years from this date for an exercise price of $.50 per share. | |||||||
Common stock subscription receivable | $ 2,787 | |||||||
Total purchase price | $ 15,000 | |||||||
Purchase price per share | $ 0.25 | |||||||
Michael Mansouri [Member] | Radiant Images, Inc [Member] | ||||||||
Shares issued for acquisition | 260,000 | |||||||
Gianna Wolfe [Member] | Radiant Images, Inc [Member] | ||||||||
Shares issued for acquisition | 260,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Sep. 30, 2020 | Jun. 30, 2020 |
Common stock payable | $ 9,000 | $ 6,000 |
Related Party Investor [Member] | ||
Common stock payable | $ 277,000 | $ 277,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | |
Total expenses | $ 433,405 | $ 308,897 | |
Common stock payable | 639,000 | $ 436,000 | |
Chief Executive Officer [Member] | June 11 2020 [Member] | |||
Annual salary | 250,000 | ||
Salary | 180,000 | ||
Accounts payable | 30,000 | 150,000 | |
Compensation expense | 30,000 | ||
Stratco Advisory and Tysadco Partners [Member] | August 1 2019 [Member] | Development service agreement [Member] | |||
Accounts payable | $ 30,000 | 27,000 | |
Service agreement description | the Company entered into an agreement with Stratcon Advisory and Tysadco Partners. Pursuant to the agreement, the Company will pay $6,000 per month for twelve months for corporate development, investment advisory, and investor relations services, payable $3,000 in restricted common stock and $3,000 in cash | ||
Total expenses | $ 6,000 | $ 12,000 | |
Common stock payable | $ 9,000 | $ 6,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Dec. 15, 2020 | Nov. 25, 2020 | Dec. 03, 2020 | Feb. 19, 2021 | Sep. 30, 2020 | Jun. 30, 2020 |
Common stock, value | $ 1,584 | $ 1,483 | ||||
Subsequent Event [Member] | ||||||
Related party advance | $ 1,000,000 | |||||
Subsequent Event [Member] | Accredited Investor [Member] | ||||||
Exercise price | $ 0.25 | $ 0.20 | ||||
Conversion of debt | $ 153,000 | |||||
Conversion of common stock, shares | 100,000 | |||||
Description of stock option plan | The promissory note incurs interest at 10%, if repaid within 90 days, and simple interest at 20% per annum thereafter. At the option of the holder this note is convertible at any time which is six months from the date of the issuance | |||||
Conversion of common stock, amount | $ 250,000 | |||||
Conversion price | $ 0.25 | |||||
Common Stock, shares issued | 612,000 | 100,000 | ||||
Common stock, value | $ 20,000 | |||||
Options to purchase common stock | 100,000 | |||||
Maturity period | 2 years | |||||
Subsequent Event [Member] | Chief Executive Officer [Member] | ||||||
Common Stock, shares issued | 515,000 | |||||
Unpaid salary | $ 180,000 |