Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2022 | Feb. 10, 2023 | |
Details | ||
Registrant CIK | 0001755101 | |
Fiscal Year End | --06-30 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-54524 | |
Entity Registrant Name | APPLIFE DIGITAL SOLUTIONS, INC. | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 30-0678378 | |
Entity Address, Address Line One | 50 California St | |
Entity Address, Address Line Two | #1500 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94111 | |
City Area Code | 415 | |
Local Phone Number | 439 5260 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 148,543,635 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2022 | Jun. 30, 2022 |
Current assets | ||
Cash | $ 126,539 | $ 189,233 |
Prepaid expenses | 1,486 | 8,038 |
Inventories | 71,975 | 64,200 |
Total assets | 200,000 | 261,471 |
Current liabilities | ||
Accounts payable and accrued expenses | 84,775 | 103,355 |
Common stock payable | 10,475 | 10,475 |
Notes payable to shareholders | 188,329 | 289,319 |
Derivative liabilities | 706,208 | 577,180 |
Total current liabilities | 989,787 | 980,329 |
Notes payable to shareholders - noncurrent, net | 64,855 | 100,000 |
Total liabilities | 1,054,642 | 1,080,329 |
Stockholders' deficit | ||
Common stock, $0.001 par value, 500,000,000 shares authorized; 148,543,635 and 148,543,635 shares issued and outstanding as of December 31, 2022 and June 30, 2022 | 148,545 | 148,545 |
Additional paid-in capital | 13,923,581 | 12,410,428 |
Accumulated (deficit) | (14,926,768) | (13,377,831) |
Total stockholders' deficit | (854,642) | (818,858) |
Total liabilities and stockholders' deficit | $ 200,000 | $ 261,471 |
Consolidated Balance Sheets - P
Consolidated Balance Sheets - Parenthetical - $ / shares | Dec. 31, 2022 | Jun. 30, 2022 |
Details | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 148,543,635 | 148,543,635 |
Common Stock, Shares, Outstanding | 148,543,635 | 148,543,635 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Details | ||||
Revenue | $ 14,078 | $ 1,031 | $ 31,039 | $ 1,871 |
Cost of goods sold | (12,526) | (827) | (25,896) | (1,430) |
Gross profit | 1,552 | 204 | 5,143 | 441 |
Operating expenses | 813,552 | 625,743 | 1,474,377 | 1,523,597 |
Total operating expenses | 813,552 | 625,743 | 1,474,377 | 1,523,597 |
Loss from operations | (812,000) | (625,539) | (1,469,234) | (1,523,156) |
Other income (expense) | ||||
Interest expense | (212,613) | (85,308) | (330,375) | (174,295) |
Gain on settlement of debt | 0 | 0 | 0 | 48,619 |
Change in fair value of Common Stock | 0 | (11,283) | 0 | (11,283) |
Change in fair value of derivative liability | 135,423 | 6,136 | 250,672 | 24,523 |
Net loss before provision for income taxes | (889,190) | (715,994) | (1,548,937) | (1,635,592) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net loss | $ (889,190) | $ (715,994) | $ (1,548,937) | $ (1,635,592) |
Basic and diluted loss per share | $ (0.02) | $ (0.01) | $ (0.03) | $ (0.03) |
Average number of common shares outstanding - basic and diluted | 53,076,511 | 50,536,614 | 53,076,511 | 48,363,358 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Deficit - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | Total |
Stockholders' Equity Attributable to Parent, Beginning Balance at Jun. 30, 2021 | $ 135,526 | $ 8,350,779 | $ (9,836,731) | $ (1,350,426) |
Shares, Outstanding, Beginning Balance at Jun. 30, 2021 | 135,524,617 | |||
Common stock issued for cash, Value | $ 5,200 | 514,800 | 0 | 520,000 |
Common stock issued for cash, Shares | 5,200,000 | |||
Stock compensation expense | $ (4,000) | (936,190) | 0 | (940,190) |
Common stock issued for services, Value | $ 1,921 | 102,362 | 0 | 104,283 |
Common stock issued for services, Shares | 1,920,995 | |||
Net loss | $ 0 | 0 | (1,635,592) | (1,635,592) |
Stockholders' Equity Attributable to Parent, Ending Balance at Dec. 31, 2021 | $ 146,647 | 9,904,132 | (11,472,323) | (1,421,544) |
Shares, Outstanding, Ending Balance at Dec. 31, 2021 | 146,645,612 | |||
Stock compensation expense | $ 4,000 | 936,190 | 0 | 940,190 |
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 4,000,000 | |||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | (4,000,000) | |||
Stockholders' Equity Attributable to Parent, Beginning Balance at Sep. 30, 2021 | $ 141,039 | 9,342,687 | (10,756,329) | (1,272,603) |
Shares, Outstanding, Beginning Balance at Sep. 30, 2021 | 141,037,117 | |||
Common stock issued for cash, Shares | 0 | |||
Stock compensation expense | $ (4,000) | (483,770) | 0 | (487,770) |
Common stock issued for services, Value | $ 1,608 | 77,675 | 0 | 79,283 |
Common stock issued for services, Shares | 1,608,495 | |||
Net loss | $ 0 | 0 | (715,994) | (715,994) |
Stockholders' Equity Attributable to Parent, Ending Balance at Dec. 31, 2021 | $ 146,647 | 9,904,132 | (11,472,323) | (1,421,544) |
Shares, Outstanding, Ending Balance at Dec. 31, 2021 | 146,645,612 | |||
Stock compensation expense | $ 4,000 | 483,770 | 0 | 487,770 |
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 4,000,000 | |||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | (4,000,000) | |||
Stockholders' Equity Attributable to Parent, Beginning Balance at Jun. 30, 2022 | $ 148,545 | 12,410,428 | (13,377,831) | (818,858) |
Shares, Outstanding, Beginning Balance at Jun. 30, 2022 | 148,543,635 | |||
Common stock issued for cash, Value | $ 0 | 1,077,109 | 0 | 1,077,109 |
Stock compensation expense | (1,077,109) | |||
Net loss | 0 | 0 | (1,548,937) | (1,548,937) |
Stockholders' Equity Attributable to Parent, Ending Balance at Dec. 31, 2022 | $ 148,545 | 13,923,581 | (14,926,768) | (854,642) |
Shares, Outstanding, Ending Balance at Dec. 31, 2022 | 148,543,635 | |||
Stock compensation expense | 1,077,109 | |||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 0 | |||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 0 | |||
Settlement of notes payable with issuance of options to purchase common stock | $ 0 | 436,044 | 0 | 436,044 |
Stockholders' Equity Attributable to Parent, Beginning Balance at Sep. 30, 2022 | $ 148,545 | 12,905,804 | (14,037,578) | (983,229) |
Shares, Outstanding, Beginning Balance at Sep. 30, 2022 | 148,543,635 | |||
Common stock issued for cash, Value | $ 0 | 581,733 | 0 | 581,733 |
Net loss | 0 | 0 | (889,190) | (889,190) |
Stockholders' Equity Attributable to Parent, Ending Balance at Dec. 31, 2022 | $ 148,545 | 13,923,581 | (14,926,768) | (854,642) |
Shares, Outstanding, Ending Balance at Dec. 31, 2022 | 148,543,635 | |||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 0 | |||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 0 | |||
Settlement of notes payable with issuance of options to purchase common stock | $ 0 | $ 436,044 | $ 0 | $ 436,044 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (1,548,937) | $ (1,635,592) |
Adjustment to reconcile change in net loss to net cash used in operating activities | ||
Amortization | 223,865 | 85,683 |
Issuance of common stock for services | 0 | 104,284 |
Stock compensation expense | 1,077,109 | 940,190 |
Change in fair value of derivative liability | (250,672) | (24,523) |
Gain on settlement of debt | 0 | (48,619) |
Changes in operating assets and liabilities | ||
Prepaid expenses and other current assets | 6,552 | 29,472 |
Inventories | (7,775) | (12,769) |
Common stock payable | 0 | 68,499 |
Accounts payable and accrued expenses | 112,164 | 33,709 |
Net Cash Provided by (Used in) Operating Activities | (387,694) | (459,666) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from notes payable to shareholders | 325,000 | 0 |
Proceeds from issuance of common stock | 0 | 520,000 |
Payment on notes payable | 0 | (40,000) |
Payment on amounts due to officer | 0 | (5,000) |
Net cash provided from financing activities | 325,000 | 475,000 |
Net increase (decrease) in cash and cash equivalents | (62,694) | 15,334 |
Cash and cash equivalents, beginning of period | 189,233 | 250,073 |
Cash and cash equivalents, end of period | 126,539 | 265,407 |
Non-cash investing and financing activities | ||
Increase in derivative liability upon issuance of convertible note | 379,700 | 0 |
Payment of notes payable with issuance of options to purchase common stock | $ 436,044 | $ 0 |
Note 1 - Organization and Summa
Note 1 - Organization and Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2022 | |
Notes | |
Note 1 - Organization and Summary of Significant Accounting Policies | Note 1 – Organization, Going Concern and Summary of Significant Accounting Policies Organization APPlife Digital Solutions Inc. (the “Company”) is a business incubator and portfolio manager that uses digital technology to create and invest in e-commerce and cloud-based solutions. The Company was formed March 5, 2018 in Nevada and has offices in San Francisco, California and Shanghai, China. Our office in San Francisco, California allows us to take advantage of the marketing opportunities available in the United States as well as keeping close proximity to sources of capital whether it is debt or equity. Our offices in Shanghai, China allows us to take advantage of a high concentration of skilled tech coders and developers at lower capital costs than in more developed countries such as the United States or Europe. Rooster Essentials APP SPV, LLC (the “Rooster”), incorporated on April 9, 2019, is a wholly owned subsidiary of the Company. Rooster is a fully customizable men’s ecommerce platform that delivers daily use grooming needs and essential items. B2BCHX SPV LLC (the “B2BCHX”), incorporated on June 5, 2019, is a wholly owned subsidiary of the Company. B2BCHX does an independent background check on mainland Chinese companies for small businesses globally. Office Hop, incorporated on January 28, 2021, is a wholly owned subsidiary of the Company. Office Hop is a global sharing model platform for short term rentals of office and meeting rooms. Users can find an office or conference space for hourly, half-day, full-day, or weekly rental. Hosts can list their spare office or meeting rooms. Going Concern The Company has generated losses and negative cash flows from operations since inception. The Company has historically financed its operations from equity financing. The Company anticipates additional equity financings to fund operations in the future. Should management fail to adequately address the issue, the Company may have to reduce its business activities or curtail its operations. There can be no assurance that any additional financings, would be available to the Company on satisfactory terms and conditions if at all. The current pandemic known as COVID-19 as described in Note 5, creates additional uncertainty. The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and classification of liabilities and commitments in the normal course of business. The accompanying unaudited condensed consolidated financial statements do not reflect any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classifications of liabilities that might result if the Company is unable to continue as a going concern. Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for the interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. The unaudited condensed consolidated financial statements include the accounts of all subsidiaries in which the Company holds a controlling financial interest as of the financial statement date. All intercompany transactions have been eliminated in consolidation. However, in the opinion of the management of the Company, all adjustments necessary for a fair presentation of the financial position and operating results have been included in these statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10–K for the fiscal year ended June 30, 2022, as filed with the SEC on October 7, 2022. Operating results for the six months ended December 31, 2022 are not necessarily indicative of the results that may be expected for any subsequent quarters or for the fiscal year ending June 30, 2023. Cash and Cash Equivalents For the purpose of the statement of cash flows, the Company considers cash equivalents to include cash and investments with an original maturity of three months or less. Income Taxes The Company has adopted guidance issued by the FASB that clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold of more likely than not and a measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In making this assessment, a company must determine whether it is more likely than not that a tax position will be sustained upon examination, based solely on the technical merits of the position and must assume that the tax position will be examined by taxing authorities. The Company’s policy is to include interest and penalties related to unrecognized tax benefits in income tax expense. The Company had no accrual for interest or penalties as of December 31, 2022. The Company files income tax returns with the Internal Revenue Service (“IRS”) and the state of California. Use of Estimates Generally accepted accounting principles require that the consolidated financial statements include estimates by management in the valuation of certain assets and liabilities. Significant matters requiring the use of estimates and assumptions include, but are not necessarily limited to, fair value of the Company’s stock, stock-based compensation, BCF (Beneficial Conversion Feature) liabilities feature of convertible debt, and valuation allowance relating to the Company’s deferred tax assets. Management uses its historical records and knowledge of its business in making these estimates. Management believes that its estimates and assumptions are reasonable, based on information that is available at the time they are made. Accordingly, actual results could differ from those estimates. Revenue Recognition The Company will recognize revenue from the sale of products and services in accordance with ASC 606, ”Revenue from Contracts with Customers, ” Stock Based Compensation The Company accounts for share-based compensation in accordance with the fair value recognition provision of FASB ASC 718, Compensation – Stock Compensation (“ASC 718”), prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on the estimated grant date fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period). The Company accounts for share-based compensation issued to non-employees and consultants in accordance with the provisions of FASB ASC 505, Equity–based Payments to Non-Employees (“ASC 505”). Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction is determined at the earlier of performance commitment date or performance completion date. Net Loss per Share Basic net loss per share is calculated by dividing the net loss for the period by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is calculated by dividing the net loss for the period by the weighted-average number of common shares outstanding during the period, increased by potentially dilutive common shares ("dilutive securities") that were outstanding during the period. Dilutive securities include stock options and warrants granted, convertible debt, and convertible preferred stock. There were 30,499,099 and 5,094,959 potentially dilutive securities for the six months ended December 31, 2022 and year ended December 31, 2021, respectively. Fair Value of Financial Instruments The Company follows FASB ASC 820, Fair Value Measurements and Disclosures 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. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. 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. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts reported in the Company’s consolidated financial statements for cash, accounts payable and accrued expenses approximate their fair value because of the immediate or short-term nature of these consolidated financial instruments. Derivative Liability FASB ASC 815, Derivatives and Hedging requires all derivatives to be recorded on the consolidated balance sheet at fair value. As of December 31, 2022, we used the Black-Scholes-Merton (BSM) model to estimate the fair value of the conversion feature of the convertible note. Key assumptions of the BSM model include the market price of our stock, the conversion price of the debt, applicable volatility rates, risk-free interest rates and the instrument’s remaining term. These assumptions require significant management judgment. In addition, changes in any of these variables during a period can result in material changes in the fair value (and resultant gains or losses) of this derivative instrument. Inventories Inventory, consisting of raw materials, work in process and products available for sale, are primarily accounted for using the first-in, first-out method (“FIFO”), and are valued at the lower of cost or net realizable value. This valuation requires management to make judgements based on currently available information, about the likely method of disposition, such as through sales to individual customers and returns to product vendors. As of December 31, 2022, the Company had inventories of approximately $71,975. The Company has no allowance for inventory reserves. |
Note 2 - Notes Payable to share
Note 2 - Notes Payable to shareholders | 6 Months Ended |
Dec. 31, 2022 | |
Notes | |
Note 2 - Notes Payable to shareholders | Note 2 – Notes payable to shareholders On July 3, 2019, the Company issued a $250,000 convertible promissory note (the “July 2019 Note”) to a lender (the “Lender”). According to the terms the Lender funded the July 2019 Note as follows: $100,000 upon the execution of the Note, $50,000 on August 1, 2019, $50,000 on September 1, 2019, and the remaining $50,000 on October 1, 2019. The outstanding principal balance of the Note shall bear interest at the rate of twelve percent (12%) per annum. The balance of the July 2019 Note was $250,000 on June 30, 2021, and matures July 03, 2021. On August 28, 2021, the investor agreed to extend the note till July 03, 2022. On June 8, 2022, the Company converted the outstanding $250,000 in principal and $85,266 in interest into 1,672,995 fully vested options to purchase common stock. The options were valued at $26,959, in the aggregate, using Black Scholes. On November 22, 2019, Company issued a $170,000 convertible promissory note (the “November 2019 Note”) to the Lender that accrues interest at 12% per annum. The July and November Notes contain embedded derivatives, see Note 7. On June 8, 2022, the Company converted the outstanding $170,000 in principal and $51,922 in interest into fully vested 651,726 options to purchase common stock. The options were valued at $11,887, in the aggregate, using Black Scholes. On July 14, 2020 and October 21, 2020, the Company sold convertible notes (“2020 Notes”) bearing 12% interest in the principal amounts of $340,000 and $348,000, respectively. Subject to certain ownership limitations, the notes will be convertible at the option of the holder at any time into shares of the Company’s common stock at an effective conversion price of $0.144. The beneficial conversion features of these notes were valued at $85,000 and $135,333, respectively, and are amortized over the life of the notes. On June 8, 2022, the Company converted both loans, in which on that date, the outstanding $340,000 and $348,000 in principle, and $77,576 and $68,075 in interest, were converted into 2,896,611 and 2,895,431 fully vested options to purchase common stock. The options were valued at $69,310, and $69,043, respectively, in the aggregate, using Black Scholes. On January 12, 2021, the Company sold convertible notes bearing 12% interest on the principal amount of $360,000, respectively. The principal amount was agreed to be paid in two tranches of $180,000 each, received on February19, 2021 and March 08, 2021. The note is subject to certain ownership limitations and will be convertible at the option of the holder at any time into shares of the Company’s common stock at an effective conversion rate of $0.144. The embedded conversion features of this note were valued at $35,500 and $7,500 for each tranche received and are amortized over the life of the note. On December 13, 2022, the Company converted the notes, in which on that date, the outstanding $360,000 in principle and $76,044 in interest were converted into 2,952,548 fully vested options to purchase common stock. On February 04, 2022, the Company sold convertible note bearing 12% interest in the principal amount of $350,000 (“February 2022 Notes”). The note will be paid in three tranches with first tranche of $100,000 received on March 28, 2022. The second and third tranches of $150,000 and $100,000 each, were received on May 3, 2022, and June 21, 2022, respectively. The note is subject to certain ownership limitations and will be convertible at the option of the holder at any time into shares of the Company’s common stock at an effective conversion rate of $0.013. The February 2022 Notes contain embedded derivatives, see Note 7. On June 8, 2022, the Company converted the July 2019 Notes, November 2019 Note and the 2020 Notes (collectively “Converted Notes”), with an aggregate principal balance of $1,108,000 and $282,838 of accrued interest into stock options. The options expire in five years with the exercise prices ranging between $0.14 and $0.34. The options were valued at $216,981, in the aggregate, using Black Scholes. On August 26, 2022, the Company sold convertible note bearing 12% interest in the principal amount of $325,000 (“August 2022 Notes”). The note is disbursed in three tranches with first tranche of $125,000 received on September 1, 2022. The second tranche of $100,000 was received on September 19, 2022 and the third tranche of $100,000 was received on October 15, 2022. The note is subject to certain ownership limitations and will be convertible at the option of the holder at any time into shares of the Company’s common stock at an effective conversion rate of $0.046. The August 2022 Notes contain embedded derivatives, see Note 7. On December 21, 2022, the Company sold convertible note bearing 12% interest in the principal amount of $100,000 (“December 2022 Notes”). The note is disbursed in four tranches with first tranche of $40,000 issued on January 10, 2023, and the remaining tranches of $20,000 each to be issued between February 2023 and April 2023. Amount Balance of notes payable, net of discount on June 30, 2022 $ 389,319 Amortization of debt discount 223,865 New Issuances 325,000 Embedded Conversion Feature - Debt discount (325,000) Conversion of Notes Payable less Accrued Interest to stock options (360,000) Balance of notes payable, net of discount as of December 31, 2022 $ 253,184 |
Note 3 - Related Party Transact
Note 3 - Related Party Transactions | 6 Months Ended |
Dec. 31, 2022 | |
Notes | |
Note 3 - Related Party Transactions | Note 3 – Related Party Transactions Notes Payable to Shareholder During the six months ended December 31, 2022, the Company received $325,000 in notes payable to related parties. The note is disbursed in three tranches with first tranche of $125,000 received on September 1, 2022. The second and third tranches of $100,000 were received on September 19, 2022 and October 15, 2022, respectively. On December 13, 2022, the Company converted notes into fully vested options to purchase common stock. See Note 2, Notes Payable to Shareholders, for detail. |
Note 4 - Concentrations
Note 4 - Concentrations | 6 Months Ended |
Dec. 31, 2022 | |
Notes | |
Note 4 - Concentrations | Note 4 – Concentrations Cash Concentration The Company maintains its cash and cash equivalents at a financial institution which may, at times, exceed federally insured limits. As of December 31, 2022, the Company’s cash balance did not exceed the FDIC insurance limit. |
Note 5 - Commitments and Contin
Note 5 - Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2022 | |
Notes | |
Note 5 - Commitments and Contingencies | Note 5 – Commitments and Contingencies Legal Matters From time to time the Company may be involved in certain legal actions and claims arising in the ordinary course of business. The Company was not a party to any specific legal actions or claims at December 31, 2022. Other Risks There have been outbreaks in several countries, including the United States, of the highly transmissible and pathogenic coronavirus (“COVID-19”). The outbreak of such COVID-19 resulted in a widespread health crisis that adversely affected general commercial activity and the economies and financial markets of many countries, including the United States. Although to date, the Company has not been adversely affected by COVID-19, the measures taken by the governments of countries affected could adversely affect the Company’s business, financial condition, and results of operations. |
Note 6 - Stockholders' Equity (
Note 6 - Stockholders' Equity (Deficit) | 6 Months Ended |
Dec. 31, 2022 | |
Notes | |
Note 6 - Stockholders' Equity (Deficit) | Note 6 – Stockholders’ Deficit As of December 31, 2022, and June 30, 2022, there were 148,543,635 shares of common stock issued and outstanding. During the three and six months ended December 31, 2021, the Company issued 0 and 5,200,000 shares of common stock, respectively, pursuant to subscriptions agreements for $520,000, or $0.10 per share. There were no shares of common stock issued during the three and six months ended December 31, 2022. Common stock issued for services During the three and six months ended December 31, 2021, the Company issued 312,500 shares of common stock to third parties for services valued at $25,000, or $0.08 per share. There were no shares of common stock issued during the three months ended December 31, 2022. Restricted stock and stock options During the three and six months ended December 31, 2022, the Company recognized stock compensation expense on outstanding restricted stock awards and stock options of $436,044 and $1,077,109, respectively. During the three and six months ended December 31, 2021, the Company recognized stock compensation expense on outstanding restricted stock awards and stock options of $452,421 and $904,842, respectively. During the three and six months ended December 31, 2022, the Company recognized $145,229 and $204,101 of expense related to the vesting of stock options to its board members and consultants. During the three and six months ended December 31, 2021, the Company recognized $64,010 and $105,689 of expense related to the vesting of stock options to its board members and consultants. The options granted in fiscal year 2022 vest pro-rata over the member’s term, have exercise prices between $0.02 and $0.03 and expire in five years from the date of grant. On June 8, 2022, the Company converted a total of $1,309,838 in outstanding notes payable and interest into 8,106,723 options to purchase common stock. On December 13, 2022, the Company converted a total of $436,044 in outstanding notes payable and interest into 2,952,548 options to purchase common stock (see note 2). Options Weighted Average Exercise Price per Share Weighted Average Remaining Life (Years) Outstanding – June 30, 2022 23,502,035 $ 0.11 2.92 Granted 6,997,064 0.03 4.69 Forfeited - - - Exercised - - - Outstanding – December 31, 2022 30,499,099 $ 0.05 4.25 In connection with the options the Company and valued with Black Scholes using the following inputs: Six Months Ended December 31, 2022 Stock price $ 0.02 - 0.03 Exercise price $ 0.02 - 0.34 Expected term (in years) 4.94 – 5.00 Volatility (annual) 196.5 % - 380.5 % Risk-free rate 2.42 % - 4.22% |
Note 7 - Derivative Liability
Note 7 - Derivative Liability | 6 Months Ended |
Dec. 31, 2022 | |
Notes | |
Note 7 - Derivative Liability | Note 7 – Derivative Liability The Company issued debts that consist of the issuance of convertible notes with variable conversion provisions. The conversion terms of the convertible notes are variable based on certain factors, such as the future price of the Company’s common stock. The number of shares of common stock issuable upon conversion of the promissory note is indeterminate. Pursuant to ASC 815-15 Embedded Derivatives, the fair values of the variable conversion option and shares to be issued were recorded as derivative liabilities on the issuance date and revalued at each reporting period. A summary of quantitative information with respect to valuation methodology and significant unobservable inputs used for the Company’s common stock purchase warrants that are categorized within Level 3 of the fair value hierarchy for the Six Months Ended December 31, 2022 is as follows: Six Months Ended December 31, 2022 Stock price $ 0.02 – 0.05 Exercise price $ 0.02 – 0.03 Contractual term (in years) 0.74 – 2.00 Volatility (annual) 213% - 381% Risk-free rate 3.51% – 4.45% The foregoing assumptions are reviewed quarterly and are subject to change based primarily on management’s assessment of the probability of the events described occurring. Accordingly, changes to these assessments could materially affect the valuations. Financial Liabilities Measured at Fair Value on a Recurring Basis Financial liabilities measured at fair value on a recurring basis are summarized below and disclosed on the balance sheet under Derivative liability – warrants and derivative liabilities: Fair value measured at December 31, 2022 Quoted prices in Significant other Significant unobservable active markets observable inputs inputs Fair value at (Level 1) (Level 2) (Level 3) December 31, 2022 Derivative liability $ - $ - $ 706,208 $ 706,208 Total $ - $ - $ 706,208 $ 706,208 Fair value measured at June 30, 2022 Quoted prices in active Significant other Significant markets observable inputs unobservable inputs Fair value at (Level 1) (Level 2) (Level 3) June 30, 2022 Derivative liability $ - $ - $ 577,180 $ 577,180 Total $ - $ - $ 577,180 $ 577,180 The fair value accounting standards define fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is determined based upon assumptions that market participants would use in pricing an asset or liability. Fair value measurements are rated on a three-tier hierarchy as follows: ● Level 1 inputs: Quoted prices (unadjusted) for identical assets or liabilities in active markets; ● Level 2 inputs: Inputs, other than quoted prices included in Level 1, that are observable either directly or indirectly; and ● Level 3 inputs: Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. There were no transfers between Level 1, 2 or 3 during the six months ended December 31, 2022. During the six months ended December 31, 2022 and 2021, the Company recorded gains of $250,672 and $24,523 respectively, from the change in fair value of derivative liability. The following table presents changes in Level 3 liabilities measured at fair value for the period ended December 31, 2022: Derivative Liability Balance – June 30, 2022 $ 577,180 Changes due to issuances 379,700 Change in fair value of derivative liability (250,672) Balance – December 31, 2022 $ 706,208 The balance of the derivative liability at December 31, 2022 and June 30, 2022 was $706,208 and $577,180, respectively. |
Note 8 - Subsequent Events
Note 8 - Subsequent Events | 6 Months Ended |
Dec. 31, 2022 | |
Notes | |
Note 8 - Subsequent Events | Note 8 – Subsequent Events On January 10, 2023, the Company received the first tranche of $40,000 from the December 2022 Notes, see Note 2. |
Note 1 - Organization and Sum_2
Note 1 - Organization and Summary of Significant Accounting Policies: Organization (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Policies | |
Organization | Organization APPlife Digital Solutions Inc. (the “Company”) is a business incubator and portfolio manager that uses digital technology to create and invest in e-commerce and cloud-based solutions. The Company was formed March 5, 2018 in Nevada and has offices in San Francisco, California and Shanghai, China. Our office in San Francisco, California allows us to take advantage of the marketing opportunities available in the United States as well as keeping close proximity to sources of capital whether it is debt or equity. Our offices in Shanghai, China allows us to take advantage of a high concentration of skilled tech coders and developers at lower capital costs than in more developed countries such as the United States or Europe. Rooster Essentials APP SPV, LLC (the “Rooster”), incorporated on April 9, 2019, is a wholly owned subsidiary of the Company. Rooster is a fully customizable men’s ecommerce platform that delivers daily use grooming needs and essential items. B2BCHX SPV LLC (the “B2BCHX”), incorporated on June 5, 2019, is a wholly owned subsidiary of the Company. B2BCHX does an independent background check on mainland Chinese companies for small businesses globally. Office Hop, incorporated on January 28, 2021, is a wholly owned subsidiary of the Company. Office Hop is a global sharing model platform for short term rentals of office and meeting rooms. Users can find an office or conference space for hourly, half-day, full-day, or weekly rental. Hosts can list their spare office or meeting rooms. |
Note 1 - Organization and Sum_3
Note 1 - Organization and Summary of Significant Accounting Policies: Going Concern (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Policies | |
Going Concern | Going Concern The Company has generated losses and negative cash flows from operations since inception. The Company has historically financed its operations from equity financing. The Company anticipates additional equity financings to fund operations in the future. Should management fail to adequately address the issue, the Company may have to reduce its business activities or curtail its operations. There can be no assurance that any additional financings, would be available to the Company on satisfactory terms and conditions if at all. The current pandemic known as COVID-19 as described in Note 5, creates additional uncertainty. The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and classification of liabilities and commitments in the normal course of business. The accompanying unaudited condensed consolidated financial statements do not reflect any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classifications of liabilities that might result if the Company is unable to continue as a going concern. |
Note 1 - Organization and Sum_4
Note 1 - Organization and Summary of Significant Accounting Policies: Basis of Presentation (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Policies | |
Basis of Presentation | Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for the interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. The unaudited condensed consolidated financial statements include the accounts of all subsidiaries in which the Company holds a controlling financial interest as of the financial statement date. All intercompany transactions have been eliminated in consolidation. However, in the opinion of the management of the Company, all adjustments necessary for a fair presentation of the financial position and operating results have been included in these statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10–K for the fiscal year ended June 30, 2022, as filed with the SEC on October 7, 2022. Operating results for the six months ended December 31, 2022 are not necessarily indicative of the results that may be expected for any subsequent quarters or for the fiscal year ending June 30, 2023. |
Note 1 - Organization and Sum_5
Note 1 - Organization and Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purpose of the statement of cash flows, the Company considers cash equivalents to include cash and investments with an original maturity of three months or less. |
Note 1 - Organization and Sum_6
Note 1 - Organization and Summary of Significant Accounting Policies: Income Taxes (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Policies | |
Income Taxes | Income Taxes The Company has adopted guidance issued by the FASB that clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold of more likely than not and a measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In making this assessment, a company must determine whether it is more likely than not that a tax position will be sustained upon examination, based solely on the technical merits of the position and must assume that the tax position will be examined by taxing authorities. The Company’s policy is to include interest and penalties related to unrecognized tax benefits in income tax expense. The Company had no accrual for interest or penalties as of December 31, 2022. The Company files income tax returns with the Internal Revenue Service (“IRS”) and the state of California. |
Note 1 - Organization and Sum_7
Note 1 - Organization and Summary of Significant Accounting Policies: Use of Estimates (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Policies | |
Use of Estimates | Use of Estimates Generally accepted accounting principles require that the consolidated financial statements include estimates by management in the valuation of certain assets and liabilities. Significant matters requiring the use of estimates and assumptions include, but are not necessarily limited to, fair value of the Company’s stock, stock-based compensation, BCF (Beneficial Conversion Feature) liabilities feature of convertible debt, and valuation allowance relating to the Company’s deferred tax assets. Management uses its historical records and knowledge of its business in making these estimates. Management believes that its estimates and assumptions are reasonable, based on information that is available at the time they are made. Accordingly, actual results could differ from those estimates. |
Note 1 - Organization and Sum_8
Note 1 - Organization and Summary of Significant Accounting Policies: Revenue Recognition (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Policies | |
Revenue Recognition | Revenue Recognition The Company will recognize revenue from the sale of products and services in accordance with ASC 606, ”Revenue from Contracts with Customers, ” |
Note 1 - Organization and Sum_9
Note 1 - Organization and Summary of Significant Accounting Policies: Stock Based Compensation (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Policies | |
Stock Based Compensation | Stock Based Compensation The Company accounts for share-based compensation in accordance with the fair value recognition provision of FASB ASC 718, Compensation – Stock Compensation (“ASC 718”), prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on the estimated grant date fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period). The Company accounts for share-based compensation issued to non-employees and consultants in accordance with the provisions of FASB ASC 505, Equity–based Payments to Non-Employees (“ASC 505”). Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction is determined at the earlier of performance commitment date or performance completion date. |
Note 1 - Organization and Su_10
Note 1 - Organization and Summary of Significant Accounting Policies: Net Loss per Share (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Policies | |
Net Loss per Share | Net Loss per Share Basic net loss per share is calculated by dividing the net loss for the period by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is calculated by dividing the net loss for the period by the weighted-average number of common shares outstanding during the period, increased by potentially dilutive common shares ("dilutive securities") that were outstanding during the period. Dilutive securities include stock options and warrants granted, convertible debt, and convertible preferred stock. There were 30,499,099 and 5,094,959 potentially dilutive securities for the six months ended December 31, 2022 and year ended December 31, 2021, respectively. |
Note 1 - Organization and Su_11
Note 1 - Organization and Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Policies | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company follows FASB ASC 820, Fair Value Measurements and Disclosures 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. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. 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. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts reported in the Company’s consolidated financial statements for cash, accounts payable and accrued expenses approximate their fair value because of the immediate or short-term nature of these consolidated financial instruments. |
Note 1 - Organization and Su_12
Note 1 - Organization and Summary of Significant Accounting Policies: Derivative Liability (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Policies | |
Derivative Liability | Derivative Liability FASB ASC 815, Derivatives and Hedging requires all derivatives to be recorded on the consolidated balance sheet at fair value. As of December 31, 2022, we used the Black-Scholes-Merton (BSM) model to estimate the fair value of the conversion feature of the convertible note. Key assumptions of the BSM model include the market price of our stock, the conversion price of the debt, applicable volatility rates, risk-free interest rates and the instrument’s remaining term. These assumptions require significant management judgment. In addition, changes in any of these variables during a period can result in material changes in the fair value (and resultant gains or losses) of this derivative instrument. |
Note 1 - Organization and Su_13
Note 1 - Organization and Summary of Significant Accounting Policies: Inventories (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Policies | |
Inventories | Inventories Inventory, consisting of raw materials, work in process and products available for sale, are primarily accounted for using the first-in, first-out method (“FIFO”), and are valued at the lower of cost or net realizable value. This valuation requires management to make judgements based on currently available information, about the likely method of disposition, such as through sales to individual customers and returns to product vendors. As of December 31, 2022, the Company had inventories of approximately $71,975. The Company has no allowance for inventory reserves. |
Note 2 - Notes Payable to sha_2
Note 2 - Notes Payable to shareholders: Schedule of Debt (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Tables/Schedules | |
Schedule of Debt | Amount Balance of notes payable, net of discount on June 30, 2022 $ 389,319 Amortization of debt discount 223,865 New Issuances 325,000 Embedded Conversion Feature - Debt discount (325,000) Conversion of Notes Payable less Accrued Interest to stock options (360,000) Balance of notes payable, net of discount as of December 31, 2022 $ 253,184 |
Note 6 - Stockholders' Equity_2
Note 6 - Stockholders' Equity (Deficit): Schedule of Stock Option Activity (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Tables/Schedules | |
Schedule of Stock Option Activity | Options Weighted Average Exercise Price per Share Weighted Average Remaining Life (Years) Outstanding – June 30, 2022 23,502,035 $ 0.11 2.92 Granted 6,997,064 0.03 4.69 Forfeited - - - Exercised - - - Outstanding – December 31, 2022 30,499,099 $ 0.05 4.25 |
Note 6 - Stockholders' Equity_3
Note 6 - Stockholders' Equity (Deficit): Schedule of Assumptions Used (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Tables/Schedules | |
Schedule of Assumptions Used | Six Months Ended December 31, 2022 Stock price $ 0.02 - 0.03 Exercise price $ 0.02 - 0.34 Expected term (in years) 4.94 – 5.00 Volatility (annual) 196.5 % - 380.5 % Risk-free rate 2.42 % - 4.22% |
Note 7 - Derivative Liability_
Note 7 - Derivative Liability: Schedule of valuation methodology (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Tables/Schedules | |
Schedule of valuation methodology | Six Months Ended December 31, 2022 Stock price $ 0.02 – 0.05 Exercise price $ 0.02 – 0.03 Contractual term (in years) 0.74 – 2.00 Volatility (annual) 213% - 381% Risk-free rate 3.51% – 4.45% |
Note 7 - Derivative Liability_2
Note 7 - Derivative Liability: Fair Value, Liabilities Measured on Recurring Basis (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Tables/Schedules | |
Fair Value, Liabilities Measured on Recurring Basis | Fair value measured at December 31, 2022 Quoted prices in Significant other Significant unobservable active markets observable inputs inputs Fair value at (Level 1) (Level 2) (Level 3) December 31, 2022 Derivative liability $ - $ - $ 706,208 $ 706,208 Total $ - $ - $ 706,208 $ 706,208 Fair value measured at June 30, 2022 Quoted prices in active Significant other Significant markets observable inputs unobservable inputs Fair value at (Level 1) (Level 2) (Level 3) June 30, 2022 Derivative liability $ - $ - $ 577,180 $ 577,180 Total $ - $ - $ 577,180 $ 577,180 |
Note 7 - Derivative Liability_3
Note 7 - Derivative Liability: Schedule of Derivative Liabilities at Fair Value (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Tables/Schedules | |
Schedule of Derivative Liabilities at Fair Value | The following table presents changes in Level 3 liabilities measured at fair value for the period ended December 31, 2022: Derivative Liability Balance – June 30, 2022 $ 577,180 Changes due to issuances 379,700 Change in fair value of derivative liability (250,672) Balance – December 31, 2022 $ 706,208 |
Note 1 - Organization and Su_14
Note 1 - Organization and Summary of Significant Accounting Policies: Inventories (Details) - USD ($) | Dec. 31, 2022 | Jun. 30, 2022 |
Details | ||
Inventories | $ 71,975 | $ 64,200 |
Note 2 - Notes Payable to sha_3
Note 2 - Notes Payable to shareholders (Details) - USD ($) | Aug. 28, 2021 | Oct. 21, 2020 | Jul. 14, 2020 | Nov. 22, 2019 | Jul. 03, 2019 | Dec. 31, 2022 | Dec. 21, 2022 | Aug. 26, 2022 | Jun. 08, 2022 | Feb. 04, 2022 | Mar. 08, 2021 | Jan. 19, 2021 | Jan. 12, 2021 |
July 2019 Note | Lender | |||||||||||||
Principal amount | $ 250,000 | ||||||||||||
Debt Instrument, Interest Rate During Period | 12% | ||||||||||||
Notes payable - current, net | $ 250,000 | ||||||||||||
Debt Instrument, Maturity Date | Jul. 03, 2022 | ||||||||||||
November 2019 Note | Lender | |||||||||||||
Principal amount | $ 170,000 | ||||||||||||
Debt Instrument, Interest Rate During Period | 12% | ||||||||||||
April 2020 Note | Investor | |||||||||||||
Principal amount | $ 348,000 | $ 340,000 | |||||||||||
Payment of notes payable with issuance of common stock, Value | $ 0.12 | $ 0.12 | |||||||||||
Debt Instrument, Convertible, Conversion Price | $ 0.144 | $ 0.144 | |||||||||||
Embedded Conversion Feature | $ 135,333 | $ 85,000 | |||||||||||
January 2021 Note | Investor | |||||||||||||
Principal amount | $ 360,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12% | ||||||||||||
January 2021 Note | Tranches 1 | |||||||||||||
Principal amount | $ 180,000 | ||||||||||||
Embedded Conversion Feature | $ 35,500 | ||||||||||||
January 2021 Note | Tranches 2 | |||||||||||||
Principal amount | 180,000 | ||||||||||||
Embedded Conversion Feature | $ 7,500 | ||||||||||||
February 2022 Note | Investor | |||||||||||||
Principal amount | $ 350,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12% | ||||||||||||
February 2022 Note | Tranches 1 | |||||||||||||
Principal amount | $ 100,000 | ||||||||||||
February 2022 Note | Tranches 2 | |||||||||||||
Principal amount | 150,000 | ||||||||||||
February 2022 Note | Tranches 3 | |||||||||||||
Principal amount | $ 100,000 | ||||||||||||
June 2022 Note | |||||||||||||
Principal amount | $ 1,108,000 | ||||||||||||
June 2022 Note - 2 | |||||||||||||
Principal amount | $ 282,838 | ||||||||||||
August 2022 Note | |||||||||||||
Principal amount | $ 325,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12% | ||||||||||||
August 2022 Note | Tranches 1 | |||||||||||||
Principal amount | $ 125,000 | ||||||||||||
August 2022 Note | Tranches 2 | |||||||||||||
Principal amount | $ 100,000 | ||||||||||||
December 2022 Note | |||||||||||||
Principal amount | $ 100,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12% | ||||||||||||
December 2022 Note | Tranches 1 | |||||||||||||
Principal amount | $ 40,000 | ||||||||||||
December 2022 Note | Tranches 2 | |||||||||||||
Principal amount | $ 20,000 |
Note 2 - Notes Payable to sha_4
Note 2 - Notes Payable to shareholders: Schedule of Debt (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2022 | Jun. 30, 2022 | |
Details | ||
Notes Payable | $ 253,184 | $ 389,319 |
Amortization of debt discount | 223,865 | |
Proceeds from Issuance of Long-Term Debt | 325,000 | |
Embedded Conversion Feature - debt discount | (325,000) | |
Conversion of Notes Payable less Accrued Interest to stock options | $ (360,000) |
Note 3 - Related Party Transa_2
Note 3 - Related Party Transactions (Details) - August 2022 Note | Aug. 26, 2022 USD ($) |
Principal amount | $ 325,000 |
Tranches 1 | |
Principal amount | 125,000 |
Tranches 2 | |
Principal amount | $ 100,000 |
Note 6 - Stockholders' Equity_4
Note 6 - Stockholders' Equity (Deficit) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Dec. 13, 2022 | Jun. 08, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Common Stock, Shares, Outstanding | 148,543,635 | 148,543,635 | 148,543,635 | ||||
Common Stock, Shares, Issued | 148,543,635 | 148,543,635 | 148,543,635 | ||||
Common stock issued for cash, Value | $ 581,733 | $ 1,077,109 | $ 520,000 | ||||
Common stock issued for services, Value | $ 79,283 | 104,283 | |||||
Share-Based Payment Arrangement, Expense | 436,044 | 452,421 | 1,077,109 | 904,842 | |||
Payment of notes payable with issuance of options to purchase common stock | 436,044 | 0 | |||||
Stock Options | |||||||
Common stock issued for services, Value | 25,000 | 25,000 | |||||
Expense Related to the Vesting of Stock Options | 145,229 | $ 64,010 | 204,101 | $ 105,689 | |||
Conversion of Stock, Amount Converted | $ 436,044 | $ 1,309,838 | |||||
Payment of notes payable with issuance of options to purchase common stock | $ 2,952,548 | $ 8,106,723 | |||||
Common Stock | |||||||
Common stock issued for cash, Shares | 0 | 5,200,000 | |||||
Common stock issued for cash, Value | $ 0 | $ 0 | $ 5,200 | ||||
Common stock issued for services, Shares | 1,608,495 | 1,920,995 | |||||
Common stock issued for services, Value | $ 1,608 | $ 1,921 | |||||
Common Stock | Stock Options | |||||||
Common stock issued for services, Shares | 312,500 | 312,500 |
Note 6 - Stockholders' Equity_5
Note 6 - Stockholders' Equity (Deficit): Schedule of Stock Option Activity (Details) - $ / shares | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Details | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 30,499,099 | 23,502,035 | |
Weighted Average Exericse Price, Balance | $ 0.05 | $ 0.11 | |
Weighted Average Remaining Life, outstanding | 4 years 3 months | 2 years 11 months 1 day | |
Options granted | 6,997,064 | ||
Weighted Average Exericse Price, Granted | $ 0.03 | ||
Options forfeited | 0 | ||
Weighted Average Exericse Price, Forfeited | $ 0 | ||
Options exercised | 0 | ||
Weighted Average Exericse Price, Exercised | $ 0 |
Note 6 - Stockholders' Equity_6
Note 6 - Stockholders' Equity (Deficit): Schedule of Assumptions Used (Details) | 6 Months Ended |
Dec. 31, 2022 $ / shares | |
Minimum | |
Stock Price | $ 0.02 |
Exercise Price | $ 0.02 |
Expect term (in years) | 8 months 26 days |
Volatility (annual) | 213% |
Risk-free rate | 3.51% |
Maximum | |
Stock Price | $ 0.05 |
Exercise Price | $ 0.03 |
Expect term (in years) | 2 years |
Volatility (annual) | 381% |
Risk-free rate | 4.45% |
Stock Options | Minimum | |
Stock Price | $ 0.02 |
Exercise Price | $ 0.02 |
Expect term (in years) | 4 years 11 months 8 days |
Volatility (annual) | 196.50% |
Risk-free rate | 2.42% |
Stock Options | Maximum | |
Stock Price | $ 0.03 |
Exercise Price | $ 0.34 |
Expect term (in years) | 5 years |
Volatility (annual) | 380.50% |
Risk-free rate | 4.22% |
Note 7 - Derivative Liability_4
Note 7 - Derivative Liability: Schedule of valuation methodology (Details) | 6 Months Ended |
Dec. 31, 2022 $ / shares | |
Minimum | |
Stock Price | $ 0.02 |
Exercise Price | $ 0.02 |
Expect term (in years) | 8 months 26 days |
Volatility (annual) | 213% |
Risk-free rate | 3.51% |
Maximum | |
Stock Price | $ 0.05 |
Exercise Price | $ 0.03 |
Expect term (in years) | 2 years |
Volatility (annual) | 381% |
Risk-free rate | 4.45% |
Note 7 - Derivative Liability_5
Note 7 - Derivative Liability: Fair Value, Liabilities Measured on Recurring Basis (Details) - USD ($) | Dec. 31, 2022 | Jun. 30, 2022 |
Fair Value, Inputs, Level 1 | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value, Inputs, Level 2 | ||
Derivative liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Derivative liabilities | 706,208 | 577,180 |
Derivative liabilities | $ 706,208 | $ 577,180 |
Note 7 - Derivative Liability (
Note 7 - Derivative Liability (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Details | |||||
Change in fair value of derivative liability | $ 135,423 | $ 6,136 | $ 250,672 | $ 24,523 | |
Derivative liabilities | $ 706,208 | $ 706,208 | $ 577,180 |
Note 7 - Derivative Liability_6
Note 7 - Derivative Liability: Schedule of Derivative Liabilities at Fair Value (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Details | |||||
Derivative liabilities | $ 706,208 | $ 706,208 | $ 577,180 | ||
Changes due to issuances | 379,700 | ||||
Change in fair value of derivative liability | $ (135,423) | $ (6,136) | $ (250,672) | $ (24,523) |