Cover
Cover | 6 Months Ended |
Dec. 31, 2021 | |
Entity Addresses [Line Items] | |
Document Type | S-1 |
Amendment Flag | false |
Entity Registrant Name | SUGARMADE, INC. |
Entity Central Index Key | 0000919175 |
Entity Primary SIC Number | 5110 |
Entity Tax Identification Number | 94-3008888 |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | 750 Royal Oaks Dr. |
Entity Address, Address Line Two | Suite 108 |
Entity Address, City or Town | Monrovia |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 91016 |
City Area Code | 888 |
Local Phone Number | 982-1628 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 750 Royal Oaks Dr. |
Entity Address, Address Line Two | Suite 108 |
Entity Address, City or Town | Monrovia |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 91016 |
City Area Code | 888 |
Local Phone Number | 982-1628 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Current assets: | |||
Cash | $ 63,375 | $ 1,396,944 | $ 441,004 |
Accounts receivable, net | 707,509 | 435,598 | 134,517 |
Inventory, net | 643,920 | 441,582 | 679,471 |
Loan receivables, current | 196,000 | 1,365 | |
Loan receivables - related party, current | 122,535 | ||
Trading securities, at market value | 133,942 | 1,451,922 | |
Other current assets | 184,952 | 182,457 | 263,404 |
Right of use asset, current | 255,734 | 243,406 | 270,363 |
Total current assets | 2,185,432 | 4,151,909 | 1,912,659 |
Noncurrent assets: | |||
Property, plant and equipment, net | 3,864,380 | 2,749,340 | 499,047 |
Intangible asset, net | 10,648,378 | 10,650,394 | 9,800 |
Goodwill | 757,648 | 757,648 | |
Other noncurrent assets | 54,163 | ||
Loan receivables, noncurrent | 196,000 | ||
Loan receivables - related party, noncurrent | 196,000 | ||
Right of use asset, noncurrent | 355,129 | 486,253 | 835,393 |
Equity method investments in affiliates | 380,660 | 441,407 | |
Total noncurrent assets | 16,006,195 | 15,281,042 | 1,594,403 |
Total assets | 18,191,627 | 19,432,951 | 3,507,062 |
Current liabilities: | |||
Note payable due to bank | 25,982 | 25,982 | 25,982 |
Accounts payable and accrued liabilities | 2,421,705 | 2,058,839 | 1,583,228 |
Customer deposits | 887,800 | 751,919 | 466,337 |
Customer overpayment | 74,987 | 59,953 | 47,890 |
Unearned revenue | 53,248 | ||
Other payables | 626,163 | 750,485 | 691,801 |
Accrued interest | 646,643 | 509,997 | 494,740 |
Accrued compensation and personnel related payables | 8,290 | 15,471 | 35,361 |
Notes payable - Current | 31,787 | 33,047 | 20,000 |
Notes payable - Related Parties, Current | 15,427 | 15,427 | |
Lease liability - Current | 256,579 | 239,521 | 372,285 |
Loans payable - Current | 814,494 | 392,605 | 319,314 |
Loan payable - Related Parties, Current | 228,057 | 163,831 | 35,943 |
Convertible notes payable, Net, Current | 1,298,133 | 1,421,694 | 1,740,122 |
Derivative liabilities, net | 2,222,310 | 2,217,361 | 5,597,095 |
Warrants liabilities | 6,405 | 21,042 | 79,910 |
Shares to be issued | 262,077 | 138,077 | 101,577 |
Total current liabilities | 9,811,412 | 8,815,251 | 11,680,260 |
Non-Current liabilities: | |||
Loans payable, noncurrent | 836,245 | 308,588 | 197,946 |
Note payable, noncurrent | 4,888,463 | 4,997,323 | |
Convertible notes payable, Net, Noncurrent | 65,565 | 17,422 | |
Lease liability | 385,108 | 524,149 | 767,729 |
Total noncurrent liabilities | 6,175,381 | 5,847,482 | 965,675 |
Total liabilities | 15,986,793 | 14,662,733 | 12,645,935 |
Stockholders’ equity (deficiency): | |||
Common stock, $0.001 par value, 10,000,000,000 shares authorized, 9,022,993,267 and 7,402,535,677 shares issued and outstanding at December 31, 2021 and June 30, 2021, respectively | 9,022,992 | 7,402,536 | 1,763,278 |
Additional paid-in capital | 72,367,128 | 64,841,654 | 57,307,767 |
Share to be issued, Preferred stock | 5,600,000 | ||
Subscription receivable | (500,000) | ||
Share to be issued, Common stock | 40,008 | 1,889,608 | 236,008 |
Accumulated deficit | (78,816,668) | (74,364,466) | (68,438,332) |
Total stockholders’ equity (deficiency) | 2,616,002 | 4,869,874 | (9,127,737) |
Non-Controlling Interest | (411,168) | (99,656) | (11,136) |
Total stockholders’ equity (deficiency) | 2,204,834 | 4,770,218 | (9,138,873) |
Total liabilities and stockholders’ equity (deficiency) | 18,191,627 | 19,432,951 | 3,507,062 |
Series A Preferred Stock [Member] | |||
Stockholders’ equity (deficiency): | |||
Preferred stock, value | 2,000 | ||
Series B Preferred Stock [Member] | |||
Stockholders’ equity (deficiency): | |||
Preferred stock, value | 2,542 | 542 | 1,542 |
Series C Preferred Stock [Member] | |||
Stockholders’ equity (deficiency): | |||
Preferred stock, value |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Apr. 22, 2020 | Apr. 21, 2020 |
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | ||
Preferred stock, shares issued | 3,541,500 | ||||
Preferred stock, shares outstanding | 3,541,500 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |
Common Stock, Shares Authorized | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 10,010,000,000 |
Common Stock, Shares, Issued | 9,022,993,267 | 7,402,535,677 | 1,763,277,230 | ||
Common Stock, Shares, Outstanding | 9,022,993,267 | 7,402,535,677 | 1,763,277,230 | ||
Series A Preferred Stock [Member] | |||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||
Preferred stock, shares authorized | 7,000,000 | 7,000,000 | 7,000,000 | ||
Preferred stock, shares issued | 0 | 0 | 2,000,000 | ||
Preferred stock, shares outstanding | 0 | 0 | 2,000,000 | ||
Series B Preferred Stock [Member] | |||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||
Preferred stock, shares authorized | 2,999,999 | 2,999,999 | 2,999,999 | ||
Preferred stock, shares issued | 2,541,500 | 541,500 | 1,541,500 | ||
Preferred stock, shares outstanding | 2,541,500 | 541,500 | 1,541,500 | ||
Series C Preferred Stock [Member] | |||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||
Preferred stock, shares authorized | 1 | 1 | 1 | ||
Preferred stock, shares issued | 1 | 1 | 0 | ||
Preferred stock, shares outstanding | 1 | 1 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |||||||
Income Statement [Abstract] | ||||||||||||
Revenues, net | $ 1,235,825 | $ 300,652 | $ 2,404,606 | $ 2,446,979 | $ 3,979,049 | $ 4,362,585 | ||||||
Cost of goods sold | 461,873 | 242,531 | 848,812 | 1,272,429 | 2,153,311 | 2,851,940 | ||||||
Gross profit | 773,952 | 58,121 | 1,555,794 | 1,174,550 | 1,825,738 | 1,510,645 | ||||||
Selling, general and administrative expenses | 683,745 | 271,549 | 1,296,884 | 875,358 | 1,824,757 | 1,734,830 | ||||||
Advertising and promotion expense | 545,647 | 682 | 1,059,114 | 278,587 | 844,890 | 430,141 | ||||||
Marketing and research expense | 36,992 | 93,908 | 72,405 | 316,256 | 431,913 | 514,394 | ||||||
Professional expense | 190,249 | 115,615 | 500,750 | 619,045 | 1,438,341 | 1,128,896 | ||||||
Salaries and wages | 479,738 | 105,700 | 940,162 | 464,474 | 709,041 | 572,683 | ||||||
Stock compensation expense | 22,500 | 47,250 | 124,000 | 66,000 | 518,393 | 9,255,277 | ||||||
Total operating expenses | 1,958,871 | 634,704 | 3,993,315 | 2,619,720 | 5,767,335 | 13,636,221 | ||||||
Loss from operations | (1,184,919) | (576,583) | (2,437,521) | (1,445,170) | (3,941,597) | (12,125,576) | ||||||
Non-operating income (expense): | ||||||||||||
Other (expense) income | 7,886 | 2,280 | 2,892 | (50,453) | 12,637 | 3,064 | ||||||
Gain in loss of control of VIE | 313,928 | 313,928 | 313,928 | |||||||||
Interest expense | (1,093,317) | (728,197) | (1,251,228) | (1,194,972) | (1,700,420) | (1,613,044) | ||||||
Bad debts | (7) | (130,467) | (7) | (132,979) | (522,352) | (240,157) | ||||||
Change in fair value of derivative liabilities | (390,306) | 496,961 | (65,073) | 3,992,108 | 1,087,485 | (1,442,295) | ||||||
Warrant Expense | 6,347 | 4,174 | 14,637 | 70,389 | 58,868 | (119,526) | ||||||
Loss on impairment | (43,800) | (2,066,958) | ||||||||||
Loss on settlement | (5,000) | (80,000) | (106,051) | (393,135) | ||||||||
Inventory loss | (3,742) | |||||||||||
Gain (Loss) on asset disposal | (28) | (119,044) | ||||||||||
Amortization of debt discount | (24,071) | (1,031,379) | (156,651) | (1,845,925) | (2,617,274) | (3,823,500) | ||||||
Amortization of intangible assets | (483) | (2,017) | (2,206) | (1,400) | ||||||||
Debt forgiveness | 96,595 | 590,226 | ||||||||||
Gain on debt conversion | (184,626) | |||||||||||
Loss on deposits | (119,000) | |||||||||||
Unrealized gain on securities | (215,862) | (857,979) | 1,451,922 | |||||||||
Total non-operating expenses, net | (1,709,814) | (1,077,700) | (2,315,454) | 1,072,096 | (2,091,204) | (9,408,995) | ||||||
Equity Method Investment Loss | (16,270) | (2,114) | (60,747) | (2,114) | (81,725) | |||||||
Net loss | (2,911,002) | (1,656,397) | (4,813,722) | (375,188) | (6,114,526) | (21,534,571) | ||||||
Less: net loss attributable to the noncontrolling interest | (54,168) | (361,519) | (188,392) | (195,416) | ||||||||
Net loss attributable to SugarMade Inc. | $ (2,856,834) | $ (1,656,397) | $ (4,452,203) | $ (375,188) | $ (5,926,134) | $ (21,339,155) | ||||||
Basic net income (loss) per share | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.02) | ||||||
Diluted net income (loss) per share | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.02) | ||||||
Basic and diluted weighted average common shares outstanding * | 8,728,862,892 | [1] | 3,233,135,446 | [1] | 8,509,797,777 | [1] | 2,864,951,348 | [1] | 3,851,836,959 | [2] | 939,171,416 | [2] |
[1] | Shares issuable upon conversion of convertible debts and exercising of warrants were excluded in calculating diluted loss per share. | |||||||||||
[2] | Shares issuable upon conversion of convertible debts and exercising of warrants were excluded in calculating diluted loss per share |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($) | Preferred Stock [Member]Series A Preferred Stock [Member] | Preferred Stock [Member]Series B Preferred Stock [Member] | Preferred Stock [Member]Series C Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Share to be issued common shares [Member] | Shares to be Cancelled, Preferred Shares [Member] | Subscription Receivable Cs [Member] | Common Stock Subscribed [Member] | Common Shares Subscribed [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Jun. 30, 2019 | $ 2,000 | $ 697,610 | $ 61,038,875 | $ 29,000 | $ (47,088,951) | $ 14,678,534 | |||||||
Beginning balance, shares at Jun. 30, 2019 | 2,000,000 | 697,608,570 | |||||||||||
Shares issued for Cash | $ 138,462 | 551,817 | 236,008 | 926,287 | |||||||||
Beginning balance, shares | 138,461,538 | ||||||||||||
Shares issued for conversions | $ 1,077,642 | 971,128 | 2,048,770 | ||||||||||
Preferred stock conversion, shares | 1,077,643,486 | ||||||||||||
Reclass derivative liability to equity from conversion | 2,819,825 | 2,819,825 | |||||||||||
Share issued for warrant exercises | $ 28,382 | (14,249) | 14,133 | ||||||||||
Shares issued for warrant exercise, shares | 28,381,818 | ||||||||||||
Option granted | 118,750 | 118,750 | |||||||||||
Shares issued for services compensation | $ 415 | $ 1,500 | 5,945,835 | 5,947,750 | |||||||||
Shares issued for services compensation, shares | 415,000 | 1,500,000 | |||||||||||
Shares issued for offcier’s compensation | $ 1,127 | 2,927,773 | 2,928,900 | ||||||||||
Shares issued for offcier's compensation, shares | 1,126,500 | ||||||||||||
Shares issued for debt settlement | $ 19,182 | 300,273 | (29,000) | 290,455 | |||||||||
Shares issued for debt settlement, shares | 19,181,818 | ||||||||||||
Initial valuation of BCF | 449,301 | 449,301 | |||||||||||
Shares issued/cancelled for Award - Bizright | $ (199,500) | (17,786,542) | (17,986,042) | ||||||||||
Shares issued/cancelled for Award - Bizright, shares | (199,500,000) | ||||||||||||
Indigo & Budcars Investment | 169,262 | 169,262 | |||||||||||
Changes in non-controlling interest | (184,280) | 184,280 | |||||||||||
Cumulative effect of ASU 2016-02 | (10,236) | (10,236) | |||||||||||
Net loss | (21,339,145) | (195,416) | (21,534,571) | ||||||||||
Ending balance, value at Jun. 30, 2020 | $ 2,000 | $ 1,542 | $ 1,763,278 | 57,307,768 | 236,008 | (68,438,332) | (11,136) | (9,138,873) | |||||
Beginning balance, shares at Jun. 30, 2020 | 2,000,000 | 1,541,500 | 1,763,277,230 | ||||||||||
Shares issued for conversions | $ 1,081,412 | 192,048 | 1,273,459 | ||||||||||
Preferred stock conversion, shares | 1,081,411,606 | ||||||||||||
Repayment of capital to noncontrolling minority | (24,000) | (24,000) | |||||||||||
Reclass derivative liability to equity from conversion | 1,805,188 | 1,805,188 | |||||||||||
Net loss | 1,278,812 | 1,165 | 1,279,976 | ||||||||||
Ending balance, value at Sep. 30, 2020 | $ 2,000 | $ 1,542 | $ 2,844,690 | 59,305,003 | 236,008 | (67,159,519) | (33,971) | (4,804,248) | |||||
Beginning balance, shares at Sep. 30, 2020 | 2,000,000 | 1,541,500 | 2,844,688,836 | ||||||||||
Beginning balance, value at Jun. 30, 2020 | $ 2,000 | $ 1,542 | $ 1,763,278 | 57,307,768 | 236,008 | (68,438,332) | (11,136) | (9,138,873) | |||||
Beginning balance, shares at Jun. 30, 2020 | 2,000,000 | 1,541,500 | 1,763,277,230 | ||||||||||
Net loss | (375,188) | ||||||||||||
Ending balance, value at Dec. 31, 2020 | $ 1,542 | $ 3,616,509 | 59,718,392 | 236,008 | (68,813,520) | (5,239,070) | |||||||
Beginning balance, shares at Dec. 31, 2020 | 1,541,500 | 3,616,507,670 | |||||||||||
Beginning balance, value at Jun. 30, 2020 | $ 2,000 | $ 1,542 | $ 1,763,278 | 57,307,768 | 236,008 | (68,438,332) | (11,136) | (9,138,873) | |||||
Beginning balance, shares at Jun. 30, 2020 | 2,000,000 | 1,541,500 | 1,763,277,230 | ||||||||||
Beginning balance, value at Jun. 30, 2020 | $ 2,000 | $ 1,542 | $ 1,763,278 | 57,307,768 | 236,008 | (68,438,332) | (11,136) | (9,138,873) | |||||
Beginning balance, shares at Jun. 30, 2020 | 2,000,000 | 1,541,500 | 1,763,277,230 | ||||||||||
Shares issued for Cash | $ 2,639,600 | 2,227,400 | (500,000) | (196,000) | 4,171,000 | ||||||||
Beginning balance, shares | 2,639,600,002 | ||||||||||||
Shares issued for conversions | $ 2,451,338 | 109,033 | 2,560,371 | ||||||||||
Preferred stock conversion, shares | 2,451,338,059 | ||||||||||||
Reclass derivative liability to equity from conversion | 4,956,142 | 4,956,142 | |||||||||||
Preferred stock conversions | $ (2,000) | $ 360,647 | 141,353 | 500,000 | |||||||||
Preferred stock conversion, shares | (2,000,000) | 360,647,019 | |||||||||||
Reclassification due to deconsolidation of VIE | (169,262) | 35,136 | (134,126) | ||||||||||
Repayment of capital to noncontrolling minority | (24,000) | (24,000) | |||||||||||
Shares issued for consulting services | $ 187,673 | 268,221 | 455,894 | ||||||||||
Shares issued for consulting services, shares | 187,673,367 | ||||||||||||
Series B preferred share cancelled | $ (1,000) | 1,000 | |||||||||||
Series B preferred share cancelled, shares | (1,000,000) | ||||||||||||
Series C preferred share issued to officer | |||||||||||||
Series C preferred share issued to officer, shares | 1 | ||||||||||||
Distributions from non-controlling interests in other consoldiated subsidiaires | 88,736 | 88,736 | |||||||||||
Shares issued for acquisition | 5,600,000 | 1,849,600 | 7,449,600 | ||||||||||
Net loss | (5,926,134) | (188,392) | (6,114,526) | ||||||||||
Ending balance, value at Jun. 30, 2021 | $ 542 | $ 7,402,536 | 64,841,655 | 5,600,000 | (500,000) | 1,889,608 | (74,364,466) | (99,656) | 4,770,218 | ||||
Beginning balance, shares at Jun. 30, 2021 | 541,500 | 1 | 7,402,535,677 | ||||||||||
Beginning balance, value at Sep. 30, 2020 | $ 2,000 | $ 1,542 | $ 2,844,690 | 59,305,003 | 236,008 | (67,159,519) | (33,971) | (4,804,248) | |||||
Beginning balance, shares at Sep. 30, 2020 | 2,000,000 | 1,541,500 | 2,844,688,836 | ||||||||||
Shares issued for conversions | $ 411,172 | (90,293) | 320,879 | ||||||||||
Preferred stock conversion, shares | 411,171,815 | ||||||||||||
Reclass derivative liability to equity from conversion | 531,591 | 531,591 | |||||||||||
Preferred stock conversions | $ (2,000) | $ 360,647 | 141,353 | 502,000 | |||||||||
Preferred stock conversion, shares | (2,000,000) | 360,647,019 | |||||||||||
Reclassification due to deconsolidation of VIE | (169,262) | 2,396 | 33,971 | (132,895) | |||||||||
Net loss | (1,656,397) | (1,656,397) | |||||||||||
Ending balance, value at Dec. 31, 2020 | $ 1,542 | $ 3,616,509 | 59,718,392 | 236,008 | (68,813,520) | (5,239,070) | |||||||
Beginning balance, shares at Dec. 31, 2020 | 1,541,500 | 3,616,507,670 | |||||||||||
Beginning balance, value at Jun. 30, 2021 | $ 542 | $ 7,402,536 | 64,841,655 | 5,600,000 | (500,000) | 1,889,608 | (74,364,466) | (99,656) | 4,770,218 | ||||
Beginning balance, shares at Jun. 30, 2021 | 541,500 | 1 | 7,402,535,677 | ||||||||||
Shares issued for conversions | $ 375,600 | 9,665 | 385,266 | ||||||||||
Preferred stock conversion, shares | 375,600,448 | ||||||||||||
Shares issued for acquisition | $ 2,000 | $ 660,571 | 6,787,029 | (5,600,000) | (1,849,600) | ||||||||
Shares issued for acquisition, shares | 2,000,000 | 660,571,429 | |||||||||||
Shares issued for subscription receivable - common stock | 500,000 | 500,000 | |||||||||||
Shares issued for subscription receivable - common stock, shares | |||||||||||||
Contribution of capital to noncontrolling minority | |||||||||||||
Contribution of capital to noncontrolling minority, shares | |||||||||||||
Reclass derivative liability to equity from conversion | 576,214 | 576,214 | |||||||||||
Reclass derivative liability to equity from conversion, shares | |||||||||||||
Net loss | (1,595,367) | (307,351) | (1,902,718) | ||||||||||
Ending balance, value at Sep. 30, 2021 | $ 2,542 | $ 8,438,707 | 72,214,564 | 40,008 | (75,959,833) | (407,007) | 4,328,979 | ||||||
Beginning balance, shares at Sep. 30, 2021 | 2,541,500 | 1 | 8,438,707,554 | ||||||||||
Beginning balance, value at Jun. 30, 2021 | $ 542 | $ 7,402,536 | 64,841,655 | 5,600,000 | (500,000) | 1,889,608 | (74,364,466) | (99,656) | 4,770,218 | ||||
Beginning balance, shares at Jun. 30, 2021 | 541,500 | 1 | 7,402,535,677 | ||||||||||
Net loss | (4,813,722) | ||||||||||||
Ending balance, value at Dec. 31, 2021 | $ 2,542 | $ 9,022,993 | 72,367,128 | 40,008 | (78,816,668) | (411,168) | 2,204,834 | ||||||
Beginning balance, shares at Dec. 31, 2021 | 2,541,500 | 1 | 9,022,993,267 | ||||||||||
Beginning balance, value at Sep. 30, 2021 | $ 2,542 | $ 8,438,707 | 72,214,564 | 40,008 | (75,959,833) | (407,007) | 4,328,979 | ||||||
Beginning balance, shares at Sep. 30, 2021 | 2,541,500 | 1 | 8,438,707,554 | ||||||||||
Shares issued for Cash | $ 370,000 | 74,000 | 444,000 | ||||||||||
Beginning balance, shares | 369,999,999 | ||||||||||||
Shares issued for conversions | $ 214,286 | (64,286) | 150,000 | ||||||||||
Preferred stock conversion, shares | 214,285,714 | ||||||||||||
Reclass derivative liability to equity from conversion | 192,857 | 192,857 | |||||||||||
Reclass derivative liability to equity from conversion, shares | |||||||||||||
Repayment of Capital | (50,007) | 50,007 | |||||||||||
Net loss | (2,856,834) | (54,168) | (2,911,002) | ||||||||||
Ending balance, value at Dec. 31, 2021 | $ 2,542 | $ 9,022,993 | $ 72,367,128 | $ 40,008 | $ (78,816,668) | $ (411,168) | $ 2,204,834 | ||||||
Beginning balance, shares at Dec. 31, 2021 | 2,541,500 | 1 | 9,022,993,267 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||||
Net loss | $ (4,452,203) | $ (375,188) | $ (5,926,134) | $ (21,339,155) |
Non-controlling interest | (361,519) | (188,392) | (195,416) | |
Adjustments to reconcile net loss to cash flows from operating activities: | ||||
Excess derivative expense | 1,118,990 | 316,261 | 414,465 | 449,301 |
Loss on settlement | 80,000 | 106,051 | 393,135 | |
Loss on deposits | 119,000 | |||
Gain on debt forgiveness | (96,595) | 590,226 | ||
Gain on loss of control of VIE | (313,928) | (313,928) | ||
Return on EB5 Investment | 500,000 | 500,000 | ||
Amortization of debt discount | 156,651 | 1,845,925 | 2,617,274 | 3,823,500 |
Stock based compensation | 124,000 | 66,000 | 518,394 | 9,225,076 |
Change in fair value of derivative liability | 65,073 | (3,992,108) | (1,087,485) | 2,109,930 |
Change in exercise of warrant | (14,637) | (70,389) | (58,868) | 119,525 |
Depreciation | 98,238 | 44,684 | 105,982 | 110,032 |
Amortization of intangible assets | 2,017 | 2,206 | 1,400 | |
Impairment loss | 43,800 | 2,066,958 | ||
Equity method investment loss | 60,747 | |||
Unrealized (gain) loss on securities | 857,979 | (1,451,922) | ||
Changes in assets and liabilities: | ||||
Accounts receivable | (271,911) | 122,971 | (301,081) | 83,628 |
Inventory | (202,338) | (83,253) | 93,020 | (323,186) |
Prepayment, deposits and other receivables | (2,495) | (855,878) | (594,074) | 403,471 |
Other assets | 54,163 | (30,193) | ||
Other payables | (131,502) | 404,993 | 202,760 | |
Accounts payable and accrued liabilities | 362,867 | 466,135 | 1,122,211 | 423,199 |
Customer deposits | 150,915 | 137,313 | 297,645 | 184,131 |
Unearned revenue | 3,909 | (53,248) | (8,424) | |
Right of use assets | 118,795 | 119,483 | 232,374 | (650,165) |
Lease liability | (121,983) | (118,078) | (232,622) | 674,188 |
Investment to Indigo Dye | (564,818) | (564,819) | ||
Shares to be issued - liabilities | (26,000) | |||
Interest Payable | 43,121 | 98,780 | 160,826 | (96,046) |
Net cash used in operating activities | (2,399,196) | (2,167,187) | (4,314,832) | (1,984,876) |
Cash flows from investing activities: | ||||
Purchase of fixed assets | (1,213,278) | (69,265) | (132,494) | |
Investment proceeds from Lemon Glow | (274,274) | |||
Investment proceeds from NUG | (28,673) | |||
Net cash used in investing activities | (1,213,278) | (372,210) | (132,494) | |
Cash flows from financing activities: | ||||
Proceeds from shares issuance | 430,680 | 4,171,000 | 690,280 | |
Contributions of capital to noncontrolling minority | 88,736 | |||
Distributions of capital to noncontrolling minority | (24,000) | |||
Loan receivable | (13,911) | 1,365 | 84,168 | |
Loan receivable - related parties | 38,044 | 38,044 | (318,535) | |
Proceeds (Repayment) from(to) notes payable, net | (110,120) | (345,287) | ||
Proceeds (Repayment) from(to) note payable - related parties, net | (15,427) | (2,573) | ||
Proceeds from advanced shares issuance | 500,000 | 136,000 | ||
Proceeds (Repayment) from(to) loans payable, net | 949,546 | 271,929 | 182,087 | 302,675 |
Proceeds (Repayment) from(to) loans payable - related parties, net | 524,226 | 540,281 | 122,401 | 5,943 |
Proceeds from convertible notes | 1,804,900 | 2,174,200 | 1,626,045 | |
Repayment of convertible notes | (227,700) | (438,752) | ||
Reduction of cash due to Indigo deconsolidation | (326,811) | (326,812) | ||
Net cash provided by financing activities | 2,278,905 | 2,086,732 | 5,642,982 | 2,524,003 |
Net decrease in cash | (1,333,569) | (80,454) | 955,940 | 406,633 |
Cash paid during the period for: | ||||
Cash, beginning of period | 1,396,944 | 441,004 | 441,004 | 34,371 |
Cash, end of period | 63,375 | 360,550 | 1,396,944 | 441,004 |
Cash paid interest | ||||
Net changes in financial statements amounts due to purchase | ||||
Intangible assets acquired | 10,648,378 | |||
Supplemental disclosure of non-cash financing activities — | ||||
Shares issued for conversion of convertible debt | 535,269 | 1,594,338 | 2,560,371 | 1,959,497 |
Reduction in derivative liability due to conversion | 769,071 | 2,336,779 | 4,956,143 | 2,819,825 |
Debt discount related to convertible debt | $ 2,010,717 | 2,127,481 | 3,315,037 | |
Debts settled through shares issuance | 229,000 | |||
Shares issued for award to Bizright | (32,291,060) | |||
Shares cancelled for termination of Bizright Acquisition | 32,283,910 | |||
Shares issued for warrant exercise | 28,381 | |||
Reclassification from prepaid deposit to BZRTH investment | (883,958) | |||
Lemon Glow Company, Inc [Member] | ||||
Cash flows from operating activities: | ||||
Net loss | ||||
Non-controlling interest | ||||
Adjustments to reconcile net loss to cash flows from operating activities: | ||||
Amortization of debt discount | ||||
Impairment loss | ||||
Net changes in financial statements amounts due to purchase | ||||
Goodwill acquired | 757,648 | |||
Intangible assets acquired | 10,637,000 | |||
Property, plant and equipment acquired | 2,348,167 | |||
Liabilities recognized | (6,018,943) | |||
Equity issued | (7,449,600) | |||
Net realized gains on the transactions | ||||
Net cash paid for acquisition | 274,272 | |||
Nug Ave Inc [Member] | ||||
Net changes in financial statements amounts due to purchase | ||||
Property, plant and equipment acquired | 32,860 | |||
Other assets acquired | 5,800 | |||
Liabilities recognized | (9,987) | |||
Net realized gains on the transactions | ||||
Net cash paid for acquisition | $ 28,673 |
Nature of Business
Nature of Business | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Nature of Business | 1. Nature of Business Sugarmade, Inc. (hereinafter referred to as “we”, “us” or “the/our Company”) was originally incorporated on June 5, 1986 in California as Lab, Inc., and later that month, on June 24, 1986 changed its name to Software Professionals, Inc. On May 21, 1996, the Company changed its name to Enlighten Software Solutions, Inc. On June 20, 2007, Enlighten Software Solutions, Inc. was incorporated in Delaware for the purpose of merging with Enlighten Softwear Solutions, Inc. a California Corporation so as to affect a redomicile to Delaware. On January 24, 2008, the Company changed its name to Diversified Opportunities, Inc. On May 9, 2011 we closed on a Share Exchange Agreement with Sugarmade, Inc., a California corporation and on June 24, 2011 changed our name to Sugarmade, Inc. On October 24, 2014 we acquired SWC Group, Inc., a California corporation doing business as, CarryOutSupplies.com (“Carry Out Supplies”). Today, our Company, Sugarmade, Inc. operates much of its business activities through our subsidiaries, SWC Group, Inc., a California corporation (“SWC’’), NUG Avenue, Inc., a California corporation (“NUG Avenue”), and Lemon Glow Company, Inc., a California corporation (“Lemon Glow”). Sugarmade, Inc. was founded in 2010. Shares of our common stock are quoted on the OTC Pink Open Market tier of OTC Markets, which is a quotation system for early-stage and developing companies. Our trading symbol is “SGMD”. Our corporate website is www.sugarmade.com. As of the date of this filing, we are involved in several business sectors and business ventures: Paper and paper-based products: NUG Avenue, Inc. investment into licensed cannabis delivery in Los Angeles area markets. 70 70% 100% 70% We believe our investment into NUG Avenue will allow us to expand our presence into the licensed and regulated cannabis marketplace. The California cannabis market continues its rapid growth, with the Southern California sub-market representing the world’s largest single cannabis marketplace. According to the California Department of Tax and Fee Administration, the most recently reported quarterly period posted a significant increase in cannabis tax compared to the year-ago period. Much of this growth was driven by increased use of delivery services, as consumers are increasingly relying on home delivery for many goods, including cannabis. Cannabis products delivery service and sales: 40% 30% 40% 30% 505,449 40 59,370 32 380,660 60,747 Selected cannabis and hemp projects: On October 28, 2021, Lemon Glow Company obtained a conditional Use Permit (UP) number from the Community Development Department of the County of Lake, California, which the Company believes is an important step towards the conditional Use Permit (UP) for commercial cannabis cultivation at its Property. The issuance of the Conditional Use Permit (UP) number by the County of Lake allows the Company to proceed with the state cannabis cultivation license application, and potentially obtain certain applicable permits, such as from the Department of Cannabis Control, Department of Food and Agriculture, Department of Pesticide Regulation, Department of Fish and Wildlife, The State Water Resources Control Board, Board of Forestry and Fire Protection, Central Valley or North Coast Regional Water Quality Control Board, Department of Public Health, and Department of Consumer Affairs, as may be required. The Company believes that obtaining the conditional Use Permit (UP) number by the County of Lake could lead towards full approval to cultivate cannabis on up to thirty-two (32) acres out of the total six-hundred-forty (640) acres of the Property. As of the date of this filing, Sugarmade is working diligently on conditions required by the County of Lake to allow the Company to cultivate cannabis. It is the Company’s intention to begin such activities at the earliest time possible, assuming permits are ultimately issued. However, no such license or permits have yet been issued, and applications are still pending. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 | 1. Nature of Business Sugarmade, Inc. (hereinafter referred to as “we”, “us” or “the/our Company”) is a publicly-traded company incorporated in the state of Delaware. Our previous legal name was Diversified Opportunities, Inc. Our Company, Sugarmade, Inc. operates much of its business activities through our subsidiaries, SWC Group, Inc., a California corporation (“SWC’’), NUG Avenue, Inc., a California corporation (“Nug Avenue”), and Lemon Glow Company, Inc., a California corporation (“Lemon Glow”). Sugarmade, Inc. was founded in 2010. In 2014, CarryOutSupplies.com was acquired by Sugarmade, Inc., creating the Company as it is today. Shares of our common stock are quoted on the OTC Markets, which is a quotation system for early-stage and developing companies. Our trading symbol is “SGMD”. Our corporate website is www.Sugarmade.com. As of the date of this filing, we are involved in several business sectors and business ventures: Paper and paper-based products: NUG Avenue, Inc. investment into licensed cannabis delivery in Los Angeles area markets. 70 70 100 70 Cannabis products delivery service and sales: 40% 30% 40% 30% 505,449 40 59,370 32 441,407 81,725 Selected cannabis and hemp projects: |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. These interim condensed consolidated financial statements should be read in conjunction with our Company’s Annual Report on Form 10-K for the year ended June 30, 2021, which contains our audited consolidated financial statements and notes thereto, together with the Management’s Discussion and Analysis of Financial Condition and Results of Operation, for the fiscal year ended June 30, 2021. The interim results for the period ended December 31, 2021 are not necessarily indicative of the results for the full fiscal year. Principles of consolidation The unaudited condensed consolidated financial statements include the accounts of our Company, its wholly-owned subsidiaries, SWC Group, Inc., a California corporation (“SWC’’), Lemon Glow Company, Inc., a California corporation (“Lemon Glow”), and its majority owned subsidiary, NUG Avenue, Inc., a California corporation (“Nug Avenue”), as well as Indigo Dye Group Corp., an equity investee. All significant intercompany transactions and balances have been eliminated in consolidation. Going concern The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, in which it has not been successful, and/or obtaining additional financing from its shareholders or other sources, as may be required. Our unaudited condensed consolidated financial statements have been prepared assuming that we will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These unaudited condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. Management endeavors to increase revenue-generating operations. While the Company’s priority is on generating cash from operations, management also seek to raise additional working capital through various financing sources, including the sale of the Company’s equity and/or debt securities, which may not be available on commercially reasonable terms to our Company, or which may not be available at all. If such financing is not available on satisfactory terms, we may be unable to continue our business as desired and our operating results will be adversely affected. In addition, any financing arrangement may have potentially adverse effects on us and/or our stockholders. Debt financing (if available and undertaken) will increase expenses, must be repaid regardless of operating results and may involve restrictions limiting our operating flexibility. If we issue equity securities to raise additional funds, the percentage ownership of our existing stockholders will be reduced, and the new equity securities may have rights, preferences or privileges senior to those of the current holders of our common stock. Business combinations The Company applies the provisions of Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations, in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed, at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the acquisition date fair values of the net assets acquired and the liabilities assumed. The Company used third party valuation company to determine the assets acquired and liabilities assumed with the corresponding offset to goodwill. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 2. Summary of Significant Accounting Policies (continued) Use of estimates The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Revenue recognition We recognize revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC’’) No. 606, Revenue Recognition. Sugarmade applied a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations in the contract and (5) recognizing revenue when the performance obligation is satisfied. Substantially all of the Company’s revenue is recognized at the time control of the products transfers to the customer. Property, plant and equipment Property and equipment is stated at the historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets for both financial and income tax reporting purposes as follows: Schedule of Estimated Useful Lives of Property and Equipment Machinery and equipment 3 5 Furniture and equipment 1 15 Vehicles 2 5 Leasehold improvements 5 30 Building 31.5 Production molding 5 Expenditures for renewals and betterments are capitalized while repairs and maintenance costs are normally charged to the statement of operations in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. Upon sale or disposal of an asset, the historical cost and related accumulated depreciation or amortization of such asset were removed from their respective accounts and any gain or loss is recorded in the statements of income. The Company reviews the carrying value of property, plant, and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 2. Summary of Significant Accounting Policies (continued) Impairment of Long-Lived Assets Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, there was $ 0 43,800 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 2. Summary of Significant Accounting Policies (continued) Leases In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to recognize the rights and obligations created by leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-11, Targeted Improvements, ASU No. 2018-10, Codification Improvements to Topic 842, and ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on July 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements. The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. All existing leases are reported under this rule. Under ASC 840, leases were classified as either capital or operating, and the classification significantly impacted the effect the contract had on the company’s financial statements. Capital lease classification resulted in a liability that was recorded on a company’s balance sheet, whereas operating leases did not impact the balance sheet. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 2. Summary of Significant Accounting Policies (continued) Goodwill and Intangible Assets Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the acquisition method. Intangible assets represent purchased intangible assets including developed technology and in-process research and development, technologies acquired or licensed from other companies, customer relationships, non-compete covenants, backlog, and trademarks and tradenames. Purchased finite-lived intangible assets are capitalized and amortized over their estimated useful lives. Technologies acquired or licensed from other companies, customer relationships, non-compete covenants, backlog, and trademarks and tradenames are capitalized and amortized over the lesser of the terms of the agreement, or estimated useful life. We capitalize cannabis cultivation license acquired as part of a business combination. Stock based compensation Stock based compensation cost to employees is measured at the date of grant, based on the calculated fair value of the stock-based award, and will be recognized as expense over the employee’s requisite service period (generally the vesting period of the award). We estimate the fair value of employee stock options granted using the Binomial Option Pricing Model. Key assumptions used to estimate the fair value of stock options will include the exercise price of the award, the fair value of our common stock on the date of grant, the expected option term, the risk-free interest rate at the date of grant, the expected volatility and the expected annual dividend yield on our common stock. We use our company’s own data among other information to estimate the expected price volatility and the expected forfeiture rate. Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable. Loss per share We calculate basic loss per share by dividing our net loss by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period and the weighted average number of dilutive common stock equivalents, such as options and warrants. Options and warrants are only included in the calculation of diluted EPS when their effect is dilutive. Fair value of financial instruments ASC Topic 820 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1 - observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - include other inputs that are directly or indirectly observable in the marketplace. Level 3 - unobservable inputs which are supported by little or no market activity. The Company used Level 3 inputs for its valuation methodology for the derivative liabilities in determining the fair value using the Binomial option-pricing model for the three and six months ended December 31, 2021. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 2. Summary of Significant Accounting Policies (continued) Income Taxes The Company accounts for income taxes using the asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in the tax law. For deferred tax assets, management evaluates the probability of realizing the future benefits of such assets. The Company establishes valuation allowances for its deferred tax assets when evidence suggests it is unlikely that the assets will be fully realized. The Company recognizes the tax effects of an uncertain tax position only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date and then only in an amount more likely than not to be sustained upon review by the tax authorities. Income tax positions that previously failed to meet the more likely than not threshold are recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more likely than not threshold are derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company classifies potential accrued interest and penalties related to unrecognized tax benefits within the accompanying consolidated statements of operations and comprehensive income (loss) as income tax expense. Derivative instruments The fair value of derivative instruments is recorded and shown separately under current liabilities. Changes in the fair value of derivatives liability are recorded in the consolidated statement of operations under non-operating income (expense). Our Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Binomial option-pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. Segment Reporting FASB ASC Topic 280, “Segment Reporting’’, requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the Company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company’s financial statements reflect that substantially all of its operations are conducted in two industry segments – (1) paper and paper-based products such as paper cups, cup lids, food containers, etc., which accounts for approx. 39 61 A reconciliation of the Company’s segment operating income and cost of goods sold to the Consolidated Statements of Operations for the three and six months ended December 31, 2021 and 2020 is as follows: Schedule of Segment Operating Income Three months ended December 31, 2021 December 31, 2020 Segment operating income Paper and paper-based products $ 538,815 $ 300,652 Cannabis products delivery 697,010 - Total operating income $ 1,235,825 $ 300,652 Three months ended December 31, 2021 December 31, 2020 Segment cost of goods sold Paper and paper-based products $ 461,873 $ 242,531 Cannabis products delivery - - Total cost of goods sold $ 461,873 $ 242,531 Six months ended December 31, 2021 December 31, 2020 Segment operating income Paper and paper-based products $ 977,358 $ 875,623 Cannabis products delivery 1,427,248 1,571,356 Total operating income $ 2,404,606 $ 2,446,979 Six months ended December 31, 2021 December 31, 2020 Segment cost of goods sold Paper and paper-based products $ 848,812 $ 624,969 Cannabis products delivery - 647,460 Total cost of goods sold $ 848,812 $ 1,272,429 New accounting pronouncements In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes”. The pronouncement simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, “Income Taxes”. The pronouncement also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 will be effective for us beginning in the first quarter of fiscal 2021, with early adoption permitted. The adoption had no material impact on the consolidated financial statements in the year ended June 30, 2021 and period ended December 31, 2021. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivative and Hedging (Topic 815), which clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance clarifies how to account for the transition into and out of the equity method of accounting when considering observable transactions under the measurement alternative. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. The Company have adopted this ASU on the consolidated financial statements in the year ended June 30, 2021. The adoption had no material impact on the consolidated financial statements in the year ended June 30, 2021 and period ended December 31, 2021. In August 2020, the FASB issued ASU 2020-06, “ Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40) ASU 2020-06 On March 2021, the FASB issued Accounting Standards Update (ASU) 2021-03, “ Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events ASU 2021-03 On April 2021, the FASB issued ASU 2021-04, “ Earnings Per Share (Topic 260), Debt— Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options” ASU 2021-04 On July 2021, the FASB issued ASU 2021-05, “ Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments On July 2021, the FASB issued ASU 2021-07, “ Stock Compensation (Topic 718): Stock Compensation ASU 2021-07 to On August 2021, the FASB issued ASU 2021-08, “ Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ” ASU 2021-08 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 | 2. Summary of Significant Accounting Policies Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Principles of consolidation The consolidated financial statements include the accounts of our Company, its wholly-owned subsidiaries, SWC Group, Inc., a California corporation (“SWC’’), Lemon Glow Company, Inc., a California corporation (“Lemon Glow”), and its majority owned subsidiary, NUG Avenue, Inc., a California corporation (“Nug Avenue”). All significant intercompany transactions and balances have been eliminated in consolidation. Going concern The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, in which it has not been successful, and/or obtaining additional financing from its shareholders or other sources, as may be required. Our consolidated financial statements have been prepared assuming that we will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. Management is endeavoring to increase revenue-generating operations. While priority is on generating cash from operations through the sale of the Company’s products, management is also seeking to raise additional working capital through various financing sources, including the sale of the Company’s equity and/or debt securities, which may not be available on commercially reasonable terms to our Company, or which may not be available at all. If such financing is not available on satisfactory terms, we may be unable to continue our business as desired and our operating results will be adversely affected. In addition, any financing arrangement may have potentially adverse effects on us and/or our stockholders. Debt financing (if available and undertaken) will increase expenses, must be repaid regardless of operating results and may involve restrictions limiting our operating flexibility. If we issue equity securities to raise additional funds, the percentage ownership of our existing stockholders will be reduced, and the new equity securities may have rights, preferences or privileges senior to those of the current holders of our common stock. Business combinations The Company applies the provisions of Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations, in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed, at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the acquisition date fair values of the net assets acquired and the liabilities assumed. The Company used third party valuation company to determine the assets acquired and liabilities assumed with the corresponding offset to goodwill. Use of estimates The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Revenue recognition We recognize revenue in accordance with FASB ASC No. 606, Revenue Recognition. Sugarmade applied a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations in the contract and (5) recognizing revenue when the performance obligation is satisfied. Substantially all of the Company’s revenue is recognized at the time control of the products transfers to the customer. Leases In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to recognize the rights and obligations created by leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-11, Targeted Improvements, ASU No. 2018-10, Codification Improvements to Topic 842, and ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on July 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements. The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. All existing leases are reported under this rule. Under ASC 840, leases were classified as either capital or operating, and the classification significantly impacted the effect the contract had on the company’s financial statements. Capital lease classification resulted in a liability that was recorded on a company’s balance sheet, whereas operating leases did not impact the balance sheet. Property and equipment Property and equipment is stated at the historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets for both financial and income tax reporting purposes as follows: Schedule of Estimated Useful Lives of Property and Equipment Machinery and equipment 3 15 Furniture and equipment 7 Vehicles 5 Leasehold improvements 30 Expenditures for renewals and betterments are capitalized while repairs and maintenance costs are normally charged to the statement of operations in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. Upon sale or disposal of an asset, the historical cost and related accumulated depreciation or amortization of such asset were removed from their respective accounts and any gain or loss is recorded in the statements of income. The Company reviews the carrying value of property, plant, and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment expenses for property, plant, and equipment was recorded in operating expenses during the years ended June 30, 2021 and 2020. Impairment of Long-Lived Assets Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, there was $ 43,800 2,066,958 Income taxes We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their perspective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets to the amount expected to be realized. As a result of the implementation of certain provisions of ASC 740, Income Taxes (“ASC 740’’), which clarifies the accounting and disclosure for uncertainty in tax position, as defined, ASC 740 seeks to reduce the diversity in practice associated with certain aspect of the recognition and measurement related to accounting for income taxes. We adopted the provisions of ASC 740 as of October 2, 2008 and have analyzed filing positions in each of the federal and state jurisdictions where we are required to file income tax returns, as well as open tax years in these jurisdictions. We have identified the U.S. federal and California as our ‘major’ tax jurisdictions and generally, we remain subject to Internal Revenue Service examination after our 2013 U.S. federal income tax returns. However, we have certain tax attribute carryforwards, which will remain subject to review and adjustment by the relevant tax authorities until the statute of limitations closes with respect to the year in which such attributes are utilized. We believe that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to our financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. In addition, we did not record a cumulative effect adjustment related to the adoption of ASC 740. Our policy for recording interest and penalties associated with income-based tax audits is to record such items as Goodwill and Intangible Assets Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the acquisition method. Intangible assets represent purchased intangible assets including developed technology and in-process research and development, technologies acquired or licensed from other companies, customer relationships, non-compete covenants, backlog, and trademarks and tradenames. Purchased finite-lived intangible assets are capitalized and amortized over their estimated useful lives. Technologies acquired or licensed from other companies, customer relationships, non-compete covenants, backlog, and trademarks and tradenames are capitalized and amortized over the lesser of the terms of the agreement, or estimated useful life. We capitalize cannabis cultivation license acquired as part of a business combination. Stock based compensation Stock based compensation cost to employees is measured at the date of grant, based on the calculated fair value of the stock-based award, and will be recognized as expense over the employee’s requisite service period (generally the vesting period of the award). We estimate the fair value of employee stock options granted using the Binomial Option Pricing Model. Key assumptions used to estimate the fair value of stock options will include the exercise price of the award, the fair value of our common stock on the date of grant, the expected option term, the risk-free interest rate at the date of grant, the expected volatility and the expected annual dividend yield on our common stock. We use our company’s own data among other information to estimate the expected price volatility and the expected forfeiture rate. Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable. Loss per share We calculate basic earnings per share (“EPS”) by dividing our net loss by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted BPS is computed by dividing net income or net loss by the weighted average number of common shares outstanding for the period and the weighted average number of dilutive common stock equivalents, such as options and warrants. Options and warrants are only included in the calculation of diluted EPS when their effect is dilutive. Fair value of financial instruments ASC Topic 820 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1- observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - include other inputs that are directly or indirectly observable in the marketplace. Level 3 - unobservable inputs which are supported by little or no market activity. The Company used Level 2 inputs for its valuation methodology for the derivative liabilities for conversion feature of the convertible notes and warrants in determining the fair value using Lattice Binomial model with the following assumption inputs: Derivative instruments The fair value of derivative instruments is recorded and shown separately under liabilities. Changes in the fair value of derivatives liability are recorded in the consolidated statement of operations under non-operating income (expense). Our Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Black-Scholes- Merton option-pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. Segment Reporting FASB ASC Topic 280, “Segment Reporting’’, requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the Company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company’s financial statements reflect that substantially all of its operations are conducted in three industry segments – (1) paper and paper-based products such as paper cups, cup lids, food containers, etc., which accounts approx. 44 0 56 New accounting pronouncements In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes”. The pronouncement simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, “Income Taxes”. The pronouncement also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 will be effective for us beginning in the first quarter of fiscal 2021, with early adoption permitted. We are still evaluating the impact this guidance will have on our consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivative and Hedging (Topic 815), which clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance clarifies how to account for the transition into and out of the equity method of accounting when considering observable transactions under the measurement alternative. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. The Company have adopted this ASU on the consolidated financial statements in the year ended June 30, 2021. The adoption had no material impact on the consolidated financial statements in the year ended June 30, 2021. Prior period reclassification Certain prior period balance sheet accounts have been reclassified in conformity with current period presentation including reclassification of $ 4,000 |
Business Combination
Business Combination | 12 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | 3. Business Combination On May 12, 2021, SugarMade, Inc. entered into an Agreement and Plan of Merger, as amended (the “Merger Agreement”) by and between Lemon Glow Corporation, a California corporation (“Lemon Glow”), Carnaby Spot Bay Corp, a California corporation and a wholly owned subsidiary of the Company (“Merger Sub”) and Ryan Santiago (the “Shareholder Representative”), pursuant to which, on May 25, 2021 and upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub merged with and into Lemon Glow, with Lemon Glow being the surviving corporation (the “Merger”). As a result of the Merger, Lemon Glow became a wholly-owned subsidiary of the Company. Acquisition Consideration The following table summarizes the fair value of purchase price consideration to acquire Lemon Glow (In US $000’s): Schedule of Fair Value of Purchase Price Consideration Purchase Consideration Summary In US $000’s Fair Value Cash Consideration (1) $ 4,256 Equity Consideration (2) $ 7,450 Interest-Bearing Debt Assumed $ 2,043 Total Purchase Consideration $ 13,749 Notes: (1) The cash consideration consists of $ 280,000 3,976,000 5 (2) The equity consideration consists of 660,571,429 2,000,000 Purchase Price Allocation The following is an allocation of purchase price as of the May 25, 2021 acquisition closing date based upon an estimate of the fair value of the assets acquired and the liabilities assumed by the Company in the acquisition (in thousands): Schedule of Fair Value of Assets Acquired and Liabilities Assumed Allocation Summary In US $000’s Fair Value Assets Acquired $ 6 Property, Plant & Equipment (3) $ 2,348 Total Tangible Asset Allocation $ 2,354 Cannabis Cultivation License $ 10,637 Total Identifiable Intangible Assets $ 10,637 Assembled Workforce $ 275 Goodwill (Excluding Assembled Workforce) $ 483 Total Economic Goodwill $ 758 Purchase Consideration to be Allocated $ 13,749 Notes: (3) The value of the land is excluded in the calculation of depreciation. Assumptions in the Allocations of Purchase Price Management prepared the purchase price allocations for Lemon Glow relied upon reports of a third party valuation expert to calculate the fair value of certain acquired assets, which primarily included identifiable intangible assets, and property and equipment. Estimates of fair value require management to make significant estimates and assumptions. The goodwill recognized is attributable primarily to the acquired workforce, and other benefits that the Company believes will result from integrating the operations of the Lemon Glow with the operations of Sugarmade. Certain liabilities included in the purchase price allocations are based on management’s best estimates of the amounts to be paid or settled and based on information available at the time the purchase price allocations were prepared. The fair value of the identified intangible assets acquired from the Lemon Glow was estimated using an income approach. Under the income approach, an intangible asset’s fair value is equal to the present value of future economic benefits to be derived from ownership of the asset. Indications of value are developed by discounting future net cash flows to their present value at market-based rates of return. More specifically, the fair value of the cannabis cultivation license was determined using the MPEEM method. MPEEM is an income approach to fair value measurement attributable to a specific intangible asset being valued from the asset grouping’s overall cash-flow stream. MPEEM isolates the expected future discounted cash-flow stream to its net present value. Significant factors considered in the calculation of the cannabis cultivation license intangible assets were the risks inherent in the development process, including the likelihood of government regulation and market acceptance. In connection with the acquisition of Lemon Glow, the Company has assumed certain operating liabilities which are included in the respective purchase price allocations above. Goodwill recorded in connection with Lemon Glow was approximately $ 757,648 Proforma Combined Financial Information The following table presents unaudited pro forma combined financial information for each of the periods presented, as if the acquisitions of Lemon Glow had occurred at March 31, 2021 and June 30, 2020: Schedule of Pro Forma Combined Financial Information Unaudited Pro Forma Condensed Combined Balance Sheets As of March 31, 2021 Lemon Glow Company Sugarmade Inc. Pro Forma Merger Adjustment Pro Forma Combined Assets Current assets: Cash 18,211 269,885 280,000 a 568,096 Accounts receivable, net - 75,040 - 75,040 Inventory, net - 692,460 - 692,460 Loan receivables, current - - - - Loan receivables - related party, current - 208,931 - 208,931 Other current assets - 1,066,597 - 1,066,597 Right of use asset, current - 237,556 - 237,556 Total current assets 18,211 2,550,469 280,000 2,848,680 Noncurrent assets: Machinery and Equipment, net 87,645 390,189 - 477,834 Land Improvements, net 341,681 - - 341,681 Estate Property - Land 1,922,376 - - 1,922,376 Intangible asset, net - 14,578 10,572,600 e 10,587,178 Goodwill 573,000 f 573,000 Other assets - - - - Loan receivables - related party, noncurrent - 196,000 - 196,000 Right of use asset, noncurrent - 549,261 - 549,261 Investment to Indigo Dye - 564,819 - 564,819 Total noncurrent assets 2,351,702 1,714,847 11,145,600 15,212,149 Total assets 2,369,913 4,265,316 11,425,600 18,060,829 Liabilities and Stockholders’ Equity (Deficiency) Current liabilities: Note payable due to bank - 25,982 - 25,982 Accounts payable and accrued liabilities 85,157 1,753,855 - 1,839,012 Customer deposits 400,000 660,268 - 1,060,268 Customer overpayment - 53,183 - 53,183 Unearned revenue - 9,379 - 9,379 Other payables - 812,069 - 812,069 Accrued interest 3,500 515,767 - 519,267 Accrued compensation and personnel related payables - - - - Notes payable - Current - 20,000 - 20,000 Notes payable - Related Parties, Current - 15,427 - 15,427 Lease liability - Current - 231,305 - 231,305 Loans payable - Current 113,891 350,221 - 464,112 Loan payable - Related Parties, Current - 238,150 - 238,150 Convertible notes payable, Net, Current - 1,982,902 - 1,982,902 Derivative liabilities, net - 2,723,899 - 2,723,899 Due to related parties 4,244 - - 4,244 Warrants liabilities - 24,216 - 24,216 Shares to be issued - 136,577 - 136,577 Total current liabilities 606,792 9,553,200 - 10,159,992 Non-current liabilities: Note Payable 1,381,593 - 3,976,000 b 5,357,593 Loans payable 54,408 366,495 - 420,903 Lease liability - 591,116 - 591,116 Total liabilities 2,042,793 10,510,811 3,976,000 16,529,604 Stockholders’ equity (deficiency): Preferred stock, $ 0.001 10,000,000 1,541,500 1,542 5,600 d 7,142 Common stock, $ 0.001 10,000,000,000 4,718,104,197 394,773 4,718,105 660,571 c 5,773,449 Additional paid-in capital 63,095,927 6,783,429 cd 69,879,356 Share to be issued, Preferred stock (1 ) (1 ) Common Stock Subscribed 236,008 236,008 Accumulated deficit (67,653 ) (74,350,923 ) - (74,418,576 ) Total stockholders’ deficiency 327,120 (6,299,342 ) 7,449,600 1,477,378 Non-Controlling Interest - 53,847 - 53,847 Total stockholders’ equity (deficiency) 327,120 (6,245,495 ) 7,449,600 1,531,225 Total liabilities and stockholders’ equity (deficiency) 2,369,913 4,265,316 11,425,600 18,060,829 The accompanying notes are an integral part of these condensed consolidated financial statements Unaudited Pro Forma Condensed Combined Statements of Operations For the Nine Months Ended March 31, 2021 Lemon Glow Company Sugarmade Inc. Pro Forma Merger Adjustment Pro Forma Combined Revenues, net $ - $ 2,851,822 $ $ 2,851,822 Cost of goods sold - 1,502,247 - 1,502,247 Gross profit - 1,349,575 - 1,349,575 Selling, general and administrative expenses 11,256 1,446,038 - 1,457,294 Advertising and Promotion Expense - 378,068 - 378,068 Marketing and Research Expense - 364,580 - 364,580 Professional Expense 4,136 756,444 - 760,580 Salaries and Wages 7,080 368,616 - 375,696 Stock Compensation Expense - 82,250 - 82,250 Loss from operations (22,472 ) (2,046,421 ) - (2,068,893 ) Non-operating income (expense): Other income - 5,099 - 5,099 Gain in loss of control of VIE - 313,928 - 313,928 Interest expense (45,181 ) (1,920,660 ) - (1,965,841 ) Bad debts - (133,235 ) - (133,235 ) Change in fair value of derivative liabilities - 506,559 - 506,559 Warrant Expense - 55,695 - 55,695 Loss on notes conversion - - - - Loss on settlement - (80,000 ) - (80,000 ) Gain on asset disposal - - - - Amortization of debt discount - (2,605,144 ) - (2,605,144 ) Debt forgiveness - - - - Miscellaneous Impairment Loss Other expenses - (55,054 ) - (55,054 ) Total non-operating expenses, net (45,181 ) (3,912,812 ) - (3,957,993 ) Equity Method Investment Loss - (2,114 ) - Net loss $ (67,653 ) $ (5,961,347 ) $ - Less: net loss attributable to the noncontrolling interest $ - $ (48,756 ) $ - (48,756 ) Net loss attributable to SugarMade Inc. $ (67,653 ) $ (5,912,591 ) $ - $ (48,756 ) Basic net income (loss) per share $ - $ (0.00 ) $ - $ (0.00 ) Diluted net income (loss) per share $ - $ (0.00 ) $ - $ (0.00 ) Basic and diluted weighted average common shares outstanding * 0 3,247,070,176 0 3,247,070,176 * Shares issuable upon conversion of convertible debts and exercising of warrants were excluded in calculating diluted loss per share The accompanying notes are an integral part of these condensed consolidated financial statements Unaudited Pro Forma Condensed Combined Statements of Operations As of June 30, 2020 Lemon Glow Company Sugarmade Inc. Pro Forma Merger Adjustment Pro Forma Combined Revenues, net $ - $ 4,354,102 $ $ 4,354,102 Cost of goods sold - 2,851,940 - 2,851,940 Gross profit - 1,502,162 - 1,502,161.64 Selling, general and administrative expenses - 13,620,529 - 13,620,529 Loss from operations - (12,118,367 ) - (12,118,367 ) Non-operating income (expense): Other income - 3,064 - 3,064 Interest expense - (1,613,044 ) - (1,613,044 ) Bad debts - (240,157 ) - (240,157 ) Change in fair value of derivative liabilities - (1,442,295 ) - (1,442,295 ) Warrant Expense - (119,526 ) - (119,526 ) Gain on debt conversion - (184,626 ) - (184,626 ) Loss on settlement - (393,135 ) - (393,135 ) Loss on asset disposal - (119,044 ) - (119,044 ) Amortization of debt discount - (3,823,500 ) - (3,823,500 ) Debt forgiveness - 590,226 - 590,226 Miscellaneous - (7,201 ) - (7,201 ) Impairment Loss - (2,066,958 ) - (2,066,958 ) Other expenses - - - - Total non-operating expenses, net - (9,416,195 ) - (9,416,195 ) Net loss $ - $ (21,534,562 ) $ - $ (21,534,562 ) Less: net loss attributable to the noncontrolling interest - (195,416 ) - (195,416 ) Net loss attributable to SugarMade Inc. $ - $ (21,339,146 ) $ - $ (21,339,146 ) Basic net income (loss) per share $ - $ (0.02 ) $ - $ (0.02 ) Diluted net income (loss) per share $ - $ (0.02 ) $ - $ (0.02 ) Basic and diluted weighted average common shares outstanding * 0 958,183,933 0 958,183,933 * Shares issuable upon conversion of convertible debts and exercising of warrants were excluded in calculating diluted loss per share The accompanying notes are an integral part of these condensed consolidated financial statements The pro forma combined financial information is presented for illustrative purposes only and is not necessarily indicative of the consolidated results of operations of the consolidated business had the acquisitions actually occurred at the beginning of fiscal year 2020 or of the results of future operations of the consolidated business. The unaudited pro forma financial information does not reflect any operating efficiencies and cost saving that may be realized from the integration of the acquisitions in the Company’s consolidated statements of operations. |
Concentration
Concentration | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Risks and Uncertainties [Abstract] | ||
Concentration | 3. Concentration Customers For the three months ended December 31, 2021 and 2020, our Company earned net revenues of $ 1,235,825 300,652 For the six months ended December 31, 2021 and 2020, our Company earned net revenues of $ 2,404,606 2,446,979 Suppliers For the three months ended December 31, 2021, we purchased products for sale by the Company’s subsidiary from several contract manufacturers located in Asia and the U.S. A substantial portion of the Company’s inventory was purchased from two (2) suppliers which accounted over 10% of the total purchases. The two suppliers accounted for 74.45 16.20 For the six months ended December 31, 2021, we purchased products for sale by the Company’s subsidiary from several contract manufacturers located in Asia and the U.S. A substantial portion of the Company’s inventory was purchased from two (2) suppliers which accounted over 10% of the total purchases. The two suppliers accounted for 75.56 18.76 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 | 4. Concentration Customer For the year ended June 30, 2021, our Company earned net revenues of $ 3,979,049 11.6 For the year ended June 30, 2020, our Company earned net revenues of $ 4,362,585 5.90 5.1 Suppliers For the year ended June 30, 2021, we purchased products for sale by the company’s subsidiaries from several contract manufacturers located in Asia and the U.S. A substantial portion of the Company’s inventory is purchased from two (2) suppliers. The two (2) suppliers accounted as follows: Two suppliers accounted for 33.2 19.40 For the year ended June 30, 2020, we purchased products for sale by the company’s subsidiaries from several contract manufacturers located in Asia and the U.S. A substantial portion of the Company’s inventory is purchased from two (2) suppliers. The two (2) suppliers accounted as follows: Two suppliers accounted for 25.5 16.20 Concentration of risk The Company sold non-medical facial mask during the year ended June 30, 2020, which accounts approx. 25 Segment reporting information A reconciliation of the Company’s segment operating income to the Consolidated Statements of Operations for June 30, 2021 and 2020 is as follows: Schedule of Segment Operating Income Segment operating income 2021 2020 Paper and paper based products $ 1,748,700 $ 1,832,286 Licensed cannabis delivery 2,230,349 1,439,653 Non-medical supplies - 1,090,646 Total operating income $ 3,979,049 $ 4,362,585 |
Equity Transaction _ Exclusive
Equity Transaction – Exclusive License Rights | 12 Months Ended |
Jun. 30, 2021 | |
Equity Transaction Exclusive License Rights | |
Equity Transaction – Exclusive License Rights | 5. Equity Transaction – Exclusive License Rights During December 2017, the Company entered into a master marketing agreement with BizRight, LLC, a leading marketer and manufacturer of hydroponic growth supplies, which offers a range of hydroponics-related products including: HPS grow lights, electronic ballasts, HPS Bulbs, nutrient mixes, environmental control products, pH measurement and calibration solutions and other grow and storage products. BizRight operates the ZenHydro.com website and other e-commerce properties, and sells various products to distributors and retailers. On April 11, 2018, the same rights under the master marketing agreement were assigned to BZRTH Inc. On February 5, 2019, the Company exercised its option to acquire BZRTH and the transaction closed on October 30, 2019. On January 15, 2020, the Company entered into a Rescission and Mutual Release Agreement (“Agreement”) with each of the parties agreeing to rescind the transaction and return all consideration exchanged pursuant to the Stock Exchange Agreement. |
VIE
VIE | 12 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VIE | 6. VIE On February 7, 2020, the Company entered into a share sale and purchase agreement (the “Indigo Agreement”) with Indigo Dye Group Corp. (“Indigo”), a corporation located in Sacramento, California. Indigo carries on business as a cannabis seller and delivery business under the name BudCars. The major Cannabis Products include Flower, Edibles, Vape Cartridges, Pre-Rolls, & Concentrates, etc. All the products are finished goods. In addition, Indigo is operating a non-store front retail delivery business (Type-9 License# C9-0000286) in California. Pursuant to the terms of the Indigo Agreement, the Company agreed to invest $ 700,000 The Investment shall be made in twelve monthly equal installments of $ 58,333 In exchange, the Company received 40 The value used for this transaction is $1,750,000 and each percentage (1%) of the company is worth $17,500. In the event that the Company is not able to make a payment of $58,333 in any month, it will have 90 days to cure the default. 1,750,000 1 In addition, subject to the terms and conditions of the Indigo Agreement, the Company has the option to acquire an additional 30% interest in Indigo. Upon exercise of the option, the Company would obtain control over Indigo. From late May 2020 until September 30, 2020, the Company was actively involved in development of Indigo’s operations with power to direct the activities and significantly impact Indigo’s economic performance. The Company also has obligations to absorb losses and right to receive benefits from Indigo. As such, in accordance with ASC 810-10-25-38A through 25-38J, Indigo is consolidated as an VIE of the Company. Starting on October 1, 2020, the Company began to explore new locations via purchasing equity into other Brand/Franchises to cover delivery for the entire state of California. Therefore, the Company is not likely to proceed with the option to acquire the additional 30 the Company continues to hold approximately 32 564,819 |
Non-controlling Interest and De
Non-controlling Interest and Deconsolidation of VIE | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Non-controlling Interest And Deconsolidation Of Vie | ||
Non-controlling Interest and Deconsolidation of VIE | 4. Noncontrolling Interest and Deconsolidation of VIE Non-controlling Interest and Deconsolidation of VIE Starting in fiscal year ended June 30, 2020, the Company had a variable interest entity, Indigo Dye Group, for accounting purposes. The Company owned approximately 29 Starting on October 1, 2020, the Company planned to open new locations via purchasing equity in other Brand/Franchises to cover delivery for the entire California. Therefore, the Company is not likely at this time to exercise its option to acquire the additional 30 505,449 40 59,370 32 The net asset value of the Company’s variable interest in Indigo Dye Group was approximately $ 326,812 313,928 no 380,660 441,407 60,747 123,412 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 | 7. Non-controlling Interest and Deconsolidation of VIE Starting in fiscal year ended June 30, 2020, the Company had a variable interest entity, Indigo Dye Group, for accounting purposes. The Company owned approximately 29 Starting on October 1, 2020, the Company plans to open new locations via purchasing equity in other Brand/Franchises to cover delivery for the entire California. Therefore, the Company is not likely at this time to exercise its option to acquire the additional 30 505,449 40 59,370 32 The net asset value of the Company’s variable interest in Indigo Dye Group was approximately $ 326,812 313,928 441,407 81,725 |
Litigation
Litigation | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Litigation | 5. Legal Proceedings Litigation From time to time and in the course of business, we may become involved in various legal proceedings seeking monetary damages and other relief. The amount of the ultimate liability, if any, from such claims cannot be determined. As of December 31, 2021, there were no legal claims pending or threatened against the Company that, in the opinion of our management would be likely to have a material adverse effect on our financial position, results of operations or cash flows. However, as of the date of this filing, we were involved in the following legal proceedings. ● On December 11, 2013, the Company was served with a complaint from two convertible note holders and investors in the Company. On February 21, 2017, the Company signed a settlement agreement with the plaintiffs in the matter of Hannan vs. Sugarmade. Under the terms of the settlement agreement, the Company agreed to pay the plaintiffs $ 227,000 80,000 80,000 227,000 80,000 There can be no assurances the ultimate liability relative to these lawsuits will not exceed what is outlined above. | 8. Litigation From time to time and in the course of business, we may become involved in various legal proceedings seeking monetary damages and other relief. The amount of the ultimate liability, if any, from such claims cannot be determined. As of June 30, 2021, there were no legal claims pending or threatened against the Company that, in the opinion of our management would be likely to have a material adverse effect on our financial position, results of operations or cash flows. However, as of the date of this filing, we were involved in the following legal proceedings. ● On December 11, 2013, the Company was served with a complaint from two convertible note holders and investors in the Company. On February 21, 2017, the Company signed a settlement agreement with the plaintiffs in the matter of Hannan vs. Sugarmade. Under the terms of the settlement agreement, the company agreed to pay the plaintiffs $ 227,000 80,000 80,000 227,000 80,000 There can be no assurances the ultimate liability relative to these lawsuits will not exceed what is outlined above. |
Cash
Cash | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | ||
Cash | 6. Cash Cash and cash equivalents consist of amounts held as bank deposits and highly liquid debt instruments purchased with an original maturity of three months or less. From time to time, we may maintain bank balances in interest bearing accounts in excess of the $ 250,000 As of December 31, 2021 and June 30, 2021, the Company held cash in the amount of $ 63,375 1,396,944 50,919 2,026 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 | 9. Cash Cash and cash equivalents consist of amounts held as bank deposits and highly liquid debt instruments purchased with an original maturity of three months or less. From time to time, we may maintain bank balances in interest bearing accounts in excess of the $ 250,000 |
Accounts Receivable
Accounts Receivable | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Credit Loss [Abstract] | ||
Accounts Receivable | 7. Accounts Receivable Accounts receivable are carried at their estimated collectible amounts, net of any estimated allowances for doubtful accounts. We grant unsecured credit to our customer’s deemed credit worthy. Ongoing credit evaluations are performed and potential credit losses estimated by management are charged to operations on a regular basis. At the time, any particular account receivable is deemed uncollectible, the balance is charged to the allowance for doubtful accounts. The Company had accounts receivable, net of allowance, of $ 707,509 435,598 321,325 259,761 | 10. Accounts Receivable Accounts receivable are carried at their estimated collectible amounts, net of any estimated allowances for doubtful accounts. We grant unsecured credit to our customer’s deemed credit worthy. Ongoing credit evaluations are performed and potential credit losses estimated by management are charged to operations on a regular basis. At the time, any particular account receivable is deemed uncollectible, the balance is charged to the allowance for doubtful accounts. The Company had accounts receivable, net of allowance, of $ 435,598 134,517 259,761 447,498 |
Loan Receivable
Loan Receivable | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Receivables [Abstract] | ||
Loan Receivable | 8. Loans Receivable Loan Receivable Loan receivables amounted $ 196,000 196,000 0 196,000 0 196,000 | 11. Loan Receivable Loan receivables amounted $ 196,000 0 196,000 1,365 1,365 0 |
Loan Receivable _ Related Parti
Loan Receivable – Related Parties | 12 Months Ended |
Jun. 30, 2021 | |
Loan Receivable Related Parties | |
Loan Receivable – Related Parties | 12. Loan Receivable – Related Parties Loan receivables – related parties amounted to $ 0 318,535 122,535 196,000 |
Inventory
Inventory | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | ||
Inventory | 9. Inventory Inventory consists of finished goods paper and paper-based products such as paper cups and food containers ready for sale and is stated at the lower of cost or market. We value our inventory using the weighted average costing method. Our Company’s policy is to include as a part of inventory any freight incurred to ship the product from our contract manufacturers to our warehouses. Outbound freights costs related to shipping costs to our customers are considered period costs and reflected in selling, general and administrative expenses. We regularly review inventory and consider forecasts of future demand, market conditions and product obsolescence. If the estimated realizable value of our inventory is less than cost, we make provisions in order to reduce its carrying value to its estimated market value. On a consolidated basis, as of December 31, 2021 and June 30, 2021, the balance for the inventory totaled $ 643,920 and $ 441,582 , respectively. $ 0 was reserved for obsolescent inventory for the period ended December 31, 2021, and $ 0 were reserved for obsolescent inventory for the year ended June 30, 2021. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 | 13. Inventory Inventory consists of finished goods paper and paper-based products such as paper cups and food containers ready for sale and is stated at the lower of cost or market. We value our inventory using the weighted average costing method. Our Company’s policy is to include as a part of inventory any freight incurred to ship the product from our contract manufacturers to our warehouses. Outbound freights costs related to shipping costs to our customers are considered period costs and reflected in selling, general and administrative expenses. We regularly review inventory and consider forecasts of future demand, market conditions and product obsolescence. If the estimated realizable value of our inventory is less than cost, we make provisions in order to reduce its carrying value to its estimated market value. On a consolidated basis, as of June 30, 2021 and 2020, the balance for the inventory totaled $ 441,582 679,471 0 15,445 |
Other Current Assets
Other Current Assets | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other Current Assets | 10. Other Current Assets As of December 31, 2021 and June 30, 2021, other current assets consisted of the following: Schedule of Other Current Assets For the period ended December 31, 2021 June 30, 2021 Prepaid Deposit $ 82,776 $ 113,988 Prepaid Inventory 52,583 — Prepaid Expenses 47,270 35,590 Undeposited Funds 2,323 — Other — 32,879 Total: $ 184,952 $ 182,457 | 14. Other Current Assets As of June 30, 2021 and 2020, other current assets consisted of the following: Schedule of Other Current Assets 2021 2020 For the years ended June 30, 2021 2020 Prepaid Deposit $ 113,988 $ 48,483 Prepaid Inventory — 65,449 Employees Advance — 324 Prepaid Expenses 35,590 35,157 Undeposited Funds - Others 32,879 113,991 Total $ 182,457 $ 263,404 |
Intangible Asset
Intangible Asset | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible Asset | 11. Intangible Asset On April 1, 2017, the Company entered into a distribution and intellectual property assignment agreement with Wagner Bartosch, Inc. (“Wagner’’) for use of their Divider’™ used in frozen desserts and other related uses. In lieu of cash payment under the agreement, the Company was obliged to issue common shares of the Company valued at $ 75,000 ten years 2,017 1,400 On May 17, 2021, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) by and between Carnaby Spot Bay Corp, a California corporation and a wholly owned subsidiary of the Company (“Merger Sub”), Lemon Glow Company, a California corporation (the “Lemon Glow”) and Ryan Santiago (the “Shareholder Representative”), pursuant to which, upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub would merge with and into Lemon Glow, with Lemon Glow being the surviving corporation (the “Merger”). The Company valued the cannabis cultivation license from Lemon Glow at $ 10,648,378 9 | 15. Intangible Asset On April 1, 2017, the Company entered into a distribution and intellectual property assignment agreement with Wagner Bartosch, Inc. (“Wagner’’) for use of their Divider’™ used in frozen desserts and other related uses. In lieu of cash payment under the agreement, the Company was obliged to issue common shares of the Company valued at $ 75,000 ten years 1,400 1,400 On May 17, 2021, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) by and between Carnaby Spot Bay Corp, a California corporation and a wholly owned subsidiary of the Company (“Merger Sub”), Lemon Glow Company, a California corporation (the “Lemon Glow”) and Ryan Santiago (the “Shareholder Representative”), pursuant to which, upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub would merge with and into Lemon Glow, with Lemon Glow being the surviving corporation (the “Merger”). The Company valued the cannabis cultivation license from Lemon Glow at $ 10,637,000 9 |
Goodwill
Goodwill | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | 12. Goodwill Goodwill arises from the acquisition method of accounting for business combinations and represents the excess of the purchase price over the fair value of the net assets and other identifiable intangible assets acquired. The fair values of net tangible assets and intangible assets acquired are based upon preliminary valuations and the Company’s estimates and assumptions are subject to change within the measurement period. There was $ 757,648 757,648 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 | 16. Goodwill Goodwill arises from the acquisition method of accounting for business combinations and represents the excess of the purchase price over the fair value of the net assets and other identifiable intangible assets acquired. The fair values of net tangible assets and intangible assets acquired are based upon preliminary valuations and the Company’s estimates and assumptions are subject to change within the measurement period. There was $ 757,648 0 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Property, Plant and Equipment | 13. Property, Plant and Equipment, net Property, Plant and Equipment As of December 31, 2021 and June 30, 2021, property, plant and equipment consisted of the following: Schedule of Property Plant and Equipment Fixed Assets December 31, 2021 June 30, 2021 Office and equipment $ 820,149 $ 820,149 Motor vehicles 442,323 166,079 Land 2,554,767 1,922,376 Building 197,609 — Leasehold Improvement 472,654 365,620 Total 4,487,502 3,274,224 Less: accumulated depreciation (623,122 ) (524,884 ) Property, Plant and Equipment, net $ 3,864,380 $ 2,749,340 For the periods ended December 31, 2021 and June 30, 2021, depreciation expenses amounted to $ 98,238 105,982 The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no Sugarmade, Inc. and Subsidiary Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 | 17. Property, Plant and Equipment As of June 30, 2021 and 2020, property, plant and equipment consisted of the following: Schedule of Property Plant and Equipment June 30, 2021 June 30, 2020 Office and equipment $ 820,149 $ 739,447 Motor vehicles 166,079 164,244 Land 1,922,376 — Leasehold Improvement 365,620 24,742 Total 3,274,224 928,163 Less: accumulated depreciation (524,884 ) (429,116 ) Plant and Equipment, net $ 2,749,340 $ 499,047 For the years ended June 30, 2021 and 2020, depreciation expenses amounted to $ 105,982 110,032 The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no |
Equity Method Investments in Af
Equity Method Investments in Affiliates | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Investments in and Advances to Affiliates [Abstract] | ||
Equity Method Investments in Affiliates | 14. Equity Method Investments in Affiliates Investment to Indigo Dye Inc. For the fiscal year ended June 30, 2020, the Company accounted for its investment in Indigo Dye Group as a variable interest entity. The Company owned approximately 29 During quarter ended December 31, 2020, the Company began plans to open new locations via purchasing equity in other Brand/Franchises to cover delivery for the entire California. Therefore, the Company is not likely at this time to exercise its option to acquire the additional 30 As of October 1, 2020, the Company ceased to have control over the day-to-day business of Indigo and it was deconsolidated and recorded as an investment in nonconsolidated affiliate at its $564,819 estimated fair value and changed to equity method of accounting 40 43,800 of the investment as of December 31, 2020 due to lack of providing financial information from Indigo Dye Inc. As of December 31, 2021, the Company still held approximately 32 % of the ownership of Indigo Dye Group. As of December 31, 2021, the Company recorded equity method investment in affiliates at $ 380,660 60,747 | 18. Equity Method Investments in Affiliates Investment to Indigo Dye Inc. – For the fiscal syear ended June 30, 2020, the Company accounted for its investment in Indigo Dye Group as a variable interest entity. The Company owned approximately 29 During quarter ended December 31, 2020, the Company plans to open new locations via purchasing equity in other Brand/Franchises to cover delivery for the entire California. Therefore, the Company is not likely at this time to exercise its option to acquire the additional 30% As of October 1, 2020, the Company ceased to have control over the day-to-day business of Indigo and it was deconsolidated and recorded as an investment in nonconsolidated affiliate at its $564,819 estimated fair value and changed to equity method of accounting. 40 43,800 32 As of June 30, 2021, the Company recorded equity method investment in affiliates at $ 441,407 81,725 |
Unrealized Gain on Securities
Unrealized Gain on Securities | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Unrealized Gain On Securities | ||
Unrealized Gain on Securities | 15. Unrealized Gain on Securities In October 2019, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with iPower Inc., formerly known as BZRTH Inc. (the “Company”), a Nevada corporation, pursuant to which, among other things, the Company agreed to buy 100 870,000 7,130,000 650,000 3,500,000 Due to certain disputes that arose between the parties with respect to certain terms and conditions contained in the Share Exchange Agreement, the parties entered into a Rescission and Mutual Release Agreement on January 15, 2020 (the “Rescission Agreement”). Pursuant to the terms of the Rescission Agreement, iPower Inc. and its stockholders returned the shares of Sugarmade common stock and preferred stock and issued to Sugarmade 102,248 204,496 1,451,922 During the quarter ended December 31, 2021, the Company sold 150,199 shares of iPower Inc.’s common stock valued at market value of $ 464,711 . For the periods ended December 31, 2021 and June 30, 2021, the Company recorded unrealized (loss) gain on securities amounted $( 862,692 1,451,922 133,942 1,451,922 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 | 19. Unrealized Gain on Securities In October 2019, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with iPower Inc., formerly known as BZRTH Inc. (the “Company”), a Nevada corporation, pursuant to which, among other things, the Company agreed to buy 100% 870,000 7,130,000 650,000 3,500,000 Due to certain disputes that arose between the parties with respect to certain terms and conditions contained in the Share Exchange Agreement, the parties entered into a Rescission and Mutual Release Agreement on January 15, 2020 (the “Rescission Agreement”). Pursuant to the terms of the Rescission Agreement, iPower Inc. and its stockholders returned the shares of Sugarmade common stock and preferred stock and issued to Sugarmade 102,248 204,496 1,451,922 For the years ended June 30, 2021 and 2020, unrealized gain on securities amounted at current market value of $ 1,451,922 0 |
Unearned Revenue
Unearned Revenue | 12 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Unearned Revenue | 20. Unearned Revenue Unearned revenue amounted $ 0 53,248 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Payables and Accruals [Abstract] | ||
Accounts Payable and Accrued Liabilities | 16. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities amounted $ 2,421,705 2,058,839 Schedule of Accounts Payable and Accrued Liabilities December 31, 2021 June 30, 2021 Accounts payable $ 1,857,720 $ 1,464,692 Accrued liabilities 305,127 310,528 Contingent liabilities 258,858 283,619 Total accounts payable and accrued liabilities: $ 2,421,705 $ 2,058,839 | 21. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities amounted $ 2,058,839 1,583,228 Schedule of Accounts Payable and Accrued Liabilities June 30, 2021 June 30, 2020 Accounts payable $ 1,464,692 $ 1,330,939 Accrued liabilities 310,528 25,289 Contingent liabilities 283,619 227,000 Total accounts payable and accrued liabilities: $ 2,058,839 $ 1,583,228 |
Other Payables
Other Payables | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Other Payables | ||
Other Payables | 17. Other Payables Other payables amounted $ 626,163 and $ 750,485 as of December 31, 2021 and June 30, 2021, respectively. Other payables are mainly credit card payables. As of December 31, 2021, the Company had 8 credit cards, one American Express is a charge card with no limit and zero interest. The remaining 7 cards had total credit limit of $ 85,000 , and APR from 11.24 % to 29.99 %. As of December 31, 2021 and June 30, 2021, the Company had credit cards interest expense of $ 3,839 8,961 | 22. Other Payables Other payables amounted $ 750,485 691,801 8 no 85,000 11.24 29.99 |
Customer Deposits
Customer Deposits | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Customer Deposits | ||
Customer Deposits | 18. Customer Deposits Customer deposits amounted $ 887,800 751,919 | 23. Customer Deposits Customer deposits amounted $ 751,919 466,337 |
Convertible Notes
Convertible Notes | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Debt Disclosure [Abstract] | ||
Convertible Notes | 19. Convertible Notes As of December 31, 2021 and June 30, 2021, the balance owing on convertible notes, net of debt discount, with terms as described below was $ 1,363,698 1,439,116 Convertible notes issued prior to the year ended June 30, 2021 were as follows: Convertible note 1: On August 24, 2012, the Company entered into a convertible promissory note with an accredited investor for $ 25,000 6 10% 25% Convertible note 2: On September 18, 2012, the Company entered into a convertible promissory note with an accredited investor for $ 25,000 6 10% 25% Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 Convertible note 3: On December 21, 2012, the Company entered into a convertible promissory note with an accredited investor for $ 100,000 6 10% 25% Convertible note 4: On November 16, 2018, the Company entered into a convertible promissory note with an accredited investor for $ 40,000 one year 8% 0.07 Convertible note 5: On December 3, 2018, the Company entered into a convertible promissory note with an accredited investor for $ 35,000 one year 8% 0.07 Convertible note 6: On October 31, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 139,301 360 8% 0.008 60% 20 Convertible note 7: On November 1, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 100,000 360 8% 0.008 60% 20 Convertible note 8: On September 8, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 110,000 10,000 180 12% 0.01 65% 20 Convertible note 9: On September 10, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 227,700 20,700 7,000 360 8% 60% 20 117,700 7,352 90,167,551 Convertible note 10: On September 24, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 212,300 19,300 180 12% 0.01 65% 20 63,690 Convertible note 11: On October 8, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 231,000 21,000 180 12% 0.01 0.01 65% 20 69,300 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 Convertible note 12: On October 13, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 275,000 25,000 180 12% 0.01 0.01 65% 20 82,500 Convertible note 13: On November 10, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 58,300 5,300 360 8% 60% 20 Convertible note 14: On February 8, 2021, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 69,300 6,300 360 8% 60% 20 Convertible note 15: On June 14, 2021, the Company issued a convertible promissory note with an accredited investor for a total amount of $ 300,000 three years 1% 0.0036 85% Convertible note 16: On November 10, 2021, the Company entered into an assignment and assumption agreement with the assignor and assignee for two assigned convertible notes in total face value of $ 277,903 239,300 38,603 360 10% 60% 20 In connection with the convertible debt, debt discount balance as of December 31, 2021 and June 30, 2021 were $ 234,435 391,086 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 | 24. Convertible Notes As of June 30, 2021 and June 30, 2020, the balance owing on convertible notes, net of debt discount, with terms as described below was $ 1,439,116 1,740,122 Convertible notes issued prior to the year ended June 30, 2020 were as follows: Convertible note 1: On August 24, 2012, the Company entered into a convertible promissory note with an accredited investor for $ 25,000 6 10 25 Convertible note 2: On September 18, 2012, the Company entered into a convertible promissory note with an accredited investor for $ 25,000 6 10 25 Convertible note 3: On December 21, 2012, the Company entered into a convertible promissory note with an accredited investor for $ 100,000 6 10 25 Convertible note 4: On November 1, 2018, the Company entered into a convertible promissory note with an accredited investor for $ 100,000 one year 8 0.07 Convertible note 5: On November 16, 2018, the Company entered into a convertible promissory note with an accredited investor for $ 80,000 one year 8 0.07 Convertible note 6: On November 16, 2018, the Company entered into a convertible promissory note with an accredited investor for $ 40,000 one year 8 0.07 Convertible note 7: On December 3, 2018, the Company entered into a convertible promissory note with an accredited investor for $ 35,000 one year 8 0.07 Convertible note 8: On September 27, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 165,000 16,250 360 8 55 20 Convertible note 9: On October 28, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 225,500 23,000 360 8 60 20 Convertible note 10: On October 28, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 225,500 23,000 360 8 60 20 Convertible note 11: On November 29, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 106,150 11,150 360 8 60 20 Convertible note 12: On November 29, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 106,150 11,150 360 8 60 20 Convertible note 13: On December 10, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 106,700 11,700 360 8 60 20 Convertible note 14: On December 10, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 106,700 11,700 360 8 60 20 Convertible note 15: On December 27, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 112,200 12,200 360 8 60 20 Convertible note 16: On October 31, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 139,301 360 8 0.008 Convertible note 17: On November 1, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 100,000 360 8 0.008 Convertible note 18: On January 3, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 112,200 12,200 360 8 60 20 Convertible note 19: On January 14, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 150,000 3,000 360 8 38 10 Convertible note 20: On January 22, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 128,000 3,000 360 10 35 20 Convertible note 21: On February 4, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 110,000 10,000 360 12 0.001 Convertible note 22: On February 18, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 100,000 10,000 360 12 0.001 Convertible note 23: On March 5, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 125,000 3,000 360 8 38 10 Convertible note 24: On April 24, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 75,000 2,000 360 8 38 10 Convertible note 25: On June 10, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 36,300 3,300 3,000 360 8 60 20 Convertible note 26: On June 18, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 36,300 3,300 3,000 360 8 60 20 Convertible notes issued prior to the year ended June 30, 2021 were as follows: Convertible note 27: On July 6, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 77,000 2,000 360 8 38 10 Convertible note 28: On July 7, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 153,000 3,000 360 10 35 20 Convertible note 29: On July 16, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 260,700 23,700 12,000 360 8 60 20 Convertible note 30: On July 21, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 200,200 18,200 7,000 360 8 60 20 Convertible note 31: On September 8, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 110,000 10,000 180 12 0.01 After the six-month anniversary of this note, the conversion price shall be equal to the lower of the fixed price of $0.01 or 65 20 Convertible note 32: On September 10, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 227,700 20,700 7,000 360 8 60 20 117,700 7,352 90,167,551 110,000 Convertible note 33: On September 24, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 212,300 19,300 180 12 0.01 After the six-month anniversary of this note, the conversion price shall be equal to the lower of the fixed price of $0.01 or 65 20 Convertible note 34: On October 8, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 231,000 21,000 180 12 0.01 After the six-month anniversary of this note, the conversion price shall be equal to the lower of the fixed price of $0.01 or 65 20 Convertible note 35: On October 13, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 275,000 25,000 180 12 0.01 After the six-month anniversary of this note, the conversion price shall be equal to the lower of the fixed price of $0.01 or 65 20 Convertible note 36: On November 10, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 58,300 5,300 360 8 60 20 Convertible note 37: On February 8, 2021, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 69,300 6,300 360 8 60 20 On June 14, 2021, the Company issued a convertible promissory note with an accredited investor for a total amount of $ 300,000 three years 1 0.0036 85 5 In connection with the convertible debt, debt discount balance as of June 30, 2021 and June 30, 2020 were $ 391,086 880,879 As of the year ended June 30, 2021, debt discount of the convertible notes consisted of following: Schedule of Promissory Notes Debt Discount Debt Discount Start Date End Date As of 6/30/2020 Addition Amortization As of 6/30/2021 9/27/2019 9/25/2019 $ 35,553 $ - $ (35,553 ) $ - 9/27/2019 9/25/2019 3,884 (3,884 ) 10/28/2019 10/27/2020 65,069 - (65,069 ) - 10/28/2019 10/27/2020 7,499 - (7,499 ) - 10/28/2019 10/27/2020 65,069 - (65,069 ) - 10/28/2019 10/27/2020 7,499 - (7,499 ) - 11/29/2020 11/30/2020 39,605 - (39,605 ) - 11/29/2020 11/30/2020 4,648 - (4,648 ) - 11/29/2020 11/30/2020 39,605 - (39,605 ) - 11/29/2020 11/30/2020 4,648 - (4,648 ) - 12/10/2019 12/10/2020 42,309 - (42,309 ) - 12/10/2019 12/10/2020 5,211 - (5,211 ) - 12/10/2019 12/10/2020 42,309 - (42,309 ) - 12/10/2019 12/10/2020 5,211 - (5,211 ) - 12/27/2019 12/27/2020 49,180 - (49,180 ) - 12/27/2019 12/27/2020 6,000 - (6,000 ) - 1/3/2020 12/27/2020 50,139 - (50,139 ) - 1/3/2020 12/27/2020 6,117 - (6,117 ) - 1/14/2020 1/14/2021 79,525 - (79,525 ) - 1/14/2020 1/14/2021 1,623 - (1,623 ) - 1/22/2020 1/22/2021 53,327 - (53,327 ) - 1/22/2020 1/22/2021 1,689 - (1,689 ) - 2/4/2020 8/4/2020 21,154 - (21,154 ) - 2/18/2020 8/18/2020 26,923 - (26,923 ) - 3/5/2020 3/5/2021 82,893 - (82,893 ) - 3/5/2020 3/5/2021 2,038 - (2,038 ) - 4/24/2020 4/24/2021 59,600 - (59,600 ) - 4/24/2020 4/24/2021 1,633 - (1,633 ) - 6/10/2020 6/10/2021 28,356 - (28,356 ) - 6/10/2020 6/10/2021 6,776 - (6,776 ) - 6/18/2020 6/18/2021 29,014 - (29,014 ) - 6/18/2020 6/18/2021 6,775 - (6,775 ) - 7/6/2020 7/6/2021 - 75,000 (75,000 ) - 7/6/2020 7/6/2021 - 2,000 (2,000 ) - 7/7/2020 7/7/2021 - 150,000 (150,000 ) - 7/7/2020 7/7/2021 - 3,000 (3,000 ) - 7/16/2020 7/16/2021 - 225,000 (225,000 ) - 7/16/2020 7/16/2021 - 35,700 (35,700 ) - 7/21/2020 7/21/2021 - 175,000 (175,000 ) - 7/21/2020 7/21/2021 - 25,200 (25,200 ) - 9/10/2020 9/10/2021 - 200,000 (160,548 ) 39,452 9/10/2020 9/10/2021 - 27,700 (22,388 ) 5,312 11/10/2020 11/11/2021 - 50,000 (31,694 ) 18,306 11/10/2020 11/11/2021 - 8,300 (5,276 ) 3,024 9/8/2020 3/10/2021 - 93,077 (93,077 ) - 9/8/2020 3/10/2021 - 10,000 (10,000 ) - 9/13/2020 3/25/2021 - 189,093 (189,093 ) - 9/13/2020 3/25/2021 - 19,300 (19,300 ) - 10/8/2020 4/9/2021 - 210,000 (210,000 ) - 10/8/2020 4/9/2021 - 21,000 (21,000 ) - 10/13/2020 4/13/2021 - 250,000 (250,000 ) - 10/13/2020 4/13/2021 - 25,000 (25,000 ) - 2/8/2021 2/9/2022 - 59,985 (23,273 ) 36,712 2/8/2021 2/9/2022 - 9,315 (3,614 ) 5,701 6/14/2021 6/14/2024 - 286,765 (4,186 ) 282,578 Total: $ 880,879 $ 2,150,435 $ (2,640,228 ) $ 391,086 |
Derivative Liabilities
Derivative Liabilities | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Derivative Liabilities | ||
Derivative Liabilities | 20. Derivative liabilities Derivative Liabilities The derivative liability is derived from the conversion features in note 19 and stock warrant in note 21 All were valued using the weighted-average Binomial option pricing model using the assumptions detailed below. As of December 31, 2021 and June 30, 2021, the derivative liability was $ 2,222,310 2,217,361 65,073 3,992,108 Schedule of Binomial Model Assumptions Inputs June 30, 2021 Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.01 0.46 % Expected Volatility 89 236 % December 31, 2021 Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.05-0.53 % Expected Volatility 127 234 % Fair value of the derivative is summarized as below: Schedule of Fair Value of Derivative Beginning Balance, June 30, 2021 $ 2,217,361 Additions $ 708,948 Mark to Market $ 65,073 Cancellation of Derivative Liabilities Due to Cash Repayment $ — Reclassification to APIC Due to Conversions $ (769,071 ) Ending Balance, December 31, 2021 2,222,310 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 | 25. Derivative Liabilities The derivative liability is derived from the conversion features in note 22 and stock warrant in note 24. All were valued using the weighted-average Binomial option pricing model using the assumptions detailed below. As of June 30, 2021 and 2020, the derivative liability was $ 2,217,361 5,597,095 1,087,485 1,442,295 Schedule of Binomial Model Assumptions Inputs June 30, 2020 Annual Dividend Yield — Expected Life (Years) 0.50 1.00 Risk-Free Interest Rate 0.16 2.10 % Expected Volatility 113 175 % June 30, 2021 Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.01 0.46 % Expected Volatility 89 236 % Fair value of the derivative is summarized as below: Schedule of Fair Value of Derivative Beginning Balance, June 30, 2020 $ 5,597,095 Additions $ 2,663,892 Mark to Market $ (230,573 ) Cancellation of Derivative Liabilities Due to Cash Repayment $ (856,910 ) Reclassification to APIC Due to Conversions $ (4,956,143 ) Ending Balance, June 30, 2021 2,217,361 |
Stock Warrants
Stock Warrants | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Stock Warrants | ||
Stock Warrants | 21. Stock warrants Stock Warrants On September 7, 2018, the Company entered into a settlement agreement with several investors to settle all disputes by issuing additional unrestricted shares. In connection with the note each individual investor will also receive warrants equal to the number of the shares the investors own as of the effective date of the settlement agreement. The warrants have a life of five years 56,730 405 1,042 On February 4, 2020, the Company entered into a warrant agreement with an accredited investor for up to 10,000,000 0.008 five years 80,000 6,000 20,000 As of December 31, 2021 and June 30, 2021, the total fair value of the warrant liability was $ 6,405 21,042 | 26. Stock Warrants On September 7, 2018, the Company entered a settlement agreement with several investors to settle all disputes by issues additional unrestricted shares. In connection with the note each individual investor will also receive warrants equal to the number of the shares the investors own as of the effective date of the settlement agreement. The warrants have a life of five years 56,730 1,042 1,910 On February 4, 2020, the Company entered a warrant agreement with an accredited investor up to 10,000,000 0.008 five years 80,000 20,000 78,000 As of June 30, 2021 and June 30, 2020, the total fair value of the warrant liability was $ 21,042 79,910 The Binomial model with the following assumption inputs: Schedule of Assumptions Inputs for Warrants Warrants liability: June 30, 2020 Annual dividend yield — Expected life (years) 3.0 5.0 Risk-free interest rate 0.18 1.69 % Expected volatility 137 318 % Warrants liability: June 30, 2021 Annual dividend yield — Expected life (years) 2.0 4.0 Risk-free interest rate 0.18 0.46 % Expected volatility 132 166 % Schedule of Warrants Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining contractual life Outstanding at June 30, 2019 1,083,880 $ 0.034 5 Expired (505,000 ) 0.15 Granted 1,000,000 0.008 5 Outstanding at June 30, 2020 1,578,880 $ 0.021 4 Expired - Granted - Outstanding at June 30, 2021 1,578,880 $ 0.026 3 |
Note Payable
Note Payable | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Debt Disclosure [Abstract] | ||
Note Payable | 22. Note payable Note Payable Note Payable Due to Bank During October 2011, we entered into a revolving demand note (line of credit) arrangement with HSBC Bank USA, with a revolving borrowing limit of $ 150,000 0.25 5.5 In the event the deposit account is not established or minimum balance maintained, HSBC can charge a higher rate of interest of up to 4.0% above prime rate. 25,982 25,982 Notes Payable Due to Non-related Parties On June 15, 2018, the Company entered into a promissory note with an accredited investor. The original principal amount was $ 20,000 and the note bears 8 % interest per annum. The note was payable upon demand. As of December 31, 2021 and June 30, 2021, this note had a balance of $ 20,000 and $ 20,000 , with unpaid accrued interest expenses of $ 12,900 11,000 respectively. On October 6, 2020, the Company entered into a promissory note with Darryl Kuecker, and Shirley Ann Hunt (the “Trustee”) for borrowing $ 1,390,000 with annual interest rate of 6% due in 30 years . Darryl Kuecker, Trustee of the 2002 Darry Keucker Revocable Trust as to an undivided 36 % interest, and Shirley Ann Hunt, Trustee of the 2002 Shirley Ann Hunt Revocable Trust as to an undivided 64 % interest. Principal and interest shall be payable on monthly basis , in installments of $ 8,333.75 , beginning on November 1, 2020 and until September 1, 2050. Payments to be divided and made separately to each beneficiary per the beneficiary’s instruction: $ 3,000.15 to Darryl Kuecker, Trustee and $ 5,333.60 to Shirley Hunt, Trustee. As of December 31, 2021 and June 30, 2021, the Company has an outstanding balance of $ 1,368,479 and $ 1,378,222 , respectively. For the periods ended December 31, 2021 and year ended June 30, 2021, the Company paid interest expense of $ 41,238 57,892 On May 12, 2021, the Company entered into a promissory note with Lemon Glow Shareholders. The original principal amount was $ 3,976,000 5 36 3,519,984 3,626,000 89,733 0 On May 17, 2021, the Company entered into a note with Hyundai financing in total principal amount of $ 13,047 251 11,787 13,047 Notes Payable Due to Related Parties On January 23, 2013, the Company entered into a promissory note with a former employee of the Company. The original principal amount was $ 40,000 0 15,427 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 | 27. Note Payable Note payable due to bank During October 2011, we entered into a revolving demand note (line of credit) arrangement with HSBC Bank USA, with a revolving borrowing limit of $ 150,000 0.25 3.25 In the event the deposit account is not established or minimum balance maintained, HSBC can charge a higher rate of interest of up to 4.0% above prime rate. 25,982 25,982 Notes payable due to non-related parties On June 15, 2018, the Company entered into a promissory note with one of the accredited investors. The original principal amount was $ 20,000 and the note bears 8 % interest per annum. The note was payable upon demand. As of June 30, 2021 and 2020, this note had a balance of $ 20,000 and $ 20,000 , respectively. Notes payable due to related parties On January 23, 2013, the Company entered into a promissory note with its former employee of the Company who owns less than 5 40,000 15,427 15,427 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 28. Related Party Transactions On January 23, 2013, SWC received a loan from an employee for $ 40,000 15,427 15,427 On July 7, 2016, SWC received a loan from an employee. The amount of the loan bears no interest and amortized on a monthly basis over the life of the loan. As of June 30, 2021 and 2020, the balance of the loans payable were $ 49,447 30,000 On November 21, 2016, SWC received a loan from an employee. The amount of the loan bears no interest and due in September 30, 2017 83,275 5,943 On September 1, 2017, the Company had related party transaction with LMK Capital LLC, a related party company owned by Jimmy Chan, the Company’s CEO. The amount of the loan payable/receivable bears no interest and due on demand. As of June 30, 2021 and 2020, the balance of the loan payable to LMK were $ 26,452 0 0 122,535 On May 25, 2021, Lemon Glow received a loan from an officer. The amount of the loan bears no interest and due on demand. As of June 30, 2021 and 2020, the balance of the loans were $ 3,000 0 As of June 30, 2021 and 2020, the Company had outstanding balance of $ 179,258 78,000 |
Loans Payable
Loans Payable | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Loans Payable | ||
Loans Payable | 23. Loans payable Loans Payable On October 1, 2017, SGMD entered a straight promissory note with Greater Asia Technology Limited (Greater Asia) for borrowing $ 100,000 June 30, 2018 33.33 36,695 49,541 During the year ended June 30, 2019, the Company entered a series of short-term loan agreements with Greater Asia Technology Limited (Greater Asia) for borrowing $ 375,000 40 50 100,000 100,000 On June 6, 2019, SWC entered an equipment loan agreement with a bank with maturity on June 21, 2024 648 15,701 19,506 On July 28, 2020, we entered into a loan borrowed $ 159,900 3.75 731 500,000 731 2,527 On January 25, 2021, we entered into a loan borrowed $ 96,595 1.00 The Company accounting for the PPP loan under Topic 470: (a). Initially record the cash inflow from the PPP loan as a financial liability and would accrue interest in accordance with the interest method under ASC Subtopic 835-30; (b). Not impute additional interest at a market rate; (c). Continue to record the proceeds from the loan as a liability until either (1) the loan is partly or wholly forgiven and the debtor has been legally released or (2) the debtor pays off the loan; (d). Would reduce the liability by the amount forgiven and record a gain on extinguishment once the loan is partly or wholly forgiven and legal release is received. As of December 31, 2021 and June 30, 2021, the total outstanding PPP loan balance was $ 606,495 256,495 On November 20, 2020, the Company entered into a loan with the Business Backer for borrowing $ 215,760 4% 3,425 29,166 109,925 On February 15, 2021, the Company entered a loan with Manuel Rivera for borrowing $ 100,000 with maturity date on September 15, 2021 ; the note bears a monthly interest of $ 3,500 for 7 months. The Company shall pay the investor a fee of $70,000 within 45 days of its first harvest . As of December 31, 2021 and June 30, 2021, the outstanding loan balance under this note was $ 100,000 and $ 100,000 , respectively. As of December 31, 2021 and June 30, 2021, the unpaid interest expense under this note was $ 14,000 35,000 On March 24, 2021, the Company entered into auto loan agreement with John Deere Financial for an auto loan of $ 69,457 60 2.85 60,752 65,726 On August 4, 2021, the Company entered into a loan with Coastline Lending Group of $ 490,000 3,471 36 8.5 August 14, 2024 490,000 On October 1, 2021, the Company entered into five auto loan agreements with Ally Auto to purchase five Ram Cargo Vans in total finance amount of $ 124,332 for 60 months at annual percentage rate of 6.44 %. The monthly payment is $418 per vehicle. As of December 31, 2021, the Company has an outstanding balance of $ 117,435 . Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 On October 5, 2021, the Company entered into an auto loan agreement with Hitachi Capital America Corp. to purchase one Ram Cargo Van in total finance amount of $ 32,464 60 8.99 587 31,563 On October 5, 2021, the Company entered into two auto loan agreements with Hitachi Capital America Corp. to purchase two Ram Cargo Vans in total finance amount of $ 64,730 60 8.99 674 62,932 As of December 31, 2021 and June 30, 2021, the Company had an outstanding loan balance of $ 1,650,739 814,494 836,245 701,193 392,605 308,588 | 29. Loans Payable On October 1, 2017, SGMD entered a straight promissory note with Greater Asia Technology Limited (Greater Asia) for borrowing $ 100,000 June 30, 2018 33.33 49,541 96,401 During the year ended June 30, 2019, the Company entered a series of short-term loan agreements with Greater Asia Technology Limited (Greater Asia) for borrowing $ 375,000 40 50 100,000 100,000 On January 6, 2015, the Company entered into repayment agreement with its former employee for a loan of $ 9,500 no 0 3,584 On July 1, 2012, Carryout Supplies entered an equipment loan agreement with a bank with maturity on June 21, 2024 648 16,805 24,524 On March 18, 2020, the Company entered into a loan agreement for $ 150,000 0 117,635 On June 26, 2020, the Company entered into a government loan agreement for $ 8,000 0 8,000 On April 27, 2020, we entered into a loan borrowed $ 110,000 1.00 On July 28, 2020, we entered into a loan borrowed $ 159,900 1.00 On January 25, 2021, we entered into a loan borrowed $ 96,595 1.00 The Company accounting for the PPP loan under Topic 470: (a). Initially record the cash inflow from the PPP loan as a financial liability and would accrue interest in accordance with the interest method under ASC Subtopic 835-30; (b). Not impute additional interest at a market rate; (c). Continue to record the proceeds from the loan as a liability until either (1) the loan is partly or wholly forgiven and the debtor has been legally released or (2) the debtor pays off the loan; (d). Would reduce the liability by the amount forgiven and record a gain on extinguishment once the loan is partly or wholly forgiven and legal release is received. On February 15, 2021, the Company entered a promissory note with Manuel Rivera for borrowing $ 100,000 September 15, 2021 3,500 7 The Company shall pay the investor a fee of $70,000 within 45 days of its first harvest 100,000 0 On March 24, 2021, the Company entered into auto loan agreement with John Deere Financial for an auto loan of $ 69,457 60 2.85 65,726 0 As of June 30, 2021 and 2020, the Company had an outstanding loan balance of $ 701,193 517,260 |
Loans Payable _ Related Parties
Loans Payable – Related Parties | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Loans Payable Related Parties | ||
Loans Payable – Related Parties | 24. Loans Payable – Related Parties On January 23, 2013, SWC received a loan from an officer for $ 40,000 . The amount of loan bears no interest. As of December 31, 2021 and June 30, 2021, the balance of loans payable is $ 0 and $ 12,682 , respectively. On July 7, 2016, SWC received a loan from an officer. The amount of the loan bears no interest and amortized on a monthly basis over the life of the loan. As of December 31, 2021 and June 30, 2021, the balance of the loans payable were $ 80,592 and $ 49,447 , respectively. On November 21, 2016, SWC received a loan from an officer. The amount of the loan bears no interest and due in September 30, 2017 0 83,275 On September 1, 2017, the Company had related party transaction with LMK Capital LLC, a related party company owned by Jimmy Chan, the Company’s CEO. The amount of the loan payable/receivable bears no interest and is due on demand. As of December 31, 2021 and June 30, 2021, the balance of the loan payable to LMK were $ 124,287 and $ 15,427 , respectively, and the balance of loan receivable were $ 0 and $ 0 , respectively. On May 25, 2021, Lemon Glow received a loan from an officer. The amount of the loan bears no interest and due on demand. As of December 31, 2021 and June 30, 2021, the balance of the loans were $ 3,000 3,000 On December 14, 2021, SWC received a loan from an officer. The amount of the loan bears no interest and due on June 14, 2022 20,178 0 As of December 31, 2021 and June 30, 2021, the Company had an outstanding balance of $ 228,057 and $ 163,831 owed to various related parties, respectively. | 29. Loans Payable – Related Parties On July 7, 2016, SWC received a loan from an employee. The amount of the loan bears no 49,447 30,000 On November 21, 2016, SWC received a loan from a former independent consultant. The amount of the loan bears no 83,275 5,943 On May 25, 2021, Lemon Glow received a loan from an officer. The amount of the loan bears no 3,000 0 On September 1, 2017, the Company had related party transaction with LMK Capital LLC, a related party company owned by Jimmy Chan, the Company’s CEO. The amount of the loan payable/receivable bears no interest and due on demand. As of June 30, 2021 and 2020, the balance of the loan payable to LMK were $ 26,452 0 0 122,535 As of June 30, 2021 and 2020, the Company had an outstanding related party loan balance of $ 163,831 35,943 |
Shares to Be Issued
Shares to Be Issued | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Shares To Be Issued | ||
Shares to Be Issued | 25. Shares to Be Issued On April 19, 2018, the Company entered into a consulting agreement with TAAD, LLP. (“the Consultant”) to provide certain financial reporting preparation services. The Company will grant the Consultant 5,000,000 15,000,000 5,000,000 46,500 27,500 Starting July 1, 2021, Mr. Jimmy Chan, the Company’s CEO, receives an annual salary of $ 250,000 50,000,000 10 37,500,000 50,000,000 215,577 110,577 As of December 31, 2021 and June 30, 2021 , the Company had total potential shares to be issued to the consulting agreement of $ 262,077 138,077 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 | 30. Shares to Be Issued As of June 30, 2021 and 2020, the Company had entered into one consulting service agreement and one employment agreement, which had potential shares to be issued in total amount of $ 138,077 101,577 |
Equity Transactions
Equity Transactions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Equity [Abstract] | ||
Equity Transactions | 26. Stockholder’s Equity Equity Transactions The Company is authorized to issue 10,000,000,000 .001 10,000,000 .001 10,010,000,000 10,000,000,000 0.001 10,000,000 0.001 Share issuance during the three months ended September 30, 2021 During the three months ended September 30, 2021, the Company issued 375,600,448 385,266 During the three months ended September 30, 2021, the Company issued 660,571,429 1,849,600 During the three months ended September 30, 2021, the Company issued 2,000,000 5,600,000 Share issuance during the three months ended December 31, 2021 During the three months ended December 31, 2021, the Company issued 214,285,714 150,000 During the three months ended December 31, 2021, the Company issued 369,999,999 444,000 As of December 31, 2021 and June 30, 2021, the Company had 9,022,993,267 7,402,535,677 As of December 31, 2021 and June 30, 2021, the Company had 2,541,500 541,500 As of December 31, 2021 and June 30, 2021, the Company had 1 1 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 | 31. Equity Transactions The Company is authorized to issue 10,000,000,000 .001 10,000,000 .001 As of June 30, 2020, the Company had 1,763,277,230 3,541,500 During the year ended June 30, 2021, the Company issued 2,620,000,001 4,171,000 During the year ended June 30, 2021, the Company issued 2,451,338,059 2,560,369 During the periods from December 14, 2014 through March 31, 2015, the Company issued 2,000,000 Five years from the date of issue (the “Conversion Date”), assuming Investor is approved for l-526 40 500,000 5 During the year ended June 30, 2021, those shares were automatically converted into 360,647,019 2,000,000 500,000 During the year ended June 30, 2021, the Company issued 187,673,367 455,894 During the year ended June 30, 2021, the Company issued 19,600,000 196,000 On May 11, 2021, the Company and Jimmy Chan, the Chief Executive Officer, Chief Financial Officer, and a Director of the Company, entered into the Stock Redemption Agreement, dated as of May 11, 2021, with the Company. Pursuant to the terms of the Stock Redemption Agreement, Mr. Chan agreed to sell, and the Company agreed to purchase, 1,000,000 1.00 1,000,000 As of June 30, 2021, the Company had 7,402,535,677 As of June 30, 2021, the Company had 541,500 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | 27. Commitments and contingencies Commitments and Contingencies On February 23, 2018, the Company entered into lease agreement for a new office space as part of the plan to expand operation, the lease commenced on March 1, 2018. The term of the lease is for five ( 5 st 11,770 3 737,367 The Company’s warehouse along with ancillary office space is located at 20529 East Walnut Drive North, Diamond Bar, California, where we lease approximately 11,627 5 13,022 On February 1, 2021, the Company entered into lease agreement with Magnolia Extracts, LLC dba Nug Ave-Lynwood, a California limited liability company for a certain regulatory permit issued by the City of Lynwood authorizing commercial retailer non-storefront operations at 11118 Wright Road, Lynwood, CA 90262. The lease was set to commence on February 1, 2021. The lease payment shall equal $10,000 per month and the lease term is on month-by-month basis. Parties have agreed that the first month’s rent payment shall equal $7,000 and the Company owed the landlord a refundable security deposit of $20,000 within 10 days of the commencement date. On June 3, 2021, the Company entered into lease agreement with William Chung, a related party of the Company for a 2021 Ford Transit Connect Van. The lease payment shall be $ 926 On June 3, 2021, the Company entered into lease agreement with William Chung, a related party of the Company for two 2021 Hyundai Accent. The lease payment shall be $ 612 On June 3, 2021, the Company entered into lease agreement with William Chung, a related party of the Company for a 2021 Hyundai Accent. The lease payment shall be $ 616 Schedule of Supplemental Disclosures Related to Operating Lease Six Months Ended December 31, 2021 Lease Cost Operating lease cost (included in general and administration in the Company’s unaudited condensed statement of operations) $ 154,463 Other Information Cash paid for amounts included in the measurement of lease liabilities for the three months ended December 31, 2021 $ 118,796 Remaining lease term – operating leases (in years) 2.25 Average discount rate – operating leases 10 % The supplemental balance sheet information related to leases for the periods are as follows: Operating leases Short-term right-of-use assets $ 255,734 Long-term right-of-use assets $ 355,129 Total operating lease assets $ 610,864 Short-term operating lease liabilities $ 256,579 Long-term operating lease liabilities $ 385,108 Total operating lease liabilities $ 641,687 Maturities of the Company’s lease liabilities are as follows: Schedule of Maturities of Lease Liabilities Operating Period ending December 31, 2021 Lease 2022 $ 309,770 2023 196,424 2024 175,026 2025 59,506 Total lease payments 740,726 Less: Imputed interest/present value discount (99,040 ) Present value of lease liabilities $ 641,687 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 | 32. Commitments and Contingencies On February 23, 2018 the Company entered into lease agreement for a new office space as part of the plan to expand operation, the lease is set to commence Commencing March 1, 2018. The term of the lease is for a ( 5 11,770 3 737,367 Our warehouse along with some office space is located at 20529 East Walnut Drive North, Diamond Bar, California, where we lease approximately 11,627 five years 13,022 On February 1, 2021, the Company entered into lease agreement with Magnolia Extracts, LLC dba Nug Ave-Lynwood, a California limited liability company for a certain regulatory permit issued by the City of Lynwood authorizing commercial retailer non-storefront operations at 11118 Wright Road, Lynwood, CA 90262. The lease is set to commence Commencing February 1, 2021. The lease payment shall equal $10,000 per month and the lease term is on month by month basis. Parties have agreed that the first month’s rent payment shall equal $7,000 and the Company shall pay to owner a refundable security deposit of $20,000 within 10 days of the effective day. Schedule of Supplemental Disclosures Related to Operating Lease For The Year Ended June 30, 2021 Lease Cost Operating lease cost (included in general and administration in the Company’s unaudited condensed statement of operations) $ 308,925 Other Information Cash paid for amounts included in the measurement of lease liabilities for the year ended June 30, 2021 $ 220,328 Remaining lease term – operating leases (in years) 2.75 Average discount rate – operating leases 10 % The supplemental balance sheet information related to leases for the periods are as follows: Operating leases Short-term Right-of-use assets $ 243,406 Long-term Right-of-use assets $ 486,253 Total operating lease assets $ 729,659 Short-term operating lease liabilities $ 239,521 Long-term operating lease liabilities $ 524,149 Total operating lease liabilities $ 763,670 Schedule of Maturities of Lease Liabilities Maturities of the Company’s lease liabilities are as follows: Period ending June 30, Operating Lease 2022 305,040 2023 273,425 2024 172,465 2025 147,446 Total lease payments 898,376 Less: Imputed interest/present value discount (134,706 ) Present value of lease liabilities $ 763,669 |
Income Tax
Income Tax | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 33. Income Tax The deferred tax asset as of June 30, 2021 and 2020 consisted of the following: Schedule of Deferred Tax Asset 2021 2020 Net Operating Loss Carryforwards $ 13,021,807 $ 12,028,883 Less Valuation Allowance (13,021,807 ) (12,028,883 ) Deferred Tax Assets $ — $ — Management provided a deferred tax asset valuation allowance equal to the potential benefit due to the Company’s loss. When the Company demonstrates the ability to generate taxable income, management will re-evaluate the allowance. As of June 30, 2021, the Company has net operating loss carryforward of $ 74,348,595 TCJA modified net operating loss (NOL) rules. For most taxpayers, NOLs arising in tax years ending after 2017 can only be carried forward. Exceptions apply to certain farming losses and NOLs of insurance companies other than a life insurance company. For losses arising in taxable years beginning after December 31, 2017, the new law limits the NOL deduction to 80% of taxable income. Reconciliation between the provision for income taxes and the expected tax benefit using the federal statutory rate of 21% for 2021 and 2020 is as follows: Schedule of Reconciliation for Income Taxes 2021 2020 US federal statutory income tax rate (21 )% (21 )% State tax – net of benefit (7 )% (7 )% Non-deductible expenses, net of federal benefit 7 % 7 % Increase in valuation allowance 21 % 21 % Income tax expense — — |
Subsequent Events
Subsequent Events | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Subsequent Events [Abstract] | ||
Subsequent Events | 28. Subsequent events Subsequent Events On January 1, 2022, the Company entered a convertible note with an accredited investor for a total amount of $ 450,000 1 The conversion price for the note is the lesser of (i) $0.001 and (ii) 85% of the lesser of (a) 5 days VWAP on the trading day preceding the conversion date, and (b) the VWAP on the conversion date. On January 5, 2022, the Company entered a convertible note with an accredited investor for a total amount of $ 485,000 48,500 8 0.0007 On January 6, 2022, Sugarmade, Inc. (the “ Company Purchase Agreement Dutchess Equity Line 10,000,000 36 Term Total Commitment Under the terms of the Purchase Agreement, Dutchess will not be obligated to purchase shares of common stock unless and until certain conditions are met, including but not limited to a Registration Statement on Form S-1 (the “ Registration Statement ; provided, however, Dutchess must be provided with a reasonable opportunity to review and comment upon such Registration Statement. From time to time during the Term, the Company, in its sole discretion, may provide Dutchess with one or more drawdown notices (each, a “ Drawdown Notice Drawdown Notice Shares Investment Amount 93 five The maximum number of shares of common stock to be purchased pursuant to any single Drawdown Notice cannot exceed the lesser of (i) $250,000; (ii) 200% of the average daily traded value of the Drawdown Notice Shares during the five days immediately preceding the Drawdown Notice date; or (iii) that number of shares that would cause Dutchess to beneficially own 4.99% of the number of shares of the the Company’s Ownership Limit In order to deliver a Drawdown Notice and sell Drawdown Notice Shares to Dutchess, certain conditions set forth in the Purchase Agreement must be met, including: (a) the representations and warranties of the Company shall be true and correct in all material respects as of the date of the Purchase Agreement and the applicable closing date; (b) since the date of the Company’s most recent filing with the Securities and Exchange Commission (the “SEC”), no event that had or is reasonably likely to have a material adverse effect has occurred; (c) the Company has no knowledge of an event it reasonably deems more likely than not to have the effect of causing the Registration Statement to be suspended or otherwise ineffective within 15 days following the delivery of the Drawdown Notice; and (d) the Company shall have performed, satisfied and complied in all material respects its obligations under the Purchase Agreement. Notwithstanding the forgoing, the Company shall not issue any Drawdown Notice Shares if the issuance of such shares would exceed the aggregate number of shares of common stock which the Company may issue without breaching the Company’s obligations under the rules and regulations of the principal market upon which the common stock trades, or if the issuance would violate such principal market’s shareholder approval requirements or if the issuance would violate the Ownership Limit. The Purchase Agreement contains customary representations, warranties, and covenants by, among, and for the benefit of the parties. Unless earlier terminated, the Purchase Agreement will terminate automatically on the earlier to occur of: (i) the end of the 36-month Term; (ii) the date that the Company sells and Dutchess purchases the Total Commitment amount; (iii) the date that the Registration Statement is no longer effective; or (iv) the occurrence of certain specified insolvency or bankruptcy-related events. The Company may terminate the Purchase Agreement at any time by written notice to Dutchess in the event of a material breach of the agreement by Dutchess. The Purchase Agreement also provides for mutual cross-indemnification of the parties and their affiliates in the event that either party incurs losses, liabilities, obligations, claims, damages, liabilities, costs, and expenses resulting from a breach of representations, warranties, covenants, or agreements under the Purchase Agreement; an untrue or misleading statement or misleading omission in the Registration Statement or any preliminary or final prospectus pursuant thereto; or a violation or alleged violation of federal or state securities laws and regulations. | 34. Subsequent Events Convertible note conversions Subsequent to October 11, 2021, there were multiple accredited investors converted approx. $ 451,600 614,728,579 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | ||
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. These interim condensed consolidated financial statements should be read in conjunction with our Company’s Annual Report on Form 10-K for the year ended June 30, 2021, which contains our audited consolidated financial statements and notes thereto, together with the Management’s Discussion and Analysis of Financial Condition and Results of Operation, for the fiscal year ended June 30, 2021. The interim results for the period ended December 31, 2021 are not necessarily indicative of the results for the full fiscal year. | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
Principles of consolidation | Principles of consolidation The unaudited condensed consolidated financial statements include the accounts of our Company, its wholly-owned subsidiaries, SWC Group, Inc., a California corporation (“SWC’’), Lemon Glow Company, Inc., a California corporation (“Lemon Glow”), and its majority owned subsidiary, NUG Avenue, Inc., a California corporation (“Nug Avenue”), as well as Indigo Dye Group Corp., an equity investee. All significant intercompany transactions and balances have been eliminated in consolidation. | Principles of consolidation The consolidated financial statements include the accounts of our Company, its wholly-owned subsidiaries, SWC Group, Inc., a California corporation (“SWC’’), Lemon Glow Company, Inc., a California corporation (“Lemon Glow”), and its majority owned subsidiary, NUG Avenue, Inc., a California corporation (“Nug Avenue”). All significant intercompany transactions and balances have been eliminated in consolidation. |
Going concern | Going concern The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, in which it has not been successful, and/or obtaining additional financing from its shareholders or other sources, as may be required. Our unaudited condensed consolidated financial statements have been prepared assuming that we will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These unaudited condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. Management endeavors to increase revenue-generating operations. While the Company’s priority is on generating cash from operations, management also seek to raise additional working capital through various financing sources, including the sale of the Company’s equity and/or debt securities, which may not be available on commercially reasonable terms to our Company, or which may not be available at all. If such financing is not available on satisfactory terms, we may be unable to continue our business as desired and our operating results will be adversely affected. In addition, any financing arrangement may have potentially adverse effects on us and/or our stockholders. Debt financing (if available and undertaken) will increase expenses, must be repaid regardless of operating results and may involve restrictions limiting our operating flexibility. If we issue equity securities to raise additional funds, the percentage ownership of our existing stockholders will be reduced, and the new equity securities may have rights, preferences or privileges senior to those of the current holders of our common stock. | Going concern The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, in which it has not been successful, and/or obtaining additional financing from its shareholders or other sources, as may be required. Our consolidated financial statements have been prepared assuming that we will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. Management is endeavoring to increase revenue-generating operations. While priority is on generating cash from operations through the sale of the Company’s products, management is also seeking to raise additional working capital through various financing sources, including the sale of the Company’s equity and/or debt securities, which may not be available on commercially reasonable terms to our Company, or which may not be available at all. If such financing is not available on satisfactory terms, we may be unable to continue our business as desired and our operating results will be adversely affected. In addition, any financing arrangement may have potentially adverse effects on us and/or our stockholders. Debt financing (if available and undertaken) will increase expenses, must be repaid regardless of operating results and may involve restrictions limiting our operating flexibility. If we issue equity securities to raise additional funds, the percentage ownership of our existing stockholders will be reduced, and the new equity securities may have rights, preferences or privileges senior to those of the current holders of our common stock. |
Business combinations | Business combinations The Company applies the provisions of Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations, in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed, at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the acquisition date fair values of the net assets acquired and the liabilities assumed. The Company used third party valuation company to determine the assets acquired and liabilities assumed with the corresponding offset to goodwill. | Business combinations The Company applies the provisions of Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations, in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed, at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the acquisition date fair values of the net assets acquired and the liabilities assumed. The Company used third party valuation company to determine the assets acquired and liabilities assumed with the corresponding offset to goodwill. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. | Use of estimates The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. |
Revenue recognition | Revenue recognition We recognize revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC’’) No. 606, Revenue Recognition. Sugarmade applied a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations in the contract and (5) recognizing revenue when the performance obligation is satisfied. Substantially all of the Company’s revenue is recognized at the time control of the products transfers to the customer. | Revenue recognition We recognize revenue in accordance with FASB ASC No. 606, Revenue Recognition. Sugarmade applied a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations in the contract and (5) recognizing revenue when the performance obligation is satisfied. Substantially all of the Company’s revenue is recognized at the time control of the products transfers to the customer. |
Leases | Leases In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to recognize the rights and obligations created by leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-11, Targeted Improvements, ASU No. 2018-10, Codification Improvements to Topic 842, and ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on July 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements. The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. All existing leases are reported under this rule. Under ASC 840, leases were classified as either capital or operating, and the classification significantly impacted the effect the contract had on the company’s financial statements. Capital lease classification resulted in a liability that was recorded on a company’s balance sheet, whereas operating leases did not impact the balance sheet. | Leases In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to recognize the rights and obligations created by leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-11, Targeted Improvements, ASU No. 2018-10, Codification Improvements to Topic 842, and ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on July 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements. The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. All existing leases are reported under this rule. Under ASC 840, leases were classified as either capital or operating, and the classification significantly impacted the effect the contract had on the company’s financial statements. Capital lease classification resulted in a liability that was recorded on a company’s balance sheet, whereas operating leases did not impact the balance sheet. |
Property, plant and equipment | Property, plant and equipment Property and equipment is stated at the historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets for both financial and income tax reporting purposes as follows: Schedule of Estimated Useful Lives of Property and Equipment Machinery and equipment 3 5 Furniture and equipment 1 15 Vehicles 2 5 Leasehold improvements 5 30 Building 31.5 Production molding 5 Expenditures for renewals and betterments are capitalized while repairs and maintenance costs are normally charged to the statement of operations in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. Upon sale or disposal of an asset, the historical cost and related accumulated depreciation or amortization of such asset were removed from their respective accounts and any gain or loss is recorded in the statements of income. The Company reviews the carrying value of property, plant, and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no | Property and equipment Property and equipment is stated at the historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets for both financial and income tax reporting purposes as follows: Schedule of Estimated Useful Lives of Property and Equipment Machinery and equipment 3 15 Furniture and equipment 7 Vehicles 5 Leasehold improvements 30 Expenditures for renewals and betterments are capitalized while repairs and maintenance costs are normally charged to the statement of operations in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. Upon sale or disposal of an asset, the historical cost and related accumulated depreciation or amortization of such asset were removed from their respective accounts and any gain or loss is recorded in the statements of income. The Company reviews the carrying value of property, plant, and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment expenses for property, plant, and equipment was recorded in operating expenses during the years ended June 30, 2021 and 2020. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, there was $ 0 43,800 | Impairment of Long-Lived Assets Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, there was $ 43,800 2,066,958 |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in the tax law. For deferred tax assets, management evaluates the probability of realizing the future benefits of such assets. The Company establishes valuation allowances for its deferred tax assets when evidence suggests it is unlikely that the assets will be fully realized. The Company recognizes the tax effects of an uncertain tax position only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date and then only in an amount more likely than not to be sustained upon review by the tax authorities. Income tax positions that previously failed to meet the more likely than not threshold are recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more likely than not threshold are derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company classifies potential accrued interest and penalties related to unrecognized tax benefits within the accompanying consolidated statements of operations and comprehensive income (loss) as income tax expense. | Income taxes We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their perspective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets to the amount expected to be realized. As a result of the implementation of certain provisions of ASC 740, Income Taxes (“ASC 740’’), which clarifies the accounting and disclosure for uncertainty in tax position, as defined, ASC 740 seeks to reduce the diversity in practice associated with certain aspect of the recognition and measurement related to accounting for income taxes. We adopted the provisions of ASC 740 as of October 2, 2008 and have analyzed filing positions in each of the federal and state jurisdictions where we are required to file income tax returns, as well as open tax years in these jurisdictions. We have identified the U.S. federal and California as our ‘major’ tax jurisdictions and generally, we remain subject to Internal Revenue Service examination after our 2013 U.S. federal income tax returns. However, we have certain tax attribute carryforwards, which will remain subject to review and adjustment by the relevant tax authorities until the statute of limitations closes with respect to the year in which such attributes are utilized. We believe that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to our financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. In addition, we did not record a cumulative effect adjustment related to the adoption of ASC 740. Our policy for recording interest and penalties associated with income-based tax audits is to record such items as |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the acquisition method. Intangible assets represent purchased intangible assets including developed technology and in-process research and development, technologies acquired or licensed from other companies, customer relationships, non-compete covenants, backlog, and trademarks and tradenames. Purchased finite-lived intangible assets are capitalized and amortized over their estimated useful lives. Technologies acquired or licensed from other companies, customer relationships, non-compete covenants, backlog, and trademarks and tradenames are capitalized and amortized over the lesser of the terms of the agreement, or estimated useful life. We capitalize cannabis cultivation license acquired as part of a business combination. | Goodwill and Intangible Assets Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the acquisition method. Intangible assets represent purchased intangible assets including developed technology and in-process research and development, technologies acquired or licensed from other companies, customer relationships, non-compete covenants, backlog, and trademarks and tradenames. Purchased finite-lived intangible assets are capitalized and amortized over their estimated useful lives. Technologies acquired or licensed from other companies, customer relationships, non-compete covenants, backlog, and trademarks and tradenames are capitalized and amortized over the lesser of the terms of the agreement, or estimated useful life. We capitalize cannabis cultivation license acquired as part of a business combination. |
Stock based compensation | Stock based compensation Stock based compensation cost to employees is measured at the date of grant, based on the calculated fair value of the stock-based award, and will be recognized as expense over the employee’s requisite service period (generally the vesting period of the award). We estimate the fair value of employee stock options granted using the Binomial Option Pricing Model. Key assumptions used to estimate the fair value of stock options will include the exercise price of the award, the fair value of our common stock on the date of grant, the expected option term, the risk-free interest rate at the date of grant, the expected volatility and the expected annual dividend yield on our common stock. We use our company’s own data among other information to estimate the expected price volatility and the expected forfeiture rate. Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable. | Stock based compensation Stock based compensation cost to employees is measured at the date of grant, based on the calculated fair value of the stock-based award, and will be recognized as expense over the employee’s requisite service period (generally the vesting period of the award). We estimate the fair value of employee stock options granted using the Binomial Option Pricing Model. Key assumptions used to estimate the fair value of stock options will include the exercise price of the award, the fair value of our common stock on the date of grant, the expected option term, the risk-free interest rate at the date of grant, the expected volatility and the expected annual dividend yield on our common stock. We use our company’s own data among other information to estimate the expected price volatility and the expected forfeiture rate. Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable. |
Loss per share | Loss per share We calculate basic loss per share by dividing our net loss by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period and the weighted average number of dilutive common stock equivalents, such as options and warrants. Options and warrants are only included in the calculation of diluted EPS when their effect is dilutive. | Loss per share We calculate basic earnings per share (“EPS”) by dividing our net loss by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted BPS is computed by dividing net income or net loss by the weighted average number of common shares outstanding for the period and the weighted average number of dilutive common stock equivalents, such as options and warrants. Options and warrants are only included in the calculation of diluted EPS when their effect is dilutive. |
Fair value of financial instruments | Fair value of financial instruments ASC Topic 820 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1 - observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - include other inputs that are directly or indirectly observable in the marketplace. Level 3 - unobservable inputs which are supported by little or no market activity. The Company used Level 3 inputs for its valuation methodology for the derivative liabilities in determining the fair value using the Binomial option-pricing model for the three and six months ended December 31, 2021. | Fair value of financial instruments ASC Topic 820 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1- observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - include other inputs that are directly or indirectly observable in the marketplace. Level 3 - unobservable inputs which are supported by little or no market activity. The Company used Level 2 inputs for its valuation methodology for the derivative liabilities for conversion feature of the convertible notes and warrants in determining the fair value using Lattice Binomial model with the following assumption inputs: |
Derivative instruments | Derivative instruments The fair value of derivative instruments is recorded and shown separately under current liabilities. Changes in the fair value of derivatives liability are recorded in the consolidated statement of operations under non-operating income (expense). Our Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Binomial option-pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. | Derivative instruments The fair value of derivative instruments is recorded and shown separately under liabilities. Changes in the fair value of derivatives liability are recorded in the consolidated statement of operations under non-operating income (expense). Our Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Black-Scholes- Merton option-pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. |
Segment Reporting | Segment Reporting FASB ASC Topic 280, “Segment Reporting’’, requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the Company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company’s financial statements reflect that substantially all of its operations are conducted in two industry segments – (1) paper and paper-based products such as paper cups, cup lids, food containers, etc., which accounts for approx. 39 61 A reconciliation of the Company’s segment operating income and cost of goods sold to the Consolidated Statements of Operations for the three and six months ended December 31, 2021 and 2020 is as follows: Schedule of Segment Operating Income Three months ended December 31, 2021 December 31, 2020 Segment operating income Paper and paper-based products $ 538,815 $ 300,652 Cannabis products delivery 697,010 - Total operating income $ 1,235,825 $ 300,652 Three months ended December 31, 2021 December 31, 2020 Segment cost of goods sold Paper and paper-based products $ 461,873 $ 242,531 Cannabis products delivery - - Total cost of goods sold $ 461,873 $ 242,531 Six months ended December 31, 2021 December 31, 2020 Segment operating income Paper and paper-based products $ 977,358 $ 875,623 Cannabis products delivery 1,427,248 1,571,356 Total operating income $ 2,404,606 $ 2,446,979 Six months ended December 31, 2021 December 31, 2020 Segment cost of goods sold Paper and paper-based products $ 848,812 $ 624,969 Cannabis products delivery - 647,460 Total cost of goods sold $ 848,812 $ 1,272,429 | Segment Reporting FASB ASC Topic 280, “Segment Reporting’’, requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the Company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company’s financial statements reflect that substantially all of its operations are conducted in three industry segments – (1) paper and paper-based products such as paper cups, cup lids, food containers, etc., which accounts approx. 44 0 56 |
New accounting pronouncements | New accounting pronouncements In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes”. The pronouncement simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, “Income Taxes”. The pronouncement also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 will be effective for us beginning in the first quarter of fiscal 2021, with early adoption permitted. The adoption had no material impact on the consolidated financial statements in the year ended June 30, 2021 and period ended December 31, 2021. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements December 31, 2021 In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivative and Hedging (Topic 815), which clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance clarifies how to account for the transition into and out of the equity method of accounting when considering observable transactions under the measurement alternative. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. The Company have adopted this ASU on the consolidated financial statements in the year ended June 30, 2021. The adoption had no material impact on the consolidated financial statements in the year ended June 30, 2021 and period ended December 31, 2021. In August 2020, the FASB issued ASU 2020-06, “ Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40) ASU 2020-06 On March 2021, the FASB issued Accounting Standards Update (ASU) 2021-03, “ Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events ASU 2021-03 On April 2021, the FASB issued ASU 2021-04, “ Earnings Per Share (Topic 260), Debt— Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options” ASU 2021-04 On July 2021, the FASB issued ASU 2021-05, “ Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments On July 2021, the FASB issued ASU 2021-07, “ Stock Compensation (Topic 718): Stock Compensation ASU 2021-07 to On August 2021, the FASB issued ASU 2021-08, “ Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ” ASU 2021-08 | New accounting pronouncements In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes”. The pronouncement simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, “Income Taxes”. The pronouncement also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 will be effective for us beginning in the first quarter of fiscal 2021, with early adoption permitted. We are still evaluating the impact this guidance will have on our consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivative and Hedging (Topic 815), which clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance clarifies how to account for the transition into and out of the equity method of accounting when considering observable transactions under the measurement alternative. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. The Company have adopted this ASU on the consolidated financial statements in the year ended June 30, 2021. The adoption had no material impact on the consolidated financial statements in the year ended June 30, 2021. |
Prior period reclassification | Prior period reclassification Certain prior period balance sheet accounts have been reclassified in conformity with current period presentation including reclassification of $ 4,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | ||
Schedule of Estimated Useful Lives of Property and Equipment | Property and equipment is stated at the historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets for both financial and income tax reporting purposes as follows: Schedule of Estimated Useful Lives of Property and Equipment Machinery and equipment 3 5 Furniture and equipment 1 15 Vehicles 2 5 Leasehold improvements 5 30 Building 31.5 Production molding 5 | Property and equipment is stated at the historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets for both financial and income tax reporting purposes as follows: Schedule of Estimated Useful Lives of Property and Equipment Machinery and equipment 3 15 Furniture and equipment 7 Vehicles 5 Leasehold improvements 30 |
Schedule of Segment Operating Income | A reconciliation of the Company’s segment operating income and cost of goods sold to the Consolidated Statements of Operations for the three and six months ended December 31, 2021 and 2020 is as follows: Schedule of Segment Operating Income Three months ended December 31, 2021 December 31, 2020 Segment operating income Paper and paper-based products $ 538,815 $ 300,652 Cannabis products delivery 697,010 - Total operating income $ 1,235,825 $ 300,652 Three months ended December 31, 2021 December 31, 2020 Segment cost of goods sold Paper and paper-based products $ 461,873 $ 242,531 Cannabis products delivery - - Total cost of goods sold $ 461,873 $ 242,531 Six months ended December 31, 2021 December 31, 2020 Segment operating income Paper and paper-based products $ 977,358 $ 875,623 Cannabis products delivery 1,427,248 1,571,356 Total operating income $ 2,404,606 $ 2,446,979 Six months ended December 31, 2021 December 31, 2020 Segment cost of goods sold Paper and paper-based products $ 848,812 $ 624,969 Cannabis products delivery - 647,460 Total cost of goods sold $ 848,812 $ 1,272,429 | A reconciliation of the Company’s segment operating income to the Consolidated Statements of Operations for June 30, 2021 and 2020 is as follows: Schedule of Segment Operating Income Segment operating income 2021 2020 Paper and paper based products $ 1,748,700 $ 1,832,286 Licensed cannabis delivery 2,230,349 1,439,653 Non-medical supplies - 1,090,646 Total operating income $ 3,979,049 $ 4,362,585 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Fair Value of Purchase Price Consideration | The following table summarizes the fair value of purchase price consideration to acquire Lemon Glow (In US $000’s): Schedule of Fair Value of Purchase Price Consideration Purchase Consideration Summary In US $000’s Fair Value Cash Consideration (1) $ 4,256 Equity Consideration (2) $ 7,450 Interest-Bearing Debt Assumed $ 2,043 Total Purchase Consideration $ 13,749 Notes: (1) The cash consideration consists of $ 280,000 3,976,000 5 (2) The equity consideration consists of 660,571,429 2,000,000 |
Schedule of Fair Value of Assets Acquired and Liabilities Assumed | The following is an allocation of purchase price as of the May 25, 2021 acquisition closing date based upon an estimate of the fair value of the assets acquired and the liabilities assumed by the Company in the acquisition (in thousands): Schedule of Fair Value of Assets Acquired and Liabilities Assumed Allocation Summary In US $000’s Fair Value Assets Acquired $ 6 Property, Plant & Equipment (3) $ 2,348 Total Tangible Asset Allocation $ 2,354 Cannabis Cultivation License $ 10,637 Total Identifiable Intangible Assets $ 10,637 Assembled Workforce $ 275 Goodwill (Excluding Assembled Workforce) $ 483 Total Economic Goodwill $ 758 Purchase Consideration to be Allocated $ 13,749 Notes: (3) The value of the land is excluded in the calculation of depreciation. |
Schedule of Pro Forma Combined Financial Information | The following table presents unaudited pro forma combined financial information for each of the periods presented, as if the acquisitions of Lemon Glow had occurred at March 31, 2021 and June 30, 2020: Schedule of Pro Forma Combined Financial Information Unaudited Pro Forma Condensed Combined Balance Sheets As of March 31, 2021 Lemon Glow Company Sugarmade Inc. Pro Forma Merger Adjustment Pro Forma Combined Assets Current assets: Cash 18,211 269,885 280,000 a 568,096 Accounts receivable, net - 75,040 - 75,040 Inventory, net - 692,460 - 692,460 Loan receivables, current - - - - Loan receivables - related party, current - 208,931 - 208,931 Other current assets - 1,066,597 - 1,066,597 Right of use asset, current - 237,556 - 237,556 Total current assets 18,211 2,550,469 280,000 2,848,680 Noncurrent assets: Machinery and Equipment, net 87,645 390,189 - 477,834 Land Improvements, net 341,681 - - 341,681 Estate Property - Land 1,922,376 - - 1,922,376 Intangible asset, net - 14,578 10,572,600 e 10,587,178 Goodwill 573,000 f 573,000 Other assets - - - - Loan receivables - related party, noncurrent - 196,000 - 196,000 Right of use asset, noncurrent - 549,261 - 549,261 Investment to Indigo Dye - 564,819 - 564,819 Total noncurrent assets 2,351,702 1,714,847 11,145,600 15,212,149 Total assets 2,369,913 4,265,316 11,425,600 18,060,829 Liabilities and Stockholders’ Equity (Deficiency) Current liabilities: Note payable due to bank - 25,982 - 25,982 Accounts payable and accrued liabilities 85,157 1,753,855 - 1,839,012 Customer deposits 400,000 660,268 - 1,060,268 Customer overpayment - 53,183 - 53,183 Unearned revenue - 9,379 - 9,379 Other payables - 812,069 - 812,069 Accrued interest 3,500 515,767 - 519,267 Accrued compensation and personnel related payables - - - - Notes payable - Current - 20,000 - 20,000 Notes payable - Related Parties, Current - 15,427 - 15,427 Lease liability - Current - 231,305 - 231,305 Loans payable - Current 113,891 350,221 - 464,112 Loan payable - Related Parties, Current - 238,150 - 238,150 Convertible notes payable, Net, Current - 1,982,902 - 1,982,902 Derivative liabilities, net - 2,723,899 - 2,723,899 Due to related parties 4,244 - - 4,244 Warrants liabilities - 24,216 - 24,216 Shares to be issued - 136,577 - 136,577 Total current liabilities 606,792 9,553,200 - 10,159,992 Non-current liabilities: Note Payable 1,381,593 - 3,976,000 b 5,357,593 Loans payable 54,408 366,495 - 420,903 Lease liability - 591,116 - 591,116 Total liabilities 2,042,793 10,510,811 3,976,000 16,529,604 Stockholders’ equity (deficiency): Preferred stock, $ 0.001 10,000,000 1,541,500 1,542 5,600 d 7,142 Common stock, $ 0.001 10,000,000,000 4,718,104,197 394,773 4,718,105 660,571 c 5,773,449 Additional paid-in capital 63,095,927 6,783,429 cd 69,879,356 Share to be issued, Preferred stock (1 ) (1 ) Common Stock Subscribed 236,008 236,008 Accumulated deficit (67,653 ) (74,350,923 ) - (74,418,576 ) Total stockholders’ deficiency 327,120 (6,299,342 ) 7,449,600 1,477,378 Non-Controlling Interest - 53,847 - 53,847 Total stockholders’ equity (deficiency) 327,120 (6,245,495 ) 7,449,600 1,531,225 Total liabilities and stockholders’ equity (deficiency) 2,369,913 4,265,316 11,425,600 18,060,829 The accompanying notes are an integral part of these condensed consolidated financial statements Unaudited Pro Forma Condensed Combined Statements of Operations For the Nine Months Ended March 31, 2021 Lemon Glow Company Sugarmade Inc. Pro Forma Merger Adjustment Pro Forma Combined Revenues, net $ - $ 2,851,822 $ $ 2,851,822 Cost of goods sold - 1,502,247 - 1,502,247 Gross profit - 1,349,575 - 1,349,575 Selling, general and administrative expenses 11,256 1,446,038 - 1,457,294 Advertising and Promotion Expense - 378,068 - 378,068 Marketing and Research Expense - 364,580 - 364,580 Professional Expense 4,136 756,444 - 760,580 Salaries and Wages 7,080 368,616 - 375,696 Stock Compensation Expense - 82,250 - 82,250 Loss from operations (22,472 ) (2,046,421 ) - (2,068,893 ) Non-operating income (expense): Other income - 5,099 - 5,099 Gain in loss of control of VIE - 313,928 - 313,928 Interest expense (45,181 ) (1,920,660 ) - (1,965,841 ) Bad debts - (133,235 ) - (133,235 ) Change in fair value of derivative liabilities - 506,559 - 506,559 Warrant Expense - 55,695 - 55,695 Loss on notes conversion - - - - Loss on settlement - (80,000 ) - (80,000 ) Gain on asset disposal - - - - Amortization of debt discount - (2,605,144 ) - (2,605,144 ) Debt forgiveness - - - - Miscellaneous Impairment Loss Other expenses - (55,054 ) - (55,054 ) Total non-operating expenses, net (45,181 ) (3,912,812 ) - (3,957,993 ) Equity Method Investment Loss - (2,114 ) - Net loss $ (67,653 ) $ (5,961,347 ) $ - Less: net loss attributable to the noncontrolling interest $ - $ (48,756 ) $ - (48,756 ) Net loss attributable to SugarMade Inc. $ (67,653 ) $ (5,912,591 ) $ - $ (48,756 ) Basic net income (loss) per share $ - $ (0.00 ) $ - $ (0.00 ) Diluted net income (loss) per share $ - $ (0.00 ) $ - $ (0.00 ) Basic and diluted weighted average common shares outstanding * 0 3,247,070,176 0 3,247,070,176 * Shares issuable upon conversion of convertible debts and exercising of warrants were excluded in calculating diluted loss per share The accompanying notes are an integral part of these condensed consolidated financial statements Unaudited Pro Forma Condensed Combined Statements of Operations As of June 30, 2020 Lemon Glow Company Sugarmade Inc. Pro Forma Merger Adjustment Pro Forma Combined Revenues, net $ - $ 4,354,102 $ $ 4,354,102 Cost of goods sold - 2,851,940 - 2,851,940 Gross profit - 1,502,162 - 1,502,161.64 Selling, general and administrative expenses - 13,620,529 - 13,620,529 Loss from operations - (12,118,367 ) - (12,118,367 ) Non-operating income (expense): Other income - 3,064 - 3,064 Interest expense - (1,613,044 ) - (1,613,044 ) Bad debts - (240,157 ) - (240,157 ) Change in fair value of derivative liabilities - (1,442,295 ) - (1,442,295 ) Warrant Expense - (119,526 ) - (119,526 ) Gain on debt conversion - (184,626 ) - (184,626 ) Loss on settlement - (393,135 ) - (393,135 ) Loss on asset disposal - (119,044 ) - (119,044 ) Amortization of debt discount - (3,823,500 ) - (3,823,500 ) Debt forgiveness - 590,226 - 590,226 Miscellaneous - (7,201 ) - (7,201 ) Impairment Loss - (2,066,958 ) - (2,066,958 ) Other expenses - - - - Total non-operating expenses, net - (9,416,195 ) - (9,416,195 ) Net loss $ - $ (21,534,562 ) $ - $ (21,534,562 ) Less: net loss attributable to the noncontrolling interest - (195,416 ) - (195,416 ) Net loss attributable to SugarMade Inc. $ - $ (21,339,146 ) $ - $ (21,339,146 ) Basic net income (loss) per share $ - $ (0.02 ) $ - $ (0.02 ) Diluted net income (loss) per share $ - $ (0.02 ) $ - $ (0.02 ) Basic and diluted weighted average common shares outstanding * 0 958,183,933 0 958,183,933 * Shares issuable upon conversion of convertible debts and exercising of warrants were excluded in calculating diluted loss per share |
Concentration (Tables)
Concentration (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Risks and Uncertainties [Abstract] | ||
Schedule of Segment Operating Income | A reconciliation of the Company’s segment operating income and cost of goods sold to the Consolidated Statements of Operations for the three and six months ended December 31, 2021 and 2020 is as follows: Schedule of Segment Operating Income Three months ended December 31, 2021 December 31, 2020 Segment operating income Paper and paper-based products $ 538,815 $ 300,652 Cannabis products delivery 697,010 - Total operating income $ 1,235,825 $ 300,652 Three months ended December 31, 2021 December 31, 2020 Segment cost of goods sold Paper and paper-based products $ 461,873 $ 242,531 Cannabis products delivery - - Total cost of goods sold $ 461,873 $ 242,531 Six months ended December 31, 2021 December 31, 2020 Segment operating income Paper and paper-based products $ 977,358 $ 875,623 Cannabis products delivery 1,427,248 1,571,356 Total operating income $ 2,404,606 $ 2,446,979 Six months ended December 31, 2021 December 31, 2020 Segment cost of goods sold Paper and paper-based products $ 848,812 $ 624,969 Cannabis products delivery - 647,460 Total cost of goods sold $ 848,812 $ 1,272,429 | A reconciliation of the Company’s segment operating income to the Consolidated Statements of Operations for June 30, 2021 and 2020 is as follows: Schedule of Segment Operating Income Segment operating income 2021 2020 Paper and paper based products $ 1,748,700 $ 1,832,286 Licensed cannabis delivery 2,230,349 1,439,653 Non-medical supplies - 1,090,646 Total operating income $ 3,979,049 $ 4,362,585 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Schedule of Other Current Assets | As of December 31, 2021 and June 30, 2021, other current assets consisted of the following: Schedule of Other Current Assets For the period ended December 31, 2021 June 30, 2021 Prepaid Deposit $ 82,776 $ 113,988 Prepaid Inventory 52,583 — Prepaid Expenses 47,270 35,590 Undeposited Funds 2,323 — Other — 32,879 Total: $ 184,952 $ 182,457 | As of June 30, 2021 and 2020, other current assets consisted of the following: Schedule of Other Current Assets 2021 2020 For the years ended June 30, 2021 2020 Prepaid Deposit $ 113,988 $ 48,483 Prepaid Inventory — 65,449 Employees Advance — 324 Prepaid Expenses 35,590 35,157 Undeposited Funds - Others 32,879 113,991 Total $ 182,457 $ 263,404 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Schedule of Property Plant and Equipment | As of December 31, 2021 and June 30, 2021, property, plant and equipment consisted of the following: Schedule of Property Plant and Equipment Fixed Assets December 31, 2021 June 30, 2021 Office and equipment $ 820,149 $ 820,149 Motor vehicles 442,323 166,079 Land 2,554,767 1,922,376 Building 197,609 — Leasehold Improvement 472,654 365,620 Total 4,487,502 3,274,224 Less: accumulated depreciation (623,122 ) (524,884 ) Property, Plant and Equipment, net $ 3,864,380 $ 2,749,340 | As of June 30, 2021 and 2020, property, plant and equipment consisted of the following: Schedule of Property Plant and Equipment June 30, 2021 June 30, 2020 Office and equipment $ 820,149 $ 739,447 Motor vehicles 166,079 164,244 Land 1,922,376 — Leasehold Improvement 365,620 24,742 Total 3,274,224 928,163 Less: accumulated depreciation (524,884 ) (429,116 ) Plant and Equipment, net $ 2,749,340 $ 499,047 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Payables and Accruals [Abstract] | ||
Schedule of Accounts Payable and Accrued Liabilities | Schedule of Accounts Payable and Accrued Liabilities December 31, 2021 June 30, 2021 Accounts payable $ 1,857,720 $ 1,464,692 Accrued liabilities 305,127 310,528 Contingent liabilities 258,858 283,619 Total accounts payable and accrued liabilities: $ 2,421,705 $ 2,058,839 | Schedule of Accounts Payable and Accrued Liabilities June 30, 2021 June 30, 2020 Accounts payable $ 1,464,692 $ 1,330,939 Accrued liabilities 310,528 25,289 Contingent liabilities 283,619 227,000 Total accounts payable and accrued liabilities: $ 2,058,839 $ 1,583,228 |
Convertible Notes (Tables)
Convertible Notes (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Promissory Notes | As of the year ended June 30, 2021, debt discount of the convertible notes consisted of following: Schedule of Promissory Notes Debt Discount Debt Discount Start Date End Date As of 6/30/2020 Addition Amortization As of 6/30/2021 9/27/2019 9/25/2019 $ 35,553 $ - $ (35,553 ) $ - 9/27/2019 9/25/2019 3,884 (3,884 ) 10/28/2019 10/27/2020 65,069 - (65,069 ) - 10/28/2019 10/27/2020 7,499 - (7,499 ) - 10/28/2019 10/27/2020 65,069 - (65,069 ) - 10/28/2019 10/27/2020 7,499 - (7,499 ) - 11/29/2020 11/30/2020 39,605 - (39,605 ) - 11/29/2020 11/30/2020 4,648 - (4,648 ) - 11/29/2020 11/30/2020 39,605 - (39,605 ) - 11/29/2020 11/30/2020 4,648 - (4,648 ) - 12/10/2019 12/10/2020 42,309 - (42,309 ) - 12/10/2019 12/10/2020 5,211 - (5,211 ) - 12/10/2019 12/10/2020 42,309 - (42,309 ) - 12/10/2019 12/10/2020 5,211 - (5,211 ) - 12/27/2019 12/27/2020 49,180 - (49,180 ) - 12/27/2019 12/27/2020 6,000 - (6,000 ) - 1/3/2020 12/27/2020 50,139 - (50,139 ) - 1/3/2020 12/27/2020 6,117 - (6,117 ) - 1/14/2020 1/14/2021 79,525 - (79,525 ) - 1/14/2020 1/14/2021 1,623 - (1,623 ) - 1/22/2020 1/22/2021 53,327 - (53,327 ) - 1/22/2020 1/22/2021 1,689 - (1,689 ) - 2/4/2020 8/4/2020 21,154 - (21,154 ) - 2/18/2020 8/18/2020 26,923 - (26,923 ) - 3/5/2020 3/5/2021 82,893 - (82,893 ) - 3/5/2020 3/5/2021 2,038 - (2,038 ) - 4/24/2020 4/24/2021 59,600 - (59,600 ) - 4/24/2020 4/24/2021 1,633 - (1,633 ) - 6/10/2020 6/10/2021 28,356 - (28,356 ) - 6/10/2020 6/10/2021 6,776 - (6,776 ) - 6/18/2020 6/18/2021 29,014 - (29,014 ) - 6/18/2020 6/18/2021 6,775 - (6,775 ) - 7/6/2020 7/6/2021 - 75,000 (75,000 ) - 7/6/2020 7/6/2021 - 2,000 (2,000 ) - 7/7/2020 7/7/2021 - 150,000 (150,000 ) - 7/7/2020 7/7/2021 - 3,000 (3,000 ) - 7/16/2020 7/16/2021 - 225,000 (225,000 ) - 7/16/2020 7/16/2021 - 35,700 (35,700 ) - 7/21/2020 7/21/2021 - 175,000 (175,000 ) - 7/21/2020 7/21/2021 - 25,200 (25,200 ) - 9/10/2020 9/10/2021 - 200,000 (160,548 ) 39,452 9/10/2020 9/10/2021 - 27,700 (22,388 ) 5,312 11/10/2020 11/11/2021 - 50,000 (31,694 ) 18,306 11/10/2020 11/11/2021 - 8,300 (5,276 ) 3,024 9/8/2020 3/10/2021 - 93,077 (93,077 ) - 9/8/2020 3/10/2021 - 10,000 (10,000 ) - 9/13/2020 3/25/2021 - 189,093 (189,093 ) - 9/13/2020 3/25/2021 - 19,300 (19,300 ) - 10/8/2020 4/9/2021 - 210,000 (210,000 ) - 10/8/2020 4/9/2021 - 21,000 (21,000 ) - 10/13/2020 4/13/2021 - 250,000 (250,000 ) - 10/13/2020 4/13/2021 - 25,000 (25,000 ) - 2/8/2021 2/9/2022 - 59,985 (23,273 ) 36,712 2/8/2021 2/9/2022 - 9,315 (3,614 ) 5,701 6/14/2021 6/14/2024 - 286,765 (4,186 ) 282,578 Total: $ 880,879 $ 2,150,435 $ (2,640,228 ) $ 391,086 |
Derivative Liabilities (Tables)
Derivative Liabilities (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Derivative Liabilities | ||
Schedule of Binomial Model Assumptions Inputs | Schedule of Binomial Model Assumptions Inputs June 30, 2021 Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.01 0.46 % Expected Volatility 89 236 % December 31, 2021 Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.05-0.53 % Expected Volatility 127 234 % | Schedule of Binomial Model Assumptions Inputs June 30, 2020 Annual Dividend Yield — Expected Life (Years) 0.50 1.00 Risk-Free Interest Rate 0.16 2.10 % Expected Volatility 113 175 % June 30, 2021 Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.01 0.46 % Expected Volatility 89 236 % |
Schedule of Fair Value of Derivative | Fair value of the derivative is summarized as below: Schedule of Fair Value of Derivative Beginning Balance, June 30, 2021 $ 2,217,361 Additions $ 708,948 Mark to Market $ 65,073 Cancellation of Derivative Liabilities Due to Cash Repayment $ — Reclassification to APIC Due to Conversions $ (769,071 ) Ending Balance, December 31, 2021 2,222,310 | Fair value of the derivative is summarized as below: Schedule of Fair Value of Derivative Beginning Balance, June 30, 2020 $ 5,597,095 Additions $ 2,663,892 Mark to Market $ (230,573 ) Cancellation of Derivative Liabilities Due to Cash Repayment $ (856,910 ) Reclassification to APIC Due to Conversions $ (4,956,143 ) Ending Balance, June 30, 2021 2,217,361 |
Stock Warrants (Tables)
Stock Warrants (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Schedule of Assumptions Inputs for Warrants | Schedule of Binomial Model Assumptions Inputs June 30, 2021 Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.01 0.46 % Expected Volatility 89 236 % December 31, 2021 Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.05-0.53 % Expected Volatility 127 234 % | Schedule of Binomial Model Assumptions Inputs June 30, 2020 Annual Dividend Yield — Expected Life (Years) 0.50 1.00 Risk-Free Interest Rate 0.16 2.10 % Expected Volatility 113 175 % June 30, 2021 Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.01 0.46 % Expected Volatility 89 236 % |
Warrant [Member] | ||
Schedule of Assumptions Inputs for Warrants | The Binomial model with the following assumption inputs: Schedule of Assumptions Inputs for Warrants Warrants liability: June 30, 2020 Annual dividend yield — Expected life (years) 3.0 5.0 Risk-free interest rate 0.18 1.69 % Expected volatility 137 318 % Warrants liability: June 30, 2021 Annual dividend yield — Expected life (years) 2.0 4.0 Risk-free interest rate 0.18 0.46 % Expected volatility 132 166 % | |
Schedule of Warrants Outstanding | Schedule of Warrants Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining contractual life Outstanding at June 30, 2019 1,083,880 $ 0.034 5 Expired (505,000 ) 0.15 Granted 1,000,000 0.008 5 Outstanding at June 30, 2020 1,578,880 $ 0.021 4 Expired - Granted - Outstanding at June 30, 2021 1,578,880 $ 0.026 3 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Schedule of Supplemental Disclosures Related to Operating Lease | Schedule of Supplemental Disclosures Related to Operating Lease Six Months Ended December 31, 2021 Lease Cost Operating lease cost (included in general and administration in the Company’s unaudited condensed statement of operations) $ 154,463 Other Information Cash paid for amounts included in the measurement of lease liabilities for the three months ended December 31, 2021 $ 118,796 Remaining lease term – operating leases (in years) 2.25 Average discount rate – operating leases 10 % The supplemental balance sheet information related to leases for the periods are as follows: Operating leases Short-term right-of-use assets $ 255,734 Long-term right-of-use assets $ 355,129 Total operating lease assets $ 610,864 Short-term operating lease liabilities $ 256,579 Long-term operating lease liabilities $ 385,108 Total operating lease liabilities $ 641,687 | Schedule of Supplemental Disclosures Related to Operating Lease For The Year Ended June 30, 2021 Lease Cost Operating lease cost (included in general and administration in the Company’s unaudited condensed statement of operations) $ 308,925 Other Information Cash paid for amounts included in the measurement of lease liabilities for the year ended June 30, 2021 $ 220,328 Remaining lease term – operating leases (in years) 2.75 Average discount rate – operating leases 10 % The supplemental balance sheet information related to leases for the periods are as follows: Operating leases Short-term Right-of-use assets $ 243,406 Long-term Right-of-use assets $ 486,253 Total operating lease assets $ 729,659 Short-term operating lease liabilities $ 239,521 Long-term operating lease liabilities $ 524,149 Total operating lease liabilities $ 763,670 |
Schedule of Maturities of Lease Liabilities | Maturities of the Company’s lease liabilities are as follows: Schedule of Maturities of Lease Liabilities Operating Period ending December 31, 2021 Lease 2022 $ 309,770 2023 196,424 2024 175,026 2025 59,506 Total lease payments 740,726 Less: Imputed interest/present value discount (99,040 ) Present value of lease liabilities $ 641,687 | Schedule of Maturities of Lease Liabilities Maturities of the Company’s lease liabilities are as follows: Period ending June 30, Operating Lease 2022 305,040 2023 273,425 2024 172,465 2025 147,446 Total lease payments 898,376 Less: Imputed interest/present value discount (134,706 ) Present value of lease liabilities $ 763,669 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Asset | The deferred tax asset as of June 30, 2021 and 2020 consisted of the following: Schedule of Deferred Tax Asset 2021 2020 Net Operating Loss Carryforwards $ 13,021,807 $ 12,028,883 Less Valuation Allowance (13,021,807 ) (12,028,883 ) Deferred Tax Assets $ — $ — |
Schedule of Reconciliation for Income Taxes | Reconciliation between the provision for income taxes and the expected tax benefit using the federal statutory rate of 21% for 2021 and 2020 is as follows: Schedule of Reconciliation for Income Taxes 2021 2020 US federal statutory income tax rate (21 )% (21 )% State tax – net of benefit (7 )% (7 )% Non-deductible expenses, net of federal benefit 7 % 7 % Increase in valuation allowance 21 % 21 % Income tax expense — — |
Nature of Business (Details Nar
Nature of Business (Details Narrative) - USD ($) | Feb. 08, 2021 | Oct. 02, 2020 | Feb. 07, 2020 | Feb. 28, 2021 | Feb. 28, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Nonconsolidated affiliate - equity method | $ 380,660 | $ 380,660 | $ 441,407 | ||||||||
Loss from equity method investment | 16,270 | $ 2,114 | $ 60,747 | $ 2,114 | $ 81,725 | ||||||
Nug Avenue, Inc. [Member] | |||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Percentage of VIE | 70.00% | 70.00% | |||||||||
Indigo Dye Group Corp. [Member] | |||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Percentage of VIE | 40.00% | 40.00% | 40.00% | ||||||||
Option to purchase an additional VIE interest | 30.00% | 30.00% | |||||||||
Nonconsolidated affiliate - equity method | $ 59,370 | $ 59,370 | $ 59,370 | $ 59,370 | $ 441,407 | ||||||
Percentage of outstanding equity | 32.00% | 32.00% | 32.00% | 32.00% | 29.00% | ||||||
Loss from equity method investment | $ (81,725) | ||||||||||
Indigo Dye Group Corp. [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | |||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Nonconsolidated affiliate - equity method | $ 505,449 | ||||||||||
Percentage of outstanding equity | 40.00% | ||||||||||
Nug Avenue, Inc. [Member] | |||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Ownership percentage by parent | 70.00% | ||||||||||
Percentage of revenues | 100.00% | 100.00% | |||||||||
Percentage of profits or loss | 70.00% | 70.00% | |||||||||
Indigo Dye Group Corp. [Member] | |||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Ownership percentage by parent | 40.00% |
Schedule of Estimated Useful Li
Schedule of Estimated Useful Lives of Property and Equipment (Details) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Machinery and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 3 years | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 5 years | 15 years |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 7 years | |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 1 year | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 15 years | |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 5 years | |
Vehicles [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 2 years | |
Vehicles [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 5 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 30 years | |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 5 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 30 years | |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 31 years 6 months | |
Manufactured Product, Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 5 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Product Information [Line Items] | ||||||
Impairment of long-lived assets | $ 0 | $ 43,800 | $ 2,066,958 | |||
Reclassification of derivative liability to warrant liability | 4,000 | |||||
Impairment of property, plant and equipment | 43,800 | 2,066,958 | ||||
Property, Plant and Equipment [Member] | ||||||
Product Information [Line Items] | ||||||
Impairment of property, plant and equipment | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Paper and paper-based products [Member] | ||||||
Product Information [Line Items] | ||||||
Revenue percentage | 39.00% | 44.00% | ||||
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Non-medical Supplies [Member] | ||||||
Product Information [Line Items] | ||||||
Revenue percentage | 0.00% | |||||
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Cannabis Products [Member] | ||||||
Product Information [Line Items] | ||||||
Revenue percentage | 61.00% | 56.00% |
Schedule of Fair Value of Purch
Schedule of Fair Value of Purchase Price Consideration (Details) - Lemon Glow Company, Inc [Member] - USD ($) $ in Thousands | May 25, 2021 | Mar. 12, 2021 | |
Business Acquisition [Line Items] | |||
Cash Consideration | [1] | $ 4,256 | |
Equity Consideration | [2] | 7,450 | |
Interest-Bearing Debt Assumed | 2,043 | ||
Total Purchase Consideration | $ 13,749 | $ 13,749 | |
[1] | The cash consideration consists of $ 280,000 3,976,000 5 | ||
[2] | The equity consideration consists of 660,571,429 2,000,000 |
Schedule of Fair Value of Pur_2
Schedule of Fair Value of Purchase Price Consideration (Details) (Parenthetical) - Lemon Glow Company, Inc [Member] | Mar. 12, 2021USD ($)shares | |
Business Acquisition [Line Items] | ||
Cash Consideration | $ 4,256,000 | [1] |
Common Stock [Member] | ||
Business Acquisition [Line Items] | ||
Equity consideration | shares | 660,571,429 | |
Preferred Stock Series B [Member] | ||
Business Acquisition [Line Items] | ||
Equity consideration | shares | 2,000,000 | |
Promissory Notes [Member] | ||
Business Acquisition [Line Items] | ||
Cash Consideration | $ 3,976,000 | |
Interest rate | 5.00% | |
Cash [Member] | ||
Business Acquisition [Line Items] | ||
Cash Consideration | $ 280,000 | |
[1] | The cash consideration consists of $ 280,000 3,976,000 5 |
Schedule of Fair Value of Asset
Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) | May 25, 2021 | Mar. 12, 2021 | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Business Acquisition [Line Items] | ||||||
Total Economic Goodwill | $ 757,648 | $ 757,648 | ||||
Lemon Glow Company, Inc [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Assets Acquired | $ 6,000 | |||||
Property, Plant & Equipment | [1] | 2,348,000 | ||||
Total Tangible Asset Allocation | 2,354,000 | |||||
Total Identifiable Intangible Assets | 10,637,000 | |||||
Total Economic Goodwill | 757,648 | |||||
Purchase Consideration to be Allocated | 13,749,000 | $ 13,749,000 | ||||
Lemon Glow Company, Inc [Member] | Assembled Workforce [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Total Economic Goodwill | 275,000 | |||||
Lemon Glow Company, Inc [Member] | Goodwill (Excluding Assembled Workforce) [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Total Economic Goodwill | 483,000 | |||||
Lemon Glow Company, Inc [Member] | Cannabis Cultivation License [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Total Identifiable Intangible Assets | $ 10,637,000 | |||||
[1] | The value of the land is excluded in the calculation of depreciation. |
Schedule of Pro Forma Combined
Schedule of Pro Forma Combined Financial Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | May 25, 2021 | Jun. 30, 2019 | ||||||||
Current assets: | ||||||||||||||||||
Cash | $ 63,375 | $ 63,375 | $ 1,396,944 | $ 441,004 | ||||||||||||||
Accounts receivable, net | 707,509 | 707,509 | 435,598 | 134,517 | ||||||||||||||
Inventory, net | 643,920 | 643,920 | 441,582 | 679,471 | ||||||||||||||
Loan receivables, current | 196,000 | 196,000 | 1,365 | |||||||||||||||
Loan receivables - related party, current | 122,535 | |||||||||||||||||
Other current assets | 184,952 | 184,952 | 182,457 | 263,404 | ||||||||||||||
Right of use asset, current | 255,734 | 255,734 | 243,406 | 270,363 | ||||||||||||||
Total current assets | 2,185,432 | 2,185,432 | 4,151,909 | 1,912,659 | ||||||||||||||
Noncurrent assets: | ||||||||||||||||||
Intangible asset, net | 10,648,378 | 10,648,378 | 10,650,394 | 9,800 | ||||||||||||||
Goodwill | 757,648 | 757,648 | 757,648 | |||||||||||||||
Other assets | 54,163 | |||||||||||||||||
Loan receivables - related party, noncurrent | 196,000 | |||||||||||||||||
Right of use asset, noncurrent | 355,129 | 355,129 | 486,253 | 835,393 | ||||||||||||||
Investment to Indigo Dye | 380,660 | 380,660 | 441,407 | |||||||||||||||
Total noncurrent assets | 16,006,195 | 16,006,195 | 15,281,042 | 1,594,403 | ||||||||||||||
Total assets | 18,191,627 | 18,191,627 | 19,432,951 | 3,507,062 | ||||||||||||||
Current liabilities: | ||||||||||||||||||
Note payable due to bank | 25,982 | 25,982 | 25,982 | 25,982 | ||||||||||||||
Accounts payable and accrued liabilities | 2,421,705 | 2,421,705 | 2,058,839 | 1,583,228 | ||||||||||||||
Customer deposits | 887,800 | 887,800 | 751,919 | 466,337 | ||||||||||||||
Customer overpayment | 74,987 | 74,987 | 59,953 | 47,890 | ||||||||||||||
Unearned revenue | 53,248 | |||||||||||||||||
Other payables | 626,163 | 626,163 | 750,485 | 691,801 | ||||||||||||||
Accrued interest | 646,643 | 646,643 | 509,997 | 494,740 | ||||||||||||||
Accrued compensation and personnel related payables | 8,290 | 8,290 | 15,471 | 35,361 | ||||||||||||||
Notes payable - Current | 31,787 | 31,787 | 33,047 | 20,000 | ||||||||||||||
Notes payable - Related Parties, Current | 15,427 | 15,427 | ||||||||||||||||
Lease liability - Current | 256,579 | 256,579 | 239,521 | 372,285 | ||||||||||||||
Loans payable - Current | 814,494 | 814,494 | 392,605 | 319,314 | ||||||||||||||
Convertible notes payable, Net, Current | 1,298,133 | 1,298,133 | 1,421,694 | 1,740,122 | ||||||||||||||
Derivative liabilities, net | 2,222,310 | 2,222,310 | 2,217,361 | 5,597,095 | ||||||||||||||
Due to related parties | 228,057 | 228,057 | 163,831 | 35,943 | ||||||||||||||
Warrants liabilities | 6,405 | 6,405 | 21,042 | 79,910 | ||||||||||||||
Shares to be issued | 262,077 | 262,077 | 138,077 | 101,577 | ||||||||||||||
Total current liabilities | 9,811,412 | 9,811,412 | 8,815,251 | 11,680,260 | ||||||||||||||
Non-current liabilities: | ||||||||||||||||||
Note Payable | 4,888,463 | 4,888,463 | 4,997,323 | |||||||||||||||
Loans payable | 836,245 | 836,245 | 308,588 | 197,946 | ||||||||||||||
Lease liability | 385,108 | 385,108 | 524,149 | 767,729 | ||||||||||||||
Total liabilities | 15,986,793 | 15,986,793 | 14,662,733 | 12,645,935 | ||||||||||||||
Stockholders’ equity (deficiency): | ||||||||||||||||||
Common stock, $0.001 par value, 10,000,000,000 shares authorized, 4,718,104,197 shares issued and outstanding at March 31, 2021 | 9,022,992 | 9,022,992 | 7,402,536 | 1,763,278 | ||||||||||||||
Additional paid-in capital | 72,367,128 | 72,367,128 | 64,841,654 | 57,307,767 | ||||||||||||||
Share to be issued, Preferred stock | 5,600,000 | |||||||||||||||||
Accumulated deficit | (78,816,668) | (78,816,668) | (74,364,466) | (68,438,332) | ||||||||||||||
Total stockholders’ deficiency | 2,616,002 | 2,616,002 | 4,869,874 | (9,127,737) | ||||||||||||||
Non-Controlling Interest | (411,168) | (411,168) | (99,656) | (11,136) | ||||||||||||||
Total stockholders’ equity (deficiency) | 2,204,834 | $ 4,328,979 | $ (5,239,070) | $ (4,804,248) | 2,204,834 | $ (5,239,070) | 4,770,218 | (9,138,873) | $ 14,678,534 | |||||||||
Total liabilities and stockholders’ equity (deficiency) | 18,191,627 | 18,191,627 | 19,432,951 | 3,507,062 | ||||||||||||||
Revenues, net | 1,235,825 | 300,652 | 2,404,606 | 2,446,979 | 3,979,049 | 4,362,585 | ||||||||||||
Cost of goods sold | 461,873 | 242,531 | 848,812 | 1,272,429 | 2,153,311 | 2,851,940 | ||||||||||||
Gross profit | 773,952 | 58,121 | 1,555,794 | 1,174,550 | 1,825,738 | 1,510,645 | ||||||||||||
Selling, general and administrative expenses | 683,745 | 271,549 | 1,296,884 | 875,358 | 1,824,757 | 1,734,830 | ||||||||||||
Marketing and Research Expense | 36,992 | 93,908 | 72,405 | 316,256 | 431,913 | 514,394 | ||||||||||||
Professional Expense | 190,249 | 115,615 | 500,750 | 619,045 | 1,438,341 | 1,128,896 | ||||||||||||
Salaries and Wages | 479,738 | 105,700 | 940,162 | 464,474 | 709,041 | 572,683 | ||||||||||||
Stock Compensation Expense | 22,500 | 47,250 | 124,000 | 66,000 | 518,393 | 9,255,277 | ||||||||||||
Loss from operations | (1,184,919) | (576,583) | (2,437,521) | (1,445,170) | (3,941,597) | (12,125,576) | ||||||||||||
Non-operating income (expense): | ||||||||||||||||||
Gain in loss of control of VIE | 313,928 | 313,928 | 313,928 | |||||||||||||||
Interest expense | (1,093,317) | (728,197) | (1,251,228) | (1,194,972) | (1,700,420) | (1,613,044) | ||||||||||||
Bad debts | (7) | (130,467) | (7) | (132,979) | (522,352) | (240,157) | ||||||||||||
Change in fair value of derivative liabilities | (390,306) | 496,961 | (65,073) | 3,992,108 | 1,087,485 | (1,442,295) | ||||||||||||
Warrant Expense | 6,347 | 4,174 | 14,637 | 70,389 | 58,868 | (119,526) | ||||||||||||
Gain on debt conversion | (184,626) | |||||||||||||||||
Loss on asset disposal | (28) | (119,044) | ||||||||||||||||
Amortization of debt discount | (24,071) | (1,031,379) | (156,651) | (1,845,925) | (2,617,274) | (3,823,500) | ||||||||||||
Debt forgiveness | 96,595 | 590,226 | ||||||||||||||||
Impairment Loss | (43,800) | (2,066,958) | ||||||||||||||||
Total non-operating expenses, net | (1,709,814) | (1,077,700) | (2,315,454) | 1,072,096 | (2,091,204) | (9,408,995) | ||||||||||||
Equity Method Investment Loss | (16,270) | (2,114) | (60,747) | (2,114) | (81,725) | |||||||||||||
Net loss | (2,911,002) | $ (1,902,718) | (1,656,397) | $ 1,279,976 | (4,813,722) | (375,188) | (6,114,526) | (21,534,571) | ||||||||||
Less: net loss attributable to the noncontrolling interest | (54,168) | (361,519) | (188,392) | (195,416) | ||||||||||||||
Net loss attributable to SugarMade Inc. | $ (2,856,834) | $ (1,656,397) | $ (4,452,203) | $ (375,188) | $ (5,926,134) | $ (21,339,155) | ||||||||||||
Basic net income (loss) per share | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.02) | ||||||||||||
Diluted net income (loss) per share | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.02) | ||||||||||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 8,728,862,892 | [1] | 3,233,135,446 | [1] | 8,509,797,777 | [1] | 2,864,951,348 | [1] | 3,851,836,959 | [2] | 939,171,416 | [2] | ||||||
Pro Forma Merger Adjustment [Member] | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash | $ 280,000 | |||||||||||||||||
Accounts receivable, net | ||||||||||||||||||
Inventory, net | ||||||||||||||||||
Loan receivables, current | ||||||||||||||||||
Loan receivables - related party, current | ||||||||||||||||||
Other current assets | ||||||||||||||||||
Right of use asset, current | ||||||||||||||||||
Total current assets | 280,000 | |||||||||||||||||
Noncurrent assets: | ||||||||||||||||||
Machinery and Equipment, net | ||||||||||||||||||
Land Improvements, net | ||||||||||||||||||
Estate Property - Land | ||||||||||||||||||
Intangible asset, net | 10,572,600 | |||||||||||||||||
Goodwill | 573,000 | |||||||||||||||||
Other assets | ||||||||||||||||||
Loan receivables - related party, noncurrent | ||||||||||||||||||
Right of use asset, noncurrent | ||||||||||||||||||
Investment to Indigo Dye | ||||||||||||||||||
Total noncurrent assets | 11,145,600 | |||||||||||||||||
Total assets | 11,425,600 | |||||||||||||||||
Current liabilities: | ||||||||||||||||||
Note payable due to bank | ||||||||||||||||||
Accounts payable and accrued liabilities | ||||||||||||||||||
Customer deposits | ||||||||||||||||||
Customer overpayment | ||||||||||||||||||
Unearned revenue | ||||||||||||||||||
Other payables | ||||||||||||||||||
Accrued interest | ||||||||||||||||||
Accrued compensation and personnel related payables | ||||||||||||||||||
Notes payable - Current | ||||||||||||||||||
Notes payable - Related Parties, Current | ||||||||||||||||||
Lease liability - Current | ||||||||||||||||||
Loans payable - Current | ||||||||||||||||||
Loan payable - Related Parties, Current | ||||||||||||||||||
Convertible notes payable, Net, Current | ||||||||||||||||||
Derivative liabilities, net | ||||||||||||||||||
Due to related parties | ||||||||||||||||||
Warrants liabilities | ||||||||||||||||||
Shares to be issued | ||||||||||||||||||
Total current liabilities | ||||||||||||||||||
Non-current liabilities: | ||||||||||||||||||
Note Payable | 3,976,000 | |||||||||||||||||
Loans payable | ||||||||||||||||||
Lease liability | ||||||||||||||||||
Total liabilities | 3,976,000 | |||||||||||||||||
Stockholders’ equity (deficiency): | ||||||||||||||||||
Preferred stock, $0.001 par value, 10,000,000 shares authorized 1,541,500 shares issued outstanding at March 31, 2021 | 5,600 | |||||||||||||||||
Common stock, $0.001 par value, 10,000,000,000 shares authorized, 4,718,104,197 shares issued and outstanding at March 31, 2021 | 660,571 | |||||||||||||||||
Additional paid-in capital | 6,783,429 | |||||||||||||||||
Accumulated deficit | ||||||||||||||||||
Total stockholders’ deficiency | 7,449,600 | |||||||||||||||||
Non-Controlling Interest | ||||||||||||||||||
Total stockholders’ equity (deficiency) | 7,449,600 | |||||||||||||||||
Total liabilities and stockholders’ equity (deficiency) | 11,425,600 | |||||||||||||||||
Revenues, net | ||||||||||||||||||
Cost of goods sold | ||||||||||||||||||
Gross profit | ||||||||||||||||||
Selling, general and administrative expenses | ||||||||||||||||||
Advertising and Promotion Expense | ||||||||||||||||||
Marketing and Research Expense | ||||||||||||||||||
Professional Expense | ||||||||||||||||||
Salaries and Wages | ||||||||||||||||||
Stock Compensation Expense | ||||||||||||||||||
Loss from operations | ||||||||||||||||||
Non-operating income (expense): | ||||||||||||||||||
Other income | ||||||||||||||||||
Gain in loss of control of VIE | ||||||||||||||||||
Interest expense | ||||||||||||||||||
Bad debts | ||||||||||||||||||
Change in fair value of derivative liabilities | ||||||||||||||||||
Warrant Expense | ||||||||||||||||||
Gain on debt conversion | ||||||||||||||||||
Loss on settlement | ||||||||||||||||||
Loss on asset disposal | ||||||||||||||||||
Amortization of debt discount | ||||||||||||||||||
Debt forgiveness | ||||||||||||||||||
Miscellaneous | ||||||||||||||||||
Impairment Loss | ||||||||||||||||||
Other expenses | ||||||||||||||||||
Total non-operating expenses, net | ||||||||||||||||||
Equity Method Investment Loss | ||||||||||||||||||
Net loss | ||||||||||||||||||
Less: net loss attributable to the noncontrolling interest | ||||||||||||||||||
Net loss attributable to SugarMade Inc. | ||||||||||||||||||
Basic net income (loss) per share | ||||||||||||||||||
Diluted net income (loss) per share | ||||||||||||||||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 0 | [3] | 0 | [4] | ||||||||||||||
Pro Forma [Member] | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash | $ 568,096 | |||||||||||||||||
Accounts receivable, net | 75,040 | |||||||||||||||||
Inventory, net | 692,460 | |||||||||||||||||
Loan receivables, current | ||||||||||||||||||
Loan receivables - related party, current | 208,931 | |||||||||||||||||
Other current assets | 1,066,597 | |||||||||||||||||
Right of use asset, current | 237,556 | |||||||||||||||||
Total current assets | 2,848,680 | |||||||||||||||||
Noncurrent assets: | ||||||||||||||||||
Machinery and Equipment, net | 477,834 | |||||||||||||||||
Land Improvements, net | 341,681 | |||||||||||||||||
Estate Property - Land | 1,922,376 | |||||||||||||||||
Intangible asset, net | 10,587,178 | |||||||||||||||||
Goodwill | 573,000 | |||||||||||||||||
Other assets | ||||||||||||||||||
Loan receivables - related party, noncurrent | 196,000 | |||||||||||||||||
Right of use asset, noncurrent | 549,261 | |||||||||||||||||
Investment to Indigo Dye | 564,819 | |||||||||||||||||
Total noncurrent assets | 15,212,149 | |||||||||||||||||
Total assets | 18,060,829 | |||||||||||||||||
Current liabilities: | ||||||||||||||||||
Note payable due to bank | 25,982 | |||||||||||||||||
Accounts payable and accrued liabilities | 1,839,012 | |||||||||||||||||
Customer deposits | 1,060,268 | |||||||||||||||||
Customer overpayment | 53,183 | |||||||||||||||||
Unearned revenue | 9,379 | |||||||||||||||||
Other payables | 812,069 | |||||||||||||||||
Accrued interest | 519,267 | |||||||||||||||||
Accrued compensation and personnel related payables | ||||||||||||||||||
Notes payable - Current | 20,000 | |||||||||||||||||
Notes payable - Related Parties, Current | 15,427 | |||||||||||||||||
Lease liability - Current | 231,305 | |||||||||||||||||
Loans payable - Current | 464,112 | |||||||||||||||||
Loan payable - Related Parties, Current | 238,150 | |||||||||||||||||
Convertible notes payable, Net, Current | 1,982,902 | |||||||||||||||||
Derivative liabilities, net | 2,723,899 | |||||||||||||||||
Due to related parties | 4,244 | |||||||||||||||||
Warrants liabilities | 24,216 | |||||||||||||||||
Shares to be issued | 136,577 | |||||||||||||||||
Total current liabilities | 10,159,992 | |||||||||||||||||
Non-current liabilities: | ||||||||||||||||||
Note Payable | 5,357,593 | |||||||||||||||||
Loans payable | 420,903 | |||||||||||||||||
Lease liability | 591,116 | |||||||||||||||||
Total liabilities | 16,529,604 | |||||||||||||||||
Stockholders’ equity (deficiency): | ||||||||||||||||||
Preferred stock, $0.001 par value, 10,000,000 shares authorized 1,541,500 shares issued outstanding at March 31, 2021 | 7,142 | |||||||||||||||||
Common stock, $0.001 par value, 10,000,000,000 shares authorized, 4,718,104,197 shares issued and outstanding at March 31, 2021 | 5,773,449 | |||||||||||||||||
Additional paid-in capital | 69,879,356 | |||||||||||||||||
Share to be issued, Preferred stock | (1) | |||||||||||||||||
Common Stock Subscribed | 236,008 | |||||||||||||||||
Accumulated deficit | (74,418,576) | |||||||||||||||||
Total stockholders’ deficiency | 1,477,378 | |||||||||||||||||
Non-Controlling Interest | 53,847 | |||||||||||||||||
Total stockholders’ equity (deficiency) | 1,531,225 | |||||||||||||||||
Total liabilities and stockholders’ equity (deficiency) | 18,060,829 | |||||||||||||||||
Revenues, net | 2,851,822 | $ 4,354,102 | ||||||||||||||||
Cost of goods sold | 1,502,247 | 2,851,940 | ||||||||||||||||
Gross profit | 1,349,575 | 1,502,161.64 | ||||||||||||||||
Selling, general and administrative expenses | 1,457,294 | 13,620,529 | ||||||||||||||||
Advertising and Promotion Expense | 378,068 | |||||||||||||||||
Marketing and Research Expense | 364,580 | |||||||||||||||||
Professional Expense | 760,580 | |||||||||||||||||
Salaries and Wages | 375,696 | |||||||||||||||||
Stock Compensation Expense | 82,250 | |||||||||||||||||
Loss from operations | (2,068,893) | (12,118,367) | ||||||||||||||||
Non-operating income (expense): | ||||||||||||||||||
Other income | 5,099 | 3,064 | ||||||||||||||||
Gain in loss of control of VIE | 313,928 | |||||||||||||||||
Interest expense | (1,965,841) | (1,613,044) | ||||||||||||||||
Bad debts | (133,235) | (240,157) | ||||||||||||||||
Change in fair value of derivative liabilities | 506,559 | (1,442,295) | ||||||||||||||||
Warrant Expense | 55,695 | (119,526) | ||||||||||||||||
Gain on debt conversion | (184,626) | |||||||||||||||||
Loss on settlement | (80,000) | (393,135) | ||||||||||||||||
Loss on asset disposal | (119,044) | |||||||||||||||||
Amortization of debt discount | (2,605,144) | (3,823,500) | ||||||||||||||||
Debt forgiveness | 590,226 | |||||||||||||||||
Miscellaneous | (7,201) | |||||||||||||||||
Impairment Loss | (2,066,958) | |||||||||||||||||
Other expenses | (55,054) | |||||||||||||||||
Total non-operating expenses, net | (3,957,993) | (9,416,195) | ||||||||||||||||
Net loss | (21,534,562) | |||||||||||||||||
Less: net loss attributable to the noncontrolling interest | (48,756) | (195,416) | ||||||||||||||||
Net loss attributable to SugarMade Inc. | $ (48,756) | $ (21,339,146) | ||||||||||||||||
Basic net income (loss) per share | $ 0 | $ (0.02) | ||||||||||||||||
Diluted net income (loss) per share | $ 0 | $ (0.02) | ||||||||||||||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 3,247,070,176 | [3] | 958,183,933 | [4] | ||||||||||||||
Parent Company [Member] | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash | $ 269,885 | |||||||||||||||||
Accounts receivable, net | 75,040 | |||||||||||||||||
Inventory, net | 692,460 | |||||||||||||||||
Loan receivables, current | ||||||||||||||||||
Loan receivables - related party, current | 208,931 | |||||||||||||||||
Other current assets | 1,066,597 | |||||||||||||||||
Right of use asset, current | 237,556 | |||||||||||||||||
Total current assets | 2,550,469 | |||||||||||||||||
Noncurrent assets: | ||||||||||||||||||
Machinery and Equipment, net | 390,189 | |||||||||||||||||
Land Improvements, net | ||||||||||||||||||
Estate Property - Land | ||||||||||||||||||
Intangible asset, net | 14,578 | |||||||||||||||||
Other assets | ||||||||||||||||||
Loan receivables - related party, noncurrent | 196,000 | |||||||||||||||||
Right of use asset, noncurrent | 549,261 | |||||||||||||||||
Investment to Indigo Dye | 564,819 | |||||||||||||||||
Total noncurrent assets | 1,714,847 | |||||||||||||||||
Total assets | 4,265,316 | |||||||||||||||||
Current liabilities: | ||||||||||||||||||
Note payable due to bank | 25,982 | |||||||||||||||||
Accounts payable and accrued liabilities | 1,753,855 | |||||||||||||||||
Customer deposits | 660,268 | |||||||||||||||||
Customer overpayment | 53,183 | |||||||||||||||||
Unearned revenue | 9,379 | |||||||||||||||||
Other payables | 812,069 | |||||||||||||||||
Accrued interest | 515,767 | |||||||||||||||||
Accrued compensation and personnel related payables | ||||||||||||||||||
Notes payable - Current | 20,000 | |||||||||||||||||
Notes payable - Related Parties, Current | 15,427 | |||||||||||||||||
Lease liability - Current | 231,305 | |||||||||||||||||
Loans payable - Current | 350,221 | |||||||||||||||||
Loan payable - Related Parties, Current | 238,150 | |||||||||||||||||
Convertible notes payable, Net, Current | 1,982,902 | |||||||||||||||||
Derivative liabilities, net | 2,723,899 | |||||||||||||||||
Due to related parties | ||||||||||||||||||
Warrants liabilities | 24,216 | |||||||||||||||||
Shares to be issued | 136,577 | |||||||||||||||||
Total current liabilities | 9,553,200 | |||||||||||||||||
Non-current liabilities: | ||||||||||||||||||
Note Payable | ||||||||||||||||||
Loans payable | 366,495 | |||||||||||||||||
Lease liability | 591,116 | |||||||||||||||||
Total liabilities | 10,510,811 | |||||||||||||||||
Stockholders’ equity (deficiency): | ||||||||||||||||||
Preferred stock, $0.001 par value, 10,000,000 shares authorized 1,541,500 shares issued outstanding at March 31, 2021 | 1,542 | |||||||||||||||||
Common stock, $0.001 par value, 10,000,000,000 shares authorized, 4,718,104,197 shares issued and outstanding at March 31, 2021 | 4,718,105 | |||||||||||||||||
Additional paid-in capital | 63,095,927 | |||||||||||||||||
Share to be issued, Preferred stock | (1) | |||||||||||||||||
Common Stock Subscribed | 236,008 | |||||||||||||||||
Accumulated deficit | (74,350,923) | |||||||||||||||||
Total stockholders’ deficiency | (6,299,342) | |||||||||||||||||
Non-Controlling Interest | 53,847 | |||||||||||||||||
Total stockholders’ equity (deficiency) | (6,245,495) | |||||||||||||||||
Total liabilities and stockholders’ equity (deficiency) | 4,265,316 | |||||||||||||||||
Revenues, net | 2,851,822 | $ 4,354,102 | ||||||||||||||||
Cost of goods sold | 1,502,247 | 2,851,940 | ||||||||||||||||
Gross profit | 1,349,575 | 1,502,162 | ||||||||||||||||
Selling, general and administrative expenses | 1,446,038 | 13,620,529 | ||||||||||||||||
Advertising and Promotion Expense | 378,068 | |||||||||||||||||
Marketing and Research Expense | 364,580 | |||||||||||||||||
Professional Expense | 756,444 | |||||||||||||||||
Salaries and Wages | 368,616 | |||||||||||||||||
Stock Compensation Expense | 82,250 | |||||||||||||||||
Loss from operations | (2,046,421) | (12,118,367) | ||||||||||||||||
Non-operating income (expense): | ||||||||||||||||||
Other income | 5,099 | 3,064 | ||||||||||||||||
Gain in loss of control of VIE | 313,928 | |||||||||||||||||
Interest expense | (1,920,660) | (1,613,044) | ||||||||||||||||
Bad debts | (133,235) | (240,157) | ||||||||||||||||
Change in fair value of derivative liabilities | 506,559 | (1,442,295) | ||||||||||||||||
Warrant Expense | 55,695 | (119,526) | ||||||||||||||||
Gain on debt conversion | (184,626) | |||||||||||||||||
Loss on settlement | (80,000) | (393,135) | ||||||||||||||||
Loss on asset disposal | (119,044) | |||||||||||||||||
Amortization of debt discount | (2,605,144) | (3,823,500) | ||||||||||||||||
Debt forgiveness | 590,226 | |||||||||||||||||
Miscellaneous | (7,201) | |||||||||||||||||
Impairment Loss | (2,066,958) | |||||||||||||||||
Other expenses | (55,054) | |||||||||||||||||
Total non-operating expenses, net | (3,912,812) | (9,416,195) | ||||||||||||||||
Equity Method Investment Loss | (2,114) | |||||||||||||||||
Net loss | (5,961,347) | (21,534,562) | ||||||||||||||||
Less: net loss attributable to the noncontrolling interest | (48,756) | (195,416) | ||||||||||||||||
Net loss attributable to SugarMade Inc. | $ (5,912,591) | $ (21,339,146) | ||||||||||||||||
Basic net income (loss) per share | $ 0 | $ (0.02) | ||||||||||||||||
Diluted net income (loss) per share | $ 0 | $ (0.02) | ||||||||||||||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 3,247,070,176 | [3] | 958,183,933 | [4] | ||||||||||||||
Lemon Glow Company, Inc [Member] | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash | $ 18,211 | |||||||||||||||||
Accounts receivable, net | ||||||||||||||||||
Inventory, net | ||||||||||||||||||
Loan receivables, current | ||||||||||||||||||
Loan receivables - related party, current | ||||||||||||||||||
Other current assets | ||||||||||||||||||
Right of use asset, current | ||||||||||||||||||
Total current assets | 18,211 | |||||||||||||||||
Noncurrent assets: | ||||||||||||||||||
Machinery and Equipment, net | 87,645 | |||||||||||||||||
Land Improvements, net | 341,681 | |||||||||||||||||
Estate Property - Land | 1,922,376 | |||||||||||||||||
Intangible asset, net | ||||||||||||||||||
Goodwill | $ 757,648 | |||||||||||||||||
Other assets | ||||||||||||||||||
Loan receivables - related party, noncurrent | ||||||||||||||||||
Right of use asset, noncurrent | ||||||||||||||||||
Investment to Indigo Dye | ||||||||||||||||||
Total noncurrent assets | 2,351,702 | |||||||||||||||||
Total assets | 2,369,913 | |||||||||||||||||
Current liabilities: | ||||||||||||||||||
Note payable due to bank | ||||||||||||||||||
Accounts payable and accrued liabilities | 85,157 | |||||||||||||||||
Customer deposits | 400,000 | |||||||||||||||||
Customer overpayment | ||||||||||||||||||
Unearned revenue | ||||||||||||||||||
Other payables | ||||||||||||||||||
Accrued interest | 3,500 | |||||||||||||||||
Accrued compensation and personnel related payables | ||||||||||||||||||
Notes payable - Current | ||||||||||||||||||
Notes payable - Related Parties, Current | ||||||||||||||||||
Lease liability - Current | ||||||||||||||||||
Loans payable - Current | 113,891 | |||||||||||||||||
Loan payable - Related Parties, Current | ||||||||||||||||||
Convertible notes payable, Net, Current | ||||||||||||||||||
Derivative liabilities, net | ||||||||||||||||||
Due to related parties | 4,244 | |||||||||||||||||
Warrants liabilities | ||||||||||||||||||
Shares to be issued | ||||||||||||||||||
Total current liabilities | 606,792 | |||||||||||||||||
Non-current liabilities: | ||||||||||||||||||
Note Payable | 1,381,593 | |||||||||||||||||
Loans payable | 54,408 | |||||||||||||||||
Lease liability | ||||||||||||||||||
Total liabilities | 2,042,793 | |||||||||||||||||
Stockholders’ equity (deficiency): | ||||||||||||||||||
Common stock, $0.001 par value, 10,000,000,000 shares authorized, 4,718,104,197 shares issued and outstanding at March 31, 2021 | 394,773 | |||||||||||||||||
Accumulated deficit | (67,653) | |||||||||||||||||
Total stockholders’ deficiency | 327,120 | |||||||||||||||||
Non-Controlling Interest | ||||||||||||||||||
Total stockholders’ equity (deficiency) | 327,120 | |||||||||||||||||
Total liabilities and stockholders’ equity (deficiency) | 2,369,913 | |||||||||||||||||
Revenues, net | ||||||||||||||||||
Cost of goods sold | ||||||||||||||||||
Gross profit | ||||||||||||||||||
Selling, general and administrative expenses | 11,256 | |||||||||||||||||
Advertising and Promotion Expense | ||||||||||||||||||
Marketing and Research Expense | ||||||||||||||||||
Professional Expense | 4,136 | |||||||||||||||||
Salaries and Wages | 7,080 | |||||||||||||||||
Stock Compensation Expense | ||||||||||||||||||
Loss from operations | (22,472) | |||||||||||||||||
Non-operating income (expense): | ||||||||||||||||||
Other income | ||||||||||||||||||
Gain in loss of control of VIE | ||||||||||||||||||
Interest expense | (45,181) | |||||||||||||||||
Bad debts | ||||||||||||||||||
Change in fair value of derivative liabilities | ||||||||||||||||||
Warrant Expense | ||||||||||||||||||
Gain on debt conversion | ||||||||||||||||||
Loss on settlement | ||||||||||||||||||
Loss on asset disposal | ||||||||||||||||||
Amortization of debt discount | ||||||||||||||||||
Debt forgiveness | ||||||||||||||||||
Miscellaneous | ||||||||||||||||||
Impairment Loss | ||||||||||||||||||
Other expenses | ||||||||||||||||||
Total non-operating expenses, net | (45,181) | |||||||||||||||||
Equity Method Investment Loss | ||||||||||||||||||
Net loss | (67,653) | |||||||||||||||||
Less: net loss attributable to the noncontrolling interest | ||||||||||||||||||
Net loss attributable to SugarMade Inc. | $ (67,653) | |||||||||||||||||
Basic net income (loss) per share | ||||||||||||||||||
Diluted net income (loss) per share | ||||||||||||||||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 0 | [3] | 0 | [4] | ||||||||||||||
[1] | Shares issuable upon conversion of convertible debts and exercising of warrants were excluded in calculating diluted loss per share. | |||||||||||||||||
[2] | Shares issuable upon conversion of convertible debts and exercising of warrants were excluded in calculating diluted loss per share | |||||||||||||||||
[3] | Shares issuable upon conversion of convertible debts and exercising of warrants were excluded in calculating diluted loss per share | |||||||||||||||||
[4] | Shares issuable upon conversion of convertible debts and exercising of warrants were excluded in calculating diluted loss per share |
Schedule of Pro Forma Combine_2
Schedule of Pro Forma Combined Financial Information (Details) (Parenthetical) - $ / shares | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Apr. 22, 2020 | Apr. 21, 2020 |
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||
Preferred stock, shares issued | 3,541,500 | |||||
Preferred stock, shares outstanding | 3,541,500 | |||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 10,010,000,000 | |
Common stock, shares issued | 9,022,993,267 | 7,402,535,677 | 1,763,277,230 | |||
Common stock, shares outstanding | 9,022,993,267 | 7,402,535,677 | 1,763,277,230 | |||
Pro Forma [Member] | ||||||
Preferred stock, par value | $ 0.001 | |||||
Preferred stock, shares authorized | 10,000,000 | |||||
Preferred stock, shares issued | 1,541,500 | |||||
Preferred stock, shares outstanding | 1,541,500 | |||||
Common stock, par value | $ 0.001 | |||||
Common stock, shares authorized | 10,000,000,000 | |||||
Common stock, shares issued | 4,718,104,197 | |||||
Common stock, shares outstanding | 4,718,104,197 |
Business Combination (Details N
Business Combination (Details Narrative) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 | May 25, 2021 | Jun. 30, 2020 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 757,648 | $ 757,648 | ||
Lemon Glow Company, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 757,648 |
Schedule of Segment Operating I
Schedule of Segment Operating Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Total operating income | $ 1,235,825 | $ 300,652 | $ 2,404,606 | $ 2,446,979 | $ 3,979,049 | $ 4,362,585 |
Total cost of goods sold | 461,873 | 242,531 | 848,812 | 1,272,429 | 2,153,311 | 2,851,940 |
Operating Segments [Member] | ||||||
Total operating income | 1,235,825 | 300,652 | 2,404,606 | 2,446,979 | ||
Total cost of goods sold | 461,873 | 242,531 | 848,812 | 1,272,429 | ||
Paper and paper-based products [Member] | ||||||
Total operating income | 1,748,700 | 1,832,286 | ||||
Paper and paper-based products [Member] | Operating Segments [Member] | ||||||
Total operating income | 538,815 | 300,652 | 977,358 | 875,623 | ||
Total cost of goods sold | 461,873 | 242,531 | 848,812 | 624,969 | ||
Licensed Cannabis Delivery [Member] | ||||||
Total operating income | 2,230,349 | 1,439,653 | ||||
Non-medical Supplies [Member] | ||||||
Total operating income | $ 1,090,646 | |||||
Cannabis products delivery [Member] | Operating Segments [Member] | ||||||
Total operating income | 697,010 | 1,427,248 | 1,571,356 | |||
Total cost of goods sold | $ 647,460 |
Concentration (Details Narrativ
Concentration (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Concentration Risk [Line Items] | ||||||
Net revenue | $ 1,235,825 | $ 300,652 | $ 2,404,606 | $ 2,446,979 | $ 3,979,049 | $ 4,362,585 |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 11.60% | 5.90% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 5.10% | |||||
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Suppliers One [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 74.45% | 75.56% | 33.20% | 25.50% | ||
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Suppliers Two [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 16.20% | 18.76% | 19.40% | 16.20% | ||
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Non-medical Facial Mask [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 25.00% |
VIE (Details Narrative)
VIE (Details Narrative) - USD ($) | Oct. 02, 2020 | Feb. 07, 2020 | Feb. 28, 2020 | Dec. 31, 2021 | Jun. 30, 2021 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Amount of invested capital | $ 1,750,000 | ||||
Amount of invested capital percentage | 1.00% | ||||
Indigo Dye Group Corp. [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Ownership percentage by noncontrolling interest | 32.00% | ||||
Equity investment | $ 564,819 | ||||
Indigo Dye Group Corp. [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Terms of arrangements | the Company continues to hold approximately 32% of the ownership of Indigo but ceased to have a controlling interest in the partnership and it was deconsolidated and recorded as an investment in nonconsolidated affiliate at its $564,819 estimated fair value and changed to equity method of accounting. | The value used for this transaction is $1,750,000 and each percentage (1%) of the company is worth $17,500. In the event that the Company is not able to make a payment of $58,333 in any month, it will have 90 days to cure the default. | |||
Percentage of VIE | 40.00% | 40.00% | 40.00% | ||
Option to purchase an additional VIE interest | 30.00% | 30.00% | |||
Indigo Dye Group Corp. [Member] | Indigo Agreement [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Investment | $ 700,000 | ||||
Terms of arrangements | The Investment shall be made in twelve monthly equal installments of $58,333 with the acceleration of the payment schedule possible depending on business growth, cash flow needs and capital availability. | ||||
Monthly installments amount | $ 58,333 |
Non-controlling Interest and _2
Non-controlling Interest and Deconsolidation of VIE (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Oct. 02, 2020 | Sep. 30, 2020 | |
Nonconsolidated affiliate - equity method | $ 380,660 | $ 380,660 | $ 441,407 | |||||
Net assets value | 18,191,627 | 18,191,627 | 19,432,951 | $ 3,507,062 | ||||
Gain on deconsolidation | $ 313,928 | $ 313,928 | 313,928 | |||||
Loss from equity method investment | $ (16,270) | $ (2,114) | (60,747) | $ (2,114) | (81,725) | |||
Loss from equity method investment | $ 60,747 | 123,412 | ||||||
Indigo Dye Group Corp. [Member] | ||||||||
Percentage of outstanding equity | 32.00% | 32.00% | 32.00% | 32.00% | 29.00% | |||
Proceeds the option to acquire additional interest percentage | 30.00% | 30.00% | 30.00% | |||||
Nonconsolidated affiliate - equity method | $ 59,370 | $ 59,370 | $ 59,370 | $ 59,370 | 441,407 | |||
Loss from equity method investment | $ 81,725 | |||||||
Indigo Dye Group Corp. [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||
Net assets value | $ 326,812 | |||||||
Indigo Dye Group Corp. [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||||||
Percentage of outstanding equity | 40.00% | |||||||
Nonconsolidated affiliate - equity method | $ 505,449 | |||||||
Indigo Dye Group [Member] | ||||||||
Percentage of outstanding equity | 32.00% | 29.00% | ||||||
Proceeds the option to acquire additional interest percentage | 30.00% | 30.00% | ||||||
Gain on deconsolidation | $ 313,928 |
Litigation (Details Narrative)
Litigation (Details Narrative) - USD ($) | Feb. 21, 2017 | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Litigation settlement, amount | $ 227,000 | |||
Convertible notes payable | 80,000 | |||
Convertible notes payable | $ 1,363,698 | $ 1,439,116 | $ 1,740,122 | |
Third parties [Member] | Two Notes [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Convertible notes payable | $ 80,000 | 80,000 | 80,000 | $ 80,000 |
Debt amount | $ 227,000 | |||
Accrued interest | $ 227,000 |
Cash (Details Narrative)
Cash (Details Narrative) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Cash and Cash Equivalents [Abstract] | |||
Cash, FDIC insured amount | $ 250,000 | $ 250,000 | |
Cash | 63,375 | 1,396,944 | $ 441,004 |
Cash in hand | $ 50,919 | $ 2,026 |
Accounts Receivable (Details Na
Accounts Receivable (Details Narrative) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Credit Loss [Abstract] | |||
Accounts receivable, net | $ 707,509 | $ 435,598 | $ 134,517 |
Allowance for doubtful accounts | $ 321,325 | $ 259,761 | $ 447,498 |
Loan Receivable (Details Narrat
Loan Receivable (Details Narrative) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Receivables [Abstract] | |||
Loans receivable | $ 196,000 | $ 196,000 | $ 1,365 |
Loan receivables, current | 196,000 | 1,365 | |
Loan receivables, non-current | $ 196,000 |
Loan Receivable _ Related Par_2
Loan Receivable – Related Parties (Details Narrative) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Loan Receivable Related Parties | ||
Loan receivable related parties | $ 0 | $ 318,535 |
Loan receivable related parties current | 122,535 | |
Loan receivable related parties noncurrent | $ 196,000 |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Inventory Disclosure [Abstract] | |||
Inventory,net | $ 643,920 | $ 441,582 | $ 679,471 |
Obsolescence reserve | $ 0 | $ 0 | $ 15,445 |
Schedule of Other Current Asset
Schedule of Other Current Assets (Details) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Prepaid Deposit | $ 82,776 | $ 113,988 | $ 48,483 |
Prepaid Inventory | 52,583 | 65,449 | |
Employees Advance | 324 | ||
Prepaid Expenses | 47,270 | 35,590 | 35,157 |
Undeposited Funds | 2,323 | ||
Other | 32,879 | 113,991 | |
Total: | $ 184,952 | $ 182,457 | $ 263,404 |
Intangible Asset (Details Narra
Intangible Asset (Details Narrative) - USD ($) | Apr. 02, 2017 | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 2,017 | $ 1,400 | $ 1,400 | |
Intangible assets acquired | $ 10,648,378 | |||
Intangible asset, useful life | 9 years | |||
Intellectual Property [Member] | Wagner Bartosch, Inc [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Value of shares issued for acquiring | $ 75,000 | |||
Amortization period | 10 years | |||
Cannabis Cultivation License [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 10,637,000 |
Goodwill (Details Narrative)
Goodwill (Details Narrative) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 757,648 | $ 757,648 |
Schedule of Property Plant and
Schedule of Property Plant and Equipment (Details) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Property, Plant and Equipment [Line Items] | |||
Total | $ 4,487,502 | $ 3,274,224 | $ 928,163 |
Less: accumulated depreciation | (623,122) | (524,884) | (429,116) |
Property, Plant and Equipment, net | 3,864,380 | 2,749,340 | 499,047 |
Office Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 820,149 | 820,149 | 739,447 |
Automobiles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 442,323 | 166,079 | 164,244 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 2,554,767 | 1,922,376 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 472,654 | 365,620 | $ 24,742 |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 197,609 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Impairment Effects on Earnings Per Share [Line Items] | ||||||
Depreciation expenses | $ 98,238 | $ 105,982 | $ 110,032 | |||
Impairment for property, plant, and equipment | 43,800 | 2,066,958 | ||||
Property, Plant and Equipment [Member] | ||||||
Impairment Effects on Earnings Per Share [Line Items] | ||||||
Impairment for property, plant, and equipment | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Equity Method Investments in _2
Equity Method Investments in Affiliates (Details Narrative) - USD ($) | Oct. 02, 2020 | Feb. 07, 2020 | Dec. 31, 2020 | Dec. 31, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 |
Schedule of Investments [Line Items] | |||||||
Equity method investment | $ 380,660 | $ 441,407 | |||||
Loss from equity method investment | $ 60,747 | $ 81,725 | |||||
Indigo Dye Group [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Impaired financing receivable, recorded investment | 29.00% | 32.00% | |||||
Terms of arrangements | As of October 1, 2020, the Company ceased to have control over the day-to-day business of Indigo and it was deconsolidated and recorded as an investment in nonconsolidated affiliate at its $564,819 estimated fair value and changed to equity method of accounting | ||||||
Variable interest, percentage | 40.00% | ||||||
Impaired financing receivable, recorded investment | $ 43,800 | ||||||
Indigo Dye Group [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Impaired financing receivable, recorded investment | 32.00% | 29.00% | |||||
Option to acquire additional interest percentage | 30.00% | ||||||
Terms of arrangements | As of October 1, 2020, the Company ceased to have control over the day-to-day business of Indigo and it was deconsolidated and recorded as an investment in nonconsolidated affiliate at its $564,819 estimated fair value and changed to equity method of accounting. | ||||||
Variable interest, percentage | 40.00% | ||||||
Impaired financing receivable, recorded investment | $ 43,800 | ||||||
Indigo Dye Group Corp. [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Impaired financing receivable, recorded investment | 32.00% | 32.00% | 29.00% | ||||
Option to acquire additional interest percentage | 30.00% | 30.00% | |||||
Terms of arrangements | the Company continues to hold approximately 32% of the ownership of Indigo but ceased to have a controlling interest in the partnership and it was deconsolidated and recorded as an investment in nonconsolidated affiliate at its $564,819 estimated fair value and changed to equity method of accounting. | The value used for this transaction is $1,750,000 and each percentage (1%) of the company is worth $17,500. In the event that the Company is not able to make a payment of $58,333 in any month, it will have 90 days to cure the default. | |||||
Variable interest, percentage | 40.00% | 40.00% | 40.00% | ||||
Equity method investment | $ 59,370 | $ 59,370 | $ 441,407 |
Unrealized Gain on Securities (
Unrealized Gain on Securities (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Oct. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Unrealized gain on securities at market value | $ (215,862) | $ (857,979) | $ 1,451,922 | ||||
Unrealized gain loss on securities | 862,692 | 1,451,922 | |||||
Remaining value on securities | $ 133,942 | $ 133,942 | $ 1,451,922 | ||||
Common Stock [Member] | |||||||
Shares issue, shares | 2,620,000,001 | ||||||
iPower Inc [Member] | |||||||
Sale of Stock, Number of Shares Issued in Transaction | 150,199 | ||||||
Sale of Stock, Consideration Received on Transaction | $ 464,711 | ||||||
Share Exchange Agreement [Member] | iPower Inc [Member] | |||||||
Equity interest, percentage | 100.00% | ||||||
Business combination, consideration transferred | $ 870,000 | ||||||
Promissory note | $ 7,130,000 | ||||||
Share Exchange Agreement [Member] | iPower Inc [Member] | Common Stock [Member] | |||||||
Shares issue, shares | 650,000 | ||||||
Share Exchange Agreement [Member] | iPower Inc [Member] | Series B Preferred Stock [Member] | |||||||
Shares issue, shares | 3,500,000 | ||||||
Rescission Agreement [Member] | iPower Inc [Member] | |||||||
Shares repurchased during the period | 102,248 | ||||||
Stock repurchased, fair value | $ 1,451,922 | ||||||
Rescission Agreement [Member] | iPower Inc [Member] | Post Forward Split [Member] | |||||||
Shares repurchased during the period | 204,496 |
Unearned Revenue (Details Narra
Unearned Revenue (Details Narrative) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Unearned revenue | $ 53,248 |
Schedule of Accounts Payable an
Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Payables and Accruals [Abstract] | |||
Accounts payable | $ 1,857,720 | $ 1,464,692 | $ 1,330,939 |
Accrued liabilities | 305,127 | 310,528 | 25,289 |
Contingent liabilities | 258,858 | 283,619 | 227,000 |
Total accounts payable and accrued liabilities: | $ 2,421,705 | $ 2,058,839 | $ 1,583,228 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details Narrative) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Payables and Accruals [Abstract] | |||
Accounts payable and acrued liabilities | $ 2,421,705 | $ 2,058,839 | $ 1,583,228 |
Other Payables (Details Narrati
Other Payables (Details Narrative) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2021USD ($)Integer | Jun. 30, 2021USD ($)Integer | Jun. 30, 2020USD ($) | |
Other payable | $ 626,163 | $ 750,485 | $ 691,801 |
Number of credit cards | Integer | 8 | 8 | |
American Express [Member] | |||
Credit card limit amount | $ 0 | ||
Seven Credit Card [Member] | |||
Credit card limit amount | $ 85,000 | $ 85,000 | |
Seven Credit Card [Member] | Minimum [Member] | |||
Credit cards interest rates percentage | 11.24% | 11.24% | |
Seven Credit Card [Member] | Maximum [Member] | |||
Credit cards interest rates percentage | 29.99% | 29.99% | |
Credit Card [Member] | |||
Interest expense | $ 3,839 | $ 8,961 |
Customer Deposits (Details Narr
Customer Deposits (Details Narrative) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Customer Deposits | |||
Deposit Assets | $ 887,800 | $ 751,919 | $ 466,337 |
Schedule of Promissory Notes (D
Schedule of Promissory Notes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Short-term Debt [Line Items] | ||||||
Convertible Debt Discount | $ 234,435 | $ 234,435 | $ 391,086 | $ 880,879 | ||
Convertible Debt. Amortization | $ 24,071 | $ 1,031,379 | $ 156,651 | $ 1,845,925 | $ 2,617,274 | 3,823,500 |
Convertible Note One [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Sep. 27, 2019 | |||||
Convertible Debt End Date | Sep. 25, 2019 | |||||
Convertible Debt Discount | 35,553 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (35,553) | |||||
Convertible Note Two [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Sep. 27, 2019 | |||||
Convertible Debt End Date | Sep. 25, 2019 | |||||
Convertible Debt Discount | 3,884 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (3,884) | |||||
Convertible Note Three [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Oct. 28, 2019 | |||||
Convertible Debt End Date | Oct. 27, 2020 | |||||
Convertible Debt Discount | 65,069 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (65,069) | |||||
Convertible Note Four [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Oct. 28, 2019 | |||||
Convertible Debt End Date | Oct. 27, 2020 | |||||
Convertible Debt Discount | 7,499 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (7,499) | |||||
Convertible Note Five [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Oct. 28, 2019 | |||||
Convertible Debt End Date | Oct. 27, 2020 | |||||
Convertible Debt Discount | 65,069 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (65,069) | |||||
Convertible Note Six [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Oct. 28, 2019 | |||||
Convertible Debt End Date | Oct. 27, 2020 | |||||
Convertible Debt Discount | 7,499 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (7,499) | |||||
Convertible Note Seven [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Nov. 29, 2020 | |||||
Convertible Debt End Date | Nov. 30, 2020 | |||||
Convertible Debt Discount | 39,605 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (39,605) | |||||
Convertible Note Eight [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Nov. 29, 2020 | |||||
Convertible Debt End Date | Nov. 30, 2020 | |||||
Convertible Debt Discount | 4,648 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (4,648) | |||||
Convertible Note Nine [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Nov. 29, 2020 | |||||
Convertible Debt End Date | Nov. 30, 2020 | |||||
Convertible Debt Discount | 39,605 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (39,605) | |||||
Convertible Note Ten [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Nov. 29, 2020 | |||||
Convertible Debt End Date | Nov. 30, 2020 | |||||
Convertible Debt Discount | 4,648 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (4,648) | |||||
Convertible Note Eleven [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Dec. 10, 2019 | |||||
Convertible Debt End Date | Dec. 10, 2020 | |||||
Convertible Debt Discount | 42,309 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (42,309) | |||||
Convertible Note Twelve [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Dec. 10, 2019 | |||||
Convertible Debt End Date | Dec. 10, 2020 | |||||
Convertible Debt Discount | 5,211 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (5,211) | |||||
Convertible Note Thirteen [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Dec. 10, 2019 | |||||
Convertible Debt End Date | Dec. 10, 2020 | |||||
Convertible Debt Discount | 42,309 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (42,309) | |||||
Convertible Note Fourteen [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Dec. 10, 2019 | |||||
Convertible Debt End Date | Dec. 10, 2020 | |||||
Convertible Debt Discount | 5,211 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (5,211) | |||||
Convertible Note Fifteen [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Dec. 27, 2019 | |||||
Convertible Debt End Date | Dec. 27, 2020 | |||||
Convertible Debt Discount | 49,180 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (49,180) | |||||
Convertible Note Sixteen [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Dec. 27, 2019 | |||||
Convertible Debt End Date | Dec. 27, 2020 | |||||
Convertible Debt Discount | 6,000 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (6,000) | |||||
Convertible Note Seventeen [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jan. 3, 2020 | |||||
Convertible Debt End Date | Dec. 27, 2020 | |||||
Convertible Debt Discount | 50,139 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (50,139) | |||||
Convertible Note Eighteen [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jan. 3, 2020 | |||||
Convertible Debt End Date | Dec. 27, 2020 | |||||
Convertible Debt Discount | 6,117 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (6,117) | |||||
Convertible Note Nineteen [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jan. 14, 2020 | |||||
Convertible Debt End Date | Jan. 14, 2021 | |||||
Convertible Debt Discount | 79,525 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (79,525) | |||||
Convertible Note Twenty [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jan. 14, 2020 | |||||
Convertible Debt End Date | Jan. 14, 2021 | |||||
Convertible Debt Discount | 1,623 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (1,623) | |||||
Convertible Note Twenty One [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jan. 22, 2020 | |||||
Convertible Debt End Date | Jan. 22, 2021 | |||||
Convertible Debt Discount | 53,327 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (53,327) | |||||
Convertible Note Twenty Two [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jan. 22, 2020 | |||||
Convertible Debt End Date | Jan. 22, 2021 | |||||
Convertible Debt Discount | 1,689 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (1,689) | |||||
Convertible Note Twenty Three [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Feb. 4, 2020 | |||||
Convertible Debt End Date | Aug. 4, 2020 | |||||
Convertible Debt Discount | 21,154 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (21,154) | |||||
Convertible Note Twenty Four [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Feb. 18, 2020 | |||||
Convertible Debt End Date | Aug. 18, 2020 | |||||
Convertible Debt Discount | 26,923 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (26,923) | |||||
Convertible Note Twenty Five [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Mar. 5, 2020 | |||||
Convertible Debt End Date | Mar. 5, 2021 | |||||
Convertible Debt Discount | 82,893 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (82,893) | |||||
Convertible Note Twenty Six [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Mar. 5, 2020 | |||||
Convertible Debt End Date | Mar. 5, 2021 | |||||
Convertible Debt Discount | 2,038 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (2,038) | |||||
Convertible Note Twenty Seven [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Apr. 24, 2020 | |||||
Convertible Debt End Date | Apr. 24, 2021 | |||||
Convertible Debt Discount | 59,600 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (59,600) | |||||
Convertible Note Twenty Eight [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Apr. 24, 2020 | |||||
Convertible Debt End Date | Apr. 24, 2021 | |||||
Convertible Debt Discount | 1,633 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (1,633) | |||||
Convertible Note Twenty Nine [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jun. 10, 2020 | |||||
Convertible Debt End Date | Jun. 10, 2021 | |||||
Convertible Debt Discount | 28,356 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (28,356) | |||||
Convertible Note Thirty [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jun. 10, 2020 | |||||
Convertible Debt End Date | Jun. 10, 2021 | |||||
Convertible Debt Discount | 6,776 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (6,776) | |||||
Convertible Note Thirty One [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jun. 18, 2020 | |||||
Convertible Debt End Date | Jun. 18, 2021 | |||||
Convertible Debt Discount | 29,014 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (29,014) | |||||
Convertible Note Thirty Two [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jun. 18, 2020 | |||||
Convertible Debt End Date | Jun. 18, 2021 | |||||
Convertible Debt Discount | 6,775 | |||||
Convertible Debt. Addition | ||||||
Convertible Debt. Amortization | $ (6,775) | |||||
Convertible Note Thirty Three [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jul. 6, 2020 | |||||
Convertible Debt End Date | Jul. 6, 2021 | |||||
Convertible Debt Discount | ||||||
Convertible Debt. Addition | 75,000 | |||||
Convertible Debt. Amortization | $ (75,000) | |||||
Convertible Note Thirty Four [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jul. 6, 2020 | |||||
Convertible Debt End Date | Jul. 6, 2021 | |||||
Convertible Debt Discount | ||||||
Convertible Debt. Addition | 2,000 | |||||
Convertible Debt. Amortization | $ (2,000) | |||||
Convertible Note Thirty Five [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jul. 7, 2020 | |||||
Convertible Debt End Date | Jul. 7, 2021 | |||||
Convertible Debt Discount | ||||||
Convertible Debt. Addition | 150,000 | |||||
Convertible Debt. Amortization | $ (150,000) | |||||
Convertible Note Thirty Six [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jul. 7, 2020 | |||||
Convertible Debt End Date | Jul. 7, 2021 | |||||
Convertible Debt Discount | ||||||
Convertible Debt. Addition | 3,000 | |||||
Convertible Debt. Amortization | $ (3,000) | |||||
Convertible Note Thirty Seven [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jul. 16, 2020 | |||||
Convertible Debt End Date | Jul. 16, 2021 | |||||
Convertible Debt Discount | ||||||
Convertible Debt. Addition | 225,000 | |||||
Convertible Debt. Amortization | $ (225,000) | |||||
Convertible Note Thirty Eight [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jul. 16, 2020 | |||||
Convertible Debt End Date | Jul. 16, 2021 | |||||
Convertible Debt Discount | ||||||
Convertible Debt. Addition | 35,700 | |||||
Convertible Debt. Amortization | $ (35,700) | |||||
Convertible Note Thirty Nine [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jul. 21, 2020 | |||||
Convertible Debt End Date | Jul. 21, 2021 | |||||
Convertible Debt Discount | ||||||
Convertible Debt. Addition | 175,000 | |||||
Convertible Debt. Amortization | $ (175,000) | |||||
Convertible Note Fourty [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jul. 21, 2020 | |||||
Convertible Debt End Date | Jul. 21, 2021 | |||||
Convertible Debt Discount | ||||||
Convertible Debt. Addition | 25,200 | |||||
Convertible Debt. Amortization | $ (25,200) | |||||
Convertible Note Fourty One [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Sep. 10, 2020 | |||||
Convertible Debt End Date | Sep. 10, 2021 | |||||
Convertible Debt Discount | $ 39,452 | |||||
Convertible Debt. Addition | 200,000 | |||||
Convertible Debt. Amortization | $ (160,548) | |||||
Convertible Note Fourty Two [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Sep. 10, 2020 | |||||
Convertible Debt End Date | Sep. 10, 2021 | |||||
Convertible Debt Discount | $ 5,312 | |||||
Convertible Debt. Addition | 27,700 | |||||
Convertible Debt. Amortization | $ (22,388) | |||||
Convertible Note Fourty Three [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Nov. 10, 2020 | |||||
Convertible Debt End Date | Nov. 11, 2021 | |||||
Convertible Debt Discount | $ 18,306 | |||||
Convertible Debt. Addition | 50,000 | |||||
Convertible Debt. Amortization | $ (31,694) | |||||
Convertible Note Fourty Four [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Nov. 10, 2020 | |||||
Convertible Debt End Date | Nov. 11, 2021 | |||||
Convertible Debt Discount | $ 3,024 | |||||
Convertible Debt. Addition | 8,300 | |||||
Convertible Debt. Amortization | $ (5,276) | |||||
Convertible Note Fourty Five [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Sep. 8, 2020 | |||||
Convertible Debt End Date | Mar. 10, 2021 | |||||
Convertible Debt Discount | ||||||
Convertible Debt. Addition | 93,077 | |||||
Convertible Debt. Amortization | $ (93,077) | |||||
Convertible Note Fourty Six [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Sep. 8, 2020 | |||||
Convertible Debt End Date | Mar. 10, 2021 | |||||
Convertible Debt Discount | ||||||
Convertible Debt. Addition | 10,000 | |||||
Convertible Debt. Amortization | $ (10,000) | |||||
Convertible Note Fourty Seven [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Sep. 13, 2020 | |||||
Convertible Debt End Date | Mar. 25, 2021 | |||||
Convertible Debt Discount | ||||||
Convertible Debt. Addition | 189,093 | |||||
Convertible Debt. Amortization | $ (189,093) | |||||
Convertible Note Fourty Eight [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Sep. 13, 2020 | |||||
Convertible Debt End Date | Mar. 25, 2021 | |||||
Convertible Debt Discount | ||||||
Convertible Debt. Addition | 19,300 | |||||
Convertible Debt. Amortization | $ (19,300) | |||||
Convertible Note Fourty Nine [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Oct. 8, 2020 | |||||
Convertible Debt End Date | Apr. 9, 2021 | |||||
Convertible Debt Discount | ||||||
Convertible Debt. Addition | 210,000 | |||||
Convertible Debt. Amortization | $ (210,000) | |||||
Convertible Note Fifty [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Oct. 8, 2020 | |||||
Convertible Debt End Date | Apr. 9, 2021 | |||||
Convertible Debt Discount | ||||||
Convertible Debt. Addition | 21,000 | |||||
Convertible Debt. Amortization | $ (21,000) | |||||
Convertible Note Fifty One [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Oct. 13, 2020 | |||||
Convertible Debt End Date | Apr. 13, 2021 | |||||
Convertible Debt Discount | ||||||
Convertible Debt. Addition | 250,000 | |||||
Convertible Debt. Amortization | $ (250,000) | |||||
Convertible Note Fifty Two [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Oct. 13, 2020 | |||||
Convertible Debt End Date | Apr. 13, 2021 | |||||
Convertible Debt Discount | ||||||
Convertible Debt. Addition | 25,000 | |||||
Convertible Debt. Amortization | $ (25,000) | |||||
Convertible Note Fifty Three [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Feb. 8, 2021 | |||||
Convertible Debt End Date | Feb. 9, 2022 | |||||
Convertible Debt Discount | $ 36,712 | |||||
Convertible Debt. Addition | 59,985 | |||||
Convertible Debt. Amortization | $ (23,273) | |||||
Convertible Note Fifty Four [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Feb. 8, 2021 | |||||
Convertible Debt End Date | Feb. 9, 2022 | |||||
Convertible Debt Discount | $ 5,701 | |||||
Convertible Debt. Addition | 9,315 | |||||
Convertible Debt. Amortization | $ (3,614) | |||||
Convertible Note Fifty Five [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Start Date | Jun. 14, 2021 | |||||
Convertible Debt End Date | Jun. 14, 2024 | |||||
Convertible Debt Discount | $ 282,578 | |||||
Convertible Debt. Addition | 286,765 | |||||
Convertible Debt. Amortization | (4,186) | |||||
Convertible Note [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible Debt Discount | 391,086 | $ 880,879 | ||||
Convertible Debt. Addition | 2,150,435 | |||||
Convertible Debt. Amortization | $ (2,640,228) |
Convertible Notes (Details Narr
Convertible Notes (Details Narrative) | Nov. 10, 2021USD ($)Integer | Jun. 14, 2021USD ($)Integer$ / shares | Feb. 08, 2021USD ($)Integer | Nov. 10, 2020USD ($)Integer | Oct. 13, 2020USD ($)Integer$ / shares | Oct. 08, 2020USD ($)Integer$ / shares | Sep. 24, 2020USD ($)Integer$ / shares | Sep. 10, 2020USD ($)Integershares | Sep. 08, 2020USD ($)Integer$ / shares | Jul. 21, 2020USD ($)Integer | Jul. 16, 2020USD ($)Integer | Jul. 07, 2020USD ($)Integer | Jul. 06, 2020USD ($)Integer | Jun. 18, 2020USD ($)Integer | Jun. 10, 2020USD ($)Integer | Apr. 24, 2020USD ($)Integer | Mar. 05, 2020USD ($)Integer | Feb. 18, 2020USD ($)$ / shares | Feb. 04, 2020USD ($)$ / shares | Jan. 22, 2020USD ($)Integer | Jan. 14, 2020USD ($)Integer | Jan. 03, 2020USD ($)Integer | Dec. 27, 2019USD ($)Integer | Dec. 10, 2019USD ($)Integer | Nov. 29, 2019USD ($)Integer | Nov. 01, 2019USD ($)$ / shares | Oct. 31, 2019USD ($)Integer$ / shares | Oct. 28, 2019USD ($)Integer | Sep. 27, 2019USD ($)Integer | Dec. 03, 2018USD ($)$ / shares | Nov. 16, 2018USD ($)$ / shares | Nov. 01, 2018USD ($)$ / shares | Dec. 21, 2012USD ($) | Sep. 18, 2012USD ($) | Aug. 24, 2012USD ($) | Sep. 24, 2020USD ($)Integer$ / shares | Nov. 02, 2019USD ($)Integer$ / shares | Dec. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) |
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible notes payable, net, current | $ 1,363,698 | $ 1,439,116 | $ 1,740,122 | |||||||||||||||||||||||||||||||||||||
Accrued interest expense | 646,643 | 509,997 | 494,740 | |||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 234,435 | 391,086 | 880,879 | |||||||||||||||||||||||||||||||||||||
Convertible Note One [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 35,553 | |||||||||||||||||||||||||||||||||||||||
Convertible Note One [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 25,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 6 months | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 10.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 25.00% | |||||||||||||||||||||||||||||||||||||||
Convertible Note Two [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 3,884 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Two [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 25,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 6 months | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 10.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 25.00% | |||||||||||||||||||||||||||||||||||||||
Convertible Note Three [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 65,069 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Three [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 100,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 6 months | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 10.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 25.00% | |||||||||||||||||||||||||||||||||||||||
Convertible Note Four [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 7,499 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Four [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 40,000 | $ 100,000 | ||||||||||||||||||||||||||||||||||||||
Debt instrument term | 1 year | 1 year | ||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | 8.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.07 | $ 0.07 | ||||||||||||||||||||||||||||||||||||||
Convertible Note Five [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 65,069 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Five [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 35,000 | $ 80,000 | ||||||||||||||||||||||||||||||||||||||
Debt instrument term | 1 year | 1 year | ||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | 8.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.07 | $ 0.07 | ||||||||||||||||||||||||||||||||||||||
Convertible Note Six [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 7,499 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Six [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 139,301 | $ 40,000 | ||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | 1 year | ||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | 8.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.008 | $ 0.07 | ||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Seven [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 39,605 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Seven [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 35,000 | $ 100,000 | ||||||||||||||||||||||||||||||||||||||
Debt instrument term | 1 year | 360 days | ||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | 8.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.07 | $ 0.008 | ||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Eight [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 4,648 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Eight [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 110,000 | $ 165,000 | ||||||||||||||||||||||||||||||||||||||
Debt instrument term | 180 days | 360 days | ||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 12.00% | 8.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 65.00% | 55.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 10,000 | $ 16,250 | ||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | 20 | ||||||||||||||||||||||||||||||||||||||
Convertible Note Nine [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 39,605 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Nine [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 227,700 | $ 225,500 | ||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | 360 days | ||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | 8.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | 60.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 20,700 | $ 23,000 | ||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | 20 | ||||||||||||||||||||||||||||||||||||||
Legal expense | $ 7,000 | |||||||||||||||||||||||||||||||||||||||
Debt conversion, converted instrument, shares issued | shares | 90,167,551 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Nine [Member] | Accredited Investor [Member] | Principal Amount [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt conversion, converted amount | $ 117,700 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Nine [Member] | Accredited Investor [Member] | Accrued Interest [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt conversion, converted amount | 7,352 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Ten [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 4,648 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Ten [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 212,300 | $ 225,500 | $ 212,300 | |||||||||||||||||||||||||||||||||||||
Debt instrument term | 180 days | 360 days | ||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 12.00% | 8.00% | 12.00% | |||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | 65.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | $ 0.01 | ||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 19,300 | $ 23,000 | ||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | 20 | ||||||||||||||||||||||||||||||||||||||
Additional principal amount due to breach | 63,690 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Eleven [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 42,309 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Eleven [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 231,000 | $ 106,150 | ||||||||||||||||||||||||||||||||||||||
Debt instrument term | 180 days | 360 days | ||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 12.00% | 8.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 65.00% | 60.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 21,000 | $ 11,150 | ||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | 20 | ||||||||||||||||||||||||||||||||||||||
Additional principal amount due to breach | 69,300 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twelve [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 5,211 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twelve [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 275,000 | $ 106,150 | ||||||||||||||||||||||||||||||||||||||
Debt instrument term | 180 days | 360 days | ||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 12.00% | 8.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 65.00% | 60.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 25,000 | $ 11,150 | ||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | 20 | ||||||||||||||||||||||||||||||||||||||
Additional principal amount due to breach | $ 82,500 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Thirteen [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 42,309 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Thirteen [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 58,300 | $ 106,700 | ||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | 8.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | 60.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 5,300 | $ 11,700 | ||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | 20 | ||||||||||||||||||||||||||||||||||||||
Convertible Note Fourteen [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 5,211 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Fourteen [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 69,300 | $ 106,700 | ||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | 360 days | 360 days | |||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | 8.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | 60.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 6,300 | $ 11,700 | ||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | 20 | ||||||||||||||||||||||||||||||||||||||
Convertible Note Fifteen [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 49,180 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Fifteen [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 300,000 | $ 112,200 | ||||||||||||||||||||||||||||||||||||||
Debt instrument term | 3 years | 360 days | ||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 1.00% | 8.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 85.00% | 60.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.0036 | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 12,200 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Sixteen [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 6,000 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Sixteen [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 139,301 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | 360 days | ||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 10.00% | 8.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.008 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 277,903 | |||||||||||||||||||||||||||||||||||||||
Debt principal payment | 239,300 | |||||||||||||||||||||||||||||||||||||||
Debt unpaid interest | $ 38,603 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Seventeen [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 50,139 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Seventeen [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 100,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.008 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Eighteen [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 6,117 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Eighteen [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 112,200 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 12,200 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Nineteen [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 79,525 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Nineteen [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 150,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 38.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 3,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 10 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 1,623 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 128,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 10.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 35.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 3,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty One [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 53,327 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty One [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 110,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 12.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.001 | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 10,000 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty Two [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 1,689 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty Two [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 100,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 12.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.001 | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 10,000 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty Three [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 21,154 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty Three [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 125,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 38.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 3,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 10 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty Four [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 26,923 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty Four [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 75,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 38.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 2,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 10 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty Five [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 82,893 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty Five [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 36,300 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 3,300 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||||||||||||||||||||
Legal expense | $ 3,000 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty Six [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 2,038 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty Six [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 36,300 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 3,300 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||||||||||||||||||||
Legal expense | $ 3,000 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty Seven [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 59,600 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty Seven [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 77,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 38.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 2,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 10 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty Eight [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 1,633 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty Eight [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 153,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 10.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 35.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 3,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty Nine [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 28,356 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Twenty Nine [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 260,700 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 23,700 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||||||||||||||||||||
Legal expense | $ 12,000 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Thirty [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 6,776 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Thirty [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 200,200 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 18,200 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||||||||||||||||||||
Legal expense | $ 7,000 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Thirty One [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 29,014 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Thirty One [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 110,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 180 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 12.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 65.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 10,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion description | After the six-month anniversary of this note, the conversion price shall be equal to the lower of the fixed price of $0.01 or 65% of the lowest trading price of the common stock for the 20 prior trading days including the day upon which a conversion notice is received by the Company or its transfer agent. | |||||||||||||||||||||||||||||||||||||||
Convertible Note Thirty Two [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | 6,775 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Thirty Two [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 227,700 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 20,700 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||||||||||||||||||||
Legal expense | $ 7,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument principal amount | 117,700 | |||||||||||||||||||||||||||||||||||||||
Accrued interest expense | $ 7,352 | |||||||||||||||||||||||||||||||||||||||
Debt conversion, converted instrument, shares issued | shares | 90,167,551 | |||||||||||||||||||||||||||||||||||||||
Notes payable | $ 110,000 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Thirty Three [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | ||||||||||||||||||||||||||||||||||||||||
Convertible Note Thirty Three [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 212,300 | $ 212,300 | ||||||||||||||||||||||||||||||||||||||
Debt instrument term | 180 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 12.00% | 12.00% | ||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 65.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | $ 0.01 | ||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 19,300 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion description | After the six-month anniversary of this note, the conversion price shall be equal to the lower of the fixed price of $0.01 or 65% of the lowest trading price of the common stock for the 20 prior trading days including the day upon which a conversion notice is received by the Company or its transfer agent. | |||||||||||||||||||||||||||||||||||||||
Convertible Note Thirty Four [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | ||||||||||||||||||||||||||||||||||||||||
Convertible Note Thirty Four [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 231,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 180 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 12.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 65.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 21,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion description | After the six-month anniversary of this note, the conversion price shall be equal to the lower of the fixed price of $0.01 or 65% of the lowest trading price of the common stock for the 20 prior trading days including the day upon which a conversion notice is received by the Company or its transfer agent. | |||||||||||||||||||||||||||||||||||||||
Convertible Note Thirty Five [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | ||||||||||||||||||||||||||||||||||||||||
Convertible Note Thirty Five [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 275,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 180 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 12.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 65.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 25,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion description | After the six-month anniversary of this note, the conversion price shall be equal to the lower of the fixed price of $0.01 or 65% of the lowest trading price of the common stock for the 20 prior trading days including the day upon which a conversion notice is received by the Company or its transfer agent. | |||||||||||||||||||||||||||||||||||||||
Convertible Note Thirty Six [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | ||||||||||||||||||||||||||||||||||||||||
Convertible Note Thirty Six [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 58,300 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 5,300 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Thirty Seven [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | ||||||||||||||||||||||||||||||||||||||||
Convertible Note Thirty Seven [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 69,300 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument original issue discount | $ 6,300 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||||||||||||||||||||
Convertible Note Thirty Eight [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Convertible debt, debt discount | ||||||||||||||||||||||||||||||||||||||||
Convertible Note Thirty Eight [Member] | Accredited Investor [Member] | ||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | $ 300,000 | |||||||||||||||||||||||||||||||||||||||
Debt instrument term | 3 years | |||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 1.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion percentage | 85.00% | |||||||||||||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.0036 | |||||||||||||||||||||||||||||||||||||||
Debt instrument trading days | Integer | 5 |
Schedule of Binomial Model Assu
Schedule of Binomial Model Assumptions Inputs (Details) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Measurement Input, Expected Dividend Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value measurement input | |||
Measurement Input, Expected Term [Member] | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value measurement input, term | 6 months | 6 months | 6 months |
Measurement Input, Expected Term [Member] | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value measurement input, term | 3 years | 3 years | 1 year |
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value measurement input | 0.01 | 0.16 | |
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value measurement input | 0.46 | 2.10 | |
Expected Volatility [Member] | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value measurement input | 127 | 89 | 113 |
Expected Volatility [Member] | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value measurement input | 234 | 236 | 175 |
Schedule of Fair Value of Deriv
Schedule of Fair Value of Derivative (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Derivative Liabilities | ||
Beginning Balance, June 30, 2021 | $ 2,217,361 | $ 5,597,095 |
Additions | 708,948 | 2,663,892 |
Mark to Market | 65,073 | (230,573) |
Cancellation of Derivative Liabilities Due to Cash Repayment | (856,910) | |
Reclassification to APIC Due to Conversions | (769,071) | (4,956,143) |
Ending Balance, December 31, 2021 | $ 2,222,310 | $ 2,217,361 |
Derivative Liabilities (Details
Derivative Liabilities (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Liabilities | |||
Derivative liability | $ 2,222,310 | $ 2,217,361 | $ 5,597,095 |
Loss from changes in derivative liability | $ 65,073 | 1,087,485 | $ 1,442,295 |
Derivative, Gain on Derivative | $ 3,992,108 |
Schedule of Assumptions Inputs
Schedule of Assumptions Inputs for Warrants (Details) - Derivative [Member] | Jun. 30, 2021 | Jun. 30, 2020 |
Measurement Input, Expected Dividend Rate [Member] | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Warrants and rights outstanding, measurement input | ||
Measurement Input, Expected Term [Member] | Minimum [Member] | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Expected life (years) | 2 years | 3 years |
Measurement Input, Expected Term [Member] | Maximum [Member] | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Expected life (years) | 4 years | 5 years |
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Warrants and rights outstanding, measurement input | 0.18 | 0.18 |
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Warrants and rights outstanding, measurement input | 0.46 | 1.69 |
Measurement Input, Price Volatility [Member] | Minimum [Member] | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Warrants and rights outstanding, measurement input | 132 | 137 |
Measurement Input, Price Volatility [Member] | Maximum [Member] | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Warrants and rights outstanding, measurement input | 166 | 318 |
Schedule of Warrants Outstandin
Schedule of Warrants Outstanding (Details) - Warrant [Member] - $ / shares | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares Beginning balance | 1,578,880 | 1,083,880 |
Weighted Average Exercise Price Beginning balance | $ 0.021 | $ 0.034 |
Weighted Average Remaining contractual life Beginning balance | 5 years | |
Number of Shares Expired | (505,000) | |
Weighted Average Exercise Price Expired | $ 0.15 | |
Number of Shares Granted | 1,000,000 | |
Weighted Average Exercise Price Granted | $ 0.008 | |
Weighted Average Remaining contractual life Granted | 5 years | |
Weighted Average Remaining contractual life Ending balance | 3 years | 4 years |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations | 505,000 | |
Number of Shares Ending balance | 1,578,880 | 1,578,880 |
Weighted Average Exercise Price Ending balance | $ 0.026 | $ 0.021 |
Stock Warrants (Details Narrati
Stock Warrants (Details Narrative) - USD ($) | Feb. 04, 2020 | Sep. 07, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2021 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Fair Value of Warrants | $ 21,042 | $ 79,910 | |||
Fair value of warrant liability | 21,042 | $ 6,405 | |||
Settlement Agreement [Member] | Investor [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Warrant term | 5 years | ||||
Fair Value of Warrants | $ 56,730 | 1,042 | 1,910 | ||
Fair value of warrant liability | 1,042 | 405 | |||
Warrant Agreement [Member] | Accredited Investor [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Warrant term | 5 years | ||||
Fair Value of Warrants | $ 80,000 | 20,000 | $ 78,000 | ||
Warrants to purchase common stock | 10,000,000 | ||||
Warrants exercise price | $ 0.008 | ||||
Fair value of warrant liability | $ 80,000 | $ 20,000 | $ 6,000 | ||
Warrant Agreement [Member] | Accredited Investor [Member] | Maximum [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Warrants to purchase common stock | 10,000,000 |
Note Payable (Details Narrative
Note Payable (Details Narrative) - USD ($) | May 17, 2021 | May 12, 2021 | Oct. 06, 2020 | Oct. 16, 2020 | Oct. 31, 2011 | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 20, 2018 | Jun. 15, 2018 | Sep. 30, 2013 | Jan. 23, 2013 |
Line of Credit Facility [Line Items] | ||||||||||||
Accrued interest | $ 646,643 | $ 509,997 | $ 494,740 | |||||||||
Promissory Note [Member] | Former Employee [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Original principal amount | $ 40,000 | |||||||||||
Interest rate per annum | 5.00% | |||||||||||
Notes payable related parties current | 0 | 15,427 | 15,427 | |||||||||
Promissory Note [Member] | Trustee [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Original principal amount | $ 1,390,000 | |||||||||||
Outstanding balance | 1,368,479 | 1,378,222 | ||||||||||
Accrued interest | 41,238 | 57,892 | ||||||||||
Debt Instrument, Interest Rate During Period | 6.00% | |||||||||||
Debt instrument term | 30 years | |||||||||||
Debt Instrument, Frequency of Periodic Payment | monthly basis | |||||||||||
Debt Instrument, Periodic Payment | $ 8,333.75 | |||||||||||
Promissory Note [Member] | Lemon Glow Shareholders [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Interest rate | 5.00% | |||||||||||
Original principal amount | $ 3,976,000 | |||||||||||
Outstanding balance | 3,519,984 | 3,626,000 | ||||||||||
Accrued interest | 89,733 | 0 | ||||||||||
Debt instrument term | 36 months | |||||||||||
Promissory Note [Member] | Accredited Investor [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Original principal amount | $ 20,000 | |||||||||||
Interest rate per annum | 8.00% | |||||||||||
Outstanding balance | 20,000 | 20,000 | 20,000 | |||||||||
Accrued interest | 12,900 | 11,000 | ||||||||||
Promissory Note [Member] | Darry l Kuecker Trustee [Member] | Trustee [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Related party undivided interest | 36.00% | |||||||||||
Debt Instrument, Periodic Payment | 3,000.15 | |||||||||||
Promissory Note [Member] | Shirley ann hunt [Member] | Trustee [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Related party undivided interest | 64.00% | |||||||||||
Debt Instrument, Periodic Payment | $ 5,333.60 | |||||||||||
Hyundai Financing [Member] | Promissory Note [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Original principal amount | $ 13,047 | |||||||||||
Outstanding balance | 11,787 | 13,047 | ||||||||||
Debt Instrument, Periodic Payment | $ 251 | |||||||||||
Revolving Credit Facility [Member] | HSBC [Member] | UNITED STATES | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit maximum borrowing capacity | $ 150,000 | |||||||||||
Debt instrument basis spread on variable rate | 0.25% | |||||||||||
Interest rate | 550.00% | 3.25% | ||||||||||
Line of credit covenant terms | In the event the deposit account is not established or minimum balance maintained, HSBC can charge a higher rate of interest of up to 4.0% above prime rate. | |||||||||||
Line of credit | $ 25,982 | $ 25,982 | $ 25,982 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Nov. 21, 2016 | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jan. 23, 2013 |
Related Party Transaction [Line Items] | |||||
Due to related parties | $ 179,258 | $ 78,000 | |||
Loan payable - related parties, current | $ 228,057 | 163,831 | 35,943 | ||
Loan receivables - related party, current | 122,535 | ||||
Employee [Member] | |||||
Related Party Transaction [Line Items] | |||||
Loan payable - related parties, current | 15,427 | 15,427 | |||
Employee One [Member] | |||||
Related Party Transaction [Line Items] | |||||
Loan payable - related parties, current | 49,447 | 30,000 | |||
Employee Three [Member] | |||||
Related Party Transaction [Line Items] | |||||
Loan payable - related parties, current | 83,275 | 5,943 | |||
SWC Group, Inc. [Member] | Employee [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | $ 40,000 | ||||
Debt instrument due date | Sep. 30, 2017 | ||||
LMK Capital LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Loan payable - related parties, current | 26,452 | 0 | |||
Loan receivables - related party, current | 122,535 | ||||
Officer [Member] | |||||
Related Party Transaction [Line Items] | |||||
Outstanding balance | $ 3,000 | $ 0 |
Loans Payable (Details Narrativ
Loans Payable (Details Narrative) - USD ($) | Oct. 05, 2021 | Oct. 02, 2021 | Aug. 04, 2021 | Jul. 27, 2021 | Mar. 24, 2021 | Feb. 15, 2021 | Nov. 20, 2020 | Jul. 28, 2020 | Oct. 01, 2017 | Jul. 02, 2012 | Dec. 31, 2021 | Jun. 30, 2021 | Jan. 25, 2021 | Jun. 30, 2020 | Jun. 26, 2020 | Apr. 27, 2020 | Mar. 18, 2020 | Jun. 30, 2019 | Jan. 06, 2015 | Jan. 23, 2013 |
Outstanding loan balance | $ 1,650,739 | $ 701,193 | $ 517,260 | |||||||||||||||||
Interest Payable, Current | 646,643 | 509,997 | 494,740 | |||||||||||||||||
Outstanding loan balance | 814,494 | 392,605 | 319,314 | |||||||||||||||||
Outstanding loan balance | 836,245 | 308,588 | 197,946 | |||||||||||||||||
Repayment Agreement [Member] | Former Employee [Member] | ||||||||||||||||||||
Original principal amount | $ 9,500 | |||||||||||||||||||
Debt instrument interest rate | 0.00% | |||||||||||||||||||
Outstanding balance | 0 | 3,584 | ||||||||||||||||||
Equipment Loan Agreement [Member] | Carry Out Supplies [Member] | ||||||||||||||||||||
Debt instrument due date | Jun. 21, 2024 | |||||||||||||||||||
Outstanding balance | 16,805 | 24,524 | ||||||||||||||||||
Monthly payment | $ 648 | |||||||||||||||||||
Equipment Loan Agreement [Member] | SWC Group, Inc. [Member] | ||||||||||||||||||||
Debt instrument due date | Jun. 21, 2024 | |||||||||||||||||||
Outstanding balance | 15,701 | 19,506 | ||||||||||||||||||
Monthly payment | $ 648 | |||||||||||||||||||
Government Loan Agreement [Member] | ||||||||||||||||||||
Original principal amount | $ 8,000 | |||||||||||||||||||
Outstanding balance | 0 | 8,000 | ||||||||||||||||||
Auto Loan Agreement [Member] | ||||||||||||||||||||
Debt instrument interest rate | 8.99% | |||||||||||||||||||
Payment principal | $ 587 | |||||||||||||||||||
Two Auto Loan Agreement [Member] | ||||||||||||||||||||
Debt instrument interest rate | 8.99% | |||||||||||||||||||
Payment principal | $ 674 | |||||||||||||||||||
Celtic Bank [Member] | Loan Agreement [Member] | ||||||||||||||||||||
Original principal amount | $ 150,000 | |||||||||||||||||||
Outstanding balance | 0 | 117,635 | ||||||||||||||||||
John Deere Financial [Member] | ||||||||||||||||||||
Original principal amount | $ 69,457 | |||||||||||||||||||
Debt instrument interest rate | 2.85% | |||||||||||||||||||
Outstanding balance | 60,752 | 65,726 | 0 | |||||||||||||||||
Debt instrument term | 60 months | |||||||||||||||||||
Business Backer [Member] | ||||||||||||||||||||
Original principal amount | $ 215,760 | |||||||||||||||||||
Debt instrument interest rate | 4.00% | |||||||||||||||||||
Outstanding balance | 29,166 | 109,925 | ||||||||||||||||||
Monthly payment | $ 3,425 | |||||||||||||||||||
Coastline lending group [Member] | ||||||||||||||||||||
Original principal amount | $ 490,000 | |||||||||||||||||||
Debt instrument due date | Aug. 14, 2024 | |||||||||||||||||||
Debt instrument interest rate | 8.50% | |||||||||||||||||||
Debt instrument term | 36 months | |||||||||||||||||||
Outstanding loan balance | $ 490,000 | |||||||||||||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $ 3,471 | |||||||||||||||||||
Ram Cargo Vans [Member] | Five Auto Loan Agreement [Member] | ||||||||||||||||||||
Debt instrument term | 60 months | |||||||||||||||||||
Outstanding loan balance | $ 124,332 | 117,435 | ||||||||||||||||||
Debt instrument interest rate | 6.44% | |||||||||||||||||||
Hitachi Capital America [Member] | Auto Loan Agreement [Member] | ||||||||||||||||||||
Debt instrument term | 60 months | |||||||||||||||||||
Outstanding loan balance | $ 32,464 | 31,563 | ||||||||||||||||||
Hitachi Capital America [Member] | Two Auto Loan Agreement [Member] | ||||||||||||||||||||
Debt instrument term | 60 months | |||||||||||||||||||
Outstanding loan balance | $ 64,730 | 62,932 | ||||||||||||||||||
Promissory Note [Member] | Former Employee [Member] | ||||||||||||||||||||
Original principal amount | $ 40,000 | |||||||||||||||||||
Debt instrument interest rate | 5.00% | |||||||||||||||||||
Promissory Note [Member] | Greater Asia Technology Limited [Member] | ||||||||||||||||||||
Original principal amount | $ 100,000 | |||||||||||||||||||
Debt instrument due date | Jun. 30, 2018 | |||||||||||||||||||
Debt instrument interest rate | 33.33% | |||||||||||||||||||
Outstanding balance | 36,695 | 49,541 | 96,401 | |||||||||||||||||
Short Term Loans [Member] | Greater Asia Technology Limited [Member] | ||||||||||||||||||||
Original principal amount | $ 375,000 | |||||||||||||||||||
Outstanding balance | $ 100,000 | $ 100,000 | 100,000 | |||||||||||||||||
Short Term Loans [Member] | Greater Asia Technology Limited [Member] | Minimum [Member] | ||||||||||||||||||||
Debt instrument interest rate | 40.00% | 40.00% | ||||||||||||||||||
Short Term Loans [Member] | Greater Asia Technology Limited [Member] | Maximum [Member] | ||||||||||||||||||||
Debt instrument interest rate | 50.00% | 50.00% | ||||||||||||||||||
April 2020 PPP Note [Member] | Bank of America [Member] | CARES Act [Member] | ||||||||||||||||||||
Original principal amount | $ 110,000 | |||||||||||||||||||
Debt instrument interest rate | 1.00% | |||||||||||||||||||
July 2020 PPP Note [Member] | Bank of America [Member] | CARES Act [Member] | ||||||||||||||||||||
Original principal amount | $ 500,000 | $ 159,900 | ||||||||||||||||||
Debt instrument interest rate | 1.00% | |||||||||||||||||||
Interest percentage during period | 3.75% | |||||||||||||||||||
Rent paid | $ 731 | |||||||||||||||||||
July 2020 PPP Note [Member] | Bank of America [Member] | Minimum [Member] | CARES Act [Member] | ||||||||||||||||||||
Rent paid | 731 | |||||||||||||||||||
July 2020 PPP Note [Member] | Bank of America [Member] | Maximum [Member] | CARES Act [Member] | ||||||||||||||||||||
Rent paid | $ 2,527 | |||||||||||||||||||
January 2021 PPP Note [Member] | Bank of America [Member] | CARES Act [Member] | ||||||||||||||||||||
Original principal amount | $ 96,595 | |||||||||||||||||||
Debt instrument interest rate | 1.00% | |||||||||||||||||||
Outstanding balance | $ 606,495 | $ 256,495 | ||||||||||||||||||
Promissory Notes [Member] | Manuel Rivera [Member] | ||||||||||||||||||||
Original principal amount | $ 100,000 | |||||||||||||||||||
Debt instrument due date | Sep. 15, 2021 | |||||||||||||||||||
Outstanding balance | 100,000 | 100,000 | $ 0 | |||||||||||||||||
Monthly interest, amount | $ 3,500 | |||||||||||||||||||
Debt instrument term | 7 months | |||||||||||||||||||
Debt instrument, description | The Company shall pay the investor a fee of $70,000 within 45 days of its first harvest | |||||||||||||||||||
Interest Payable, Current | $ 14,000 | $ 35,000 |
Loans Payable _ Related Parti_2
Loans Payable – Related Parties (Details Narrative) - USD ($) | Dec. 14, 2021 | Nov. 21, 2016 | Dec. 31, 2021 | Jun. 30, 2021 | May 25, 2021 | Jun. 30, 2020 | Jul. 07, 2016 | Jan. 23, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Loan payable - related parties, current | $ 228,057 | $ 163,831 | $ 35,943 | |||||
Loan receivables - related party, current | 122,535 | |||||||
Loan payable - Related Parties, Current | 1,650,739 | 701,193 | 517,260 | |||||
SWC Group, Inc. [Member] | Officer [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Loan payable - Related Parties, Current | $ 40,000 | |||||||
SWC Group, Inc. [Member] | Officer [Member] | Loans Payable [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Loan payable - Related Parties, Current | 0 | 12,682 | ||||||
SWC Group, Inc. [Member] | Officer [Member] | Loans Payable One [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Maturity date | Sep. 30, 2017 | |||||||
SWC Group, Inc. [Member] | Officer [Member] | Loans Payable Two [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Loan payable - Related Parties, Current | 83,275 | |||||||
Loan payable - Related Parties, Current | 0 | |||||||
SWC Group, Inc. [Member] | Officer [Member] | Loans Payable Eight [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Loan payable - Related Parties, Current | 20,178 | 0 | ||||||
Maturity date | Jun. 14, 2022 | |||||||
SWC Group, Inc. [Member] | Office [Member] | Loans Payable One [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Loan payable - Related Parties, Current | 80,592 | 49,447 | ||||||
LMK Capital LLC [Member] | Chief Executive Officer [Member] | Loans Payable Seven [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Loan payable - related parties, current | 124,287 | 15,427 | ||||||
Loan receivables - related party, current | ||||||||
Lemon glow [Member] | Officer [Member] | Loans Payable Three [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Loan payable - Related Parties, Current | $ 3,000 | 3,000 | ||||||
Employee [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Interest rate per annum | 0.00% | |||||||
Loan payable - Related Parties, Current | 49,447 | 30,000 | ||||||
Former Independent Consultant [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Interest rate per annum | 0.00% | |||||||
Loan payable - Related Parties, Current | 83,275 | 5,943 | ||||||
Officer [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Interest rate per annum | 0.00% | |||||||
Loan payable - Related Parties, Current | 3,000 | 0 | ||||||
LMK Capital LLC [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Loan payable - related parties, current | 26,452 | 0 | ||||||
Loan receivables - related party, current | $ 122,535 |
Shares to Be Issued (Details Na
Shares to Be Issued (Details Narrative) - USD ($) | Jul. 02, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Apr. 19, 2018 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Stock to be issued | $ 46,500 | $ 27,500 | ||||||
Annual Salary | $ 479,738 | $ 105,700 | $ 940,162 | $ 464,474 | 709,041 | $ 572,683 | ||
Stock to be issued | $ 444,000 | 4,171,000 | 926,287 | |||||
Consulting Service Agreement and Employment Agreement [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Stock to be issued | $ 138,077 | $ 101,577 | ||||||
TAAD [Member] | Fiscal Year Twenty Twenty Two [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Stock to be issued | 50,000,000 | 5,000,000 | ||||||
Stock to be issued | 15,000,000 | 15,000,000 | ||||||
TAAD [Member] | Fiscal Year Twenty Twenty One [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Stock to be not issued | 5,000,000 | 5,000,000 | ||||||
Jimmy Chan [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Stock to be issued | $ 215,577 | $ 110,577 | ||||||
Jimmy Chan [Member] | Fiscal Year Twenty Twenty Two [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Stock to be issued | 37,500,000 | 37,500,000 | ||||||
Annual Salary | $ 250,000 | |||||||
Jimmy Chan [Member] | Fiscal Year Twenty Twenty Two [Member] | Mr Chan [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Acquire percentage | 10.00% | |||||||
Jimmy Chan [Member] | Fiscal Year Twenty Twenty One [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Stock to be not issued | 50,000,000 | 50,000,000 | ||||||
Consulting Agreement [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Stock to be issued | $ 262,077 | $ 262,077 | ||||||
Employment Agreement [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Stock to be issued | $ 138,077 |
Equity Transactions (Details Na
Equity Transactions (Details Narrative) | May 11, 2021$ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Sep. 30, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Sep. 30, 2020USD ($)shares | Mar. 31, 2015USD ($)Integershares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Apr. 22, 2020$ / sharesshares | Apr. 21, 2020shares |
Class of Stock [Line Items] | ||||||||||
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 10,010,000,000 | |||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||||||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Common stock, shares issued | 9,022,993,267 | 7,402,535,677 | 1,763,277,230 | |||||||
Preferred stock, shares issued | 3,541,500 | |||||||||
Preferred stock, shares outstanding | 3,541,500 | |||||||||
Stock issued, value | $ | $ 444,000 | $ 4,171,000 | $ 926,287 | |||||||
Debt conversion, value | $ | $ 150,000 | $ 385,266 | $ 320,879 | $ 1,273,459 | 2,560,371 | $ 2,048,770 | ||||
Fixed buyback amount | $ | $ 500,000 | |||||||||
Number of common stock issued upon conversion | 360,647,019 | |||||||||
Value of common stock issued upon conversion | $ | $ 2,000,000 | |||||||||
Common stock, shares outstanding | 9,022,993,267 | 7,402,535,677 | 1,763,277,230 | |||||||
Stock issued for acquisition, value | $ | $ 7,449,600 | |||||||||
Common Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Beginning balance, shares | 369,999,999 | 2,639,600,002 | 138,461,538 | |||||||
Stock issued, value | $ | $ 370,000 | $ 2,639,600 | $ 138,462 | |||||||
Debt conversion, shares issued | 214,285,714 | 375,600,448 | 411,171,815 | 1,081,411,606 | 2,451,338,059 | 1,077,643,486 | ||||
Debt conversion, value | $ | $ 214,286 | $ 375,600 | $ 411,172 | $ 1,081,412 | $ 2,451,338 | $ 1,077,642 | ||||
Stock issued for acquisition, shares | 660,571,429 | |||||||||
Stock issued for acquisition, value | $ | $ 660,571 | |||||||||
Common Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Beginning balance, shares | 2,620,000,001 | |||||||||
Stock issued, value | $ | $ 4,171,000 | |||||||||
Debt conversion, shares issued | 2,451,338,059 | |||||||||
Debt conversion, value | $ | $ 2,560,369 | |||||||||
Debt conversion, converted instrument, shares issued | 214,285,714 | 375,600,448 | ||||||||
Debt conversion, converted amount | $ | $ 150,000 | $ 385,266 | ||||||||
Common Stock [Member] | Lemon Glow Acquisition [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock issued for acquisition, shares | 660,571,429 | |||||||||
Stock issued for acquisition, value | $ | $ 1,849,600 | |||||||||
Series A Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares authorized | 7,000,000 | 7,000,000 | 7,000,000 | |||||||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Preferred stock, shares issued | 0 | 0 | 2,000,000 | |||||||
Preferred stock, shares outstanding | 0 | 0 | 2,000,000 | |||||||
Series A Preferred Stock [Member] | Investor [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Beginning balance, shares | 2,000,000 | |||||||||
Debt instrument, Conversion feature terms, description | Five years from the date of issue (the “Conversion Date”), assuming Investor is approved for l-526, and each Preferred Share will automatically convert into that number of Common Shares having a “fair market value” of the Initial Investment plus a five (5) percent annualized return on Initial Investment, Fair market value will be determined by averaging the closing sale price of a Common Share for the 40 trading days immediately preceding the date of conversion on the U.S. stock exchange on which Common Shares are publicly traded. Should the Investor be unsuccessful in liquidating the Common Shares within 90 days after the Conversion Date, the Company shall buy back total Common Shares owned by Investor at a fixed amount of $500,000.00 plus 5% ROI per annum. | |||||||||
Conversion ratio description | l-526 | |||||||||
Trading Days | Integer | 40 | |||||||||
Fixed buyback amount | $ | $ 500,000 | |||||||||
Return on investment | 5.00% | |||||||||
Common Stock For Service Compensation [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Debt conversion, shares issued | 187,673,367 | |||||||||
Debt conversion, value | $ | $ 455,894 | |||||||||
Common Stock For Shares Subscribed [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Beginning balance, shares | 19,600,000 | |||||||||
Stock issued, value | $ | $ 196,000 | |||||||||
Series B Stock [Member] | Stock Redemption Agreement [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Beginning balance, shares | 1,000,000 | |||||||||
Share price | $ / shares | $ 1 | |||||||||
Series B Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares authorized | 2,999,999 | 2,999,999 | 2,999,999 | |||||||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Preferred stock, shares issued | 2,541,500 | 541,500 | 1,541,500 | |||||||
Preferred stock, shares outstanding | 2,541,500 | 541,500 | 1,541,500 | |||||||
Preferred Class B [Member] | Lemon Glow Acquisition [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock issued for acquisition, shares | 2,000,000 | |||||||||
Stock issued for acquisition, value | $ | $ 5,600,000 | |||||||||
Series C Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares authorized | 1 | 1 | 1 | |||||||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Preferred stock, shares issued | 1 | 1 | 0 | |||||||
Preferred stock, shares outstanding | 1 | 1 | 0 |
Schedule of Supplemental Disclo
Schedule of Supplemental Disclosures Related to Operating Lease (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Loss Contingencies [Line Items] | |||
Cash paid for amounts included in the measurement of lease liabilities | $ 118,796 | $ 220,328 | |
Remaining lease term - operating leases (in years) | 2 years 3 months | 2 years 9 months | |
Average discount rate - operating leases | 10.00% | 10.00% | |
Short-term Right-of-use assets | $ 255,734 | $ 243,406 | $ 270,363 |
Long-term Right-of-use assets | 355,129 | 486,253 | 835,393 |
Total operating lease assets | 610,864 | ||
Short-term operating lease liabilities | 256,579 | 239,521 | 372,285 |
Long-term operating lease liabilities | 385,108 | 524,149 | $ 767,729 |
Total operating lease liabilities | 641,687 | 763,669 | |
General and Administrative Expense [Member] | |||
Loss Contingencies [Line Items] | |||
Operating lease cost | $ 154,463 | 308,925 | |
Short-term Right-of-use assets | 243,406 | ||
Long-term Right-of-use assets | 486,253 | ||
Total operating lease assets | 729,659 | ||
Short-term operating lease liabilities | 239,521 | ||
Long-term operating lease liabilities | 524,149 | ||
Total operating lease liabilities | $ 763,670 |
Schedule of Maturities of Lease
Schedule of Maturities of Lease Liabilities (Details) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
2022 | $ 309,770 | $ 305,040 |
2023 | 196,424 | 273,425 |
2024 | 175,026 | 172,465 |
2025 | 59,506 | 147,446 |
Total lease payments | 740,726 | 898,376 |
Less: Imputed interest/present value discount | (99,040) | (134,706) |
Present value of lease liabilities | $ 641,687 | $ 763,669 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) | Jun. 03, 2022USD ($) | Feb. 01, 2021 | Feb. 23, 2018USD ($)ft² | Dec. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Apr. 30, 2025 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Lease commitment | $ 740,726 | $ 898,376 | ||||
Operating lease, payments | $ 118,796 | $ 220,328 | ||||
Ford Transit Connect Van [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Operating lease, payments | $ 926 | |||||
Two Hyundai Accent [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Operating lease, payments | 612 | |||||
Hyundai Accent [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Operating lease, payments | $ 616 | |||||
Lease Agreement [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Lease term | 5 years | |||||
Lease Agreement [Member] | Magnolia Extracts LLC [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Lease payment, description | The lease is set to commence Commencing February 1, 2021. The lease payment shall equal $10,000 per month and the lease term is on month by month basis. Parties have agreed that the first month’s rent payment shall equal $7,000 and the Company shall pay to owner a refundable security deposit of $20,000 within 10 days of the effective day. | |||||
[custom:LesseeOperatingLeaseDescriptionOne] | The lease was set to commence on February 1, 2021. The lease payment shall equal $10,000 per month and the lease term is on month-by-month basis. Parties have agreed that the first month’s rent payment shall equal $7,000 and the Company owed the landlord a refundable security deposit of $20,000 within 10 days of the commencement date. | |||||
Lease Agreement [Member] | Building [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Lease term | 5 years | |||||
Monthly rent | $ 11,770 | |||||
Yearly increase in rent percentage | 3.00% | |||||
Lease commitment | $ 737,367 | |||||
Monthly rent | $ 11,770 | |||||
Lease Agreement [Member] | Warehouse [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Lease term | 5 years | |||||
Monthly rent | $ 13,022 | |||||
Area under lease | ft² | 11,627 | |||||
Monthly rent | $ 13,022 | |||||
Area under lease | ft² | 11,627 |
Schedule of Deferred Tax Asset
Schedule of Deferred Tax Asset (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Income Tax Disclosure [Abstract] | ||
Net Operating Loss Carryforwards | $ 13,021,807 | $ 12,028,883 |
Less Valuation Allowance | (13,021,807) | (12,028,883) |
Deferred Tax Assets |
Schedule of Reconciliation for
Schedule of Reconciliation for Income Taxes (Details) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
US federal statutory income tax rate | (21.00%) | (21.00%) |
State tax – net of benefit | (7.00%) | (7.00%) |
Non-deductible expenses, net of federal benefit | 7.00% | 7.00% |
Increase in valuation allowance | 21.00% | 21.00% |
Income tax expense |
Income Tax (Details Narrative)
Income Tax (Details Narrative) | Jun. 30, 2021USD ($) |
Income Tax Disclosure [Abstract] | |
Net operating loss carryforward | $ 74,348,595 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | Jan. 05, 2023 | Jan. 06, 2022USD ($)Integer | Jan. 05, 2022USD ($) | Jan. 01, 2022USD ($) | Oct. 11, 2021USD ($)shares | Dec. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) |
Subsequent Event [Line Items] | |||||||||||
Shares issued for debt conversion | $ 150,000 | $ 385,266 | $ 320,879 | $ 1,273,459 | $ 2,560,371 | $ 2,048,770 | |||||
Shares issued for Cash | $ 444,000 | $ 4,171,000 | $ 926,287 | ||||||||
Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Original principal amount | $ 485,000 | $ 450,000 | |||||||||
Interest rate per annum | 8.00% | 1.00% | |||||||||
Debt instrument, convertible, terms of conversion feature | The conversion price for the note is the lesser of (i) $0.001 and (ii) 85% of the lesser of (a) 5 days VWAP on the trading day preceding the conversion date, and (b) the VWAP on the conversion date. | ||||||||||
Debt instrument original issue discount | $ 48,500 | ||||||||||
Debt instrument, convertible, threshold percentage of stock price trigger | 0.0007% | 93.00% | |||||||||
Debt instrument convertible threshold trading days | Integer | 5 | ||||||||||
Common Stock, Conversion Basis | The maximum number of shares of common stock to be purchased pursuant to any single Drawdown Notice cannot exceed the lesser of (i) $250,000; (ii) 200% of the average daily traded value of the Drawdown Notice Shares during the five days immediately preceding the Drawdown Notice date; or (iii) that number of shares that would cause Dutchess to beneficially own 4.99% of the number of shares of the | ||||||||||
Subsequent Event [Member] | Purchase Agreement [Member] | Dutchess Capital Growth Fund LP [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Debt instrument term | 36 months | ||||||||||
Subsequent Event [Member] | Purchase Agreement [Member] | Dutchess Capital Growth Fund LP [Member] | Maximum [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Shares issued for Cash | $ 10,000,000 | ||||||||||
Subsequent Event [Member] | Accredited Investor [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Shares issued for debt conversion | $ 451,600 | ||||||||||
Shares issued for debt conversion, shares | shares | 614,728,579 |