Cover
Cover - shares | 12 Months Ended | |
Jun. 30, 2022 | Jan. 12, 2023 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --06-30 | |
Entity File Number | 000-23446 | |
Entity Registrant Name | SUGARMADE, INC. | |
Entity Central Index Key | 0000919175 | |
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 Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,055,800,701 | |
Documents Incorporated by Reference | None | |
ICFR Auditor Attestation Flag | false | |
Auditor Name | L&L CPAS, PA | |
Auditor Location | Plantation, FL | |
Auditor Firm ID | 1171 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Current assets: | ||
Cash | $ 161,014 | $ 1,396,944 |
Accounts receivable, net | 29,822 | 435,598 |
Inventory, net | 416,643 | 441,582 |
Trading securities, at market value | 1,451,922 | |
Other current assets | 256,511 | 182,457 |
Right of use asset, current | 219,494 | 243,406 |
Total current assets | 1,083,483 | 4,151,909 |
Noncurrent assets: | ||
Property, plant and equipment, net | 3,671,691 | 2,749,340 |
Intangible asset, net | 10,648,921 | 10,650,394 |
Goodwill | 757,648 | 757,648 |
Loan receivables, noncurrent | 196,000 | |
Right of use asset, noncurrent | 266,760 | 486,253 |
Cost method investments in affiliates | 441,407 | 441,407 |
Total noncurrent assets | 15,786,427 | 15,281,042 |
Total assets | 16,869,910 | 19,432,951 |
Current liabilities: | ||
Note payable due to bank | 25,982 | 25,982 |
Accounts payable and accrued liabilities | 2,664,538 | 2,058,839 |
Customer deposits | 951,664 | 751,919 |
Customer overpayment | 67,906 | 59,953 |
Other payables | 473,799 | 750,485 |
Accrued interest | 873,971 | 509,997 |
Accrued compensation and personnel related payables | 15,471 | |
Notes payable - Current | 20,000 | 33,047 |
Notes payable - Related Parties, Current | 15,427 | |
Lease liability - Current | 233,201 | 239,521 |
Loans payable - Current | 935,975 | 392,605 |
Loan payable - Related Parties, Current | 280,295 | 163,831 |
Convertible notes payable, Net, Current | 1,459,536 | 1,421,694 |
Derivative liabilities, net | 5,521,284 | 2,217,361 |
Warrants liabilities | 3,100 | 21,042 |
Shares to be issued | 283,077 | 138,077 |
Total current liabilities | 13,794,327 | 8,815,251 |
Non-current liabilities: | ||
Loans payable, noncurrent | 825,239 | 308,588 |
Note payable, noncurrent | 4,828,442 | 4,997,323 |
Convertible notes payable, Net, Noncurrent | 101,828 | 17,422 |
Lease liability | 290,948 | 524,149 |
Total noncurrent liabilities | 6,046,457 | 5,847,482 |
Total liabilities | 19,840,784 | 14,662,733 |
Commitments and contingencies | ||
Stockholders’ (deficit) equity: | ||
Common stock, $0.001 par value, 20,000,000,000 shares authorized, 11,825,389,576 and 7,402,535,676 shares issued and outstanding at June 30, 2022 and June 30, 2021, respectively | 11,825,389 | 7,402,536 |
Additional paid-in capital | 71,260,522 | 64,841,654 |
Share to be issued, Preferred stock | 5,600,000 | |
Subscription receivable | (10,042) | (500,000) |
Share to be issued, Common stock | 40,008 | 1,889,608 |
Accumulated deficit | (85,437,392) | (74,364,466) |
Total stockholders’ (deficit) equity | (2,318,974) | 4,869,874 |
Non-Controlling Interest | (651,900) | (99,656) |
Total stockholders’ (deficit) equity | (2,970,874) | 4,770,218 |
Total liabilities and stockholders’ (deficit) equity | 16,869,910 | 19,432,951 |
Series A Preferred Stock [Member] | ||
Stockholders’ (deficit) equity: | ||
Preferred stock, value | ||
Series B Preferred Stock [Member] | ||
Stockholders’ (deficit) equity: | ||
Preferred stock, value | 2,542 | 542 |
Series C Preferred Stock [Member] | ||
Stockholders’ (deficit) equity: | ||
Preferred stock, value |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Jun. 30, 2021 |
Preferred stock, par value | $ 0.001 | |
Preferred stock, shares authorized | 10,000,000 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 20,000,000,000 | 20,000,000,000 |
Common stock shares issued | 11,825,389,576 | 7,402,535,676 |
Common stock shares outstanding | 11,825,389,576 | 7,402,535,676 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 7,000,000 | 7,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2,999,999 | 2,999,999 |
Preferred stock, shares issued | 2,541,500 | 541,500 |
Preferred stock, shares outstanding | 2,541,500 | 541,500 |
Series C Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1 | 1 |
Preferred stock, shares issued | 1 | 1 |
Preferred stock, shares outstanding | 1 | 1 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Income Statement [Abstract] | |||
Revenues, net | $ 4,715,822 | $ 3,979,049 | |
Cost of goods sold | 1,900,496 | 2,153,311 | |
Gross profit | 2,815,325 | 1,825,738 | |
Selling, general and administrative expenses | 2,503,815 | 1,824,757 | |
Advertising and promotion expense | 1,499,576 | 844,890 | |
Marketing and research expense | 175,929 | 431,913 | |
Professional expense | 1,014,363 | 1,438,341 | |
Salaries and wages | 1,766,540 | 709,041 | |
Stock compensation expense | 1,068,690 | 518,393 | |
Total operating expenses | 8,028,913 | 5,767,335 | |
Loss from operations | (5,213,587) | (3,941,597) | |
Non-operating income (expense): | |||
Other (expense) income | 41,948 | 12,637 | |
Gain in loss of control of VIE | 313,928 | ||
Interest expense | (1,704,564) | (1,700,420) | |
Bad debts | (689,110) | (522,352) | |
Change in fair value of derivative liabilities | (2,809,857) | 1,087,485 | |
Warrant expense | 17,942 | 58,868 | |
Loss on impairment | (43,800) | ||
Loss on settlement | (106,051) | ||
Loss on assets disposal | (4,795) | (3,742) | |
Amortization of intangible assets | (2,822) | ||
Amortization of debt discount | (410,397) | (2,617,274) | |
Debt forgiveness | 96,595 | ||
Loss on inventory | (29,801) | ||
Loss on deposits | (119,000) | ||
Unrealized gain on securities | (870,132) | 1,451,922 | |
Total non-operating expenses, net | (6,461,589) | (2,091,204) | |
Equity method investment loss | (81,725) | ||
Loss before income taxes | (11,675,176) | (6,114,526) | |
Income tax expense | |||
Net loss | (11,675,176) | (6,114,526) | |
Other comprehensive loss | |||
Total comprehensive loss | (11,675,176) | (6,114,526) | |
Less: net loss attributable to the noncontrolling interest | (602,251) | (188,392) | |
Net loss attributable to SugarMade Inc. | $ (11,072,926) | $ (5,926,134) | |
Basic net loss per share | $ 0 | $ 0 | |
Diluted net loss per share | $ 0 | $ 0 | |
Basic and diluted weighted average common shares outstanding | [1] | 9,467,689,872 | 3,851,836,959 |
[1]Shares issuable upon conversion of convertible debts and exercising of warrants were excluded in calculating diluted loss per share as they would have been anti-dilutive. |
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 Shares Subscribed [Member] | Common Shares Subscribed One [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Jun. 30, 2020 | $ 2,000 | $ 1,542 | $ 1,763,278 | $ 57,307,768 | $ 236,008 | $ (68,438,332) | $ (11,136) | $ (9,138,872) | |||||
Beginning balance, shares at Jun. 30, 2020 | 2,000,000 | 1,541,500 | 1,763,277,230 | ||||||||||
Reclass derivative liability to equity from conversion | 4,956,142 | 4,956,142 | |||||||||||
Shares issued for Cash | $ 2,639,600 | 2,227,400 | (500,000) | (196,000) | 4,171,000 | ||||||||
Shares issued for Cash, shares | 2,639,600,002 | ||||||||||||
Shares issued for conversions | $ 2,451,338 | 109,033 | 2,560,371 | ||||||||||
Shares issued for conversions, shares | 2,451,338,059 | ||||||||||||
Preferred stock conversions | $ (2,000) | $ 360,647 | 141,353 | 500,000 | |||||||||
Preferred stock conversions, 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 | ||||||||||
Shares issued for acquisition, shares | |||||||||||||
Net loss | (5,926,134) | (188,392) | (6,114,526) | ||||||||||
Ending balance, value at Jun. 30, 2021 | $ 542 | $ 7,402,536 | 64,841,654 | 5,600,000 | (500,000) | 1,889,608 | (74,364,466) | (99,656) | 4,770,218 | ||||
Ending balance, shares at Jun. 30, 2021 | 541,500 | 1 | 7,402,535,677 | ||||||||||
Reclass derivative liability to equity from conversion | 1,613,889 | 1,613,889 | |||||||||||
Shares issued for Cash | $ 644,118 | (148,199) | (10,042) | 485,876 | |||||||||
Shares issued for Cash, shares | 644,117,641 | ||||||||||||
Shares issued for conversions | $ 2,591,975 | (1,582,739) | 1,009,236 | ||||||||||
Shares issued for conversions, shares | 2,591,974,829 | ||||||||||||
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 | |||||||||||
Net loss | (11,072,926) | (602,250) | (11,675,176) | ||||||||||
Shares issued for subscription receivable - common stock | 500,000 | 500,000 | |||||||||||
Repayment of Capital | (50,007) | 50,007 | |||||||||||
Shares issued for commitment | $ 500,000 | (238,606) | 261,394 | ||||||||||
Shares issued for commitment, shares | 500,000,000 | ||||||||||||
Shares issued for commission | $ 26,190 | 26,190 | |||||||||||
Shares issued for commission, shares | 26,190,000 | ||||||||||||
Issuance of options | 37,500 | 37,500 | |||||||||||
Ending balance, value at Jun. 30, 2022 | $ 2,542 | $ 11,825,389 | $ 71,260,522 | $ (10,042) | $ 40,008 | $ (85,437,392) | $ (651,900) | $ (2,970,874) | |||||
Ending balance, shares at Jun. 30, 2022 | 2,541,500 | 1 | 11,825,389,576 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (11,072,926) | $ (5,926,134) |
Non-controlling interest | (602,251) | (188,392) |
Adjustments to reconcile net loss to cash flows from operating activities: | ||
Excess derivative expense | 1,272,109 | 410,889 |
Loss on settlement | 106,051 | |
Loss on deposits | 119,000 | |
Loss on assets disposal | 4,795 | 3,742 |
Gain on debt forgiveness | (96,595) | |
Gain on loss of control of VIE | (313,928) | |
Return on EB5 Investment | 500,000 | |
Amortization of debt discount | 410,397 | 2,617,274 |
Stock based compensation | 1,068,690 | 518,394 |
Change in fair value of derivative liability | 2,809,857 | (1,087,485) |
Change in exercise of warrant | (17,942) | (58,868) |
Depreciation | 187,130 | 105,982 |
Amortization of intangible assets | 1,473 | 2,206 |
Impairment loss | 43,800 | |
Unrealized gain on securities | 870,132 | (1,451,922) |
Bad debt | 689,110 | 522,352 |
Loss on inventory | 29,801 | |
Changes in assets and liabilities: | ||
Accounts receivable | (87,334) | (402,401) |
Inventory | (9,657) | 93,020 |
Prepayment, deposits and other receivables | (74,054) | (1,015,106) |
Other assets | 54,163 | |
Other payables | (292,157) | 192,760 |
Accounts payable and accrued liabilities | 605,699 | 1,122,211 |
Customer deposits | 207,698 | 297,645 |
Unearned revenue | (53,248) | |
Right of use assets | 243,406 | 232,374 |
Lease liability | (239,521) | (232,622) |
Shares to be issued - liabilities | (26,000) | |
Interest Payable | 314,489 | 160,826 |
Net cash used in operating activities | (3,681,056) | (3,750,012) |
Cash flows from investing activities: | ||
Purchase of fixed assets | (1,109,481) | (69,265) |
Investment to Indigo Dye | (564,819) | |
Investment proceeds from Lemon Glow | (274,274) | |
Investment proceeds from NUG | (28,673) | |
Net cash used in investing activities | (1,109,481) | (937,031) |
Cash flows from financing activities: | ||
Proceeds from shares issuance | 495,918 | 4,171,000 |
Contributions of capital to noncontrolling minority | 88,736 | |
Distributions of capital to noncontrolling minority | (24,000) | |
Loan receivable | 1,365 | |
Loan receivable - related parties | 38,044 | |
Proceeds (Repayment) from(to) notes payable, net | (181,928) | (345,287) |
Proceeds (Repayment) from(to) note payable - related parties, net | (15,427) | |
Proceeds from advanced shares issuance | 500,000 | |
Subscription receivable | (10,042) | |
Proceeds (Repayment) from(to) loans payable, net | 1,060,021 | 182,087 |
Proceeds (Repayment) from(to) loans payable - related parties, net | 823,204 | 122,401 |
Proceeds from convertible notes | 1,007,810 | 2,174,200 |
Repayment of convertible notes | (438,752) | |
Reduction of cash due to Indigo deconsolidation | (326,812) | |
Net cash provided by financing activities | 3,679,557 | 5,642,982 |
Net increase in cash | (1,110,980) | 955,940 |
Cash paid during the period for: | ||
Cash, beginning of period | 1,396,944 | 441,004 |
Cash, end of period | 285,964 | 1,396,944 |
Net changes in financial statement amount due to purchase: | ||
Intangible assets acquired | 10,637,000 | |
Supplemental disclosure of non-cash financing activities — | ||
Shares issued for conversion of convertible debt | 1,009,236 | 2,560,371 |
Reduction in derivative liability due to conversion | 1,613,889 | 4,956,143 |
Debt discount related to convertible debt | 1,383,584 | 2,127,481 |
Shares issued for commitment | 500,000 | |
Lemon Glow Company Inc [Member] | ||
Net changes in financial statement amount 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 statement amount 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 | 12 Months Ended |
Jun. 30, 2022 | |
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 “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 effect 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 founded in 2010, 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”). Our Company operates much of its business activities through our subsidiaries, SWC Group, Inc., a California corporation (“SWC’’), NUG Avenue, Inc., a California corporation and 70 Shares of our common stock are quoted on the OTC Pink tier of OTC Markets. 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: Cannabis products delivery services: After discussions with ECGI, Inc. and the management of Nug Avenue, we could not find a path to short term profitability. The company then decided to cease investing in Nug Avenue, which ultimately led to Nug Avenue discontinuing operations. As part of pivoting our business strategy, the company negotiated with Indigo Dye Group Corp. (“Indigo”) to exchange our 32% Selected cannabis and hemp projects: On October 28, 2021, Lemon Glow 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 UP for commercial cannabis cultivation at its property. The issuance of the conditional 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 UP number by the County of Lake could be the first step toward full approval to cultivate cannabis on up to 32 acres out of the total 640 acres of the property. As of the date of this filing, Sugarmade is working diligently on satisfying the 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. Upon issuance, the company will determine the amount of acreages to grow initially based on market demand and pre-orders. However, no such license or permits have yet been issued, and applications are still pending. There can be no assurance that any such license or permits will be issued in the near future or at all. Once licensing and permits are issued, the company plans to divide the 32 canopy grow acres between four separate grow areas. These separate grow areas will allow the company to start with a single area and expand with demand. While waiting for demand to rise, dividing into separate grow areas will also provide an opportunity to lease the other grow areas to 3rd party or through partnership under Managed Service Agreement to generate additional revenue for the company. We believe the market demand will increase upon federal legalization allowing for interstate commerce of cannabis. Opening the doors for out of state licensees to purchase California grown cannabis flowers. Once fully completed, we estimate the output of 32 acres of canopy, will have the capacity of 64 tons of dry flower or 300 tons of fresh frozen, requiring approximately 300,000 sq ft of storage space. We will continue to make plans to build more storage space while concurrent with the licensing process. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 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, and its wholly-owned subsidiaries: SWC, Lemon Glow, Sugarrush, Sugarrush 5058, and its majority owned subsidiary, 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 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 seeks 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 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 point in time that control of the products is transferred to the customer. The Company receives customer deposits in advance of delivery of product to customers; these are contract liabilities that are recognized to revenue when the Company fulfilled the performance obligations. The Company receives payments from customer in either in advance, upon delivery, or after delivery in accordance with open account credit terms set forth by management. The Company’s contracts with customers do not provide for returns, refunds, and product warranties. 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 liabilities 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 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 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 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. 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 capitalized the 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. Stock-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 stock-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 earning per share 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 years ended June 30, 2022 and 2021. 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 approximately 52 48 A reconciliation of the Company’s segment operating income and cost of goods sold to the consolidated statements of operations for the years ended June 30, 2022 and 2021 is as follows: Schedule of Segment Operating Income June 30, 2022 June 30, 2021 For the Year Ended June 30, 2022 June 30, 2021 Segment operating income Paper and paper-based products $ 2,455,574 $ 1,748,700 Cannabis products delivery 2,260,248 2,230,349 Total operating income $ 4,715,822 $ 3,979,049 June 30, 2022 June 30, 2021 For the Year Ended June 30, 2022 June 30, 2021 Segment cost of goods sold Paper and paper-based products $ 1,900,496 $ 1,505,851 Cannabis products delivery - 647,460 Total cost of goods sold $ 1,900,496 $ 2,153,311 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 was 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 years ended June 30, 2022 and 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 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 years ended June 30, 2022 and 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 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 |
Business Combination
Business Combination | 12 Months Ended |
Jun. 30, 2022 | |
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 . 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 |
Concentration
Concentration | 12 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentration | 4. Concentration Customers For the year ended June 30, 2022 and 2021, our Company earned net revenues of $ 2,815,325 1,825,738 Suppliers For the year ended June 30, 2022 and 2021, we purchased products for sale by SWC, the Company’s wholly owned subsidiary from several contract manufacturers located in Asia and the U.S. A substantial portion of the Company’s inventory was purchased from two suppliers which accounted over 10% of the total purchases. The two suppliers accounted for 71.46 21.99 Segment reporting information A reconciliation of the Company’s segment operating income to the Consolidated Statements of Operations for June 30, 2022 and 2021 is as follows: For the Year Ended June 30, 2022 June 30, 2021 Segment operating income Paper and paper-based products $ 2,455,574 $ 1,748,700 Cannabis products delivery 2,260,248 2,230,349 Total operating income $ 4,715,822 $ 3,979,049 |
Noncontrolling Interest and Dec
Noncontrolling Interest and Deconsolidation of VIE | 12 Months Ended |
Jun. 30, 2022 | |
Noncontrolling Interest And Deconsolidation Of Vie | |
Noncontrolling Interest and Deconsolidation of VIE | 5. Noncontrolling Interest and Deconsolidation of VIE Starting in the fiscal year ended June 30, 2020, the Company had a variable interest entity (Indigo), 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 was approximately $ 326,812 as of October 1, 2020, the date of deconsolidation. The value of the Company’s variable interest on the date of deconsolidation was based on management’s estimate of the fair value of Indigo at that time. The Company concluded that the market approach was the most appropriate method to determine the fair value of the entity on the date of deconsolidation, given that Indigo raised equity funding from third-party investors around the same period (i.e., level 2 inputs). The Company recognized a gain on deconsolidation of approximately $ 313,928 with no related tax impact, which is included in other income, net on the consolidated statement of operations. As the Company is not obligated to fund future losses of Indigo, the carrying amount is the Company’s maximum risk of loss and accounted as equity method investment in affiliates in our consolidated financial statements as of and for the period ended September 30, 2021. Due to the Company had no access to Indigo’s book during the year ended June 30, 2022, the Company recorded cost method investment in affiliates at $ 441,407 441,407 81,725 As part of pivoting our business strategy, the company negotiated with Indigo Dye Group Corp. (“Indigo”) to exchange our 32% |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | 6. Legal Proceedings 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, 2022, 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 80,000 227,000 80,000 There can be no assurances the ultimate liability relative to these lawsuits will not exceed what is outlined above. |
Cash
Cash | 12 Months Ended |
Jun. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash | 7. 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 June 30, 2022 and 2021, the Company held cash in the amount of $ 161,014 1,396,944 50,112 74,481 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Jun. 30, 2022 | |
Credit Loss [Abstract] | |
Accounts Receivable | 8. 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 $ 29,822 435,598 321,560 259,761 |
Loan Receivable
Loan Receivable | 12 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Loan Receivable | 9. Loan Receivable Loan receivables amounted $ 0 196,000 0 196,000 |
Trading Securities, at Market V
Trading Securities, at Market Value | 12 Months Ended |
Jun. 30, 2022 | |
Trading Securities At Market Value | |
Trading Securities, at Market Value | 10. Trading Securities, at Market Value In October 2019, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with iPower Inc., formerly known as BZRTH Inc. (“iPower”), 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 and its stockholders returned the shares of Sugarmade common stock and preferred stock and issued to Sugarmade 204,496 1,451,922 During the year ended June 30, 2022, the Company sold all the 204,496 582,688 For the years ended June 30, 2022 and 2021, the Company recorded unrealized (loss) gain on securities amounted $ (870,132) 1,451,922 0 1,451,922 |
Inventory
Inventory | 12 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | 11. 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, 2022 and 2021, the balance for the inventory totaled $ 416,643 441,582 0 |
Other Current Assets
Other Current Assets | 12 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | 12. Other Current Assets As of June 30, 2022 and 2021, other current assets consisted of the following: Schedule of Other Current Assets 2022 2021 For the year ended 2022 2021 Prepaid deposit $ 144,488 $ 113,988 Prepayments for inventory 47,708 — Prepaid expenses 55,442 35,590 Others 8,873 32,879 Total $ 256,511 $ 182,457 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 13. Property, Plant and Equipment As of June 30, 2022 and 2021, property, plant and equipment consisted of the following: Schedule of Property Plant and Equipment June 30, 2022 June 30, 2021 Office and equipment $ 820,149 $ 820,149 Motor vehicles 387,804 166,079 Building 197,609 - Land 2,554,766 1,922,376 Leasehold improvement 423,329 365,620 Total 4,383,658 3,274,224 Less: accumulated depreciation (711,967 ) (524,884 ) Plant and Equipment, net $ 3,671,691 $ 2,749,340 For the years ended June 30, 2022 and 2021, depreciation expenses amounted to $ 187,083 105,982 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 |
Intangible Asset
Intangible Asset | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Asset | 14. 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 10 3,333 1,400 On May 17, 2021, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) by and between Merger Sub, Lemon Glow and Mr. Ryan Santiago as 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 | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 15. 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 |
Cost Method Investments in Affi
Cost Method Investments in Affiliates | 12 Months Ended |
Jun. 30, 2022 | |
Investments in and Advances to Affiliates [Abstract] | |
Cost Method Investments in Affiliates | 16. Cost 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 as a variable interest entity. The Company owned approximately 29 During the 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 % interest in Indigo. In addition, the Company is no longer involved in day-to-day operations of Indigo and going forward, the Company intends to pursue cannabis delivery independent from Indigo. 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 cost method of accounting . Pursuant to the terms of the Indigo agreement, if the Company determines, in its discretion not to continue to make monthly payments, its 40 % ownership interest in Indigo will be decreased according to the payment then made. As of June 30, 2022, the Company did not receive any distributions or dividends from Indigo. In addition, due to the Company had no access to Indigo’s book during the year ended June 30, 2022, the Company recorded cost method investment in affiliates at $ 441,407 32% As part of pivoting our business strategy, the company negotiated with Indigo Dye Group Corp. (“Indigo”) to exchange our 32% |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | 17. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities amounted to $ 2,664,538 2,058,839 Schedule of Accounts Payable and Accrued Liabilities June 30, 2022 June 30, 2021 Accounts payable $ 2,079,607 $ 1,464,692 Accrued liabilities 334,033 310,528 Legal liabilities (See below for detail explanation) 250,898 283,619 Total accounts payable and accrued liabilities: $ 2,664,538 $ 2,058,839 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, 2022, 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 80,000 250,898 283,619 There can be no assurances the ultimate liability relative to these lawsuits will not exceed what is outlined above. The company fully recognize this legal liability. |
Customer Deposits
Customer Deposits | 12 Months Ended |
Jun. 30, 2022 | |
Customer Deposits | |
Customer Deposits | 18. Customer Deposits Customer deposits amounted $ 951,664 751,919 Schedule of Customer Deposits June 30, 2021 Balance Customer Deposited Revenue Recognized June 30, 2022 Balance $ 751,919 $ 836,274 $ (636,529 ) $ 951,664 |
Other Payables
Other Payables | 12 Months Ended |
Jun. 30, 2022 | |
Other Payables | |
Other Payables | 19. Other Payables Other payables amounted to $ 473,799 750,485 eight 85,000 11.24 29.99 7,647 8,961 |
Convertible Notes
Convertible Notes | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Convertible Notes | 20. Convertible Notes As of June 30, 2022 and 2021, the balance owing on convertible notes, net of debt discount, with terms as described below was $ 1,561,364 1,439,116 Convertible note 1: On August 24, 2012, the Company issued a convertible promissory note with an accredited investor for $ 25,000 six months 10 25 Convertible note 2: On September 18, 2012, the Company issued a convertible promissory note with an accredited investor for $ 25,000 six months 10 25 Convertible note 3: On December 21, 2012, the Company issued a convertible promissory note with an accredited investor for $ 100,000 six months 10 25 Convertible note 4: On November 16, 2018, the Company issued 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 issued 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 issued 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 issued 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 issued a convertible promissory note with an accredited investor for a total amount of $ 110,000 10,000 180 12 0.01 0.01 65 20 Convertible note 9: On September 10, 2020, the Company issued 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 7,112 84,864,007 Convertible note 10: On September 24, 2020, the Company issued a convertible promissory note with an accredited investor for a total amount of $ 212,300 19,300 180 12 0.01 0.01 65 20 105,000 28,960 550,000,000 63,690 Convertible note 11: On October 8, 2020, the Company issued a convertible promissory note with an accredited investor for a total amount of $ 231,000 21,000 12 0.01 0.01 65 20 69,300 Convertible note 12: On October 13, 2020, the Company issued 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 issued 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 issued 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 85,000 1,747 100,000,000 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 20 236,460 1,047,000,000 Convertible note 17: On January 1, 2022, the Company issued a convertible promissory note with a service provider for a total amount of $ 450,000 three years 1 0.001 85 Convertible note 18: On January 5, 2022, the Company issued a convertible promissory note with an accredited investor for a total amount of $ 485,000 82,190 one year 8 0.001 Convertible note 19: On March 23, 2022, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 198,000 18,000 360 8 65 20 Convertible note 20: On April 27, 2022, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 144,200 19,200 12 75 10 Convertible note 21: On June 8, 2022, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 220,000 20,000 8 65 20 Convertible note 22: On June 28, 2022, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 110,000 10,000 8 65 20 In connection with the convertible debt, debt discount balance as of June 30, 2022 and 2021 were $ 1,185,079 391,086 As of the year ended June 30, 2022, debt discount of the convertible notes consisted of following: Schedule of Convertible Notes Debt Discount Debt Discount Start Date End Date As of 6/30/2021 Addition Amortization As of 6/30/2022 9/10/2020 9/10/2021 $ 39,452 $ - $ (39,452 ) $ - 9/10/2020 9/10/2021 5,312 - (5,312 ) - 11/10/2020 11/11/2021 18,306 - (18,306 ) - 11/10/2020 11/11/2021 3,024 - (3,024 ) - 2/8/2021 2/9/2022 36,712 - (36,712 ) - 2/8/2021 2/9/2022 5,701 - (5,701 ) - 6/14/2021 6/14/2024 282,578 - (95,501 ) 187,077 1/1/2022 1/1/2025 - 450,000 (73,905 ) 376,095 1/5/2022 1/5/2023 - 82,190 (39,631 ) 42,559 3/23/2022 3/23/2023 - 198,000 (53,704 ) 144,296 4/27/2022 4/27/2023 - 144,200 (25,284 ) 118,916 6/8/2022 6/8/2023 - 220,000 (13,260 ) 206,740 6/28/2022 6/28/2023 - 110,000 (603 ) 109,397 Total: $ 391,086 $ 1,204,390 $ (410,397 ) $ 1,185,079 |
Derivative Liabilities
Derivative Liabilities | 12 Months Ended |
Jun. 30, 2022 | |
Derivative Liabilities | |
Derivative Liabilities | 21. Derivative Liabilities The derivative liability is derived from the conversion features in note 20 and stock warrant in note 22. All were valued using the weighted-average Binomial option pricing model using the assumptions detailed below. As of June 30, 2022 and 2021, the derivative liability was $ 5,521,284 2,217,361 2,809,857 1,087,485 1,272,111 414,632 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 % June 30, 2022 Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.01 2.92 % Expected Volatility 133 262 % Fair value of the derivative is summarized as below: Schedule of Fair Value of Derivative Beginning Balance, June 30, 2021 $ 2,217,361 Additions 2,107,956 Mark to Market 2,809,856 Reclassification to APIC Due to Conversions (1,613,889 ) Ending Balance, June 30, 2022 $ 5,521,284 |
Stock Warrants
Stock Warrants | 12 Months Ended |
Jun. 30, 2022 | |
Stock Warrants | |
Stock Warrants | 22. 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 1,100 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 2,000 20,000 As of June 30, 2022 and 2021, the total fair value of the warrant liability was $ 3,100 21,042 The Binomial model with the following assumption inputs: Schedule of Assumptions Inputs for Warrants 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 % Warrants liability: June 30, 2022 Annual dividend yield — Expected life (years) 1.0 3.0 Risk-free interest rate 0.28 2.99 % Expected volatility 149 174 % Schedule of Warrants Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining contractual life Outstanding at June 30, 2020 10,578,880 $ 0.021 5 Expired - Granted - Outstanding at June 30, 2021 10,578,880 $ 0.026 4 Expired - Granted - Outstanding at June 30, 2022 10,578,880 $ 0.027 3 |
Note Payable
Note Payable | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Note Payable | 23. 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 8 20,000 20,000 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 6 30 36 64 monthly basis 8,333.75 3,000.15 5,333.60 1,364,436 1,378,222 122,110 and $ 57,892 On May 12, 2021, the Company issued a promissory note to the Lemon Glow shareholders. The original principal amount was $ 3,976,000 5 36 3,463,389 3,626,000 175,707 0 On May 17, 2021, the Company issued a note to Hyundai financing in total principal amount of $ 13,047 251 0 13,047 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 0 15,427 |
Loans payable
Loans payable | 12 Months Ended |
Jun. 30, 2022 | |
Loans Payable | |
Loans payable | 24. Loans payable On October 1, 2017, the Company issued a straight promissory note to 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 into 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 into an equipment loan agreement with a bank with maturity on June 21, 2024 648 11,842 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 June 30, 2022 and 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 0 109,925 On February 15, 2021, the Company entered into a loan with Manuel Rivera for borrowing $ 100,000 3,500 7 The Company shall pay the investor a fee of $70,000 within 45 days of its first harvest. 100,000 100,000 56,000 14,000 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 53,250 65,726 On August 4, 2021, the Company entered into a loan with Coastline Lending Group of $ 490,000 3,471 36 8.5 490,000 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 60 6.44 418 108,791 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 28,406 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 56,639 On March 1, 2022, the Company entered into a short term loan with WNDR Group Inc. for borrowing $ 100,000 2 December 31, 2022 100,000 As of June 30, 2022 and 2021, the Company had an outstanding loan balance of $ 1,761,214 935,975 825,239 701,193 392,605 308,588 |
Loans Payable _ Related Parties
Loans Payable – Related Parties | 12 Months Ended |
Jun. 30, 2022 | |
Loans Payable Related Parties | |
Loans Payable – Related Parties | 25. Loans Payable – Related Parties On January 23, 2013, SWC received a loan from an officer for $ 40,000 0 15,427 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 June 30, 2022 and 2021, the balance of the loans payable were $ 0 49,447 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 June 30, 2022 and 2021, the balance of the loan payable to LMK were $ 278,006 26,452, respectively, and the balance of loan receivable were $ 0 0 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, 2022 and 2021, the balance of the loans were $ 2,289 3,000 As of June 30, 2022 and 2021, the Company had an outstanding balance of $ 280,295 163,831 |
Shares to Be Issued
Shares to Be Issued | 12 Months Ended |
Jun. 30, 2022 | |
Shares To Be Issued | |
Shares to Be Issued | 26. 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 20,000,000 5,000,000 54,500 27,500 Starting July 1, 2021, Mr. Jimmy Chan, the Company’s CEO, receives an annual salary of $ 250,000 50,000,000 10 50,000,000 50,000,000 228,577 110,577 As of June 30, 2022 and 2021, the Company had total potential shares to be issued to the consulting agreement of $ 283,077 138,077 |
Stockholders_ (Deficit) Equity
Stockholders’ (Deficit) Equity | 12 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders’ (Deficit) Equity | 27. Stockholders’ (Deficit) Equity The Company is authorized to issue 10,000,000,000 0.001 10,000,000 0.001 10,010,000,000 10,000,000,000 0.001 10,000,000 0.001 10,000,000,000 20,000,000,000 Share issuances 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 issuances 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 During the three months ended December 31, 2021, the Company made repayment of capital in total cash of $ 50,007 30 Share issuances during the three months ended March 31, 2022 Material Definitive Agreement On January 6, 2022, Sugarmade, Inc. (the “ Company Purchase Agreement Dutchess Equity Line 10,000,000 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 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 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 common stock outstanding immediately prior to the issuance of the Drawdown Notice Shares. 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. 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. During the three months ended March 31, 2022, the Company issued 850,000,000 275,747 During the three months ended March 31, 2022, the Company issued 300,000,000 181,394 Share issuances during the three months ended June 30, 2022 During the three months ended June 30, 2022, the Company issued 1,152,088,667 198,223 During the three months ended June 30, 2022, the Company issued 192,665,527 41,876 During the three months ended June 30, 2022, the Company advanced issued 81,452,115 10,042 During the three months ended June 30, 2022, the Company issued 26,190,000 26,190 During the three months ended June 30, 2022, the Company issued 200,000,000 80,000 As of June 30, 2022 and 2021, the Company had 11,825,389,576 7,402,535,676 As of June 30, 2022 and 2021, the Company had 2,541,500 541,500 As of June 30, 2022 and 2021, the Company had 1 1 |
Leases
Leases | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Leases | 28. Leases 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 As of June 30, 2022 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, 2022 $ 243,406 Remaining lease term – operating leases (in years) 1.75 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 $ 219,494 Long-term right-of-use assets $ 266,760 Total operating lease assets $ 486,253 Short-term operating lease liabilities $ 233,201 Long-term operating lease liabilities $ 290,948 Total operating lease liabilities $ 524,149 Maturities of the Company’s lease liabilities are as follows: Schedule of Maturities of Lease Liabilities Year Ended June 30, 2022 Operating 2023 $ 273,425 2024 172,465 2025 147,446 Total lease payments 593,336 Less: Imputed interest/present value discount (69,187 ) Present value of lease liabilities $ 524,149 |
Income Tax
Income Tax | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 29. Income Tax The deferred tax asset as of June 30, 2022 and 2021 consisted of the following: Schedule of Deferred Tax Asset 2022 2021 Net Operating Loss Carryforwards $ 16,122,226 $ 13,021,807 Less Valuation Allowance (16,122,226 ) (13,021,807 ) 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, 2022, the Company has net operating loss carryforward of $ 85,437,392 which is available to offset future taxable 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 2022 and 2021 is as follows: Schedule of Reconciliation for Income Taxes 2022 2021 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 — — |
Contingent Liabilities and Comm
Contingent Liabilities and Commitment | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities and Commitment | 30. Contingent Liabilities and Commitment On April 28, 2022, Lemon Glow Company, Inc. (“Lemon Glow”), a wholly owned subsidiary of Sugarmade, Inc. (the “Company”) and Cannabis Global, Inc. (“Cannabis Global”) entered into a Cultivation and Supply Agreement (the “Agreement”). Cannabis Global owns a majority stake of Natural Plant Extract of California, Inc. which operates a licensed cannabis manufacturing and distribution operation in Lynwood, California. The Agreement provides that during the Spring 2022 cannabis cultivation season, Lemon Glow will outsource the cultivation of cannabis to licensed growers in Lake County, California; oversee and co-manage the cultivation; and sell cannabis to Cannabis Global conforming to its specifications. Lemon Glow will cultivate only the cannabis chemovars (commonly called “strains”) approved by Cannabis Global. The cultivation will be conducted in accordance with regulations adopted by California’s Department of Cannabis Control; Lake County, California; and other state and local governmental entities that may have legal jurisdiction over the cultivation. Under the terms of the Agreement, Lemon Glow will present a cultivation, harvest, and processing plan to Cannabis Global by May 15, 2022 (the “Plan”). Lemon Glow will begin executing the Plan as soon as practicable thereafter with the harvest expected to occur mid-October 2022 (the “Harvest”). The Harvest will be stored as “Fresh Frozen” cannabis. Fresh Frozen cannabis is immediately flash frozen upon harvest, instead of the traditional process of drying and curing cannabis. Under the terms of the Agreement, Cannabis Global is obligated to purchase the Harvest, up to 25,000 pounds (the “Target Yield”). Cannabis Global has an option to increase the Target Yield for subsequent growing seasons by 25% within 45 days of the current Harvest. Cannabis Global is required to pay Lemon Glow $28.00 per pound for the Fresh Frozen cannabis, up to the Target Yield. If the Target Yield is achieved, the aggregate purchase price would be $700,000 (the “Purchase Price”). The Purchase Price shall be paid as a series of cash payments and a convertible promissory note, as more fully described below. The cash portion of the Purchase Price will be paid in cash as five $ 40,000 monthly installments 100,000 The other portion of the Purchase Price is a $ 400,000 April 28, 2023 8 At any time after 90 days of issuance, the Convertible Note is convertible by Lemon Glow into Cannabis Global common stock at 75% of the 10-day average closing price prior to conversion (the “Discount Price”). Interest paid on the Convertible Note is also convertible by Lemon Glow into Cannabis Global common stock at the Discount Price. Lemon Glow may not convert any amount due under the Convertible Note if, after giving effect to such conversion, Lemon Glow would beneficially own in excess of 4.99% of Cannabis Global’s outstanding common stock; provided, however, that Lemon Glow may waive this limitation on 61 days advanced notice. Events of default include, but are not limited to, failure to pay principal or interest; failure of Cannabis Global common stock to remain listed for trading on OTC Markets or a principal U.S. national securities exchange for a period of five trading days; notice to Lemon Glow that Cannabis Global cannot or will refuse to convert principal or interest into common stock; failure by Cannabis Global to convert principal or interest into common stock not remedied for three days; any default on other indebtedness in excess of $ 100,000 Upon an event of default, Lemon Glow may declare the entire unpaid principal and interest due to be payable immediately; convert the unpaid principal and interest due at the Conversion Price; or exercise such other rights as Lemon Glow may have under the Convertible Note, the Agreement, other transaction documents or applicable law. Lemon Glow may transfer, sell, pledge, hypothecate or otherwise grant a security interest in the Convertible Note, subject to certain specified restrictions. The choice of law provision provides for Nevada law to govern the Convertible Note. Ownership of harvested cannabis will transfer to Cannabis Global upon receipt of the cannabis or upon Lemon Glow notifying Cannabis Global that it has packaged the Target Yield (the “Completion Notice”). Upon receipt of the Completion Notice, Cannabis Global has 30 days to pick up the Target Yield. If Cannabis Global has not taken possession of the cannabis within 30 days, Cannabis Global will become responsible for the ongoing cost of storage, including utilities and labor. Cannabis Global is obligated to use its best efforts to take possession of the entire Harvest within 180 days. After the 180-day period, any remaining amounts of the Harvest not picked up by Cannabis Global are considered abandoned by Cannabis Global and will become Lemon Glow’s property. Under the terms of the Agreement, Lemon Glow warrants it shall have good title, right and authority to sell all of the cannabis, free and clear of all liens, encumbrances and restrictions of any kind. The parties agree to maintain in confidence all matters and activities relating to or undertaken pursuant to the Agreement. The Agreement contains a cross-indemnification and hold harmless provision, which includes attorney fees. The Agreement is non-assignable without mutual consent. Upon the expiration of a 15-day notice period commencing upon receipt of a notice of default which remains uncured, the non-defaulting party may immediately terminate the Agreement, seek equitable relief and damages, or cure such default at the defaulting party’s expense. The Agreement also includes an appendix forecasting future cannabis harvests. The forecasts are not legally binding upon the parties, but the parties have agreed in principle to use them when entering into renewals or new similar agreements for subsequent growing seasons. The choice of law provision provides for California law to govern the Agreement. Contingent Liabilities The company fully recognize the legal liability as account payable and accrued liabilities. Please referred to Note 17. Accounts Payable and Accrued Liabilities. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 31. Subsequent Events Entry into Letter of Intent On June 29, 2022, the Company entered into a letter of intent (the “LOI”) to acquire the business and associated property known as RMI Ventures, Dba Jerusalem Grade Farm (the “Proposed Acquisition”) located at 22644 Jerusalem Grade Road, Middletown, CA 95461 (“RMI Ventures”). Pursuant to the terms of the LOI, Sugarmade proposes a 40 43,560 All existing equipment at the property shall be included in the Acquisition, such as the cultivation license, clones, and the current 2022 growing season crop. The purchase price would be five hundred and fifty thousand dollars ($ 550,000 The Parties agree the Definitive Agreement will include a management services agreement (the “MSA”), which will include Ryan Santiago and perhaps other individuals. A five-year term for the MSA is contemplated. The compensation for Mr. Santiago will be $ 120,000 Sugarmade will put into place a credit line facility (the “Facility”) in the amount of Six Hundred Fifty Thousand Dollars ($ 650,000 14 3 The Parties propose to close the Acquisition by July 31, 2022. Entry into Management Services Agreement On August 12, 2022, SugarRush, Inc. (“SugarRush”), a wholly owned subsidiary of Sugarmade, Inc. (the “Company”), entered into a Management Services Agreement (the “MSA”) by and between SugarRush and Canndis, Inc. (“Canndis”), an unrelated third party, pursuant to which the parties agreed that SugarRush would manage operations for Canndis, which holds a California regulatory permit issued by the City of Desert Hot Springs authorizing Type 12 adult-use and medicinal-microbusiness at its facility located on Little Morongo Road in Desert Hot Springs, CA (the “Facility”). Pursuant to the terms of the MSA, SugarRush will be responsible for all business operations, including all commercial cannabis activities, at the Facility. SugarRush agreed to pay Canndis a license fee of (i) 2% of gross retail sales and 1.5 percent of gross wholesale sales during the initial six months following commencement of operations (the “Introductory Period”), and (ii) after the Introductory Period, the greater of (a) $ 2,500 The MSA has a term of 12 months and can be terminated as follows: (i) SugarRush may terminate for any reason upon 180 days’ written notice to Canndis; and (ii) either party may immediately terminate if the other party has materially breached any representation, warranty or covenant made by the breaching party and the breach has not been cured within 30 days. The MSA contains representations and warranties customary for an agreement of this type. Common Stock Issuance Subsequent to June 30, 2022 Subsequent to June 30, 2022, the Company entered into multiple stock purchase agreements and issued 227,979,125 27,630 Entry into Promissory Note and Warrants On September 9, 2022, the Company entered into a loan with Rezyfi Lending Inc. for borrowing $ 300,000 October 9, 2022 12 3,000 On November 14, 2022, the Company entered into a loan with Mast Hill Fund L.P. for borrowing $ 532,000 November 14, 2023 16 0.0001 1,773,333,333 0.0003 On November 14, 2022, the Company granted 95,600,000 0.0003 On November 15, 2022, the Company paid off the promissory note of 1800 Diagonal Lending LLC date April 27, 2022 in total cash of $ 80,765 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | 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 consolidated financial statements include the accounts of our Company, and its wholly-owned subsidiaries: SWC, Lemon Glow, Sugarrush, Sugarrush 5058, and its majority owned subsidiary, 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 seeks 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. |
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. |
Revenue recognition | Revenue recognition We recognize revenue in accordance with 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 point in time that control of the products is transferred to the customer. The Company receives customer deposits in advance of delivery of product to customers; these are contract liabilities that are recognized to revenue when the Company fulfilled the performance obligations. The Company receives payments from customer in either in advance, upon delivery, or after delivery in accordance with open account credit terms set forth by management. The Company’s contracts with customers do not provide for returns, refunds, and product warranties. |
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 liabilities 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 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 |
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 |
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. |
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 capitalized the 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. Stock-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 stock-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 earning per share 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 years ended June 30, 2022 and 2021. |
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. |
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 approximately 52 48 A reconciliation of the Company’s segment operating income and cost of goods sold to the consolidated statements of operations for the years ended June 30, 2022 and 2021 is as follows: Schedule of Segment Operating Income June 30, 2022 June 30, 2021 For the Year Ended June 30, 2022 June 30, 2021 Segment operating income Paper and paper-based products $ 2,455,574 $ 1,748,700 Cannabis products delivery 2,260,248 2,230,349 Total operating income $ 4,715,822 $ 3,979,049 June 30, 2022 June 30, 2021 For the Year Ended June 30, 2022 June 30, 2021 Segment cost of goods sold Paper and paper-based products $ 1,900,496 $ 1,505,851 Cannabis products delivery - 647,460 Total cost of goods sold $ 1,900,496 $ 2,153,311 |
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 was 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 years ended June 30, 2022 and 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 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 years ended June 30, 2022 and 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 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 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property and Equipment | 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 |
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 years ended June 30, 2022 and 2021 is as follows: Schedule of Segment Operating Income June 30, 2022 June 30, 2021 For the Year Ended June 30, 2022 June 30, 2021 Segment operating income Paper and paper-based products $ 2,455,574 $ 1,748,700 Cannabis products delivery 2,260,248 2,230,349 Total operating income $ 4,715,822 $ 3,979,049 June 30, 2022 June 30, 2021 For the Year Ended June 30, 2022 June 30, 2021 Segment cost of goods sold Paper and paper-based products $ 1,900,496 $ 1,505,851 Cannabis products delivery - 647,460 Total cost of goods sold $ 1,900,496 $ 2,153,311 For the Year Ended June 30, 2022 June 30, 2021 Segment operating income Paper and paper-based products $ 2,455,574 $ 1,748,700 Cannabis products delivery 2,260,248 2,230,349 Total operating income $ 4,715,822 $ 3,979,049 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
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 | 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. |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | As of June 30, 2022 and 2021, other current assets consisted of the following: Schedule of Other Current Assets 2022 2021 For the year ended 2022 2021 Prepaid deposit $ 144,488 $ 113,988 Prepayments for inventory 47,708 — Prepaid expenses 55,442 35,590 Others 8,873 32,879 Total $ 256,511 $ 182,457 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property Plant and Equipment | As of June 30, 2022 and 2021, property, plant and equipment consisted of the following: Schedule of Property Plant and Equipment June 30, 2022 June 30, 2021 Office and equipment $ 820,149 $ 820,149 Motor vehicles 387,804 166,079 Building 197,609 - Land 2,554,766 1,922,376 Leasehold improvement 423,329 365,620 Total 4,383,658 3,274,224 Less: accumulated depreciation (711,967 ) (524,884 ) Plant and Equipment, net $ 3,671,691 $ 2,749,340 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Schedule of Accounts Payable and Accrued Liabilities June 30, 2022 June 30, 2021 Accounts payable $ 2,079,607 $ 1,464,692 Accrued liabilities 334,033 310,528 Legal liabilities (See below for detail explanation) 250,898 283,619 Total accounts payable and accrued liabilities: $ 2,664,538 $ 2,058,839 |
Customer Deposits (Tables)
Customer Deposits (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Customer Deposits | |
Schedule of Customer Deposits | Schedule of Customer Deposits June 30, 2021 Balance Customer Deposited Revenue Recognized June 30, 2022 Balance $ 751,919 $ 836,274 $ (636,529 ) $ 951,664 |
Convertible Notes (Tables)
Convertible Notes (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Notes | As of the year ended June 30, 2022, debt discount of the convertible notes consisted of following: Schedule of Convertible Notes Debt Discount Debt Discount Start Date End Date As of 6/30/2021 Addition Amortization As of 6/30/2022 9/10/2020 9/10/2021 $ 39,452 $ - $ (39,452 ) $ - 9/10/2020 9/10/2021 5,312 - (5,312 ) - 11/10/2020 11/11/2021 18,306 - (18,306 ) - 11/10/2020 11/11/2021 3,024 - (3,024 ) - 2/8/2021 2/9/2022 36,712 - (36,712 ) - 2/8/2021 2/9/2022 5,701 - (5,701 ) - 6/14/2021 6/14/2024 282,578 - (95,501 ) 187,077 1/1/2022 1/1/2025 - 450,000 (73,905 ) 376,095 1/5/2022 1/5/2023 - 82,190 (39,631 ) 42,559 3/23/2022 3/23/2023 - 198,000 (53,704 ) 144,296 4/27/2022 4/27/2023 - 144,200 (25,284 ) 118,916 6/8/2022 6/8/2023 - 220,000 (13,260 ) 206,740 6/28/2022 6/28/2023 - 110,000 (603 ) 109,397 Total: $ 391,086 $ 1,204,390 $ (410,397 ) $ 1,185,079 |
Derivative Liabilities (Tables)
Derivative Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
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 2,107,956 Mark to Market 2,809,856 Reclassification to APIC Due to Conversions (1,613,889 ) Ending Balance, June 30, 2022 $ 5,521,284 |
Derivative Liabilities [Member] | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
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 % June 30, 2022 Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.01 2.92 % Expected Volatility 133 262 % |
Stock Warrants (Tables)
Stock Warrants (Tables) - Warrant [Member] | 12 Months Ended |
Jun. 30, 2022 | |
Schedule of Assumptions Inputs for Warrants | The Binomial model with the following assumption inputs: Schedule of Assumptions Inputs for Warrants 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 % Warrants liability: June 30, 2022 Annual dividend yield — Expected life (years) 1.0 3.0 Risk-free interest rate 0.28 2.99 % Expected volatility 149 174 % |
Schedule of Warrants Outstanding | Schedule of Warrants Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining contractual life Outstanding at June 30, 2020 10,578,880 $ 0.021 5 Expired - Granted - Outstanding at June 30, 2021 10,578,880 $ 0.026 4 Expired - Granted - Outstanding at June 30, 2022 10,578,880 $ 0.027 3 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Supplemental Disclosures Related to Operating Lease | Schedule of Supplemental Disclosures Related to Operating Lease As of June 30, 2022 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, 2022 $ 243,406 Remaining lease term – operating leases (in years) 1.75 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 $ 219,494 Long-term right-of-use assets $ 266,760 Total operating lease assets $ 486,253 Short-term operating lease liabilities $ 233,201 Long-term operating lease liabilities $ 290,948 Total operating lease liabilities $ 524,149 |
Schedule of Maturities of Lease Liabilities | Maturities of the Company’s lease liabilities are as follows: Schedule of Maturities of Lease Liabilities Year Ended June 30, 2022 Operating 2023 $ 273,425 2024 172,465 2025 147,446 Total lease payments 593,336 Less: Imputed interest/present value discount (69,187 ) Present value of lease liabilities $ 524,149 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Asset | The deferred tax asset as of June 30, 2022 and 2021 consisted of the following: Schedule of Deferred Tax Asset 2022 2021 Net Operating Loss Carryforwards $ 16,122,226 $ 13,021,807 Less Valuation Allowance (16,122,226 ) (13,021,807 ) 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 2022 and 2021 is as follows: Schedule of Reconciliation for Income Taxes 2022 2021 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) | Oct. 24, 2014 | Jun. 30, 2022 | Dec. 31, 2020 | Oct. 01, 2020 |
Indigo Dye Group Corp. [Member] | ||||
Percentage of outstanding equity | 32% | 32% | 40% | |
Nug Avenue, Inc. [Member] | ||||
Ownership percentage | 70% |
Schedule of Estimated Useful Li
Schedule of Estimated Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 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] | 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] | 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 |
Schedule of Segment Operating I
Schedule of Segment Operating Income (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Product Information [Line Items] | ||
Total operating income | $ (5,213,587) | $ (3,941,597) |
Total cost of goods sold | 1,900,496 | 2,153,311 |
Operating Segments [Member] | ||
Product Information [Line Items] | ||
Total operating income | 4,715,822 | 3,979,049 |
Total cost of goods sold | 1,900,496 | 2,153,311 |
Operating Segments [Member] | Paper and paper-based products [Member] | ||
Product Information [Line Items] | ||
Total operating income | 2,455,574 | 1,748,700 |
Total cost of goods sold | 1,900,496 | 1,505,851 |
Operating Segments [Member] | Cannabis Products Delivery [Member] | ||
Product Information [Line Items] | ||
Total operating income | 2,260,248 | 2,230,349 |
Total cost of goods sold | $ 647,460 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Product Information [Line Items] | ||
Impairment loss of long-lived assets | $ 43,800 | |
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Paper and paper-based products [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 52% | |
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Cannabis Products [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 48% | |
Property, Plant and Equipment [Member] | ||
Product Information [Line Items] | ||
Impairment loss of long-lived assets | $ 0 | $ 0 |
Schedule of Fair Value of Purch
Schedule of Fair Value of Purchase Price Consideration (Details) - USD ($) | May 25, 2021 | May 12, 2021 | Mar. 12, 2021 | |
Business Acquisition [Line Items] | ||||
Cash Consideration | [1] | $ 4,256,000 | ||
Equity Consideration | [2] | 7,450,000 | ||
Interest-Bearing Debt Assumed | 2,043,000 | |||
Total Purchase Consideration | $ 13,749,000 | |||
Lemon Glow Company Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash Consideration | $ 280,000 | |||
Total Purchase Consideration | $ 13,749,000 | |||
Lemon Glow Company Inc [Member] | Series B Preferred Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Equity consideration | 2,000,000 | |||
Lemon Glow Company Inc [Member] | Common Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Equity consideration | 660,571,429 | |||
Lemon Glow Company Inc [Member] | Promissory Notes [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash Consideration | $ 3,976,000 | |||
Interest rate | 5% | |||
[1]The cash consideration consists of $ 280,000 3,976,000 5 660,571,429 2,000,000 |
Schedule of Fair Value of Asset
Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) | May 25, 2021 | May 12, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | |||||
Total Economic Goodwill | $ 757,648 | $ 757,648 | |||
Purchase Consideration to be Allocated | $ 13,749,000 | ||||
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 | 758,000 | ||||
Purchase Consideration to be Allocated | 13,749,000 | ||||
Lemon Glow Company Inc [Member] | Assembled Workforce GoodWill [Member] | |||||
Business Acquisition [Line Items] | |||||
Total Economic Goodwill | 275,000 | ||||
Lemon Glow Company Inc [Member] | Good Will Excluding Custom 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. |
Business Combination (Details N
Business Combination (Details Narrative) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Business Combination and Asset Acquisition [Abstract] | ||
Goodwill | $ 757,648 | $ 757,648 |
Concentration (Details Narrativ
Concentration (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Concentration Risk [Line Items] | ||
Revenues | $ 2,815,325 | $ 1,825,738 |
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Two Suppliers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 71.46% | 21.99% |
Noncontrolling Interest and D_2
Noncontrolling Interest and Deconsolidation of VIE (Details Narrative) - USD ($) | 12 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2020 | Oct. 01, 2020 | Sep. 30, 2020 | |
Equity method investments | $ 441,407 | ||||
Assets | 16,869,910 | $ 19,432,951 | |||
Deconsolidation, Gain (Loss), Amount | 313,928 | ||||
Cost method investment | 441,407 | 441,407 | |||
Loss from equity method investment | $ 81,725 | ||||
Indigo Dye Group Corp. [Member] | |||||
Proceeds option to acquire additional interest percentage | 30% | 30% | |||
Equity method investments | $ 59,370 | ||||
Indigo Dye Group Corp. [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Assets | $ 326,812 | ||||
Indigo Dye Group [Member] | |||||
Deconsolidation, Gain (Loss), Amount | $ 313,928 | ||||
Indigo Dye Group [Member] | |||||
Percentage of outstanding equity | 32% | 29% | 29% | ||
Indigo Dye Group Corp. [Member] | |||||
Percentage of outstanding equity | 32% | 32% | 40% | ||
Equity method investments | $ 505,449 |
Legal Proceedings (Details Narr
Legal Proceedings (Details Narrative) - USD ($) | Feb. 21, 2017 | Jun. 30, 2022 | Jun. 30, 2021 |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Litigation settlement, amount | $ 227,000 | ||
Convertible Notes Payable | $ 1,561,364 | $ 1,439,116 | |
Third Parties [Member] | Two (2) notes [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Convertible Notes Payable | $ 80,000 | ||
Interest Payable | 227,000 | ||
Interest Payable | $ 80,000 |
Cash (Details Narrative)
Cash (Details Narrative) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Cash and Cash Equivalents [Abstract] | ||
Cash, FDIC insured amount | $ 250,000 | |
Cash | 161,014 | $ 1,396,944 |
Cash in hands | $ 50,112 | $ 74,481 |
Accounts Receivable (Details Na
Accounts Receivable (Details Narrative) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Credit Loss [Abstract] | ||
Accounts receivable, net of allowance | $ 29,822 | $ 435,598 |
Allowance for doubtful accounts | $ 321,560 | $ 259,761 |
Loan Receivable (Details Narrat
Loan Receivable (Details Narrative) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Receivables [Abstract] | ||
Loan receivables amount | $ 0 | $ 196,000 |
Loan receivables current | 0 | |
Loan receivables noncurrent | $ 196,000 |
Trading Securities, at Market_2
Trading Securities, at Market Value (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
May 12, 2021 | Oct. 31, 2019 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business combination, consideration transferred | $ 13,749,000 | ||||||
Unrealized gain loss on securities | $ (870,132) | $ 1,451,922 | |||||
Remaining value on securities | 1,451,922 | ||||||
Common Stock [Member] | |||||||
Shares issue, shares | 192,665,527 | 300,000,000 | 369,999,999 | ||||
iPower Inc [Member] | |||||||
Sale of Stock, Number of Shares Issued in Transaction | 204,496 | ||||||
Sale of Stock, Consideration Received on Transaction | $ 582,688 | ||||||
Share Exchange Agreement [Member] | iPower Inc [Member] | |||||||
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 | ||||||
Share Exchange Agreement [Member] | iPower Inc [Member] | |||||||
Equity interest, percentage | 100% | ||||||
Rescission Agreement [Member] | iPower Inc [Member] | |||||||
Stock repurchased, fair value | $ 1,451,922 | ||||||
Rescission Agreement [Member] | iPower Inc [Member] | Post Forward Split [Member] | |||||||
Shares repurchased during the period | 204,496 |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Inventory, net | $ 416,643 | $ 441,582 |
Inventory Valuation Reserves | $ 0 | $ 0 |
Schedule of Other Current Asset
Schedule of Other Current Assets (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid deposit | $ 144,488 | $ 113,988 |
Prepayments for inventory | 47,708 | |
Prepaid expenses | 55,442 | 35,590 |
Others | 8,873 | 32,879 |
Total | $ 256,511 | $ 182,457 |
Schedule of Property Plant and
Schedule of Property Plant and Equipment (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 4,383,658 | $ 3,274,224 |
Less: accumulated depreciation | (711,967) | (524,884) |
Plant and Equipment, net | 3,671,691 | 2,749,340 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 820,149 | 820,149 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 387,804 | 166,079 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 197,609 | |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 2,554,766 | 1,922,376 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 423,329 | $ 365,620 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Impairment Effects on Earnings Per Share [Line Items] | ||
Depreciation expenses | $ 187,083 | $ 105,982 |
Impairment for property, plant, and equipment | 43,800 | |
Property, Plant and Equipment [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Impairment for property, plant, and equipment | $ 0 | $ 0 |
Intangible Asset (Details Narra
Intangible Asset (Details Narrative) - USD ($) | 12 Months Ended | ||
Apr. 01, 2017 | Jun. 30, 2022 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 2,822 | ||
Intangible assets acquired | 10,637,000 | ||
Intangible asset, useful life | 9 years | ||
Intellectual Property [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 3,333 | $ 1,400 | |
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 |
Goodwill (Details Narrative)
Goodwill (Details Narrative) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 757,648 | $ 757,648 |
Cost Method Investments in Af_2
Cost Method Investments in Affiliates (Details Narrative) - USD ($) | 3 Months Ended | ||||
Dec. 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Oct. 01, 2020 | Sep. 30, 2020 | |
Schedule of Investments [Line Items] | |||||
Cost method investment | $ 441,407 | $ 441,407 | |||
Indigo Dye Group [Member] | |||||
Schedule of Investments [Line Items] | |||||
Variable Interest Entity, 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 $564,819 estimated fair value and changed to cost method of accounting | ||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 40% | ||||
Indigo Dye Group Corp. [Member] | |||||
Schedule of Investments [Line Items] | |||||
Proceeds option to acquire additional interest percentage | 30% | 30% | |||
Indigo Dye Group [Member] | |||||
Schedule of Investments [Line Items] | |||||
Impaired financing receivable, recorded investment | 29% | 32% | 29% |
Schedule of Accounts Payable an
Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 2,079,607 | $ 1,464,692 |
Accrued liabilities | 334,033 | 310,528 |
Legal liabilities (See below for detail explanation) | 250,898 | 283,619 |
Total accounts payable and accrued liabilities: | $ 2,664,538 | $ 2,058,839 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details Narrative) - USD ($) | Feb. 21, 2017 | Jun. 30, 2022 | Jun. 30, 2021 |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Accounts payable and accrued liabilities | $ 2,664,538 | $ 2,058,839 | |
Litigation settlement, amount | $ 227,000 | ||
Convertible Notes Payable | 1,561,364 | 1,439,116 | |
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 | ||
Interest Payable | $ 250,898 | $ 283,619 |
Schedule of Customer Deposits (
Schedule of Customer Deposits (Details) | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Customer Deposits | |
Deposits assets | $ 751,919 |
Deposit assets | 836,274 |
Customer deposite revenue recognized | (636,529) |
Deposits assets | $ 951,664 |
Customer Deposits (Details Narr
Customer Deposits (Details Narrative) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Customer Deposits | ||
Deposit assets | $ 951,664 | $ 751,919 |
Other Payables (Details Narrati
Other Payables (Details Narrative) | 12 Months Ended | |
Jun. 30, 2022 USD ($) Integer | Jun. 30, 2021 USD ($) | |
Other payables amount | $ 473,799 | $ 750,485 |
Number of credit cards | Integer | 8 | |
Seven Credit Cards [Member] | ||
Credit card limit amount | $ 85,000 | |
Interest expense | $ 7,647 | $ 8,961 |
Seven Credit Cards [Member] | Minimum [Member] | ||
Credit cards annual interest rates percentage | 11.24% | |
Seven Credit Cards [Member] | Maximum [Member] | ||
Credit cards annual interest rates percentage | 29.99% |
Schedule of Convertible Notes (
Schedule of Convertible Notes (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Short-Term Debt [Line Items] | ||
Convertible Debt Discount | $ 1,185,079 | $ 391,086 |
Convertible Debt. Amortization | $ 410,397 | 2,617,274 |
Convertible Note 1 [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 | ||
Convertible Debt. Amortization | $ (39,452) | |
Convertible Note 2 [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 | ||
Convertible Debt. Amortization | $ (5,312) | |
Convertible Note 3 [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 | ||
Convertible Debt. Amortization | $ (18,306) | |
Convertible Note 4 [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 | ||
Convertible Debt. Amortization | $ (3,024) | |
Convertible Note 5 [Member] | ||
Short-Term Debt [Line Items] | ||
Convertible Debt Start Date | Feb. 08, 2021 | |
Convertible Debt End Date | Feb. 09, 2022 | |
Convertible Debt Discount | 36,712 | |
Convertible Debt. Addition | ||
Convertible Debt. Amortization | $ (36,712) | |
Convertible Note 6 [Member] | ||
Short-Term Debt [Line Items] | ||
Convertible Debt Start Date | Feb. 08, 2021 | |
Convertible Debt End Date | Feb. 09, 2022 | |
Convertible Debt Discount | 5,701 | |
Convertible Debt. Addition | ||
Convertible Debt. Amortization | $ (5,701) | |
Convertible Note 7 [Member] | ||
Short-Term Debt [Line Items] | ||
Convertible Debt Start Date | Jun. 14, 2021 | |
Convertible Debt End Date | Jun. 14, 2024 | |
Convertible Debt Discount | $ 187,077 | 282,578 |
Convertible Debt. Addition | ||
Convertible Debt. Amortization | $ (95,501) | |
Convertible Note 8 [Member] | ||
Short-Term Debt [Line Items] | ||
Convertible Debt Start Date | Jan. 01, 2022 | |
Convertible Debt End Date | Jan. 01, 2025 | |
Convertible Debt Discount | $ 376,095 | |
Convertible Debt. Addition | 450,000 | |
Convertible Debt. Amortization | $ (73,905) | |
Convertible Note 9 [Member] | ||
Short-Term Debt [Line Items] | ||
Convertible Debt Start Date | Jan. 05, 2022 | |
Convertible Debt End Date | Jan. 05, 2023 | |
Convertible Debt Discount | $ 42,559 | |
Convertible Debt. Addition | 82,190 | |
Convertible Debt. Amortization | $ (39,631) | |
Convertible Note 10 [Member] | ||
Short-Term Debt [Line Items] | ||
Convertible Debt Start Date | Mar. 23, 2022 | |
Convertible Debt End Date | Mar. 23, 2023 | |
Convertible Debt Discount | $ 144,296 | |
Convertible Debt. Addition | 198,000 | |
Convertible Debt. Amortization | $ (53,704) | |
Convertible Note 11 [Member] | ||
Short-Term Debt [Line Items] | ||
Convertible Debt Start Date | Apr. 27, 2022 | |
Convertible Debt End Date | Apr. 27, 2023 | |
Convertible Debt Discount | $ 118,916 | |
Convertible Debt. Addition | 144,200 | |
Convertible Debt. Amortization | $ (25,284) | |
Convertible Note 12 [Member] | ||
Short-Term Debt [Line Items] | ||
Convertible Debt Start Date | Jun. 08, 2022 | |
Convertible Debt End Date | Jun. 08, 2023 | |
Convertible Debt Discount | $ 206,740 | |
Convertible Debt. Addition | 220,000 | |
Convertible Debt. Amortization | $ (13,260) | |
Convertible Note 13 [Member] | ||
Short-Term Debt [Line Items] | ||
Convertible Debt Start Date | Jun. 28, 2022 | |
Convertible Debt End Date | Jun. 28, 2023 | |
Convertible Debt Discount | $ 109,397 | |
Convertible Debt. Addition | 110,000 | |
Convertible Debt. Amortization | (603) | |
Convertible Note [Member] | ||
Short-Term Debt [Line Items] | ||
Convertible Debt Discount | 1,185,079 | $ 391,086 |
Convertible Debt. Addition | 1,204,390 | |
Convertible Debt. Amortization | $ (410,397) |
Convertible Notes (Details Narr
Convertible Notes (Details Narrative) | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Jun. 28, 2022 USD ($) Integer | Jun. 08, 2022 USD ($) Integer | Apr. 27, 2022 USD ($) Integer | Mar. 23, 2022 USD ($) Integer | Jan. 05, 2022 USD ($) $ / shares | Jan. 01, 2022 USD ($) $ / shares | Nov. 10, 2021 USD ($) Integer | Jun. 14, 2021 USD ($) $ / shares | Feb. 08, 2021 USD ($) Integer | Nov. 10, 2020 USD ($) Integer | Oct. 13, 2020 USD ($) Integer $ / shares | Oct. 08, 2020 USD ($) Integer $ / shares | Oct. 02, 2020 Integer | Sep. 24, 2020 USD ($) Integer $ / shares | Sep. 10, 2020 USD ($) Integer | Sep. 08, 2020 USD ($) Integer $ / shares | Nov. 02, 2019 USD ($) $ / shares | Oct. 31, 2019 USD ($) $ / shares | Oct. 02, 2019 Integer | Dec. 03, 2018 USD ($) $ / shares | Nov. 16, 2018 USD ($) $ / shares | Dec. 21, 2012 USD ($) | Sep. 18, 2012 USD ($) | Aug. 24, 2012 USD ($) | Mar. 31, 2022 USD ($) shares | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) shares | |
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Convertible notes payable, net, current | $ 1,561,364 | $ 1,439,116 | |||||||||||||||||||||||||
Debt discount | 1,185,079 | 391,086 | |||||||||||||||||||||||||
Convertible Note 1 [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt discount | 39,452 | ||||||||||||||||||||||||||
Convertible Note 1 [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% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 25% | ||||||||||||||||||||||||||
Convertible Note 2 [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt discount | 5,312 | ||||||||||||||||||||||||||
Convertible Note 2 [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% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 25% | ||||||||||||||||||||||||||
Convertible Note 3 [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt discount | 18,306 | ||||||||||||||||||||||||||
Convertible Note 3 [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% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 25% | ||||||||||||||||||||||||||
Convertible Note 4 [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt discount | 3,024 | ||||||||||||||||||||||||||
Convertible Note 4 [Member] | Accredited Investor [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt instrument face amount | $ 40,000 | ||||||||||||||||||||||||||
Debt instrument term | 1 year | ||||||||||||||||||||||||||
Debt instrument interest rate | 8% | ||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.07 | ||||||||||||||||||||||||||
Convertible Note 5 [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt discount | 36,712 | ||||||||||||||||||||||||||
Convertible Note 5 [Member] | Accredited Investor [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt instrument face amount | $ 35,000 | ||||||||||||||||||||||||||
Debt instrument term | 1 year | ||||||||||||||||||||||||||
Debt instrument interest rate | 8% | ||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.07 | ||||||||||||||||||||||||||
Convertible Note 6 [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt discount | 5,701 | ||||||||||||||||||||||||||
Convertible Note 6 [Member] | Accredited Investor [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt instrument face amount | $ 139,301 | ||||||||||||||||||||||||||
Debt instrument term | 360 days | ||||||||||||||||||||||||||
Debt instrument interest rate | 8% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 60% | ||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.008 | ||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||||||||||||
Convertible Note 7 [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt discount | 187,077 | 282,578 | |||||||||||||||||||||||||
Convertible Note 7 [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% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 60% | ||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.008 | ||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||||||||||||
Convertible Note 8 [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt discount | 376,095 | ||||||||||||||||||||||||||
Convertible Note 8 [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% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 65% | ||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | ||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||||||||||||
Original issue discount | $ 10,000 | ||||||||||||||||||||||||||
Convertible Note 9 [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt discount | $ 42,559 | ||||||||||||||||||||||||||
Convertible Note 9 [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% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 60% | ||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||||||||||||
Original issue discount | $ 20,700 | ||||||||||||||||||||||||||
Legal Fees | $ 7,000 | ||||||||||||||||||||||||||
Debt conversion, converted instrument, shares issued | shares | 84,864,007 | 90,167,551 | |||||||||||||||||||||||||
Convertible Note 9 [Member] | Accredited Investor [Member] | Principal Amount [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt conversion converted instrument amount1 | $ 110,000 | $ 117,700 | |||||||||||||||||||||||||
Convertible Note 9 [Member] | Accredited Investor [Member] | Accrued Interest [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt conversion converted instrument amount1 | 7,112 | 7,352 | |||||||||||||||||||||||||
Convertible Note 10 [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt discount | 144,296 | ||||||||||||||||||||||||||
Convertible Note 10 [Member] | Accredited Investor [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt instrument face amount | $ 212,300 | ||||||||||||||||||||||||||
Debt instrument term | 180 days | ||||||||||||||||||||||||||
Debt instrument interest rate | 12% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 65% | ||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | ||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||||||||||||
Original issue discount | $ 19,300 | ||||||||||||||||||||||||||
Debt conversion, converted instrument, shares issued | shares | 550,000,000 | ||||||||||||||||||||||||||
Additional principal amount due to breach | 63,690 | ||||||||||||||||||||||||||
Convertible Note 10 [Member] | Accredited Investor [Member] | Principal Amount [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt conversion converted instrument amount1 | $ 105,000 | ||||||||||||||||||||||||||
Convertible Note 10 [Member] | Accredited Investor [Member] | Accrued Interest [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt conversion converted instrument amount1 | $ 28,960 | ||||||||||||||||||||||||||
Convertible Note 11 [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt discount | 118,916 | ||||||||||||||||||||||||||
Convertible Note 11 [Member] | Accredited Investor [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt instrument face amount | $ 231,000 | ||||||||||||||||||||||||||
Debt instrument interest rate | 12% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 65% | ||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | ||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||||||||||||
Original issue discount | $ 21,000 | ||||||||||||||||||||||||||
Additional principal amount due to breach | 69,300 | ||||||||||||||||||||||||||
Convertible Note 12 [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt discount | 206,740 | ||||||||||||||||||||||||||
Convertible Note 12 [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% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 65% | ||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | ||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||||||||||||
Original issue discount | $ 25,000 | ||||||||||||||||||||||||||
Additional principal amount due to breach | 82,500 | ||||||||||||||||||||||||||
Convertible Note 13 [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt discount | 109,397 | ||||||||||||||||||||||||||
Convertible Note 13 [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% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 60% | ||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||||||||||||
Original issue discount | $ 5,300 | ||||||||||||||||||||||||||
Convertible Note 14 [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% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 60% | ||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||||||||||||
Original issue discount | $ 6,300 | ||||||||||||||||||||||||||
Convertible Note 15 [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% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 85% | ||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.0036 | ||||||||||||||||||||||||||
Debt conversion converted instrument amount1 | $ 85,000 | ||||||||||||||||||||||||||
Debt conversion, converted instrument, shares issued | shares | 100,000,000 | ||||||||||||||||||||||||||
Accrued interest | $ 1,747 | ||||||||||||||||||||||||||
Convertible Note 16 [Member] | Accredited Investor [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt instrument face amount | $ 277,903 | ||||||||||||||||||||||||||
Debt instrument term | 360 days | ||||||||||||||||||||||||||
Debt instrument interest rate | 10% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 60% | ||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||||||||||||
Debt conversion converted instrument amount1 | $ 236,460 | ||||||||||||||||||||||||||
Debt conversion, converted instrument, shares issued | shares | 1,047,000,000 | ||||||||||||||||||||||||||
Debt principal payment | $ 239,300 | ||||||||||||||||||||||||||
Debt unpaid interest | $ 38,603 | ||||||||||||||||||||||||||
Convertible Note 17 [Member] | Accredited Investor [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt instrument face amount | $ 450,000 | ||||||||||||||||||||||||||
Debt instrument term | 3 years | ||||||||||||||||||||||||||
Debt instrument interest rate | 1% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 85% | ||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.001 | ||||||||||||||||||||||||||
Convertible Note 18 [Member] | Accredited Investor [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt instrument face amount | $ 485,000 | ||||||||||||||||||||||||||
Debt instrument term | 1 year | ||||||||||||||||||||||||||
Debt instrument interest rate | 8% | ||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.001 | ||||||||||||||||||||||||||
Original issue discount | $ 82,190 | ||||||||||||||||||||||||||
Convertible Note 19 [Member] | Accredited Investor [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt instrument face amount | $ 198,000 | ||||||||||||||||||||||||||
Debt instrument term | 360 days | ||||||||||||||||||||||||||
Debt instrument interest rate | 8% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 65% | ||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||||||||||||
Original issue discount | $ 18,000 | ||||||||||||||||||||||||||
Convertible Note Twenty [Member] | Accredited Investor [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt instrument face amount | $ 144,200 | ||||||||||||||||||||||||||
Debt instrument interest rate | 12% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 75% | ||||||||||||||||||||||||||
Debt instrument trading days | Integer | 10 | ||||||||||||||||||||||||||
Original issue discount | $ 19,200 | ||||||||||||||||||||||||||
Convertible Note Twenty One [Member] | Accredited Investor [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt instrument face amount | $ 220,000 | ||||||||||||||||||||||||||
Debt instrument interest rate | 8% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 65% | ||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||||||||||||
Original issue discount | $ 20,000 | ||||||||||||||||||||||||||
Convertible Note Twenty Two [Member] | Accredited Investor [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt instrument face amount | $ 110,000 | ||||||||||||||||||||||||||
Debt instrument interest rate | 8% | ||||||||||||||||||||||||||
Debt instrument conversion percentage | 65% | ||||||||||||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||||||||||||
Original issue discount | $ 10,000 |
Schedule of Binomial Model Assu
Schedule of Binomial Model Assumptions Inputs (Details) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
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 |
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 |
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement input | 0.01 | 0.01 |
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement input | 2.92 | 0.46 |
Expected Volatility [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement input | 133 | 89 |
Expected Volatility [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement input | 262 | 236 |
Schedule of Fair Value of Deriv
Schedule of Fair Value of Derivative (Details) | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Derivative Liabilities | |
Derivative liabilities, beginning balance | $ 2,217,361 |
Additions | 2,107,956 |
Mark to Market | 2,809,856 |
Reclassification to APIC Due to Conversions | (1,613,889) |
Derivative liabilities, ending balance | $ 5,521,284 |
Derivative Liabilities (Details
Derivative Liabilities (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Liabilities | ||
Derivative liability | $ 5,521,284 | $ 2,217,361 |
Derivative, gain loss on derivative | 2,809,857 | (1,087,485) |
Derivative, gain loss on derivative | (2,809,857) | 1,087,485 |
Convertible notes payable | $ 1,272,111 | $ 414,632 |
Schedule of Assumptions Inputs
Schedule of Assumptions Inputs for Warrants (Details) - Derivative [Member] | Jun. 30, 2022 | Jun. 30, 2021 |
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] | ||
Warrants and Rights Outstanding, Term | 1 year | 2 years |
Measurement Input, Expected Term [Member] | Maximum [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Warrants and Rights Outstanding, Term | 3 years | 4 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 | 0.28 | 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 | 2.99 | 0.46 |
Measurement Input, Price Volatility [Member] | Minimum [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Warrants and rights outstanding, measurement input | 149 | 132 |
Measurement Input, Price Volatility [Member] | Maximum [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Warrants and rights outstanding, measurement input | 174 | 166 |
Schedule of Warrants Outstandin
Schedule of Warrants Outstanding (Details) - Warrant [Member] - $ / shares | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of Shares Beginning balance | 10,578,880 | 10,578,880 | |
Weighted Average Exercise Price Beginning balance | $ 0.026 | $ 0.021 | |
Weighted Average Remaining contractual life Beginning balance | 3 years | 4 years | 5 years |
Number of Shares Expired | |||
Number of Shares Granted | |||
Number of Shares Ending balance | 10,578,880 | 10,578,880 | |
Weighted Average Exercise Price Ending balance | $ 0.027 | $ 0.026 |
Stock Warrants (Details Narrati
Stock Warrants (Details Narrative) - USD ($) | Feb. 04, 2020 | Sep. 07, 2018 | Jun. 30, 2022 | Jun. 30, 2021 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Fair value of warrant liability | $ 3,100 | $ 21,042 | ||
Settlement Agreement [Member] | Investor [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Warrant term | 5 years | |||
Fair value of warrant liability | $ 56,730 | |||
Fair value of warrant liability | 1,100 | 1,042 | ||
Warrant Agreement [Member] | Accredited Investor [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Warrant term | 5 years | |||
Fair value of warrant liability | $ 80,000 | |||
Fair value of warrant liability | $ 2,000 | $ 20,000 | ||
Warrants exercise price | $ 0.008 | |||
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 ($) | 1 Months Ended | ||||||||||
May 17, 2021 | May 12, 2021 | Oct. 06, 2020 | Oct. 31, 2011 | Jun. 30, 2022 | Jun. 29, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 15, 2018 | Sep. 30, 2013 | Jan. 23, 2013 | |
Line of Credit Facility [Line Items] | |||||||||||
Interest rate | 14% | ||||||||||
Interest Payable, Current | $ 873,971 | $ 509,997 | |||||||||
Promissory Note [Member] | Trustee [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Original principal amount | $ 1,390,000 | ||||||||||
Outstanding balance | 1,364,436 | 1,378,222 | |||||||||
Debt Instrument, Interest Rate During Period | 6% | ||||||||||
Debt Instrument, Term | 30 years | ||||||||||
Debt instrument, frequency of periodic payment | monthly basis | ||||||||||
Debt instrument, periodic payment | $ 8,333.75 | ||||||||||
Interest Payable, Current | 122,110 | 57,892 | |||||||||
Promissory Note [Member] | Lemon Glow Shareholders [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate | 5% | ||||||||||
Original principal amount | $ 3,976,000 | ||||||||||
Outstanding balance | 3,463,389 | 3,626,000 | |||||||||
Debt Instrument, Term | 36 months | ||||||||||
Interest Payable, Current | 175,707 | 0 | |||||||||
Promissory Note [Member] | Former Employee [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Original principal amount | $ 40,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5% | ||||||||||
Notes Payable, Related Parties, Current | $ 0 | 15,427 | |||||||||
Promissory Note [Member] | Accredited Investor [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Original principal amount | $ 20,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8% | ||||||||||
Outstanding balance | 20,000 | 20,000 | |||||||||
Promissory Note [Member] | Darry l Kuecker Trustee [Member] | Trustee [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Related party undivided interest | 36% | ||||||||||
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% | ||||||||||
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 | 0 | 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 | 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 |
Loans payable (Details Narrativ
Loans payable (Details Narrative) - USD ($) | Mar. 01, 2022 | Oct. 05, 2021 | Oct. 01, 2021 | Aug. 04, 2021 | Jul. 27, 2021 | Mar. 24, 2021 | Feb. 15, 2021 | Nov. 20, 2020 | Jul. 28, 2020 | Jun. 06, 2019 | Oct. 01, 2017 | Jun. 30, 2022 | Jun. 30, 2021 | Jan. 25, 2021 | Jun. 30, 2019 |
Unpaid interest expense | $ 873,971 | $ 509,997 | |||||||||||||
Outstanding loan balance | 1,761,214 | 701,193 | |||||||||||||
Outstanding loan balance, current | 935,975 | 392,605 | |||||||||||||
Outstanding loan balance, noncurrent | 825,239 | 308,588 | |||||||||||||
SWC Group, Inc. [Member] | Equipment Loan Agreement [Member] | |||||||||||||||
Debt instrument due date | Jun. 21, 2024 | ||||||||||||||
Outstanding balance | 11,842 | 19,506 | |||||||||||||
Debt periodic payment | $ 648 | ||||||||||||||
Business Backer [Member] | |||||||||||||||
Original principal amount | $ 215,760 | ||||||||||||||
Debt instrument interest rate | 4% | ||||||||||||||
Outstanding balance | 0 | 109,925 | |||||||||||||
Debt periodic payment | $ 3,425 | ||||||||||||||
John Deere Financial [Member] | |||||||||||||||
Original principal amount | $ 69,457 | ||||||||||||||
Debt instrument interest rate | 2.85% | ||||||||||||||
Outstanding balance | 53,250 | 65,726 | |||||||||||||
Debt instrument term | 60 months | ||||||||||||||
Coastline Lending Group [Member] | |||||||||||||||
Original principal amount | $ 490,000 | ||||||||||||||
Debt instrument interest rate | 8.50% | ||||||||||||||
Debt instrument term | 36 months | ||||||||||||||
Periodic payment terms, payment to be paid | $ 3,471 | ||||||||||||||
Outstanding loan balance | 490,000 | ||||||||||||||
Ram Cargo Vans [Member] | Five Auto Loan Agreement [Member] | |||||||||||||||
Debt periodic payment | $ 418 | ||||||||||||||
Debt instrument term | 60 months | ||||||||||||||
Outstanding loan balance | $ 124,332 | 108,791 | |||||||||||||
Debt instrument interest rate | 6.44% | ||||||||||||||
Hitachi Capital America [Member] | Auto Loan Agreement [Member] | |||||||||||||||
Debt instrument term | 60 months | ||||||||||||||
Outstanding loan balance | $ 32,464 | 28,406 | |||||||||||||
Debt instrument interest rate | 8.99% | ||||||||||||||
Payment principal | $ 587 | ||||||||||||||
Hitachi Capital America [Member] | Two Auto Loan Agreement [Member] | |||||||||||||||
Debt instrument term | 60 months | ||||||||||||||
Outstanding loan balance | $ 64,730 | 56,639 | |||||||||||||
Debt instrument interest rate | 8.99% | ||||||||||||||
Payment principal | $ 674 | ||||||||||||||
WNDR Group Inc [Member] | |||||||||||||||
Original principal amount | $ 100,000 | ||||||||||||||
Debt instrument due date | Dec. 31, 2022 | ||||||||||||||
Outstanding loan balance | 100,000 | ||||||||||||||
Debt instrument interest rate | 2% | ||||||||||||||
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 | |||||||||||||
Short Term Loans [Member] | Greater Asia Technology Limited [Member] | |||||||||||||||
Original principal amount | $ 375,000 | ||||||||||||||
Outstanding balance | 100,000 | 100,000 | |||||||||||||
Short Term Loans [Member] | Greater Asia Technology Limited [Member] | Minimum [Member] | |||||||||||||||
Debt instrument interest rate | 40% | ||||||||||||||
Short Term Loans [Member] | Greater Asia Technology Limited [Member] | Maximum [Member] | |||||||||||||||
Debt instrument interest rate | 50% | ||||||||||||||
July 2020 PPP Note [Member] | Bank of America [Member] | CARES Act [Member] | |||||||||||||||
Original principal amount | $ 500,000 | $ 159,900 | |||||||||||||
Debt instrument interest rate | 3.75% | ||||||||||||||
Debt periodic payment | $ 731 | ||||||||||||||
July 2020 PPP Note [Member] | Bank of America [Member] | Minimum [Member] | CARES Act [Member] | |||||||||||||||
Debt periodic payment | 731 | ||||||||||||||
July 2020 PPP Note [Member] | Bank of America [Member] | Maximum [Member] | CARES Act [Member] | |||||||||||||||
Debt periodic payment | $ 2,527 | ||||||||||||||
January 2021 PPP Note [Member] | Bank of America [Member] | CARES Act [Member] | |||||||||||||||
Original principal amount | $ 96,595 | ||||||||||||||
Debt instrument interest rate | 1% | ||||||||||||||
Outstanding balance | 606,495 | 256,495 | |||||||||||||
Promissory Notes [Member] | Manuel Rivera [Member] | |||||||||||||||
Original principal amount | $ 100,000 | ||||||||||||||
Outstanding balance | 100,000 | 100,000 | |||||||||||||
Debt Instrument, Increase, Accrued Interest | $ 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. | ||||||||||||||
Unpaid interest expense | $ 56,000 | $ 14,000 |
Loans Payable _ Related Parti_2
Loans Payable – Related Parties (Details Narrative) - USD ($) | Nov. 21, 2016 | Jan. 23, 2013 | Jun. 30, 2022 | Jun. 30, 2021 |
Short-Term Debt [Line Items] | ||||
Lones payable | $ 1,761,214 | $ 701,193 | ||
Due to Related Parties | 280,295 | 163,831 | ||
LMK Capital LLC [Member] | Chief Executive Officer [Member] | ||||
Short-Term Debt [Line Items] | ||||
Lones payable | 278,006 | 26,452 | ||
Due from related parties | 0 | 0 | ||
Lemon Glow [Member] | Officer [Member] | ||||
Short-Term Debt [Line Items] | ||||
Lones payable | 2,289 | 3,000 | ||
Loans Payable 1 [Member] | SWC Group, Inc. [Member] | Officer [Member] | ||||
Short-Term Debt [Line Items] | ||||
Proceeds from related party debt | $ 40,000 | |||
Lones payable | 0 | 15,427 | ||
Loans Payable 2 [Member] | SWC Group, Inc. [Member] | Office [Member] | ||||
Short-Term Debt [Line Items] | ||||
Lones payable | 0 | 49,447 | ||
Loans Payable 3 [Member] | SWC Group, Inc. [Member] | Officer [Member] | ||||
Short-Term Debt [Line Items] | ||||
Lones payable | $ 0 | $ 83,275 | ||
Maturity date | Sep. 30, 2017 |
Shares to Be Issued (Details Na
Shares to Be Issued (Details Narrative) - USD ($) | 12 Months Ended | ||||
Jul. 02, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Apr. 19, 2018 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Annual Salary | $ 1,766,540 | $ 709,041 | |||
Mr. Jimmy Chan [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Shares reserved for future issuance | 228,577 | 110,577 | |||
Annual Salary | $ 250,000 | ||||
Shares issued for shares based compensation | 50,000,000 | ||||
Bonus percentage | 10% | ||||
Mr. Jimmy Chan [Member] | Fiscal Year 2022 [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Shares reserved for future issuance | 50,000,000 | 50,000,000 | |||
Mr. Jimmy Chan [Member] | Fiscal Year 2021 [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Shares reserved for future issuance | 50,000,000 | 50,000,000 | |||
Consulting Agreement [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Shares reserved for future issuance | 283,077 | 138,077 | |||
Consulting Agreement [Member] | The Consultant [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Stock granted | 5,000,000 | ||||
Shares reserved for future issuance | 54,500 | 27,500 | |||
Consulting Agreement [Member] | The Consultant [Member] | Fiscal Year 2022 [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Shares reserved for future issuance | 20,000,000 | 20,000,000 | |||
Consulting Agreement [Member] | The Consultant [Member] | Fiscal Year 2021 [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Shares reserved for future issuance | 5,000,000 | 5,000,000 |
Stockholders_ (Deficit) Equity
Stockholders’ (Deficit) Equity (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 02, 2022 | Jan. 06, 2022 | Feb. 08, 2021 | Apr. 22, 2020 | Apr. 21, 2020 | |
Class of Stock [Line Items] | |||||||||||
Shares authorizied for issuance | 10,000,000,000 | 10,000,000,000 | |||||||||
Common stock, par value | $ 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 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Common stock, shares authorized | 20,000,000,000 | 20,000,000,000 | 20,000,000,000 | 10,010,000,000 | 10,000,000,000 | ||||||
Stock issued for acquisition, value | $ 7,449,600 | ||||||||||
Stock issued during period value new issues | 485,876 | 4,171,000 | |||||||||
Total cash | $ 50,007 | ||||||||||
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 common stock outstanding immediately prior to the issuance of the Drawdown Notice Shares. | ||||||||||
Stockholders equity note subscriptions receivable | $ 10,042 | $ 10,042 | $ 500,000 | ||||||||
Common stock, shares issued | 11,825,389,576 | 11,825,389,576 | 7,402,535,676 | ||||||||
Common stock, shares outstanding | 11,825,389,576 | 11,825,389,576 | 7,402,535,676 | ||||||||
Purchase Agreement [Member] | Dutchess [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Shares reserved for future issuance | 10,000,000 | ||||||||||
ECGI [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Percentage of outstanding equity | 30% | ||||||||||
Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Debt conversion, converted instrument, shares issued | 1,152,088,667 | 850,000,000 | 214,285,714 | 375,600,448 | |||||||
Debt conversion, converted amount | $ 198,223 | $ 275,747 | $ 150,000 | $ 385,266 | |||||||
Stock issued during period shares new issues | 192,665,527 | 300,000,000 | 369,999,999 | ||||||||
Stock issued during period value new issues | $ 41,876 | $ 181,394 | $ 444,000 | ||||||||
Stockholders equity note subscriptions receivable, shares | 81,452,115 | 81,452,115 | |||||||||
Stockholders equity note subscriptions receivable | $ 10,042 | $ 10,042 | |||||||||
Stock issued during period shares new issues | 26,190,000 | ||||||||||
Stock issued during period value new issues | $ 26,190 | ||||||||||
Stock issued during period shares new issues | 200,000,000 | ||||||||||
Stock issued during period value new issues | $ 80,000 | ||||||||||
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 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 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Preferred stock, shares issued | 2,541,500 | 2,541,500 | 541,500 | ||||||||
Preferred stock, shares outstanding | 2,541,500 | 2,541,500 | 541,500 | ||||||||
Series B Preferred Stock [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 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Preferred stock, shares issued | 1 | 1 | 1 | ||||||||
Preferred stock, shares outstanding | 1 | 1 | 1 | ||||||||
Minimum [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock, shares authorized | 10,000,000,000 | ||||||||||
Maximum [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock, shares authorized | 20,000,000,000 |
Schedule of Supplemental Disclo
Schedule of Supplemental Disclosures Related to Operating Lease (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Loss Contingencies [Line Items] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 243,406 | |
Remaining lease term - operating leases (in years) | 1 year 9 months | |
Average discount rate - operating leases | 10% | |
Total operating lease assets | $ 219,494 | $ 243,406 |
Long-term Right-of-use assets | 266,760 | 486,253 |
Total operating lease assets | 486,253 | |
Short-term operating lease liabilities | 233,201 | 239,521 |
Long-term operating lease liabilities | 290,948 | $ 524,149 |
Total operating lease liabilities | 524,149 | |
General and Administrative Expense [Member] | ||
Loss Contingencies [Line Items] | ||
Operating lease cost | $ 308,925 |
Schedule of Maturities of Lease
Schedule of Maturities of Lease Liabilities (Details) | Jun. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 273,425 |
2024 | 172,465 |
2025 | 147,446 |
Total lease payments | 593,336 |
Less: Imputed interest/present value discount | (69,187) |
Present value of lease liabilities | $ 524,149 |
Leases (Details Narrative)
Leases (Details Narrative) | 12 Months Ended | ||||
Jun. 03, 2021 USD ($) | Feb. 01, 2021 | Feb. 23, 2018 USD ($) ft² | Jun. 30, 2022 USD ($) | Jun. 29, 2022 ft² | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Lease commitment | $ 593,336 | ||||
Area under lease | ft² | 43,560 | ||||
Operating lease, payments | $ 243,406 | ||||
2021 Ford Transit Connect Van [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Operating lease, payments | $ 926 | ||||
Two 2021 Hyundai Accent [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Operating lease, payments | 612 | ||||
2021 Hyundai Accent [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Operating lease, payments | $ 616 | ||||
Lease Agreement [Member] | Magnolia Extracts, LLC [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Lessee, operating lease, description | 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% | ||||
Lease commitment | $ 737,367 | ||||
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 |
Schedule of Deferred Tax Asset
Schedule of Deferred Tax Asset (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Income Tax Disclosure [Abstract] | ||
Net Operating Loss Carryforwards | $ 16,122,226 | $ 13,021,807 |
Less Valuation Allowance | (16,122,226) | (13,021,807) |
Deferred Tax Assets |
Schedule of Reconciliation for
Schedule of Reconciliation for Income Taxes (Details) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
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% | 7% |
Increase in valuation allowance | 21% | 21% |
Income tax expense |
Income Tax (Details Narrative)
Income Tax (Details Narrative) | Jun. 30, 2022 USD ($) |
Income Tax Disclosure [Abstract] | |
Operating Loss Carryforwards | $ 85,437,392 |
Contingent Liabilities and Co_2
Contingent Liabilities and Commitment (Details Narrative) - Cultivation and Supply Agreement [Member] - USD ($) | Apr. 28, 2022 | Oct. 15, 2022 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Obligation purchase, description | Under the terms of the Agreement, Cannabis Global is obligated to purchase the Harvest, up to 25,000 pounds (the “Target Yield”). Cannabis Global has an option to increase the Target Yield for subsequent growing seasons by 25% within 45 days of the current Harvest. Cannabis Global is required to pay Lemon Glow $28.00 per pound for the Fresh Frozen cannabis, up to the Target Yield. If the Target Yield is achieved, the aggregate purchase price would be $700,000 (the “Purchase Price”). The Purchase Price shall be paid as a series of cash payments and a convertible promissory note, as more fully described below. | |
Debt periodic payment | $ 40,000 | |
Frequency of periodic payment, descriptions | monthly installments | |
Convertible Promissory Note [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Debt instrument, face amount | $ 400,000 | |
Debt maturity date | Apr. 28, 2023 | |
Interest rate | 8% | |
Debt conversion, descriptions | At any time after 90 days of issuance, the Convertible Note is convertible by Lemon Glow into Cannabis Global common stock at 75% of the 10-day average closing price prior to conversion (the “Discount Price”). Interest paid on the Convertible Note is also convertible by Lemon Glow into Cannabis Global common stock at the Discount Price. Lemon Glow may not convert any amount due under the Convertible Note if, after giving effect to such conversion, Lemon Glow would beneficially own in excess of 4.99% of Cannabis Global’s outstanding common stock; provided, however, that Lemon Glow may waive this limitation on 61 days advanced notice. | |
Debt indebtedness | $ 100,000 | |
Forecast [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Balloon payment to be paid | $ 100,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | 6 Months Ended | 12 Months Ended | ||||||
Nov. 14, 2022 USD ($) $ / shares shares | Sep. 09, 2022 USD ($) | Aug. 12, 2022 USD ($) | Jun. 29, 2022 USD ($) ft² | Dec. 17, 2022 USD ($) shares | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Nov. 15, 2022 USD ($) | |
Subsequent Event [Line Items] | ||||||||
Area of land | ft² | 43,560 | |||||||
Proceeds from lines of credit facility | $ 650,000 | |||||||
Line of credit interest rate | 14% | |||||||
Common stock issuance, value | $ 485,876 | $ 4,171,000 | ||||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Property management service agreement, descriptions | SugarRush agreed to pay Canndis a license fee of (i) 2% of gross retail sales and 1.5 percent of gross wholesale sales during the initial six months following commencement of operations (the “Introductory Period”), and (ii) after the Introductory Period, the greater of (a) $2,500 or (b) 2% of gross retail sales and 1.5% of gross wholesale sales. Canndis agreed to pay to SugarRush 65% of net sales each month. | |||||||
Retail sale gross amount | $ 2,500 | |||||||
Shares issued for Cash, shares | shares | 227,979,125 | |||||||
Common stock issuance, value | $ 27,630 | |||||||
Subsequent Event [Member] | J.H. Darbie & Co., Inc. [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Common stock to purchase warrants | shares | 95,600,000 | |||||||
Warrants exercise price | $ / shares | $ 0.0003 | |||||||
Subsequent Event [Member] | 1800 Diagonal Lending LLC [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Promissory notes | $ 80,765 | |||||||
Subsequent Event [Member] | Rezyfi Lending Inc. [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Borrowings | $ 300,000 | |||||||
Debt instrument due date | Oct. 09, 2022 | |||||||
Interest rate | 12% | |||||||
Interest payable | $ 3,000 | |||||||
Subsequent Event [Member] | Mast Hill Fund L.P. [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Borrowings | $ 532,000 | |||||||
Debt instrument due date | Nov. 14, 2023 | |||||||
Interest rate | 16% | |||||||
Conversion price | $ / shares | $ 0.0001 | |||||||
Common stock to purchase warrants | shares | 1,773,333,333 | |||||||
Warrants exercise price | $ / shares | $ 0.0003 | |||||||
Line of Credit [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt instrument term | 3 years | |||||||
Management Services Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Business acquisition, salary with contingent bonuses | $ 120,000 | |||||||
RMI Ventures [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Percentage of acquisition | 40% | |||||||
Business acquisition, purchase price of property | $ 550,000 |