STOCKHOLDERS' DEFICIT | NOTE 5 STOCKHOLDERS' DEFICIT Preferred Stock As of December 31, 2019, the Company has 5,000,000 shares of Class B preferred stock, par value $0.001, authorized and 610,000 shares issued and outstanding. On December 11, 2009, the Company filed a Certificate of Designation with the State of Nevada, to designate 500,000 shares of preferred stock as Series B Convertible Preferred Stock ("Series B Convertible Preferred Stock"). Effective November 5, 2014, the number of shares designated as Series B Convertible Preferred Stock was increased to 5,000,000 shares. Each share of Series B Convertible Preferred Stock has a par value of $0.001, and a stated value equal to $5.00 ("Stated Value"). Holders of the Series B Convertible Preferred Stock are entitled to receive dividends or other distributions with the holders of the common stock of the Company on an as converted basis when, as, and if declared by the directors of the Company. Holders of the Series B Convertible Preferred Stock are entitled to convert each share of the Series B Convertible Preferred Stock into fifty (50) shares of common stock. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, holders of the Series B Convertible Preferred Stock are entitled to receive out of the assets, whether capital or surplus, of the Company an amount equal to the Stated Value, pro rata with the holders of the common stock. Class A Common Stock As of December 31, 2019, the Company has 50,000,000 shares of Class A common stock, par value $0.001, authorized and no shares issued and outstanding. In October 2003, the Company issued 50,000,000 shares of Class A common stock at par value ($50,000). These shares were converted into 50,000,000 shares of common stock in 2006. Common Stock The Company was incorporated on December 18, 2002, with 45,000,000 shares of Common Stock, par value $0.001, authorized. The Articles of Incorporation were amended in 2006 to increase the number of authorized shares to 100,000,000 shares, and in 2009 to increase the number of authorized shares to 200,000,000. As a result of a screener's error, the Company previously disclosed in its Quarterly Report on Form 10-Q for the quarters ended September 30, 2015 and December 31, 2015 that it increased the number of authorized shares of common stock to 300,000,000. On March 31, 2016, our Board of Directors ("The Board") approved an amendment (the "Amendment") to the Company's Articles of Incorporation to increase the total number of shares of authorized capital stock to 305,000,000 shares, par value $0.001 per share, consisting of (i) 300,000,000 shares of Common Stock, up from 200,000,000 shares of Common Stock, and (ii) 5,000,000 shares of Preferred Stock, subject to shareholder approval (the "Proposal"). On March 31, 2016, a majority of the Company's stockholders approved the Amendment. The Company filed a definitive information statement on Schedule 14C with the Securities and Exchange Commission on May 4, 2016 (the "Information Statement"). The Information Statement was furnished to all of the Company's shareholders for the purpose of informing them of the action taken by a majority of the Company's stockholders. During the three month period ending December 31, 2019, the Company increased its total number of shares of authorized capital stock to 600,000,000 shares, par value $0.001 per share. As of December 31, 2019, the Company has 281,965,822 shares of common stock issued and outstanding. ● During the three months ended September 30, 2019, the Company sold for cash 6,337,500 shares of common stock and warrants to purchase: (i) 6,337,500 shares at prices ranging from $0.10 per share to $0.25 per share for net proceeds of $133,495. The warrants expire at various times through September 17, 2021. None of these shares were issued during the quarter ended September 30, 2019, with all 6,337,500 shares being recorded as stock payable. During the three months ended September 30, 2019, the Company issued 11,216,305 shares for cash. Of these shares, 7,991,662 shares were issued from stock payable. There were 52,800 Preferred C shares issued for net proceeds of $45,000 and 70,000 Preferred C shares converted to 3,224,643 Common shares for the three month period ended September 30, 2019 ● During the three months ended December 31, 2019, the Company sold for cash 40,675,000 shares of common stock and warrants to purchase: (i) 825,000 shares at prices ranging from $0.20 per share to $0.25 per share for net proceeds of $214,510. The warrants expire at various times through November 1, 2021. None of these shares were issued during the quarter ended December 31, 2019, with all 40,675,000 shares being recorded as stock payable. During the three months ended December 31, 2019, the Company issued 3,730,000 shares for cash. Of these shares, all of these were issued from stock liability. There were 36,300 Preferred C shares issued for net proceeds of $25,000 and 34,000 Preferred C shares converted to 2,370,696 Common shares for the three month period ended December 31, 2019. Warrants From time to time the Company granted warrants in connection with private placements of securities, as described herein. As of December 31, 2019, and June 30, 2019, the following is a breakdown of the warrant activity: Range of Exercise Prices Number of Weighted-Average Weighted- Number Weighted- Warrants Outstanding and Exercisable at December 31, 2019: $0.05 - $1.00 28,153,406 1.27 $ 0.28 28,153,406 $ 0.28 Warrants Outstanding and Exercisable at June 30, 2019: $0.20 - $1.00 26,526,234 1.12 $ 0.34 26,526,234 $ 0.34 Warrant Activity: December 31, 2019: Outstanding - June 30, 2019 26,526,234 Issued 7,162,500 Exercised — Expired (5,535,328 ) Outstanding - December 31, 2019 28,153,406 June 30, 2019: Outstanding - June 30, 2018 14,842,583 Issued 18,738,235 Exercised — Expired (7,054,584 ) Outstanding - June 30, 2019 26,526,234 At December 31, 2019, all of the 28,153,406 warrants are vested and (i) 27,853,406 warrants expire at various times prior to November 1, 2021, (ii) 300,000 warrants expire in July 2020, |