STOCKHOLDERS’ DEFICIT | NOTE 6 STOCKHOLDERS’ DEFICIT Preferred Stock Series B Convertible Preferred Stock On December 11, 2009, the Company filed a Certificate of Designation with the State of Nevada, to designate 500,000 5,000,000 The Company issued 200,000 In October 2015, the Company issued 200,000 On September 11, 2017, the Company issued an additional 210,000 As of March 31, 2022, the Company has 5,000,000 0.001 610,000 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. Series C Convertible Preferred Stock From time to time, the Company issues Series C Convertible Preferred Stock in exchange for cash. These shares are convertible into shares of the Company’s common stock. The number of issued and outstanding shares of Series C Convertible Preferred Stock were 103,584 196,083 Series D Convertible Preferred Stock On July 27, 2021 the Company designated Series D Convertible Preferred Stock (the “Series D Shares”). The Series D Shares have a stated value of $100.00 (the “Stated Value”), and carry a conversion price of the volume weighted average price (for the 20 trading days immediate prior to the conversion date). The amount of shares of common stock to be issued upon any conversion shall be calculated as the quotient of (i) the product of the issued shares of the Series D Shares to be converted and the Stated Value, and (ii) the Conversion Price. The Series D Shares are not entitled to receive dividends or other distributions, and have no voting rights. Common Stock During the last fiscal quarter of fiscal year ending June 30, 2021, the Company increased its authorized shares of common stock from 600,000,000 to 1,200,000,000 As of September 30, 2021, the Company had 488,648,586 ● During the three months ended September 30, 2021, the Company sold 5,500,000 27,462 (i) 5,500,000 shares of common stock at a price of $0.10 per share and (ii) 5,500,000 shares of common stock at a price of $0.20 per share. The warrants expire at various times through September 21, 2022. None of the 12,000,000 shares of common stock were issued during the quarter ended September 30, 2021, and were recognized as stock payable. ● During the three months ended September 30, 2021, the Company issued 42,262,958 8,133,333 17,534,387 116,050 4,095,238 12,500,000 As of December 31, 2021, the Company had 539,310,756 ● During the three months ended December 31, 2021, the Company sold 8,625,000 86,230 (i) 8,625,000 shares of common stock at a price of $0.70 per share and (ii) 4,312,500 shares of common stock at a price of $1.00 per share. The warrants expire at various times through December 14, 2022. None of the 8,625,000 shares of common stock were issued during the quarter ended December 31, 2021, and were recognized as stock payable. ● During the three months ended December 31, 2021, the Company issued 50,662,170 11,032,663 19,148,052 107,000 7,981,445 12,500,000 ● During the three months ended March 31, 2022, the Company issued 77,040,836 15,826,550 90,750 3,714,286 57,500,000 783,000 During the three months ended March 31, 2022, the Company sold 2,000,000 19,980 (i) 2,000,000 shares of common stock at a price of $0.70 per share and (ii) 1,000,000 shares of common stock at a price of $1.00 per share. The warrants expire at various times through February 9, 2023. None of the 2,000,000 shares of common stock were issued during the quarter ended March 31, 2022, and were recognized as stock payable. Equity Financing Agreement On March 5, 2020, the Company entered into an equity financing agreement (the “Equity Financing Agreement”) with GHS Investments, LLC, a Nevada limited liability company (“GHS”). Pursuant to the Equity Financing Agreement, the Company agreed to sell to GHS an indeterminate amount of shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), up to an aggregate price of four million dollars ($4,000,000). Following effectiveness of the Registration Statement, the Company shall have the discretion to deliver puts to GHS and GHS will be obligated to purchase shares of the Company’s Common Stock based on the investment amount specified in each put notice. The maximum amount that the Company shall be entitled to put to GHS in each put notice shall not exceed two hundred percent (200%) of the average daily trading dollar volume of the Company’s Common Stock during the ten (10) trading days preceding the put, so long as such dollar amount does not exceed $500,000. Pursuant to the Equity Financing Agreement, GHS and its affiliates will not be permitted to purchase and the Company may not put shares of the Company’s Common Stock to GHS that would result in GHS’s beneficial ownership, equaling more than 4.99% of the Company’s outstanding Common Stock. The price of each put share shall be equal to eighty percent (80%) of the Market Price (as defined in the Equity Financing Agreement). Puts may be delivered by the Company to GHS until the earlier of thirty-six (36) months after the effectiveness of the Registration Statement. Concurrently with the execution of the Equity Financing Agreement, the Company entered into a convertible promissory note, for the principal balance of $ 35,000 10 0.0175 35,000 Warrants From time to time the Company granted warrants in connection with private placements of securities, as described herein. As of March 31, 2022, and June 30, 2021, the following is a breakdown of the warrant activity: Schedule of share based compensation warrant activity Range of Exercise Prices Number of Weighted- Weighted- Number Weighted- Warrants Outstanding and Exercisable at March 31, 2022: $0.70 - $1.00 54,664,518 1.20 $ 0.26 54,664,518 $ 0.26 Warrants Outstanding and Exercisable at June 30, 2021: $0.10 - $0.20 124,888,519 1.12 $ 0.33 124,888,519 $ 0.33 Warrant Activity: March 31, 2022: Schedule of warrant activity Outstanding - June 30, 2021 124,888,519 Issued 22,937,499 Exercised — Expired (93,161,500 ) Outstanding - March 31, 2022 54,664,518 March 31, 2021: Outstanding - June 30, 2020 53,280,406 Issued 90,500,000 Exercised — Expired (17,151,887 ) Outstanding - March 31, 2021 126,628,519 At March 31, 2022, all 54,664,518 54,664,518 | NOTE 6 - STOCKHOLDERS’ DEFICIT Preferred Stock As of June 30, 2021, the Company has 5,000,000 0.001 610,000 Each share of Series B Convertible Preferred Stock has a par value of $0.001, and a stated value equal to $ 5.00 Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary (“liquidation”), 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. The Company issued 200,000 In October 2015, the Company issued 200,000 On September 11, 2017, the Company issued an additional 210,000 Class A Common Stock As of June 30, 2021, the Company has 50,000,000 0.001 no 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 0.001 Common Stock and Warrants ● During the three months ended September 30, 2019, the Company sold for cash 6,337,500 6,337,500 0.10 0.25 133,495 September 17, 2021 6,337,500 ● During the three months ended December 31, 2019, the Company sold for cash 40,675,000 825,000 0.20 0.25 214,510 November 1, 2021 40,675,000 36,300 2,370,696 ● During the three months ended March 31, 2020, the Company sold for cash 9,550,000 3,500,000 0.05 1.00 66,500 March 12, 2022 9,550,000 ● During the three months ended June 30, 2020, the Company sold for cash 40,000,000 12,000,000 0.10 0.20 200,905 June 12, 2021 9,000,000 ● During the three months ended September 30, 2020, the Company sold for cash 17,500,000 (i) 17,500,000 shares at prices ranging from $0.05 per share to $0.10 per share and (ii) 14,500,000 shares at prices ranging from $0.10 to $0.20 for net proceeds of $77,409. The warrants expire at various times through September 21, 2022. 17,500,000 17,500,000 6,032,260 585,000 5,447,260 ● During the three months ended December 31, 2020, the Company sold 16,500,000 82,455 (i) 16,500,000 shares at prices ranging from $0.05 to $0.10 per share and (ii) 16,500,000 December 21, 2022 16,500,000 ● During the three months ended December 31, 2020, the Company issued 32,034,876 75,000 15,000,000 16,034,876 78,100 ● During the three months ended March 31, 2021, the Company sold 11,000,000 59,957 (i) 12,000,000 shares at a price of $0.10 per share and (ii) 12,000,000 shares at a price of $0.20. February 4, 2022 12,000,000 ● During the three months ended March 31, 2021, the Company issued 26,769,540 17,000,000 6,709,100 72,600 2,560,440 ● During the three months ended June 30, 2021, the Company sold 3,333,333 (i) 3,333,333 June 8, 2022 3,333,333 ● During the three months ended June 30, 2021, the Company issued 3,025,952 36,300 The following information summarizes the warrants outstanding and exercisable. Warrants Outstanding and Exercisable at June 30, 2021: Schedule of share based compensation warrant activity Range of Exercise Prices Number of Warrants Outstanding Weighted- Average Contractual Life Remining in Years Weighted- Average Exercise Price Number Exercisable Weighted- Average Exercise Price Warrants Outstanding and Exercisable at June 30, 2020: $ 0.05 1.00 53,280,406 1.120 $ 0.33 53,280,406 $ 0.33 Warrants Outstanding and Exercisable at June 30, 2021: $ 0.10 0.20 124,888,519 0.623 $ 0.18 124,888,519 $ 0.623 Warrant Activity: As of June 30, 2021 and 2020, the following is a breakdown of the activity: June 30, 2021: Schedule of warrant activity Outstanding - beginning of year 53,280,406 Issued 98,500,000 Exercised Expired (26,891,887 ) Outstanding - end of year 124,888,519 June 30, 2020: Outstanding - beginning of year 26,526,234 Issued 34,662,500 Exercised Expired (7,908,328 ) Outstanding - end of year 53,280,406 At June 30, 2021, all of the 124,888,519 124,888,519 Equity Financing On March 5, 2020, the Company entered into an equity financing agreement with GHS Investments, LLC, a Nevada limited liability company (“Investor”). Pursuant to the agreement, the Company agrees the sell to the investor an indeterminate amount of shares of the Company’s common stock, par value $0.001 per share, up to an aggregate price of four million dollars ($4,000,000). Pursuant to the agreement, the Company is required, to within sixty (60) calendar days upon the date of execution of this agreement, use its best efforts to file with the SEC a registration statement or registration statements (as is necessary) on Form S-1, covering the resale of all of the registrable securities, which registration statement(s) shall state that, in accordance with Rule 416 promulgated under the 1933 Act, such registration statement also covers such indeterminate number of additional shares of Common Stock as may become issuable upon stock splits, stock dividends or similar transactions. Pursuant to this equity financing agreement, the Company filed the Registration S-1 on August 6, 2020. Following effectiveness of the Registration Statement, the Company shall have the discretion to deliver puts to GHS and GHS will be obligated to purchase shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) based on the investment amount specified in each put notice. The maximum amount that the Company shall be entitled to put to GHS in each put notice shall not exceed two hundred percent (200%) of the average daily trading dollar volume of the Company’s Common Stock during the ten (10) trading days preceding the put, so long as such dollar amount does not exceed $500,000. Pursuant to the Equity Financing Agreement, GHS and its affiliates will not be permitted to purchase and the Company may not put shares of the Company’s Common Stock to GHS that would result in GHS’s beneficial ownership, equaling more than 4.99% of the Company’s outstanding Common Stock. The price of each put share shall be equal to eighty percent (80%) of the Market Price (as defined in the Equity Financing Agreement). Puts may be delivered by the Company to GHS until the earlier of thirty-six (36) months after the effectiveness of the Registration Statement. Concurrently with the execution of the equity financing agreement, the company entered into a convertible promissory note, for the principal balance of $ 35,000 10 0.0175 35,000 |