RedHawk (SNDD) 10-Q 19 Feb 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2018	Feb. 06, 2019
Document And Entity Information
Entity Registrant Name	RedHawk Holdings Corp.
Entity Central Index Key	1,353,406
Trading Symbol	IDNG
Document Type	10-Q
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		541,993,867
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,019

Consolidated Balance Sheets (un

Consolidated Balance Sheets (unaudited) - USD ($)	Dec. 31, 2018	Jun. 30, 2018
Current Assets:
Cash	$ 14,768	$ 19,034
Certificate of deposit	100,225	100,073
Receivables	12,040	17,946
Inventory, at cost	192,837	218,538
Investment in real estate limited partnership	257,173	625,000
Prepaid expenses	117,060	120,709
Total Current Assets	694,103	1,101,300
Property and Improvements:
Land	110,000	110,000
Building and improvements	670,000	670,000
Property and Improvements Before Depreciation	780,000	780,000
Less, accumulated depreciation	(96,812)	(81,146)
Total Property and Improvement	683,188	698,854
Other Assets:
Intangible asset, net of amortization of $326,056 and $292,072, respectively	846,254	415,163
Total Other Assets	846,254	415,163
Total Assets	2,223,545	2,215,317
Current Liabilities:
Accounts payable and accrued liabilities	932,314	774,568
Current maturities of long-term debt	9,721	9,450
Line of credit	100,553	100,553
Insurance notes payable	3,629	7,786
Total Current Liabilities	1,046,217	892,357
Non-current Liabilities
Due to related parties	106,250	118,924
Other non-current liabilities	593,050
Real estate note payable, net of current maturities	229,029	233,772
Convertible notes payable, net of $38,289 and $60,420 in deferred loan costs and unamortized beneficial conversion of $48,142 and $59,042, respectively	821,623	861,189
Total Long-Term Debt	1,749,952	1,213,885
Total Liabilities	2,796,169	2,106,242
Commitments and Contingencies
Stockholders' Equity (Deficit):
Common Stock, par value of $0.001 per share, 2,000,000,000 and 1,000,000,000 authorized shares, respectively, and 560,465,402 and 398,410,762 issued, respectively	560,466	398,411
Additional paid-in capital	1,365,919	1,311,076
Accumulated other comprehensive income	2,787
Accumulated deficit	(5,280,835)	(4,302,291)
Total Stockholders' Equity (Deficit) Before Treasury Stock	(207,272)	474,427
Less, Treasury stock 35,471,535 and 18,021,535 shares, respectively, at cost	(365,352)	(365,352)
Total Stockholders' Equity	(572,624)	109,075
Total Liabilities and Stockholders' Equity	2,223,545	2,215,317
5% Series A Preferred Stock [Member]
Stockholders' Equity (Deficit):
Preferred stock, value	1,701,646	1,659,889
5% Series B Preferred Stock [Member]
Stockholders' Equity (Deficit):
Preferred stock, value	$ 1,442,745	$ 1,407,342

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($)	Dec. 31, 2018	Jun. 30, 2018
Amortization of intangible assets	$ 326,056	$ 292,072
Deferred loan costs, noncurrent	38,289	60,420
Unamortized beneficial conversion	$ 48,142	$ 59,042
Preferred stock, authorized	5,000	5,000
Preferred stock, issued	2,723	2,723
Preferred stock, outstanding	2,723	2,723
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized	2,000,000,000	1,000,000,000
Common stock, issued	560,465,402	398,410,762
Treasury stock	35,471,535	18,021,535
5% Series A Preferred Stock [Member]
Preferred stock, value (in dollars per share)	$ 1,155	$ 1,127
Preferred stock, designated	2,750	2,750
Preferred stock, issued	1,473	1,473
Preferred stock, outstanding	1,473	1,473
5% Series B Preferred Stock [Member]
Preferred stock, value (in dollars per share)	$ 1,154	$ 1,126
Preferred stock, designated	1,250	1,250
Preferred stock, issued	1,250	1,250
Preferred stock, outstanding	1,250	1,250

Consolidated Statements of Oper

Consolidated Statements of Operations (unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Revenues	$ 48,852	$ 232,204	$ 95,520	$ 300,097
Less, discounts		(105,967)		(105,967)
Operating revenues, net	48,852	126,237	95,520	194,130
Operating Expenses:
Costs of goods sold	4,064	93,529	31,030	105,012
Sales and marketing expenses	13,359	21,622	24,895	40,114
Professional fees	133,751	51,817	166,767	58,874
Operating expenses	4,362	12,406	9,411	28,908
Depreciation and amortization	30,402	22,151	61,151	44,332
General and administrative	75,728	28,098	123,094	63,796
Total Operating Expenses	261,666	229,623	416,348	341,036
Net Loss from Operations	(212,814)	(103,386)	(320,828)	(146,906)
Other Expense:
Amortization of discount on convertible debentures	(5,450)	(5,450)	(10,900)	(10,900)
Settlement loss	(396,500)	(62,425)	(396,500)	(62,425)
Interest expense	(87,165)	(15,186)	(170,318)	(39,606)
Total Other Income (Expense)	(489,115)	(83,061)	(577,718)	(112,931)
Net Loss	(701,929)	(186,447)	(898,546)	(259,837)
Other comprehensive income (loss):
Effect of foreign currency translation	(52)	(26,207)	2,787	(7,131)
Total Other comprehensive income	(52)	(26,207)	2,787	(7,131)
Comprehensive Loss	(701,981)	(212,654)	(895,759)	(266,968)
Preferred Stock Dividends	(38,820)	(36,938)	(77,160)	(73,420)
Comprehensive Loss Available for Common Stockholders	$ (740,801)	$ (249,592)	$ (972,919)	$ (340,388)
Net Loss Per Share
Basic (in dollars per share)
Diluted (in dollars per share)
Weighted Average Shares Outstanding
Basic (in shares)	495,163,432	362,006,364	421,615,585	362,963,701
Diluted (in shares)	495,163,432	362,006,364	421,615,585	362,963,701

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (898,546)	$ (259,837)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of intangibles	45,485	44,332
Amortization of discount on convertible debentures	10,900	10,900
Amortization of deferred loan costs	40,631	17,367
Depreciation	15,666
Non-cash interest expense	34,915	14,785
Non-cash settlement loss	396,500	62,475
Non-cash compensation	23,958
Changes in operating assets and liabilities:
Accounts receivable	5,259	(49,736)
Inventory	19,073	122,466
Prepaid expense and other assets	1,834	9,963
Accounts payable and accrued liabilities	(81)	(141,449)
Net Cash Used in Operating Activities	(304,406)	(168,734)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from distribution from limited liability partnership	367,827
Purchase in license	(25,000)
Net Cash Provided by Investing Activities	342,827
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from (payments to) related parties, net	(12,674)	14,166
Proceeds from issuance of convertible notes	143,000	154,500
Proceeds from issuance of stock		24,735
Costs related to debt for equity conversions	(10,300)
Deferred loan costs	(18,500)	(21,800)
Net payments on insurance notes payable	(4,157)	(4,769)
Principal payments on convertible notes	(132,727)
Principal payments on long-term debt	(4,472)	(4,415)
Net Cash Provided by (Used in) Financing Activities	(39,830)	162,417
Effect of exchange rate on cash	(2,857)	(8,997)
Net change in cash	(4,266)	(15,314)
Cash, Beginning of Period	19,034	53,939
Cash, End of Period	14,768	38,625
Non-Cash Investing and Financing Activities:
Preferred stock dividends paid-in-kind	77,160	73,419
Common stock issued from conversion of notes payable	166,489
Increase in liabilities related to license agreement acquisition	425,000
Common stock issued related to license agreement acquisition	17,500
Convertible debt issued in exchange for treasury shares		29,250
Reduction in equity from share exchange to acquire 100% in EcoGen Europe Ltd.		311,590
Supplemental Disclosures:
Interest paid	22,650	7,529
Income tax paid

NATURE OF OPERATIONS AND CONTIN

NATURE OF OPERATIONS AND CONTINUANCE OF BUSINESS	6 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS AND CONTINUANCE OF BUSINESS	1. NATURE OF OPERATIONS AND CONTINUANCE OF BUSINESS RedHawk Holdings Corp. (formerly Independence Energy Corp.) was incorporated in the State of Nevada on November 30, 2005 under the name “Oliver Creek Resources Inc.” At inception, we were organized to acquire, explore and develop natural resource properties in the United States. Effective August 12, 2008, we changed our name from “Oliver Creek Resources Inc.” to “Independence Energy Corp.” and opened for trading on the Over-the Counter Bulletin Board under the symbol “IDNG.” Effective October 13, 2015, by vote of a majority of the Company’s stockholders, the Company’s name was changed from “Independence Energy Corp.” to “RedHawk Holdings Corp.” On March 31, 2014, the Company acquired the exclusive right to distribute certain medical devices and changed the focus of its operations to include medical device distribution. We have expanded our business focus to include other operations. Currently, we are a diversified holding company which, through our subsidiaries, is engaged in sales and distribution of medical devices, sales of branded generic pharmaceutical drugs, commercial real estate investment and leasing, sales of point of entry full-body security systems, and specialized financial services. Through its medical products business unit, the Company sells WoundClot Surgical - Advanced Bleeding Control, the SANDD™ Insulin Needle Destruction Unit (formerly known as the Disintegrator™), the Carotid Artery Digital Non-Contact Thermometer and Zonis®. Through our United Kingdom based subsidiary, we manufacture and market branded generic pharmaceuticals, certain other generic pharmaceuticals known as “specials” and certain pharmaceuticals outside of the United Kingdom’s National Health Service drug tariff referred to as NP8’s. Centri Security Systems LLC, a wholly-owned subsidiary of the Company, holds the exclusive U.S. manufacturing and distribution rights for the Centri Controlled Entry System, a unique, closed cabinet, nominal dose transmission full body x-ray scanner. Our real estate leasing revenues are generated from a commercial property under a long-term lease. Additionally, the Company’s real estate investment unit holds a limited liability company interest in a commercial restoration project in Hawaii. Going Concern These financial statements have been prepared on a going concern basis, which implies that the Company will be able to continue as a going concern without further financing. The Company must continue to realize its assets to discharge its liabilities in the normal course of business. The Company has generated limited revenues to date and has never paid any dividends on its common stock and is unlikely to pay any common stock dividends or generate significant earnings in the immediate or foreseeable future. For the three and six month periods ended December 31, 2018, the Company had gross and net revenues of $48,852 and $95,520, respectively, a consolidated net loss of $701,929 and $898,546, respectively, and cash of $304,406 used in operating activities for the six month period ended December 31, 2018. For the year ended June 30, 2018, the Company had $384,279 in gross revenue, $275,845 in net revenue, a consolidated net loss of $910,062 and cash of $ 411,268 used in operating activities. As of December 31, 2018, the Company had cash of $14,768, a certificate of deposit of $100,225, a working capital deficit of $352,114 and an accumulated deficit of $5,280,835. The continuation of the Company as a going concern is still dependent upon the continued financial support from its stockholders, the ability to raise equity or debt financing, cash proceeds from the sale of assets and the attainment of profitable operations from the Company’s businesses in order to discharge its obligations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited interim condensed financial statements of the Company as of December 31, 2018 and for the three and six month periods ended December 31, 2018 included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The year-end condensed balance sheet dated as of June 30, 2018 is audited and is presented here as a basis for comparison. Although the financial statements and related information included herein have been prepared without audit, and certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, the Company believes that the note disclosures are adequate to make the information presented not misleading. These unaudited condensed financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K as of June 30, 2018. In the opinion of our management, the unaudited interim financial statements included herein reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows for the periods presented. The results of operations for interim periods are not necessarily indicative of the results expected for the full year or any future period. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries in which we have a greater than 50% ownership. All material intercompany accounts have been eliminated upon consolidation. Certain prior year amounts are sometimes reclassified to be consistent with the current year financial statement presentation. Equity investments, which we have an ownership greater than 20% but less than 50% through which we exercise significant influence over but do not control the investee and we are not the primary beneficiary of the investee’s activities, are accounted for using the equity method of accounting. Equity investments, which we have an ownership less than 20%, are recorded at cost. Use of Estimates The financial statements and related notes are prepared in conformity with GAAP which 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. The Company regularly evaluates estimates and assumptions related to valuation and impairment of investments and long-lived assets, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Revenue Recognition We derive revenue from several types of activities – medical device sales, branded generic pharmaceutical sales, commercial real estate leasing and financial services. Our medical device sales include the marketing and distribution of certain professional and consumer grade digital non-contact thermometers, needle destruction unit and advanced bleeding control, non-compression hemostasis. Through our United Kingdom based subsidiary, we manufacture, and market, branded generic pharmaceuticals, and certain other generic pharmaceuticals known as “specials”. Our real estate leasing revenues are from certain commercial properties under lease. The Company offers customer discounts in certain cases. Such discounts are estimated at time of product sale and deducted from gross revenues. We adopted as of July 1, 2018, updated revenue recognition guidance (Topic 606). Topic 606 is an update to Topic 605, which was the revenue recognition standard in effect for all prior periods. Pursuant to Topic 605, revenue generally is realized or realizable and earned when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. Topic 606 changes the criteria for recognition of revenue. It establishes a single revenue recognition model for all contracts with customers, eliminates industry specific requirements and expands disclosure requirements. Revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, we apply the following five steps: (1) identify contracts with customers, (2) identify the performance obligations in the contracts, (3) determine the transaction price, (4) allocate the transaction price to the performance obligation in the contract, and (5) recognize revenue as the entity satisfies performance obligations. The adoption of this standard did not affect our financial statements. Cash and Cash Equivalents We consider highly liquid investments with an original maturity of 90 days or less to be cash equivalents. The Company did not have any cash equivalents as of December 31, 2018 or June 30, 2018. Accounts Receivable Accounts receivables are amounts due from customers of our pharmaceutical and medical device divisions. The amount is reported at the billed amount, net of any expected allowance for bad debts. There was no allowance for doubtful accounts as of December 31, 2018 or June 30, 2018. Inventory Inventory consist of purchased thermometers, an advanced bleeding control, non-compression hemostasis, a patented antimicrobial ionic silver calcium catheter dressing, needle destruction devices and certain branded generic pharmaceuticals held for resale. All inventories are stated at the lower of cost or net realizable value utilizing the first-in, first-out method. Property and Improvements Property and improvements are stated at cost. We provide for depreciation expense on a straight-line basis over each asset’s useful life depreciated to their estimated salvage value. Buildings are depreciated over a useful life of 20 to 30 years. Building improvements are depreciated over a useful life of 5 to 10 years. During the year ended June 30, 2017, we decided to sell our Louisiana real estate holdings, which includes our former corporate headquarters on Chemin Metairie Road in Youngsville, Louisiana and a property on Jefferson Street in Lafayette, Louisiana that we are leasing to a third party. As a result of that decision, the net book value of those properties along with related mortgage notes were reflected as assets and liabilities held for sale in the balance sheets. At that time, we also ceased depreciating such assets. All such amounts are included in the land and hospitality segment. A sale of these properties did not occur in the fiscal year ended June 30, 2018 and, as such, the Company has returned these properties to assets held for use and depreciation expenses was recorded in the fourth quarter of fiscal year 2018 for the period the properties were included in assets held for sale. We will continue to list these properties for sale, but it is uncertain if the sales will occur during the next twelve months. Based on the present real estate market and discussions with brokers, no impairment of the recorded amounts has occurred as of December 31, 2018. Effective July 1, 2017, the Chemin Metairie Road property was leased under a one-year term at a rent of $1,500 per month. The lessee had an option to purchase the property during the lease for the lesser of $300,000 or the average of two independent appraisals. On June 30, 2018, the tenant did not exercise his option to purchase the property. The Company has returned the property to service and currently uses this property as offices for our medical products unit. Effective August 1, 2017, the tenant that leases the Jefferson Street property has renewed that lease through December 31, 2022 at a rent of $3,250 per month subject to certain increase adjustments. We continue to offer these two properties for sale. Since we are not certain a sale will occur during our 2019 fiscal year, we reflect these assets as non-current. We are also pursuing the sale of our remaining investment in the real estate limited partnership investment. In August 2018, based on stability of operations of the underlying real estate property and recent valuations, the partnership refinanced the property. In September 2018, we received a distribution of approximately $370,000 from the real estate limited partnership following this refinancing. This distribution is recorded as a reduction of our investment in the limited partnership, which is recorded at cost. We are currently in negotiations to sell our interest in the partnership and anticipate such a transaction will close prior to June 30, 2019. Thus, our investment is shown as a current asset as of December 31, 2018 and June 30, 2018 in the accompanying consolidated balance sheets. Income Taxes Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted Accounting Standard Codification (which we refer to as “ASC”) 740, Income Taxes, Basic and Diluted Net Loss Per Share The Company computes net loss per share in accordance with ASC 260, Earnings Per Share, At December 31, 2018, including accrued but unpaid interest, there were 42,471,729 shares issuable upon conversion of our fixed rate convertible notes. There are $270,978 in convertible notes that are convertible at a variable conversion rate and not included in the issuable share amount in the preceding sentence. Also, at December 31, 2018, including accrued but unpaid dividends, there were potentially 113,443,062 shares issuable upon the conversion of the Series A Preferred Stock and, including accrued but unpaid dividends, there were potentially 144,274,514 shares issuable upon the conversion of the Series B Preferred stock. The shares issuable from the conversion of the notes and the Series A and Series B Preferred stock have been excluded from earnings per share calculations because these shares are anti-dilutive. Comprehensive Loss ASC 220, Comprehensive Income Financial Instruments Pursuant to ASC 820, Fair Value Measurements and Disclosures Level 1. Level 2. Level 3. The Company’s financial instruments consist principally of cash, accounts receivable, accounts payable and accrued liabilities, debt, and amounts due to related parties. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. Reclassification Certain amounts in prior periods have been reclassified to conform to the current year presentation. Recent Accounting Pronouncements Not Yet Adopted Leases In February 2016, the FASB issued ASU 2016-02, Leases Additional Equity Disclosures in Quarterly Reports On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification

OTHER ASSETS

OTHER ASSETS	6 Months Ended
	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
OTHER ASSETS	3. OTHER ASSETS On December 31, 2015, RedHawk Land & Hospitality, LLC, a wholly-owned subsidiary of the Company, acquired from Beechwood Properties, LLC 280,000 Class A Units (approximately a 2.0% membership interest) of fully paid, non-assessable units of limited liability company interest in Tower Hotel Fund 2013, LLC, a real estate development limited liability company formed in the state of Hawaii for acquisition, restoration and development of the Naniloa Hilo Resort in Hilo, Hawaii. The $625,000 purchase price was paid by the issuance of 625 shares of the Company’s Series A Preferred Stock. The purchase price was determined by an independent third-party valuation. Beechwood Properties, LLC is a real estate limited liability company owned and controlled by G. Darcy Klug, a stockholder and Chief Financial Officer and Chairman of the board of directors of the Company. This investment in real estate limited partnership is recorded at cost, less distributions, and the Company is not aware of any indicator of impairment as of December 31, 2018. It is not practicable for the Company to estimate fair value of this investment. On March 23, 2016, one of our wholly-owned subsidiaries, RedHawk Pharma UK Ltd (which we refer to herein as “Pharma”), initially acquired a 25% equity interest in EcoGen Europe Ltd (which we refer to as “EcoGen”) from Scarlett Pharma Ltd (which we refer to herein as “Scarlett”). On September 12, 2017 we completed a share transfer agreement wherein we increased our ownership in EcoGen to 75%. On December 19, 2017 we completed another share transfer agreement wherein we increased our ownership in EcoGen to 100%. In connection with the December share transfer the non-controlling interest was eliminated. Under the terms of an agreement we reached with Scarlett and its affiliate related to these share exchanges, they surrendered ten (10) million shares of RedHawk common stock and transferred to RedHawk approximately $300,000 of EcoGen preferred stock and other consideration. In exchange, RedHawk assumed approximately $370,000 of obligations due to EcoGen by Scarlett and its affiliates. The RedHawk Shares were originally issued to Scarlett in connection with the Company’s March 2016 investment of 25% into EcoGen. As of December 31, 2017, Pharma now owns approximately $635,000 of EcoGen’s preferred stock and 100% of EcoGen’s common stock. The exchange agreements also settled numerous outstanding disputes between the Company, Scarlett, Warwick and the noncontrolling owners of the Company. A non-cash settlement loss of $62,425 resulted and was included in our results for the year ended June 30, 2018. During the fiscal year ended June 30, 2017, we began to consolidate the accounts of EcoGen in our financial statements under the variable interest entity model. In the quarter ended September 30, 2017, we became the majority owner of EcoGen and as of December 31, 2017, we now own 100% of the common stock of EcoGen. As of December 31, 2018 and June 30, 2018, we have approximately $383,019 and $371,894, respectively, ($328,629 and $331,894, respectively, net of accumulated amortization) in intangible assets related to licenses held by EcoGen. Such intangible assets are being amortized over an estimated useful life of 20 years. In September 2018, the Company acquired the exclusive license rights to certain medical device technology for $450,000, plus a broker’s fee of $17,500. Under the terms of the license agreement, the Company has paid $25,000 plus the first of a total twenty quarterly payments of $21,250 each was paid in January 2019. Any remaining payments become immediately payable upon the receipt of final approval by the FDA of devices related to the technology. Additionally, the Company will pay a consulting fee of $1,000 per month for sixty months. The broker’s fee was paid through the issuance of 14 million shares of the Company’s common stock.

LOAN AND INSURANCE NOTE PAYABLE

LOAN AND INSURANCE NOTE PAYABLE	6 Months Ended
	Dec. 31, 2018
Loans Payable [Abstract]
LOAN AND INSURANCE NOTE PAYABLE	4. LOAN AND INSURANCE NOTE PAYABLE We finance a portion of our insurance premiums. At December 31, 2018, there was a $3,629

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Dec. 31, 2018
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	5. RELATED PARTY TRANSACTIONS Effective December 1, 2016, the Company entered into a $250,000 Commercial Note Line of Credit (which we refer to as the “Line of Credit”) with a stockholder and officer of the Company to evidence prior indebtedness and provide for future borrowings. The advances are used to fund our operations. The Line of Credit accrues interest at 5% per annum and matures on March 31, 2019. At maturity, or in connection with a pre-payment, subject to the conditions set forth in the Line of Credit, the stockholder has the right to convert the amount outstanding (or the amount of the prepayment) into the Company’s Series A Preferred Stock at the par value of $1,000 per share. At December 31, 2018 and June 30, 2018, the principal balance totaled $0 and $22,674, respectively. This same stockholder and officer also holds $29,250 of 5% convertible notes, which mature in December 2020 and are convertible into common stock at a rate of $0.015 per share or 1,950,000 shares. In fiscal year 2018, certain stockholders of the Company made $77,000 in advances to the Company, which is still outstanding as of December 31, 2018. In the three month period ended December 31, 2018, the Company agreed to issue 15.4 million shares of the Company’s common stock (cost of $19,250) in lieu of any interest, past or present, related to these advances. All of the above liabilities are included in Due to Related Parties in the accompanying consolidated balance sheet as of December 31, 2018. Beginning in the quarter ended March 31, 2017, certain members of management agreed to forego management fees in consideration of the operating cash flow needs of the Company. There is not a set timeline to reinstitute such management fees. As of December 31, 2018 and June 30, 2018, $60,000 in such fees remain unpaid and are recorded in accounts payable and accrued liabilities in the accompanying balance sheets.

LONG-TERM DEBT, DEBENTURES AND

LONG-TERM DEBT, DEBENTURES AND LINE OF CREDIT	6 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
LONG-TERM DEBT, DEBENTURES AND LINE OF CREDIT	6. LONG-TERM DEBT, DEBENTURES AND LINE OF CREDIT On November 12, 2015, we acquired certain commercial real estate from a related party that is an entity controlled by a stockholder and officer of the Company for $480,000 consisting of $75,000 of land costs and $405,000 of buildings and improvements. The purchase price was paid by through the assumption by the Company of $265,000 of long-term bank indebtedness (which we refer to as “Note”) plus the issuance of 215 shares of the Company’s newly designated Series A Preferred Stock. The purchase price also included the cost of specific security improvements requested by the lessee. The Note is dated November 13, 2015 and has a principal amount of $265,000. Monthly payments under the Note are $1,962 including interest accruing at a rate of 5.95% per annum. The Note matures in June 2021 and is secured by the commercial real estate, guarantees by the Company and its real estate subsidiary and the personal guarantee of a stockholder who is also an officer of the Company. We have authorized the issuance of up to $1 million in principal amount of convertible promissory notes (which we refer to as the “Fixed Rate Convertible Notes”). The Fixed Rate Convertible Notes are secured by certain Company real estate holdings. The Fixed Rate Convertible Notes issued mature on March 15, 2021, the fifth anniversary of the date of issuance and are convertible into shares of our common stock at a price of $0.015 per share. Interest accrues at a rate of 5% per annum and is payable semi-annually. The Company has the option to issue a notice of its intent to redeem, for cash, an amount equal to the sum of (a) 120% of the then outstanding principal balance, (b) accrued but unpaid interest and (c) all liquidated damages and other amounts due in respect of the Fixed Rate Convertible Notes. The Company may only issue the notice of its intent to redeem the Fixed Rate Convertible Notes if the trading average of the Company’s common stock equals or exceeds 300% of the conversion price during each of the five business days immediately preceding the date of the notice of intent to redeem. The holder of the Fixed Rate Convertible Notes has the right to convert all or any portion of the Fixed Rate Convertible Notes at the conversion price at any time prior to redemption. At December 31, 2018, there were $637,076 ($564,320 net of deferred financing costs and beneficial conversion option) of Fixed Rate Convertible Notes outstanding, including $87,076 of interest paid in kind. The Fixed Rate Convertible Notes (plus accrued interest) are convertible into our common stock at a conversion rate of $0.015 per share or 42,471,729 shares. During the three and six month periods ended December 31, 2018, we paid-in-kind $7,898 and $15,665, respectively, of interest on these convertible notes. In the year ended June 30, 2018, we also issued $576,000 of convertible notes to third parties with variable conversion rates (“Variable Rate Convertible Notes”). The Variable Rate Convertible Notes mature at various dates between November 2018 and 2019. We received, net of financing costs incurred, $495,850 in cash from the issuance of these notes. These Variable Rate Convertible Notes have interest accruing at rates ranging between 8% - 12%, and redemption. These notes issued to third parties have a variable conversion rate based on the price of the Company’s common stock. $127,978 of the convertible notes are currently convertible into our common stock at a variable conversion rate. During the quarter ended December 31, 2018, we issued new convertible notes of $35,000, paid in full three (3) convertible notes in the amount of $132,728, and notes, including accrued and unpaid interest, totaling $852 were converted into equity. At December 31, 2018, there were $270,978 ($257,303 net of deferred financing costs) of Variable Rate Convertible Notes outstanding. The Variable Rate Convertible Notes have maturity dates prior to December 31, 2019. It is the Company’s expectation that we will either re-finance these convertible notes to longer terms or permit conversions and, therefore, have classified such notes as non-current. Also, during the year ended June 30, 2018, we issued $29,250 of convertible notes to our majority stockholder in exchange for 7,450,000 shares of our common stock. The note matures in December 2020 and is convertible into 1,950,000 shares, or $0.015 per share. (See Note 5.) In February 2018, we obtained a $100,000 line of credit from a bank. The line of credit matures in February 2021 and is collateralized by a $100,000 certificate of deposit at the bank. As of December 31, 2018, approximately $100,000 was drawn under the line of credit. As of December 31, 2018. the interest rate on the line of credit is 7.0% per annum.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	7. COMMITMENTS AND CONTINGENCIES On January 31, 2017, the Company and a stockholder filed a complaint (the “Complaint”) in the United States District Court for the Eastern District of Louisiana (RedHawk Holdings Corp. and Beechwood Properties, LLC Case No. 2:17-cv-819). The Complaint names Daniel J. Schreiber (“Schreiber”) and the Schreiber Living Trust – DTD 2/08/96 (the “Schreiber Trust”) as defendants. Schreiber is the former Chief Executive Officer and director of RedHawk. The Schreiber Trust, of which Schreiber is the Trustee, is a shareholder of the Company. The Complaint lodged claims on behalf of RedHawk for securities fraud, fraud, and Schreiber’s breach of fiduciary duties. On April 24, 2017, RedHawk and its shareholder filed an amended complaint (“Amended Complaint”) naming Schreiber as the only proper defendant in the suit, individually and as Trustee of the Schreiber Trust. On May 22, 2017, Schreiber filed a motion to dismiss, or in the alternative to transfer, the suit on the grounds of lack of personal jurisdiction and improper venue. After the parties filed an opposition and reply, on August 16, 2017 the court denied Schreiber’s motion to dismiss. On September 13, 2017, Schreiber filed an answer to the Amended Complaint, as well as counterclaims against RedHawk, Beechwood, and a director of RedHawk for actions allegedly taken in the course of his duty as a director. The counterclaims against RedHawk and its director are for alleged violation of UCC § 8-401, breach of fiduciary duty, negligence, and unfair trade practices. The legal remedies sought in these counterclaims were the subject of a lawsuit filed previously by Schreiber in the United States District Court for the Southern District of California on April 24, 2017 (Case No. 3:17-cv-8824). At the time of the answer of the Louisiana lawsuit, the California action was still pending, and the answer asked that the counterclaim filed in Louisiana be stayed until the California case was adjudicated. On September 26, 2017, the court in the California action granted RedHawk’s motion to dismiss that suit. October 24, 2017, a scheduling conference was held. The parties agreed to, among other matters, to exchange documents and conduct other discovery, and to schedule a bench trial to originally start June 11, 2018. On March 12, 2018, the parties agreed to extend the discovery period to September 7, 2018. On February 6, 2019, we agreed to settle this matter. The settlement is subject to final documentation and other terms and conditions. The settlement provides that approximately 52.4 million shares of the Company’s common stock currently held by the Schreiber Trust will be returned to the Company in exchange for a payment of $250,000 at closing, a $200,000 promissory note payable 18 months after closing, and a $200,000 promissory note payable 30 months after closing, and the dismissal of all claims and counter-claims against the parties in the suit. The promissory notes are secured with certain assets of an officer and director of the Company. At any time within 180 days of closing, the promissory notes can be paid in their entirety for $300,000. The amount by which the fair value of these settlement payments exceeds the current market price of the repurchased common stock at closing is considered to be related to the settlement of the claims and counter-claims. Accordingly, we have accrued an additional $396,500 as of December 31, 2018. While we are insured for our legal defense costs in this matter, we have a $250,000 self-insured retention. During the year ended June 30, 2018, we recorded a charge of $250,000 for costs that may be uninsured that were incurred in connection with this matter. As of December 31, 2018, the remaining accrued liability related to the possible uninsured costs related to this matter is approximately $165,000.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Dec. 31, 2018
Stockholders' Equity (Deficit):
STOCKHOLDERS' EQUITY	8. STOCKHOLDERS’ EQUITY Effective on October 13, 2015, we amended and restated our articles of incorporation as previously adopted by a majority vote of our stockholders. The amended and restated articles of incorporation, among other things, changed our name to RedHawk Holdings Corp., authorized 5,000 shares of Preferred Stock, and increased the number of authorized shares of common stock from 375,000,000 to 450,000,000. On December 26, 2017, by a vote of the majority of our stockholders, we increased the number of our authorized shares from 450,000,000 to 1,000,000,000. On August 20, 2018, by a vote of the majority of our stockholders, we increased the number of our authorized shares from 1,000,000,000 to 2,000,000,000. Preferred Stock Pursuant to a certificate of designation filed with the Secretary of State of the State of Nevada, effective November 12, 2015, 2,750 shares of our authorized Preferred Stock have been designated as Series A 5% Convertible Preferred Stock, originally with a $1,000 stated value (which we refer to as “Series A Preferred Stock”). The holders of the Series A Preferred Stock are entitled to receive cumulative dividends at a rate of 5% per annum, payable quarterly in cash, or at the Company’s option, such dividends shall be accreted to, and increase, the stated value of the issued Series A Preferred Stock (which we refer to as “PIK”). Holders of the Series A Preferred Stock are entitled to votes on all matters submitted to stockholders at a rate of ten votes for each share of common stock into which the Series A Preferred Stock may be converted. After six months from issuance, each share of Series A Preferred Stock is convertible, at the option of the holder, into the number of shares of common stock equal to the quotient of the stated value, as adjusted for PIK dividends, by $0.015, as adjusted for stock splits and dividends. Pursuant to a certificate of designation filed with the Secretary of State of the State of Nevada, effective February 16, 2016, 1,250 shares of our authorized Preferred Stock have been designated as Series B 5% Convertible Preferred Stock, originally with a $1,000 stated value (which we refer to as “Series B Preferred Stock”). The holders of the Series B Preferred Stock are entitled to receive cumulative dividends at a rate of 5% per annum, payable quarterly in cash, or at the Company’s option, such dividends shall be accreted to, and increase, the stated value of the issued Series B Preferred Stock (which we refer to as “PIK”). Holders of the Series B Preferred Stock are entitled to votes on all matters submitted to stockholders at a rate of ten votes for each share of common stock into which the Series B Preferred Stock may be converted. After six months from issuance, each share of Series B Preferred Stock is convertible, at the option of the holder, into the number of shares of common stock equal to the quotient of the stated value, as adjusted for PIK dividends, by $0.01, as adjusted for stock splits and dividends. During the three month periods ended December 31, 2018 and 2017, we paid-in-kind $38,820 and $36,938, respectively, of related preferred stock dividends. During the six month periods ended December 31, 2018 and 2017, we paid-in-kind $77,160 and $73,420, respectively, of related preferred stock dividends.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	9. INCOME TAXES As of June 30, 2018, the Company had approximately $3,600.000 of U.S. net operating losses (NOLs) carried forward to offset taxable income in future years which expire commencing in fiscal 2026 and run through 2038. As a result of the numerous common stock transactions that have occurred, the amount of these NOLs which is actually available to offset future income may be severely limited due to change-in-control tax provisions. The Company has not estimated the effect of such change-in-control limitation. The related deferred income tax asset of these NOLs, without consideration of any change-of-control limitation, was estimated to be approximately $750,000 as of June 30, 2018. As a result of the enactment of the Tax Cuts and Jobs Act (The Act) in December 31, 2017, the estimated deferred income tax asset related to U.S. NOL carry forwards is based on the reduced 21% corporate income tax rate. Due to our history of operating losses and the uncertainty surrounding the realization of the deferred tax assets in future years, our management has determined that it is more likely than not that the deferred tax assets will not be realized in future periods. Accordingly, the Company has recorded a valuation allowance against its net deferred tax assets. The only change during the six month period ended December 31, 2018 would be an increase to the NOL due to additional losses incurred. Thus, there is no net tax asset recorded as of December 31, 2018 or June 30, 2018 as a 100% valuation allowance has been established for any tax benefit. EcoGen also has a net operating loss as of December 31, 2018 and June 30, 2018 for which no deferred tax asset has been provided. Similarly, there is no income tax benefit recorded on the net loss of the Company for the three month and six month periods ended December 31, 2018 and 2017. The Company did not have any accumulated foreign earnings for which taxes were deferred and subject to the one-time transition tax under The Act. The Company accounts for interest and penalties relating to uncertain tax provisions in the current period statement of operations, as necessary. The Company’s tax years from inception are subject to examination. There are no income tax examinations currently in progress.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
SEGMENT INFORMATION	10. SEGMENT INFORMATION SFAS No. 131, “Disclosures About Segments of an Enterprise and Related Information,” MEDICAL Six months ended LAND & DEVICE & OTHER December 31, 2018 HOSPITALITY PHARMA SERVICES CORPORATE TOTAL Operating revenues, gross and net $ 24,509 $ 71,011 $ — $ — $ 95,520 Operating income (loss) $ (2,203 ) $ (84,761 ) $ (201 ) $ (233,663 ) $ (320,828 ) Interest expense $ (7,737 ) $ — $ — $ (162,581 ) $ (170,318 ) Depreciation and amortization $ 15,667 $ 45,484 $ — $ — $ 61,151 Identifiable assets $ 943,966 $ 1,117,450 $ — $ 162,129 $ 2,223,545 MEDICAL Six months ended LAND & DEVICE & OTHER December 31, 2017 HOSPITALITY PHARMA SERVICES CORPORATE TOTAL Operating revenues, gross $ 33,935 $ 266,162 $ — $ — $ 300,097 Operating revenues, net $ 33,935 $ 160,195 $ — $ — $ 194,130 Operating income (loss) $ 9,232 $ (54,827) $ (1,727) $ (99,584) $ (146,906) Interest expense $ 7,529 $ (3) $ — $ 32,080 $ 39,606 Depreciation and amortization $ — $ 44,332 $ — $ — $ 44,332 Identifiable assets $ 1,380,809 $ 264,326 $ 90 $ 756,791 $ 2,402,016 MEDICAL Three months ended LAND & DEVICE & OTHER December 31, 2018 HOSPITALITY PHARMA SERVICES CORPORATE TOTAL Operating revenues, gross and net $ 14,759 $ 34,093 $ — $ — $ 48,852 Operating income (loss) $ 3,285 $ (34,335 ) $ (21 ) $ (181,743 ) $ (212,814 ) Interest expense $ 3,841 $ — $ — $ 83,324 $ 87,165 Depreciation and amortization $ 7,834 $ 22,568 $ — $ — $ 30,402 MEDICAL Three months ended LAND & DEVICE & OTHER December 31, 2017 HOSPITALITY PHARMA SERVICES CORPORATE TOTAL Operating revenues, gross $ 19,685 $ 212,519 $ — $ — $ 718,337 Operating revenues, net $ 19,685 $ 106,552 $ — $ — $ 156,714 Operating income (loss) $ 3,005 $ (37,220) $ 17,891 $ (303,689) $ (278,136) Interest expense $ 3,729 $ (1) $ — $ 13,250 $ 13,250 Depreciation and amortization $ — $ 17,590 $ — $ — $ 25,424

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Dec. 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	11. SUBSEQUENT EVENTS The Company evaluated events occurring after December 31, 2018, and through the date the financial statements were issued, February 19, 2019, and determined that other than the agreement to settle the Schreiber litigation, which is described in Note 7, there were no other events or transactions that would require recognition or disclosure in these financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited interim condensed financial statements of the Company as of December 31, 2018 and for the three and six month periods ended December 31, 2018 included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The year-end condensed balance sheet dated as of June 30, 2018 is audited and is presented here as a basis for comparison. Although the financial statements and related information included herein have been prepared without audit, and certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, the Company believes that the note disclosures are adequate to make the information presented not misleading. These unaudited condensed financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K as of June 30, 2018. In the opinion of our management, the unaudited interim financial statements included herein reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows for the periods presented. The results of operations for interim periods are not necessarily indicative of the results expected for the full year or any future period.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries in which we have a greater than 50% ownership. All material intercompany accounts have been eliminated upon consolidation. Certain prior year amounts are sometimes reclassified to be consistent with the current year financial statement presentation. Equity investments, which we have an ownership greater than 20% but less than 50% through which we exercise significant influence over but do not control the investee and we are not the primary beneficiary of the investee’s activities, are accounted for using the equity method of accounting. Equity investments, which we have an ownership less than 20%, are recorded at cost.
Use of Estimates	Use of Estimates The financial statements and related notes are prepared in conformity with GAAP which 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. The Company regularly evaluates estimates and assumptions related to valuation and impairment of investments and long-lived assets, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
Revenue Recognition	Revenue Recognition We derive revenue from several types of activities – medical device sales, branded generic pharmaceutical sales, commercial real estate leasing and financial services. Our medical device sales include the marketing and distribution of certain professional and consumer grade digital non-contact thermometers, needle destruction unit and advanced bleeding control, non-compression hemostasis. Through our United Kingdom based subsidiary, we manufacture, and market, branded generic pharmaceuticals, and certain other generic pharmaceuticals known as “specials”. Our real estate leasing revenues are from certain commercial properties under lease. The Company offers customer discounts in certain cases. Such discounts are estimated at time of product sale and deducted from gross revenues. We adopted as of July 1, 2018, updated revenue recognition guidance (Topic 606). Topic 606 is an update to Topic 605, which was the revenue recognition standard in effect for all prior periods. Pursuant to Topic 605, revenue generally is realized or realizable and earned when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. Topic 606 changes the criteria for recognition of revenue. It establishes a single revenue recognition model for all contracts with customers, eliminates industry specific requirements and expands disclosure requirements. Revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, we apply the following five steps: (1) identify contracts with customers, (2) identify the performance obligations in the contracts, (3) determine the transaction price, (4) allocate the transaction price to the performance obligation in the contract, and (5) recognize revenue as the entity satisfies performance obligations. The adoption of this standard did not affect our financial statements.
Cash and Cash Equivalents	Cash and Cash Equivalents We consider highly liquid investments with an original maturity of 90 days or less to be cash equivalents. The Company did not have any cash equivalents as of December 31, 2018 or June 30, 2018.
Accounts Receivable	Accounts Receivable Accounts receivables are amounts due from customers of our pharmaceutical and medical device divisions. The amount is reported at the billed amount, net of any expected allowance for bad debts. There was no allowance for doubtful accounts as of December 31, 2018 or June 30, 2018.
Inventory	Inventory Inventory consist of purchased thermometers, an advanced bleeding control, non-compression hemostasis, a patented antimicrobial ionic silver calcium catheter dressing, needle destruction devices and certain branded generic pharmaceuticals held for resale. All inventories are stated at the lower of cost or net realizable value utilizing the first-in, first-out method.
Property and Improvements	Property and Improvements Property and improvements are stated at cost. We provide for depreciation expense on a straight-line basis over each asset’s useful life depreciated to their estimated salvage value. Buildings are depreciated over a useful life of 20 to 30 years. Building improvements are depreciated over a useful life of 5 to 10 years. During the year ended June 30, 2017, we decided to sell our Louisiana real estate holdings, which includes our former corporate headquarters on Chemin Metairie Road in Youngsville, Louisiana and a property on Jefferson Street in Lafayette, Louisiana that we are leasing to a third party. As a result of that decision, the net book value of those properties along with related mortgage notes were reflected as assets and liabilities held for sale in the balance sheets. At that time, we also ceased depreciating such assets. All such amounts are included in the land and hospitality segment. A sale of these properties did not occur in the fiscal year ended June 30, 2018 and, as such, the Company has returned these properties to assets held for use and depreciation expenses was recorded in the fourth quarter of fiscal year 2018 for the period the properties were included in assets held for sale. We will continue to list these properties for sale, but it is uncertain if the sales will occur during the next twelve months. Based on the present real estate market and discussions with brokers, no impairment of the recorded amounts has occurred as of December 31, 2018. Effective July 1, 2017, the Chemin Metairie Road property was leased under a one-year term at a rent of $1,500 per month. The lessee had an option to purchase the property during the lease for the lesser of $300,000 or the average of two independent appraisals. On June 30, 2018, the tenant did not exercise his option to purchase the property. The Company has returned the property to service and currently uses this property as offices for our medical products unit. Effective August 1, 2017, the tenant that leases the Jefferson Street property has renewed that lease through December 31, 2022 at a rent of $3,250 per month subject to certain increase adjustments. We continue to offer these two properties for sale. Since we are not certain a sale will occur during our 2019 fiscal year, we reflect these assets as non-current. We are also pursuing the sale of our remaining investment in the real estate limited partnership investment. In August 2018, based on stability of operations of the underlying real estate property and recent valuations, the partnership refinanced the property. In September 2018, we received a distribution of approximately $370,000 from the real estate limited partnership following this refinancing. This distribution is recorded as a reduction of our investment in the limited partnership, which is recorded at cost. We are currently in negotiations to sell our interest in the partnership and anticipate such a transaction will close prior to June 30, 2019. Thus, our investment is shown as a current asset as of December 31, 2018 and June 30, 2018 in the accompanying consolidated balance sheets.
Income Taxes	Income Taxes Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted Accounting Standard Codification (which we refer to as “ASC”) 740, Income Taxes,
Basic and Diluted Net Loss Per Share	Basic and Diluted Net Loss Per Share The Company computes net loss per share in accordance with ASC 260, Earnings Per Share, At December 31, 2018, including accrued but unpaid interest, there were 42,471,729 shares issuable upon conversion of our fixed rate convertible notes. There are $270,978 in convertible notes that are convertible at a variable conversion rate and not included in the issuable share amount in the preceding sentence. Also, at December 31, 2018, including accrued but unpaid dividends, there were potentially 113,443,062 shares issuable upon the conversion of the Series A Preferred Stock and, including accrued but unpaid dividends, there were potentially 144,274,514 shares issuable upon the conversion of the Series B Preferred stock. The shares issuable from the conversion of the notes and the Series A and Series B Preferred stock have been excluded from earnings per share calculations because these shares are anti-dilutive.
Comprehensive Loss	Comprehensive Loss ASC 220, Comprehensive Income
Financial Instruments	Financial Instruments Pursuant to ASC 820, Fair Value Measurements and Disclosures Level 1. Level 2. Level 3. The Company’s financial instruments consist principally of cash, accounts receivable, accounts payable and accrued liabilities, debt, and amounts due to related parties. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.
Reclassification	Reclassification Certain amounts in prior periods have been reclassified to conform to the current year presentation.
Recent Accounting Pronouncements Not Yet Adopted	Recent Accounting Pronouncements Not Yet Adopted Leases In February 2016, the FASB issued ASU 2016-02, Leases Additional Equity Disclosures in Quarterly Reports On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
Schedule of segment activity	The following table reflects our segments as of September 30, 2018 and 2017 and for the three month periods then ended. MEDICAL Six months ended LAND & DEVICE & OTHER December 31, 2018 HOSPITALITY PHARMA SERVICES CORPORATE TOTAL Operating revenues, gross and net $ 24,509 $ 71,011 $ — $ — $ 95,520 Operating income (loss) $ (2,203 ) $ (84,761 ) $ (201 ) $ (233,663 ) $ (320,828 ) Interest expense $ (7,737 ) $ — $ — $ (162,581 ) $ (170,318 ) Depreciation and amortization $ 15,667 $ 45,484 $ — $ — $ 61,151 Identifiable assets $ 943,966 $ 1,117,450 $ — $ 162,129 $ 2,223,545 MEDICAL Six months ended LAND & DEVICE & OTHER December 31, 2017 HOSPITALITY PHARMA SERVICES CORPORATE TOTAL Operating revenues, gross $ 33,935 $ 266,162 $ — $ — $ 300,097 Operating revenues, net $ 33,935 $ 160,195 $ — $ — $ 194,130 Operating income (loss) $ 9,232 $ (54,827) $ (1,727) $ (99,584) $ (146,906) Interest expense $ 7,529 $ (3) $ — $ 32,080 $ 39,606 Depreciation and amortization $ — $ 44,332 $ — $ — $ 44,332 Identifiable assets $ 1,380,809 $ 264,326 $ 90 $ 756,791 $ 2,402,016 MEDICAL Three months ended LAND & DEVICE & OTHER December 31, 2018 HOSPITALITY PHARMA SERVICES CORPORATE TOTAL Operating revenues, gross and net $ 14,759 $ 34,093 $ — $ — $ 48,852 Operating income (loss) $ 3,285 $ (34,335 ) $ (21 ) $ (181,743 ) $ (212,814 ) Interest expense $ 3,841 $ — $ — $ 83,324 $ 87,165 Depreciation and amortization $ 7,834 $ 22,568 $ — $ — $ 30,402 MEDICAL Three months ended LAND & DEVICE & OTHER December 31, 2017 HOSPITALITY PHARMA SERVICES CORPORATE TOTAL Operating revenues, gross $ 19,685 $ 212,519 $ — $ — $ 718,337 Operating revenues, net $ 19,685 $ 106,552 $ — $ — $ 156,714 Operating income (loss) $ 3,005 $ (37,220) $ 17,891 $ (303,689) $ (278,136) Interest expense $ 3,729 $ (1) $ — $ 13,250 $ 13,250 Depreciation and amortization $ — $ 17,590 $ — $ — $ 25,424

NATURE OF OPERATIONS AND CONT_2

NATURE OF OPERATIONS AND CONTINUANCE OF BUSINESS (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Revenues	$ 48,852		$ 95,520		$ 384,279
Revenues, net	54,070		100,738		275,845
Consolidated net loss	701,929	$ 186,447	898,546	$ 259,837	910,062
Net cash used in operating activities			304,406	168,734	411,268
Cash	14,768	$ 38,625	14,768	$ 38,625	19,034	$ 53,939
Certificate of deposit	100,225		100,225
Working capital	352,114		352,114
Accumulated deficit	$ 5,280,835		$ 5,280,835		$ 4,302,291

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2018	Jun. 30, 2018
Percentage of ownership	50.00%
Equity method ownership percentage	20.00%
Incremental common shares issuable upon conversion of notes	42,471,729
Convertible notes, amount	$ 270,978
Building [Member] | Minimum [Member]
Useful life	20 years
Building [Member] | Maximum [Member]
Useful life	30 years
Building Improvements [Member] | Minimum [Member]
Useful life	5 years
Building Improvements [Member] | Maximum [Member]
Useful life	10 years
Chemin Metairie Road [Member]
Distribution received from real estate partnership	$ 370,000
Property lease term	1 year
Lease rent	$ 1,500
Lease rent subject to certain increase adjustments	3,250
Payments to acquire property on lease	$ 300,000
Renewed lease term		Dec. 31, 2022
Series A Preferred Stock [Member]
Incremental common shares issuable upon conversion of preferred stock	113,443,062
Series B Preferred Stock [Member]
Incremental common shares issuable upon conversion of preferred stock	144,274,514

OTHER ASSETS (Details Narrative

OTHER ASSETS (Details Narrative) - USD ($)	Dec. 31, 2017	Dec. 19, 2017	Dec. 19, 2017	Sep. 30, 2018	Dec. 31, 2015	Dec. 31, 2018	Jun. 30, 2018	Sep. 12, 2017	Mar. 23, 2016
Percentage of ownership						50.00%
Intangible assets related to licenses						$ 846,254	$ 415,163
Accumulated amortization						326,056	292,072
Eco Gens Common Stock [Member]
Percentage of ownership	100.00%
Eco Gens Preferred Stock [Member]
Amount of owned by pharma	$ 635,000
License Agreement [Member]
Payments to acquire license rights				$ 21,250
Number of shares issued				14,000,000
License Agreement [Member] | FDA Devices [Member]
Consulting fee				$ 1,000
Fees term				60 months
Medical Device Technology [Member]
Payments to acquire license rights				$ 450,000
Broker's fee				$ 17,500
Share Transfer Agreement [Member]
Consideration transferred amount		$ 300,000
Other consideration in exchange approximately		$ 370,000
September 2018 [Member]
Settlement loss							62,425
Payments to acquire license rights							25,000
Scarlett Pharma Ltd (Scarlett) [Member]
Additional number of shares surrendered			10,000,000
EcoGen [Member]
Intangible assets related to licenses						383,019	371,894
Accumulated amortization						$ 328,629	$ 331,894
Intangible assets, useful life						20 years
EcoGen Europe Limited ("EcoGen") [Member]
Percentage of ownership									25.00%
Increased percentage of ownership		100.00%	100.00%					75.00%
EcoGen Europe Limited ("EcoGen") [Member] | March 2016 investment [Member]
Percentage of ownership		25.00%	25.00%
Beechwood Properties, LLC [Member]
Number of units acquired					280,000
Percentage of membership interest acquired					2.00%
Consideration transferred amount					$ 625,000
Number of shares issued upon acquisition					625

LOAN AND INSURANCE NOTE PAYAB_2

LOAN AND INSURANCE NOTE PAYABLE (Details Narrative) - USD ($)	6 Months Ended
	Dec. 31, 2018	Jun. 30, 2018
Loans Payable [Abstract]
Insurance notes payable	$ 3,629	$ 7,786
Debt due date	May 31, 2019

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Feb. 28, 2018	Dec. 31, 2018	Dec. 31, 2018	Jun. 30, 2018	Dec. 01, 2016
Line of credit interest rate			7.00%
Line of credit maturity date	Feb. 28, 2021
Due to related party		$ 106,250	$ 106,250	$ 118,924
Accounts payable and accrued liabilities		60,000	60,000	60,000
Stockholder and Officer [Member]
Commercial note line of credit		$ 29,250	$ 29,250	29,250
Line of credit interest rate			5.00%
Line of credit maturity date			Dec. 31, 2020
Conversion of common stock issued			1,950,000
conversion price per share		$ 0.015	$ 0.015
Advances from stockholder			$ 77,000
Number of shares issued in lieu of interest (in shares)		15,400,000
Number of shares issued in lieu of interest, value		$ 19,250
Commercial Note Line of Credit [Member]
Due to related party		$ 0	$ 0	$ 22,674
Line of Credit [Member]
Commercial note line of credit					$ 250,000
Line of credit interest rate			5.00%
Line of credit maturity date			Mar. 31, 2019
Line of Credit [Member] | 5% Series A Preferred Stock [Member]
Preferred stock, stated value (in dollars per share)					$ 1,000

LONG-TERM DEBT, DEBENTURES AN_2

LONG-TERM DEBT, DEBENTURES AND LINE OF CREDIT (Details Narrative) - USD ($)	Feb. 28, 2018	Nov. 13, 2015	Nov. 12, 2015	Dec. 31, 2018	Dec. 31, 2018	Jun. 30, 2018
Convertible promissory note principal				$ 35,000	$ 35,000
Debt maturity date					May 31, 2019
Convertible Notes outstanding				270,978	$ 270,978
Net of financing costs				257,303	257,303
Interest paid in kind				7,898	15,665
Line of credit outstanding	$ 100,000			100,553	100,553	$ 100,553
Line of credit, maturity date	Feb. 28, 2021
Line of credit, collateral value	$ 100,000
Line of credit withdrawn				$ 100,000	$ 100,000
Line of credit interest rate					7.00%
Repayment of convertible debt					$ 132,728
Amount of notes converted into equity including accrued and unpaid interest					$ 852
Series A Preferred Stock [Member]
Number of share issued			215
Land [Member]
Payment to acquired real estate from a related party			$ 75,000
Building and Improvements [Member]
Payment to acquired real estate from a related party			405,000
Stockholder and Officer [Member]
Payment to acquired real estate from a related party			480,000
Common stock conversion price | $ / shares				$ 0.015	$ 0.015
Line of credit maximum borrowing capacity				$ 29,250	$ 29,250	$ 29,250
Line of credit, maturity date					Dec. 31, 2020
Line of credit interest rate					5.00%
Number of converted shares | shares					1,950,000
Majority Stockholder [Member]
Description of maturity						December 2,020
Number of converted shares | shares						7,450,000
Convertible Notes [Member]
Convertible promissory note principal		$ 265,000	$ 265,000
Debt instrument, monthly payment		$ 1,962
Convertible promissory notes interest rate		5.95%
Description of maturity		The Note matures in June 2021 and is secured by the commercial real estate, guarantees by the Company and its real estate subsidiary and the personal guarantee of a stockholder who is also an officer of the Company.
Convertible Notes [Member] | Majority Stockholder [Member]
Common stock conversion price | $ / shares						$ 0.015
Number of converted shares | shares						1,950,000
Fixed Rate Convertible Notes [Member]
Convertible promissory note principal				$ 1,000,000	$ 1,000,000
Convertible promissory notes interest rate				5.00%	5.00%
Debt maturity date					Mar. 15, 2021
Common stock conversion price | $ / shares				$ 0.015	$ 0.015
Description of call feature					The Company has the option to issue a notice of its intent to redeem, for cash, an amount equal to the sum of (a) 120% of the then outstanding principal balance, (b) accrued but unpaid interest and (c) all liquidated damages and other amounts due in respect of the Fixed Rate Convertible Notes. The Company may only issue the notice of its intent to redeem the Fixed Rate Convertible Notes if the trading average of the Company’s common stock equals or exceeds 300% of the conversion price during each of the five business days immediately preceding the date of the notice of intent to redeem.
Convertible Notes outstanding				$ 637,076	$ 637,076
Net of financing costs				$ 564,320	564,320
Interest paid in kind					$ 87,076
Number of converted shares | shares					42,471,729
Variable Rate Convertible Notes [Member]
Debt maturity date						Sep. 30, 2019
Variable Rate Convertible Notes [Member] | Minimum [Member]
Convertible promissory notes interest rate						8.00%
Variable Rate Convertible Notes [Member] | Maximum [Member]
Convertible promissory notes interest rate						12.00%
Variable Rate Convertible Notes [Member] | Third Parties [Member]
Description of maturity						November 2018 and 2019
Net of financing costs						$ 495,850
Number of converted shares | shares						127,978
Convertible debt conversion value						$ 576,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	Feb. 06, 2019	Dec. 31, 2018	Jun. 30, 2018
legal defense costs		$ 250,000
Self-insured retention amount			$ 250,000
Accrued liability		$ 165,000
Common stock, issued		560,465,402	398,410,762
Promissory note payable		$ 35,000
Additional accrued liability		$ 396,500
Subsequent Event [Member]
Common stock, issued	524,000,000
Returned to the company in exchange payment	$ 250,000
Promissory note payable	200,000
Promissory notes can be paid	$ 300,000

STOCKHOLDERS' EQUITY (Details N

STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)	Feb. 16, 2016	Nov. 12, 2015	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018	Oct. 13, 2015
Preferred stock, authorized			5,000		5,000		5,000	5,000
Common stock, authorized			2,000,000,000		2,000,000,000		1,000,000,000	375,000,000
Dividends, preferred stock, paid-in-kind			$ 38,820	$ 36,938	$ 77,160	$ 73,420
Series A 5% Convertible Preferred Stock [Member]
Preferred stock, authorized		2,750
Preferred stock, stated value (in dollars per share)		$ 1,000
Preferred stock cumulative dividend rate		5.00%
Description of preferred stock voting rights		Holders of the Series A Preferred Stock are entitled to votes on all matters submitted to stockholders at a rate of ten votes for each share of common stock into which the Series A Preferred Stock may be converted.
Preferred stock, paid-in-kind, per share		$ 0.015
Series B 5% Convertible Preferred Stock [Member]
Preferred stock, authorized	1,250
Preferred stock, stated value (in dollars per share)	$ 1,000
Description of preferred stock voting rights	Holders of the Series B Preferred Stock are entitled to votes on all matters submitted to stockholders at a rate of ten votes for each share of common stock into which the Series B Preferred Stock may be converted.
Preferred stock, paid-in-kind, per share	$ 0.01
December 26, 2017 [Member]
Common stock, authorized			450,000,000		450,000,000
August 20, 2018 [Member]
Common stock, authorized			2,000,000,000		2,000,000,000

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2018	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Net operating losses carryforwards				$ 3,600,000
Description income tax future year			Net operating losses (NOLs) carried forward to offset taxable income in future years which expire commencing in fiscal 2026 and run through 2038.
Deferred tax assets operating loss carryforwards				750,000
Reduced percentage of federal tax rate			21.00%
Deferred tax assets
Percentage of deferred tax assets valuation allowance				100.00%
Income tax benefit

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Operating revenues, gross	$ 48,852	$ 232,204	$ 95,520	$ 300,097
Operating revenues, net	48,852	126,237	95,520	194,130
Operating income (loss)	(212,814)	(103,386)	(320,828)	(146,906)
Interest expense	87,165	15,186	170,318	39,606
Depreciation and amortization	30,402	22,151	61,151	44,332
Identifiable assets	2,223,545	2,402,016	2,223,545	2,402,016	$ 2,215,317
Land & Hospitality [Member]
Operating revenues, gross	14,759	19,685	24,509	33,935
Operating revenues, net		19,685	24,509	33,935
Operating income (loss)	3,285	3,005	(2,203)	9,232
Interest expense	3,841	3,729	(7,737)	7,529
Depreciation and amortization	7,834		15,667
Identifiable assets	943,966	1,380,809	943,966	1,380,809
Medical Device & Pharma [Member]
Operating revenues, gross	34,093	212,519	71,011	266,162
Operating revenues, net		106,552	71,011	160,195
Operating income (loss)	(34,335)	(37,220)	(84,761)	(54,827)
Interest expense		(1)		(3)
Depreciation and amortization	22,568	17,590	45,484	44,332
Identifiable assets	1,117,450	264,326	1,117,450	264,326
Other Service [Member]
Operating revenues, gross
Operating revenues, net
Operating income (loss)	(21)	17,891	(201)	(1,727)
Interest expense
Depreciation and amortization
Identifiable assets		90		90
Corporate Segment [Member]
Operating revenues, gross
Operating revenues, net
Operating income (loss)	(181,743)	(303,689)	(233,663)	(99,584)
Interest expense	83,324	13,250	(162,581)	32,080
Depreciation and amortization
Identifiable assets	$ 162,129	$ 756,791	$ 162,129	$ 756,791