Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2021 | May 20, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | RedHawk Holdings Corp. | |
Entity Central Index Key | 0001353406 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Incorporation, State or Country Code | NV | |
Entity File Number | 000-54323 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,316,941,902 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Current Assets: | ||
Cash | $ 72,003 | $ 75,850 |
Receivables | 21,242 | 98,700 |
Inventory, net | 332,672 | 387,175 |
Prepaid expenses | 150,030 | 55,967 |
Total Current Assets | 575,947 | 617,692 |
Property and Improvements: | ||
Land | 110,000 | 110,000 |
Tooling & Equipment | 5,600 | 5,600 |
Building and improvements | 670,000 | 670,000 |
Property and Improvements Before Depreciation | 785,600 | 785,600 |
Less, accumulated depreciation | (168,113) | (144,013) |
Total Property and Improvement | 617,487 | 641,587 |
Other Assets: | ||
Investment in real estate limited partnership | 127,173 | 127,173 |
Right of use asset, net | 47,016 | 62,363 |
Intangible asset, net of amortization of $441,071 and $418,571, respectively | 377,826 | 389,762 |
Other assets | 132,999 | 129,962 |
Total Other Assets | 685,014 | 709,260 |
Total Assets | 1,878,448 | 1,968,539 |
Current Liabilities: | ||
Accounts payable | 554,521 | 425,884 |
Accrued liabilities | 777,181 | 642,929 |
Settlement liability | 119,496 | 519,496 |
Current maturities of long-term debt | 408,766 | 402,082 |
Operating leases - current | 22,338 | 20,728 |
Lines of credit | 137,727 | 129,389 |
Insurance notes payable | 39,983 | 11,645 |
Total Current Liabilities | 2,060,012 | 2,152,153 |
Non-current Liabilities | ||
Due to related parties | 100,000 | 242,000 |
Operating lease - non-current | 24,678 | 41,635 |
Convertible notes payable, net of $67,107 in deferred loan costs and $25,000 of beneficial conversion at March 31, 2021 and $217,167 in deferred loan costs and $250,000 of beneficial conversion at June 30, 2020 | 1,757,747 | 1,465,342 |
Total Long-Term Debt | 1,882,425 | 1,748,977 |
Total Liabilities | 3,942,437 | 3,901,130 |
Commitments and Contingencies | ||
Stockholders' Deficit: | ||
Common Stock, par value of $0.001 per share, 2,000,000,000 authorized shares and 1,518,490,545 and 1,165,199,800 issued at March 31, 2021 and June 30, 2020, respectively | 1,518,490 | 1,165,199 |
Additional paid-in capital | 1,568,469 | 852,039 |
Accumulated other comprehensive loss | (13,611) | (12,958) |
Accumulated deficit | (8,962,457) | (7,710,152) |
Total Stockholders' Equity Before Treasury Stock | (1,483,631) | (1,352,233) |
Less, Treasury stock 201,548,643 shares, at cost | (580,358) | (580,358) |
Total Stockholders' Deficit | (2,063,989) | (1,932,591) |
Total Liabilities and Stockholders' Deficit | 1,878,448 | 1,968,539 |
Series A Preferred Stock [Member] | ||
Stockholders' Deficit: | ||
Preferred stock, value | 3,125,602 | 3,110,325 |
Series B Preferred Stock [Member] | ||
Stockholders' Deficit: | ||
Preferred stock, value | $ 1,279,876 | $ 1,243,314 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Amortization of intangible assets | $ 441,071 | $ 418,571 |
Convertible notes payable, unamortized deferred loan costs | 67,107 | 217,167 |
Convertible notes payable, unamortized beneficial conversion | $ 25,000 | $ 250,000 |
Preferred stock, authorized | 5,000 | 5,000 |
Preferred stock, issued | 3,750 | 3,750 |
Preferred stock, outstanding | 3,750 | 3,750 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, issued | 1,518,490,545 | 1,165,199,800 |
Treasury stock | 201,548,643 | 201,548,643 |
Series A Preferred Stock [Member] | ||
Preferred stock, value (in dollars per share) | $ 1,137 | $ 1,131 |
Preferred stock, designated | 2,750 | 2,750 |
Preferred stock, issued | 2,750 | 2,750 |
Preferred stock, outstanding | 2,750 | 2,750 |
Series B Preferred Stock [Member] | ||
Preferred stock, value (in dollars per share) | $ 1,280 | $ 1,213 |
Preferred stock, designated | 1,250 | 1,250 |
Preferred stock, issued | 1,000 | 1,000 |
Preferred stock, outstanding | 1,000 | 1,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss (unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 29,786 | $ 148,674 | $ 690,746 | $ 217,989 |
Cost and Expenses: | ||||
Costs of goods sold | 5,736 | 38,467 | 358,910 | 55,388 |
Sales and marketing expenses | 2,115 | 90,830 | 134,732 | 208,701 |
Professional fees | 69,058 | 62,525 | 168,280 | 229,885 |
Research and development costs | 1,419 | 25,420 | 4,929 | 83,901 |
Operating expenses | 78,477 | 76,796 | 229,536 | 212,893 |
Depreciation and amortization | 15,533 | 21,458 | 46,600 | 63,375 |
General and administrative | 93,634 | 47,624 | 173,238 | 182,157 |
Total Cost and Expenses | 265,972 | 363,120 | 1,116,225 | 1,036,300 |
Net Loss from Operations | (236,186) | (214,446) | (425,479) | (818,311) |
Other Expenses: | ||||
Loss on early extinguishment of debt | (129,338) | (84,811) | ||
Settlement loss and other | (19,144) | (27,752) | (60,216) | (27,752) |
Interest expense | (190,244) | (67,723) | (666,882) | (279,238) |
Total Other Income (Expense) | (209,388) | (224,813) | (727,098) | (391,801) |
Net Loss | (445,574) | (439,259) | (1,152,577) | (1,210,112) |
Other Comprehensive Loss | ||||
Effect of foreign currency translation | (68) | (11,898) | (653) | (16,127) |
Total Other comprehensive income | (68) | (11,898) | (653) | (16,127) |
Comprehensive Loss | (445,642) | (451,157) | (1,153,230) | (1,226,239) |
Preferred Stock Dividends | (47,041) | (53,477) | (99,728) | (168,068) |
Comprehensive Loss Available for Common Stockholders | $ (492,683) | $ (504,634) | $ (1,252,958) | $ (1,394,307) |
Net Loss Per Share | ||||
Basic (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Diluted (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted Average Shares Outstanding | ||||
Basic (in shares) | 1,289,477,606 | 969,280,348 | 1,228,005,912 | 924,946,538 |
Diluted (in shares) | 1,289,477,606 | 969,280,348 | 1,228,005,912 | 924,946,538 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,152,577) | $ (1,210,112) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of intangibles | 37,847 | 39,874 |
Amortization of deferred loan costs | 203,098 | 115,928 |
Amortization of beneficial conversion discount | 225,000 | |
Depreciation | 24,100 | 23,501 |
Non-cash expenses | 2,346 | 179,917 |
Stock based compensation | 62,500 | |
Loss on extinguishment of debt | 84,811 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 77,458 | (196,192) |
Inventory | 54,503 | (3,594) |
Prepaid expense and other current assets | (94,063) | (326,184) |
Other assets | (3,037) | |
Operating lease obligation | (15,347) | |
Accounts payable and accrued liabilities | 264,869 | (181,044) |
Deferred Revenue | 267,145 | |
Net Cash Used in Operating Activities | (313,303) | (1,205,950) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of investments | 100,374 | |
Purchase of equipment | (5,600) | |
Net Cash Provided by Investing Activities | 94,774 | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payments on real estate loan | (5,049) | |
Borrowings from (payments to) related parties, net | 2,750 | 11,750 |
Proceeds from issuance of convertible debt | 696,368 | 1,751,296 |
Payments on convertible debt | (20,737) | (458,375) |
Payments on short-term debt | (79,558) | |
Payments on long-term debt | (400,000) | (7,202) |
Proceeds from lines of credit | 210,245 | |
Payments on notes payable | (116,615) | |
Payments on lines of credit | (71,976) | |
Proceeds from insurance notes payable | 28,338 | 21,561 |
Net Cash Provided by (Used in) Financing Activities | 323,324 | 1,239,472 |
Effect of exchange rate on cash | (13,868) | (30,698) |
Net change in cash | (3,847) | 97,598 |
Cash, Beginning of Period | 75,850 | 1,648 |
Cash, End of Period | 72,003 | 99,246 |
Non-Cash Investing and Financing Activities: | ||
Preferred stock dividends paid-in-kind | 99,728 | 114,859 |
Conversion of debt and accrued interest to common stock | 1,007,221 | 117,318 |
Accrued legal fees capitalized to intangible assets | 10,669 | |
Conversion of preferred stock to common stock | 299,696 | |
Operating lease assets obtained for operating lease liabilities | 67,254 | |
Supplemental Disclosures: | ||
Interest paid | 217,188 | 229,867 |
Income taxes paid |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit (unaudited) - USD ($) | SERIES A PREFERRED STOCK [Member] | SERIES B PREFERRED STOCK [Member] | COMMON STOCK [Member] | ADDITIONAL PAID-IN CAPITAL [Member] | ACCUMULATED OTHER COMPREHENSIVE LOSS [Member] | ACCUMULATED DEFICIT [Member] | TREASURY STOCK [Member] | Total |
Balance at beginning at Jun. 30, 2019 | $ 3,021,453 | $ 1,479,039 | $ 1,034,340 | $ 51,811 | $ 2,735 | $ (5,674,436) | $ (580,358) | $ (665,416) |
Balance at beginning (in shares) at Jun. 30, 2019 | 2,750 | 1,250 | 1,034,340,037 | 201,548,643 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Preferred stock dividends declared | $ 66,238 | $ 48,621 | (168,068) | (53,209) | ||||
Conversions | $ (299,696) | $ 86,433 | 286,054 | 72,791 | ||||
Conversion (in shares) | (250) | 86,433,293 | ||||||
Stock grants | $ 30,000 | 108,075 | 138,075 | |||||
Stock grants (in shares) | 30,000,000 | |||||||
Stock held for deposit | $ 20,435 | 20,435 | ||||||
Stock held for deposit (in shares) | 20,434,782 | |||||||
Net loss | (16,127) | (1,210,112) | (1,210,112) | |||||
Balance at ending at Mar. 31, 2020 | $ 3,087,691 | $ 1,227,964 | $ 1,171,208 | 445,940 | (13,392) | (7,052,616) | $ (580,358) | (1,713,563) |
Balance at ending (in shares) at Mar. 31, 2020 | 2,750 | 1,000 | 1,171,208,112 | 201,548,643 | ||||
Balance at beginning at Dec. 31, 2019 | $ 3,065,337 | $ 1,212,803 | $ 1,170,708 | 443,240 | (1,494) | (6,559,880) | $ (580,358) | (1,249,644) |
Balance at beginning (in shares) at Dec. 31, 2019 | 2,750 | 1,000 | 1,170,708,112 | 201,548,643 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Preferred stock dividends declared | $ 22,354 | $ 15,161 | (53,477) | (15,962) | ||||
Stock based compensation | $ 500 | 2,700 | 3,200 | |||||
Stock based compensation (in shares) | 500,000 | |||||||
Net loss | (11,898) | (439,259) | (451,157) | |||||
Balance at ending at Mar. 31, 2020 | $ 3,087,691 | $ 1,227,964 | $ 1,171,208 | 445,940 | (13,392) | (7,052,616) | $ (580,358) | (1,713,563) |
Balance at ending (in shares) at Mar. 31, 2020 | 2,750 | 1,000 | 1,171,208,112 | 201,548,643 | ||||
Balance at beginning at Jun. 30, 2020 | $ 3,110,325 | $ 1,243,314 | $ 1,165,199 | 852,039 | (12,958) | (7,710,152) | $ (580,358) | (1,932,591) |
Balance at beginning (in shares) at Jun. 30, 2020 | 2,750 | 1,000 | 1,165,199,800 | 201,548,643 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Preferred stock dividends declared | $ 15,277 | $ 36,562 | (99,728) | (47,889) | ||||
Conversions | $ 347,041 | 660,180 | 1,007,221 | |||||
Conversion (in shares) | 347,040,745 | |||||||
Stock based compensation | $ 6,250 | 56,250 | 62,500 | |||||
Stock based compensation (in shares) | 6,250,000 | |||||||
Net loss | (653) | (1,152,577) | (1,152,577) | |||||
Balance at ending at Mar. 31, 2021 | $ 3,125,602 | $ 1,279,876 | $ 1,518,490 | 1,568,469 | (13,611) | (8,962,457) | $ (580,358) | (2,063,989) |
Balance at ending (in shares) at Mar. 31, 2021 | 2,750 | 1,000 | 1,518,490,545 | 201,548,643 | ||||
Balance at beginning at Dec. 31, 2020 | $ 1,277,000 | $ 1,264,075 | $ 1,492,322 | 2,981,996 | (13,543) | (8,469,842) | $ (580,358) | (2,048,350) |
Balance at beginning (in shares) at Dec. 31, 2020 | 1,277 | 1,000 | 1,492,321,628 | 201,548,643 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Preferred stock dividends declared | $ 15,277 | $ 15,801 | (47,041) | (15,963) | ||||
Conversions | $ 1,833,325 | $ 19,918 | (1,469,777) | 383,466 | ||||
Conversion (in shares) | 1,473 | 19,918,917 | ||||||
Stock based compensation | $ 6,250 | 56,250 | 62,500 | |||||
Stock based compensation (in shares) | 6,250,000 | |||||||
Net loss | (68) | (445,574) | (445,642) | |||||
Balance at ending at Mar. 31, 2021 | $ 3,125,602 | $ 1,279,876 | $ 1,518,490 | $ 1,568,469 | $ (13,611) | $ (8,962,457) | $ (580,358) | $ (2,063,989) |
Balance at ending (in shares) at Mar. 31, 2021 | 2,750 | 1,000 | 1,518,490,545 | 201,548,643 |
NATURE OF OPERATIONS AND CONTIN
NATURE OF OPERATIONS AND CONTINUANCE OF BUSINESS | 9 Months Ended |
Mar. 31, 2021 | |
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. (“RedHawk” or the “Company”) was incorporated in the State of Nevada on November 30, 2005 under the name “Oliver Creek Resources Inc.” Effective August 12, 2008, we changed our name from “Oliver Creek Resources Inc.” to “Independence Energy Corp.” 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.” Currently, the Company is 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 the SANDD™ Insulin Needle Destruction Unit (formerly known as the Disintegrator™), personal protection equipment, WoundClot Surgical - Advanced Bleeding Control and the Carotid Artery Digital Non-Contact Thermometer. 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 commercial properties under lease. Additionally, the Company’s real estate investment unit holds limited liability company interests 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 nine month period ended March 31, 2021, the Company had revenues of $690,746, a consolidated net loss of $1,152,577 and cash of $313,303 used in operating activities. As of March 31, 2021, the Company had cash of $72,003, a working capital deficit of $1,484,065 and an accumulated deficit of $8,962,457. 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. We cannot predict, with certainty, the outcome of our efforts to generate liquidity and profitability, or whether such actions would generate the expected proceeds to the Company. 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 | 9 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and for the three and nine month periods ended March 31, 2021 and 2020 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 consolidated balance sheet dated as of June 30, 2020 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 consolidated 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, 2020. In the opinion of our management, the unaudited interim consolidated 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 wholly-owned subsidiaries. All material intercompany accounts have been eliminated upon consolidation. Equity investments, which we have an ownership less than 20%, are recorded at cost. Use of Estimates The consolidated 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, intangible assets, 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 In May 2014 the Financial Accounting Standards Board (which we refer to as the “FASB”) issued Accounting Standards Update (ASU) 2014-19, Revenue from Contracts with Customers (ASU 2014-19). ASU 2014-19 established a single revenue recognition model for all contracts with customers, eliminates industry specific requirements and expands disclosure requirements. The core principle of the guidance is that an entity should recognize revenue 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, an entity should 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. Effective July 1, 2018, we adopted ASU 2014-19 using the modified retrospective method. The adoption of ASU 2014-19 did not have an impact on our consolidated financial statements but required enhanced footnote disclosures. See Note 3, Revenue from Contracts with Customers, for additional information. We derive revenue from several types of activities – medical device sales, branded generic pharmaceutical sales, and commercial real estate leasing. Our medical device sales include the marketing and distribution of certain professional and consumer grade digital non-contact thermometers, our needle destruction unit, personal protection equipment, and advanced bleeding control. Through our United Kingdom based subsidiary, we manufacture, and market, branded generic pharmaceuticals. 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 revenues are reduced for such discounts at the time of the sale. Shipping and handling costs are included in revenue and costs of goods sold. 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 March 31, 2021 or June 30, 2020. Accounts Receivable Accounts receivables are amounts due from customers of our medical device, pharmaceutical, and financial services divisions. We do not require collateral from our customers. 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 March 31, 2021 or June 30, 2020. Inventory Inventory consists of needle destruction devices and its components, purchased thermometers, UV sanitation lights, face masks, an advanced bleeding control, 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. A portion of our inventory is located in the United Kingdom, which due to the COVID-19 pandemic has been in a lockdown environment since approximately March 31, 2020. As a result, sales efforts related to this inventory have temporarily ceased. The Company still expects to be able to sell this inventory, but may incur additional costs in order to do so. Accordingly, an inventory reserve of approximately $60,000 has been recorded as of March 31, 2021 to reduce the inventory to net realizable value. 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. Tooling and equipment are depreciated over a useful life of ten years. Our Louisiana real estate holdings include our former corporate headquarters on Chemin Metairie Road in Youngsville, Louisiana and a property located on Jefferson Street in Lafayette, Louisiana, that we are currently leasing to a third party. The Company is also continuing to use a portion of the Chemin Metairie Road property for equipment storage for our real estate management unit. The current lease for the Jefferson Street property is through December 31, 2022, at a rental cost of $3,250 per month. Beginning September 1, 2020, the Chemin Metairie Road property was leased through February 28, 2021, at a rental rate of $2,000 per month. At the end of the lease term, the Company listed the Chemin Metairie Road property for sale and/or lease. Income Taxes Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company follows Accounting Standard Codification (which we refer to as “ASC”) 740, Income Taxes, which requires the Company to compute tax asset benefits for net operating losses carried forward. The potential benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense in the period they are incurred. The Company does not believe that it has any uncertain tax positions. Basic and Diluted Net Loss Per Share The Company computes net loss per share in accordance with ASC 260, Earnings Per Share, which requires presentation of both basic and diluted earnings per share (EPS) on the face of the consolidated statements of operations. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and the convertible notes and the convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. There were outstanding warrants to purchase 139,558,450 shares of common stock as of March 31, 2021 of which 113,508,450 have an exercise price of $0.005 per share and 26,050,000 have an exercise price of $0.01 per share. At March 31, 2021, including accrued but unpaid interest, there was one remaining 2016 Fixed Rate Convertible Note outstanding (See Note 7) which totaled $64,118 and was convertible into 4,274,512 shares of common stock upon conversion. During the nine month period ended March 31, 2021, we issued in private offerings exempt from registration, debt securities in the form of 2019 Variable Rate Convertible Notes (See Note 7) in the aggregate principal amount of $281,500. The 2019 Variable Rate Convertible Notes are convertible into shares of common stock at a variable conversion rate. During the nine month period ended March 31, 2021, we issued in private offerings exempt from registration, debt securities in the form of 2019 Fixed Rate Convertible Notes (See Note 7) in the aggregate principal amount of $200,000. The 2019 Fixed Rate Convertible Notes mature on 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 and include 25% warrant coverage at $0.01 per share. During the nine month period ended March 31, 2021, we issued $268,236 in 2020 Fixed Rate Convertible Notes. The 2020 Fixed Rate Convertible Notes accrue interest at 10% per annum, are convertible into shares of our common stock at a price of $0.005 per share, mature twelve months after issuance and are unsecured. At March 31, 2021, including accrued but unpaid dividends, there were potentially 208,373,494 shares of common stock issuable upon the conversion of our outstanding Series A Preferred Stock and, including accrued but unpaid dividends, there were potentially 127,987,549 shares of common stock issuable upon the conversion of our outstanding Series B Preferred Stock (See Note 9). The shares of common stock that could be issued upon exercise of the warrants and the shares issuable from the conversion of the promissory notes (each discussed above), the Series A Preferred Stock, and the Series B Preferred Stock, have been excluded from earnings per share calculations because these shares are anti-dilutive due to the Company’s net loss. Comprehensive Income (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, and stated interest rates. Leases In February 2016, the FASB issued ASU 2016-02, Leases (ASU 2016-02), which amended guidance for lease arrangements in order to increase transparency and comparability by providing additional information to users of financial statements regarding an entity’s leasing activities. The revised guidance requires reporting entities to recognize lease assets and lease liabilities on the balance sheet for substantially all long-term lease arrangements. The Company has elected to use the short-term lease exception allowed in ASU 2016-02. We did enter into a long-term lease in the quarter ended March 31, 2020 for new office space and have recorded a right-of-use asset and the related lease obligation as of March 31, 2021 (See Note 6). Reclassification Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3. REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue Recognition Sales of medical devices and pharmaceuticals are recognized generally at the point in time when delivery occurs and title transfers to the buyer. Sales of medical devices and pharmaceuticals are usually collected within 90 days of the date of sale. In certain cases, the customers make advance payments on orders of medical devices. Such advance payments are recorded as deferred revenue in the accompanying consolidated balance sheets. As of March 31, 2020 and June 30, 2020, there was no deferred revenue recorded. We have distributorship and sales representative agreements in place with third parties who do not take ownership of products. Any costs incurred related to these agreements are considered to be sales and marketing expenses. In the year ended June 30, 2020, we entered into a one-year distribution agreement with a distributor, which requires the distributor to order and purchase a minimum number of medical devices in each quarter of the agreement. The Company has invoiced and recorded net revenue of approximately $50,000 and accrued the related cost of goods sold in the year ended June 30, 2020 for the required minimum purchase. The minimum purchase inventory not yet shipped is segregated and held by the Company. We also earn rental income from operating leases which is recognized over the rental period as the tenant occupies the space and pays the rental amount. Rentals are paid at the beginning of the month covered by the lease. Disaggregation of Revenue For the three and nine month periods ended March 31, 2021 and 2020, a summary of our revenue on a disaggregated basis is as follows: Three Months Ended Nine Months Ended March 31, March 31, 2021 2020 2021 2020 Sales of medical devices $ 15,769 $ 133,824 $ 639,222 $ 176,537 Rental revenue from operating lease payments 14,017 14,850 51,524 41,452 $ 29,786 $ 148,674 $ 690,746 $ 217,989 Transaction Prices In some cases, we may offer introductory or distributor discounts to customers. In such cases, we reduce the recorded revenue for such discounts. For the nine month periods ended March 31, 2021 and 2020, our revenues were reduced by $177,095 and $95,508 respectively, for such discounts. For the three month periods ended March 31, 2021 and 2020, our revenues were reduced by $2,951 and $52,859, respectively, for such discounts. Shipping and handling costs included in revenue were approximately $7,600 and $1,305 for the nine month periods ended March 31, 2021 and 2020, respectively. Shipping and handling costs included in revenue were approximately $185 and $805 for the three month periods ended March 31, 2021 and 2020, respectively. |
OTHER ASSETS
OTHER ASSETS | 9 Months Ended |
Mar. 31, 2021 | |
Other Assets [Abstract] | |
OTHER ASSETS | 4. OTHER ASSETS Our investment in Tower Hotel Fund 2013, LLC (“Hotel Fund”) is recorded at cost. The Hotel Fund owns a resort property in Hawaii. Due to the COVID-19 pandemic, the tourism industry in Hawaii was adversely affected and the resort was temporarily closed from March 2020 to November 2020 and hotel visits and activity continue to generally remain below pre-pandemic activity. The return to previous operating performance of this property and the timing, if it should occur, cannot be estimated at this time. Based on the expected reduction in cash flows and uncertainties related to the Hawaii tourism industry, the Company recorded as of June 30, 2020, an impairment of $130,000 or approximately 50% of our remaining carrying value in this investment. The ultimate amount, if any, we recover from this investment cannot be estimated at this time and may differ from our recorded investment. We are continuing to pursue the sale of our remaining investment in the Hotel Fund. As of March 31, 2021, we have approximately $367,661 ($247,021 net of accumulated amortization) in intangible assets related to licenses held by EcoGen Europe Ltd. Such intangible assets are being amortized over an estimated useful life of 20 years. In September 2018, the Company entered into an agreement to acquire the exclusive manufacturing and distribution rights to certain needle incineration intellectual properties 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 scheduled quarterly payments of $21,250. Any remaining payments become immediately payable upon the receipt of final approval by the U.S. Food and Drug Administration (FDA) of devices related to the technology. Additionally, the Company agreed to 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. In 2019, the quarterly payments and the consulting fee were suspended as the Company believes the seller breached the terms of the purchase agreement by, among other things: failing to provide RedHawk with exclusive rights to the intellectual properties and technology, all related inventions, patents, registrations, licenses, applications and contracts, trademarks, copyrights, designs, drawings, patterns, manuals and instructions, mask works, product certifications, computer programs and data, research and engineering work, critical tooling, design drawings, products, inventory, raw materials, molds, molding tools and dies. The prototypes provided were defective, unsafe and failed to work as represented. Further, the Seller misrepresented that it had exclusive rights to the intellectual property being purchased. We initiated and completed the reverse engineering of this needle incineration technology. As a result of the seller’s misrepresentations, the Company has written off all intangible assets related to these rights ($428,125) and all remaining unpaid obligations ($403,750). As a result, an impairment of $24,375 was recorded as of June 30, 2020. In the year ended June 30, 2020, we issued 20,000,000 shares of common stock under the terms of a 2015 consulting agreement as a result of reaching certain milestones related to the development of our needle destruction devices. Under the terms of this consulting agreement, an additional 40,000,000 shares of common stock may be issued in the future if other milestones are met. |
INSURANCE NOTE PAYABLE
INSURANCE NOTE PAYABLE | 9 Months Ended |
Mar. 31, 2021 | |
Loans Payable [Abstract] | |
INSURANCE NOTE PAYABLE | 5. INSURANCE NOTE PAYABLE We finance a portion of our insurance premiums. At March 31, 2021, there was a $39,983 outstanding balance due on our premium finance agreements. The agreements have effective interest rates of 9.42% to 10.15%. The policies related to these premiums expire between June 2021 and November 2021. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 6. 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 , Beechwood Properties, LLC (“Beechwood”) and the Company’s Chief Executive Officer, 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 matured on March 31, 2021. 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 March 31, 2021, the outstanding principal balance totaled $0. During the fiscal year ended June 30, 2019, certain members of the board of directors and stockholders of the Company made $242,000 in interest free advances to the Company which are shown as “Due to related parties” on the consolidated balance sheets. The advances are convertible into shares of the Company’s common stock at rates ranging from $0.0024 to $0.0050 per share or 75,916,667 shares of common stock in aggregate. During the quarter ended March 31, 2021, $142,000 was converted into 55,916,667 shares of common stock. Beginning in the quarter ended March 31, 2017, certain members of management agreed to forgo 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 March 31, 2021 and June 30, 2020, $50,000 in such fees remain unpaid and are recorded in accounts payable and accrued liabilities in the consolidated balance sheets. We entered into an office space lease in January 2020 with a company owned in part by a member of our Board of Directors and Chairman of our Audit Committee. The lease is for a three-year term beginning April 1, 2020. The base annual rent is $25,830. In addition to the base rent, the Company will also pay a proportionate share of common area operating expenses. The Company initially recorded operating right-of-use (ROU) assets and liabilities in the amount of $62,363 upon entering into this lease. The ROU asset represents our right to use the asset for the lease term and the ROU liability represents our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized based on the present value of lease payments utilizing an interest rate based on a collateralized loan with the same term as the related lease. During the nine month period ended March 31, 2021, the ROU asset and liability has been reduced by $15,347 for rental payments, which are included in general and administrative expenses in the accompanying combined statements of operations. |
LONG-TERM DEBT, DEBENTURES AND
LONG-TERM DEBT, DEBENTURES AND LINES OF CREDIT | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT, DEBENTURES AND LINES OF CREDIT | 7. LONG-TERM DEBT, DEBENTURES AND LINES OF CREDIT On November 12, 2015, we acquired certain commercial real estate from a related party that is an entity controlled by Beechwood and our Chief Executive Officer for $480,000, consisting of $75,000 of land costs and $405,000 of buildings and improvements. The purchase price was paid through the assumption by the Company of $265,000 of long-term bank indebtedness (which we refer to below as the “Note”) plus the issuance of 215 shares of the Company’s 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 remaining principal amount of $216,766 as of March 31, 2021. 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 wholly-owned real estate subsidiary, RedHawk Land & Hospitality, LLC, and the personal guarantee Beechwood and the Company’s Chief Executive Officer. At the maturity of this loan, the Company expects the loan to be re-financed. In March 2016, we issued $545,000 in principal amount of convertible promissory notes (which we refer to as the “2016 Fixed Rate Convertible Notes”). The 2016 Fixed Rate Convertible Notes are secured by certain Company real estate holdings. The 2016 Fixed Rate Convertible Notes matured on March 15, 2021, the fifth anniversary of the date of grant 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 2016 Fixed Rate Convertible Notes. The Company may only issue the notice of its intent to redeem the 2016 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. Holders of 2016 Fixed Rate Convertible Notes have the right to convert all or any portion of the 2016 Fixed Rate Convertible Notes at the conversion price at any time prior to redemption. At March 31, 2021, and June 30, 2020 there was one remaining 2016 Fixed Rate Convertible Note outstanding with principal and accrued interest of approximately $64,000 and $62,000, respectively. This remaining 2016 Fixed Rate Convertible Note (plus accrued interest) is convertible into our common stock at a conversion rate of $0.015 per share or 4,274,512 total shares. During the nine month periods ended March 31, 2021 and 2020, we recognized approximately $2,340 and $2,000, respectively, of interest on this convertible note. Subsequent to March 31, 2021, we paid the remaining principal balance outstanding plus accrued interest. During the nine month periods ended March 31, 2021 and 2020, we issued $200,000 and $832,000, respectively, in principal amount of new convertible promissory notes (which we refer to as the “2019 Fixed Rate Convertible Notes”). The 2019 Fixed Rate Convertible Notes are secured by certain Company real estate holdings. As of March 31, 2021, $1,042,000 of 2019 Fixed Rate Convertible Notes were outstanding. Subsequent to March 31, 2021, we issued an additional $150,000 in principal amount of new 2019 Fixed Rate Convertible Notes. The 2019 Fixed Rate Convertible Notes mature on 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 and include 25% warrant coverage at $0.01 per share. The warrants expire ten years from the date of issuance. Interest accrues at a rate of 7% 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 2019 Fixed Rate Convertible Notes. The Company may only issue the notice of its intent to redeem the 2019 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 2019 Fixed Rate Convertible Notes has the right to convert all or any portion of the 2019 Fixed Rate Convertible Notes at the conversion price at any time prior to redemption. During the nine month periods ended March 31, 2021 and 2020, we issued $268,236 and $0, respectively, in principal amount of new convertible notes (which we refer to as the “2020 Fixed Rate Convertible Notes”). As of March 31, 2021, a total of $568,235 (approximately $517,195 net of unamortized deferred loan costs of approximately $26,040 and unamortized beneficial conversion of $25,000) of 2020 Fixed Rate Convertible Notes were outstanding. During the nine month period ended March 31, 2021, $50,000, plus accrued interest, of the 2020 Fixed Rate Convertible Notes were converted into 10,000,000 shares of common stock. The 2020 Fixed Rate Convertible Notes accrue interest at 10% per annum, are convertible into shares of our common stock at a price of $0.005 per share, mature twelve months after issuance and are unsecured. The proceeds from the 2020 Fixed Rate Convertible Notes issued during the nine month period ended March 31, 2021 were used to repay approximately $21,000 of obligations owed on the 2019 Variable Rate Convertible Notes (including principal amount, accrued interest and prepayment penalties) and for working capital purposes. When issued, the 2020 Fixed Rate Convertible Notes had an initial conversion rate below the trading price of the Company’s common stock creating a beneficial conversion feature (“BCF”), which exceeded the total cash proceeds received from its issuance. Accordingly, at June 30, 2020, we recorded the BCF as a debt discount and additional paid-in capital of $85,000. The debt discount is being amortized over the one-year term of the note. During the nine month periods ended March 31, 2021 and 2020, we issued $281,500 and $1,078,862, respectively, of convertible notes to third parties with variable conversion rates (“2019 Variable Rate Convertible Notes”). The 2019 Variable Rate Convertible Notes mature at various dates between April 2022 and June 2022. During the nine month periods ended March 31, 2021 and 2020, we received approximately, net of financing costs incurred, $265,000 and $960,000, respectively, in cash from the issuance of these notes. The remaining outstanding 2019 Variable Rate Convertible Notes as of March 31, 2021 have interest accruing at 12%. These notes have a variable conversion rate based on the price of the Company’s common stock. During the nine month period ended March 31, 2021, $764,000, plus accrued interest, of the 2019 Variable Rate Convertible Notes were converted into 281,124,078 shares of common stock. Additionally, $20,737, including accrued interest and prepayment penalties, of the 2019 Variable Rate Convertible Notes were repaid. Certain of the 2020 Fixed Rate Convertible Notes and 2019 Variable Rate Convertible Notes have maturity dates within twelve months from the balance sheet date and could be classified as a current liability. However, it is the Company’s expectation that such notes will be converted into shares, re-financed to longer terms, or paid off with the proceeds of long-term financing. Therefore, we have classified these notes as noncurrent. If we do not re-finance these convertible notes to longer terms, however, the holders of the convertible notes have the option to convert these notes into equity or hold the convertible notes to maturity. On March 12, 2019, we obtained a $180,000 real estate loan from a financial institution. The note matured on April 1, 202 0 and was extended to October 1, 2020. The Company is working on an additional extension of this loan. Thi Beginning in the quarter ended June 30, 2019, we entered into a series of credit financing arrangements from financing institutions by pledging various Company assets and the personal guarantee of the Company’s Chief Executive Officer. The proceeds from these credit agreements were used to pay the amounts due under the Schreiber settlement agreement more fully described in Note 8. As of March 31, 2021 and June 30, 2020, we had $137,727 and $129,389, respectively, outstanding on these loans. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 8. COMMITMENTS AND CONTINGENCIES Schreiber Litigation On January 31, 2017, the Company and Beechwood filed suit against Daniel J. Schreiber (“Mr. Schreiber”) and the Daniel J. Schreiber Living Trust – Dtd 2/08/95 (“Schreiber Trust”) in the United States District Court for the Eastern District of Louisiana (the “Louisiana Court”) under Civil Action No. 2:2017cv819-B(3) (the “Litigation”). Mr. Schreiber and the Schreiber Trust answered and filed a counter-claim against the Company and Beechwood and made additional claims against Mr. G. Darcy Klug (“Mr. Klug”), the Chief Executive Officer and a director of the Company, and sole owner of Beechwood, in the Lawsuit. On March 22, 2019, the parties to the Litigation entered into a Settlement Agreement and General Release (“Settlement Agreement”) to resolve all issues arising out of the subject matter of the Litigation. In consideration of the mutual promises, covenants and conditions contained in the Settlement Agreement, the parties agreed that (i) Mr. Schreiber and the Schreiber Trust would transfer all Company stock they then owned (52,377,108 common shares) to the Company and (ii) the Company would (a) make to Mr. Schreiber and the Schreiber Trust a cash payment of Two Hundred Fifty Thousand dollars ($250,000) and (b) issue two Promissory Notes, each in the principal amount of Two Hundred Thousand dollars ($200,000), one of which was due and payable on or before September 6, 2020 (“Note 1”) and the other was due and payable on or before September 5, 2021 (“Note 2”). As a result of this Settlement Agreement, the Company recorded a loss of $471,880 in the year ended June 30, 2019. Each Promissory Note was non-interest bearing, however each (i) included a $15,000 late penalty if the principal amount was not repaid by the due date and (ii) would bear interest at a rate of 18% per annum, from the issue date, if the principal was not repaid by the 30th date after the due date. Pursuant to a security agreement entered into between the parties, Mr. Klug and Beechwood secured the Company’s obligations under the Settlement Agreement by granting first-priority security interests in (i) 1,000 shares of Mr. Klug’s Series B Preferred Stock; and 1,473 shares of Mr. Klug’s Series A Preferred Stock, and (ii) Beechwood’s interest in the Tower Hotels Fund 2014, LLC (collectively “the Escrow Account”). On October 11, 2019, the Schreiber Trust filed a Motion to Enforce Settlement Agreement (the “Motion”) with the Louisiana Court alleging that the Company failed to comply with certain of its obligations under the Settlement Agreement. The Motion sought to, among other things, accelerate payment of the amounts owed to Schreiber under the Settlement Agreement and collect additional amounts in interest and attorneys’ fees. On July 17, 2020, the Louisiana Court granted Schreiber’s Motion and ordered the Company to pay to the Schreiber Trust $519,495.78 (“Judgment”) representing (i) the principal amount due on Note 1 ($200,000); (ii) the principal amount due on Note 2 ($200,000); (iii) pre-judgment interest of 18% simple interest on certain outstanding debt charged back to the date of the Settlement Agreement; (iv) $40,000.00 of attorneys’ fees (10% of the amounts due); and (v) post-judgment interest from the date of the Judgment as well as costs. The Company appealed the Louisiana Court’s ruling to the United States 5th Circuit Court of Appeals (the “Court of Appeals”). During the three month period ended September 30, 2020, Mr. Klug and Beechwood converted the 1,000 shares of Series B Preferred Stock and the 1,473 shares of Series A Preferred Stock into 124,849,365 and 122,730,903, respectively, of the Company’s Common Stock (collectively “the Escrow Shares”) and replaced the 1,000 shares of Series B Preferred Stock and 1,473 shares of Series A Preferred Stock held in the Escrow Account with the Escrow Shares as security pursuant to the Security Agreement. Payment of the principal amount of Note 1 was tendered by the Company to Schreiber on August 13, 2020. Notwithstanding the appeal to the Court of Appeals, the Company tendered the early repayment of the principal amount of Note 2 to Schreiber on August 24, 2020. As of March 31, 2021, the unsatisfied amount of the Judgment ($119,496) is shown as a “Settlement liability” on the consolidated balance sheet. On September 4, 2020, the Company filed a Consent Motion to Approve Supersedeas Bond and Stay of Execution of Judgment Pending Appeal (“Motion to Approve”). On September 8, 2020, the Louisiana Court granted the Motion to Approve and the posting of a supersedeas bond (“Bond”) by the Company in the amount of $143,491 representing (i) the remaining, unsatisfied amount of the Judgment; plus (ii) post-Judgment interest of $80; plus, (iii) 20% of the combined amount ($23,915). As the Judgment was vacated on December 17, 2020, the Louisiana Court entered an order releasing the Bond and returning the aforementioned funds to the Company. The returned funds are currently held in trust and are included in “Prepaid expenses” on the consolidated balance sheet. On November 12, 2020, the Court of Appeals issued a decision vacating the Judgment and remanding the case to the district court. The 14 day period to seek rehearing from the Court of Appeals passed on November 26, 2020, with no petition filed by Schreiber; thereupon, the decision and judgment of the Court of Appeals became final. By applicable rule, the mandate of the Court of Appeals issued 8 calendar days thereafter, on December 4, 2020. The Louisiana Court also ordered the Company to file a Sur-Reply Brief. The Louisiana Court had previously denied the Company’s motion for leave to file a sur-reply brief, after Schreiber had presented new arguments and evidence for the first time in his Reply Brief. When the Louisiana Court ruled in Schreiber’s favor based solely on these new materials, the Court of Appeals reversed, ruling its denial was an abuse of discretion. This order of the Louisiana Court was consistent with the ruling of the Court of Appeals. The Louisiana Court also sua sponte Regardless, the parties each timely filed their respective pleadings in accordance with the order. Both parties argued in favor of their position and claimed to be entitled to an award of the reasonable attorneys’ fees and costs they incurred in connection with this litigation should the Louisiana Court rule in their favor. The Company is now awaiting a decision from the Louisiana Court. As previously and consistently expressed, the Company believes Schreiber’s Motion is without merit and intends to continue to vigorously defend against it accordingly, if and as necessary. Consultant Agreement On July 19, 2019 (the “Effective Date”), RedHawk and its wholly-owned subsidiary, RedHawk Medical Products & Services, along with other affiliated entities, entered into a Consultant Agreement (“Agreement”) with Drew Pinsky, Inc. f/s/o Dr. Drew Pinsky (“Consultant”), for Consultant to be the exclusive spokesperson for the Company’s Sharps Needle and Destruction Device (“ SAN SAN Under the Agreement, the Company agreed to pay Consultant a royalty equal to 3% of the “Net Sales”, as defined in the Agreement, of the Products but in no event will the royalty be less than $3.50 per SAN SAN Pursuant to the Agreement, the Company agreed to issue to the Consultant 68,700,000 shares of the Company’s common stock, which was equal to approximately 5% of the Company’s outstanding common stock on a fully diluted basis as of the Effective Date. Further, the Company has agreed to issue to the Consultant, the later of one year after the Effective Date or upon Consultant’s request, an additional 68,700,000 shares of the Company’s common stock, unless Consultant has provided the Company with written notice of its intention not to extend the Initial Period. As of the date of this Quarterly Report on Form 10-Q, the Company has not yet received notice from the Consultant requesting issuance of any of the shares pursuant to the Agreement. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | 9. STOCKHOLDERS’ EQUITY Preferred Stock Effective November 12, 2015, 2,750 shares of our authorized Preferred Stock were 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 vote 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. Effective February 16, 2016, 1,250 shares of our authorized Preferred Stock were 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 vote 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. On August 4, 2020, Mr. Klug and Beechwood converted 1,000 shares of Series B Preferred Stock and the 1,473 shares of Series A Preferred Stock into 124,849,365 and 122,730,903 shares, respectively, of the Company’s Common Stock. On September 28, 2020, the Escrow Account in the Schreiber Litigation was dissolved. As a result, on October 6, 2020, the Company’s Board of Directors, Mr. Klug and Beechwood, agreed to exchange 124,849,365 and 122,730,903 of the Company’s Common Stock for 1,000 shares of Series B Preferred Stock and the 1,473 shares of Series A Preferred Stock, respectively. On November 4, 2020, the Company agreed to exchange from 122,730,903 shares of the Company’s common stock held by Beechwood for 1,473 shares of Series A Preferred Stock, with a stated value of $1,133.81 per share. During the quarter ended March 31, 2021, the Company completed the exchange with Beechwood of 122,730,903 shares of the Company’s common stock in exchange for 1,473 shares of the Company’s 5% Series A Preferred Stock. During the nine month periods ended March 31, 2021 and 2020, we recognized $99,728 and $168,068, respectively, of related preferred stock dividends. Warrants On June 20, 2019, RedHawk entered into a Stock Exchange Agreement (“Exchange Agreement”) with Beechwood. G. Darcy Klug, the Company’s Chairman of the Board, Chief Executive Officer and Chief Financial Officer, is the sole member and manager of Beechwood. Under the Exchange Agreement, the Company exchanged 113,700,000 shares of the Company’s common stock for 1,277 shares of the Company’s 5% Series A Preferred Stock and a Stock Purchase Warrant (“Warrant”) to acquire 113,508,450 shares of common stock at an exercise price of $0.005 per share. The Warrant expires on June 20, 2029. In conjunction with the 2019 Fixed Rate Convertible Notes, the holders of the 2019 Fixed Rate Convertible Notes were issued warrants to purchase 26,050,000 shares of the Company’s common stock at a price of $0.01 per share. The warrants expire at various dates between August 2029 and August 2030. In total, as of March 31, 2021, the Company had warrants to purchase 139,558,450 shares of common stock outstanding with a weighted average exercise price of $0.006 and a weighted average remaining life of 8.31 years. |
ASSET IMPAIRMENTS
ASSET IMPAIRMENTS | 9 Months Ended |
Mar. 31, 2021 | |
Asset Impairment Charges [Abstract] | |
ASSET IMPAIRMENTS | 10. ASSET IMPAIRMENTS In the year ended June 30, 2020, we recognized several asset impairments totaling $214,675. This impairment was comprised of the following: ● The resort property owned by the real estate limited partnership, in which we have an ownership interest in, is located in Hawaii. As a result of the COVID-19 pandemic, the tourism industry in Hawaii has been adversely affect and the resort was temporarily closed for an extended period. ● We have certain inventory located in the United Kingdom. As a result of the COVID-19 pandemic, the United Kingdom has been in partial or complete lockdown for an extended period and we have been unable to market the inventory. The inventory is still salable but additional costs and/or price reductions may be necessary. ● A third party from which we had agreed to acquire the exclusive manufacturing and distribution rights to certain needle incineration intellectual properties breached that agreement. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 11. SEGMENT INFORMATION SFAS No. 131, “Disclosures About Segments of an Enterprise and Related Information,” t data based on how management makes decisions about allocating resources to segments and measuring their performance. Currently, we conduct our businesses in three operating segments – Land & Hospitality, Medical Device and Pharmaceutical (Pharma), and Other Services. Our Land & Hospital and Other Services business units operate in the United States. Our Medical Device and Pharmaceutical business unit currently operates primarily in the United Kingdom. All remaining assets, primarily our corporate o MEDICAL Nine months ended LAND & DEVICE & OTHER March 31, 2021 HOSPITALITY PHARMA SERVICES CORPORATE TOTAL Operating revenues $ 51,524 $ 639,222 $ — $ — $ 690,746 Operating loss $ (6,296 ) $ (2,778 ) $ (169 ) $ (416,236 ) $ (425,479 ) Interest expense $ 18,289 $ 69,507 $ — $ 579,086 $ 666,882 Depreciation and amortization $ 23,500 $ 23,100 $ — $ — $ 46,600 Identifiable assets $ 743,584 $ 866,260 $ 77,875 $ 190,729 $ 1,878,448 MEDICAL Nine months ended LAND & DEVICE & OTHER March 31, 2020 HOSPITALITY PHARMA SERVICES CORPORATE TOTAL Operating revenues $ 41,452 $ 176,537 $ — $ — $ 217,989 Operating loss $ (15,145 ) $ (248,760 ) $ (160 ) $ (554,246 ) $ (818,311 ) Interest expense $ 35,452 $ 627 $ — $ 243,159 $ 279,238 Depreciation and amortization $ 23,500 $ 39,875 $ — $ — $ 63,375 Identifiable assets $ 903,403 $ 607,928 $ 77,814 $ 1,090,906 $ 2,680,051 MEDICAL Three months ended LAND & DEVICE & OTHER March 31, 2021 HOSPITALITY PHARMA SERVICES CORPORATE TOTAL Operating revenues $ 14,017 $ 15,769 $ — $ — $ 29,786 Operating loss $ (528 ) $ (76,316 ) $ (56 ) $ (159,286 ) $ (236,186 ) Interest expense $ 3,559 $ 1,822 $ — $ 184,863 $ 190,244 Depreciation and amortization $ 7,833 $ 7,700 $ — $ — $ 15,533 23 MEDICAL Three months ended LAND & DEVICE & OTHER March 31, 2020 HOSPITALITY PHARMA SERVICES CORPORATE TOTAL Operating revenues $ 14,849 $ 133,825 $ — $ — $ 148,674 Operating loss $ 831 $ (51,151 ) $ (85 ) $ (164,041 ) $ (214,446 ) Interest expense $ 8,883 $ 310 $ — $ 58,530 $ 67,723 Depreciation and amortization $ 7,833 $ 13,625 $ — $ — $ 21,458 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 12. SUBSEQUENT EVENTS The Company evaluated events occurring after March 31, 2021, and through the date the financial statements were issued, May 24, 2021 and concluded the events or transactions below would require recognition or disclosure in these financial statements: ● Subsequent to March 31, 2021, the Company issued an additional $150,000 of 2019 Fixed Rate Convertible Notes and warrants to purchase 3,750,000 shares of our common stock. The proceeds were used to repay the principal balance outstanding, including accrued interest, on the remaining 2016 Fixed Rate Convertible Note. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim condensed financial statements of the Company as of March 31, 2021 and for the three and nine month periods ended March 31, 2021 and 2020 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 consolidated balance sheet dated as of June 30, 2020 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 consolidated 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, 2020. In the opinion of our management, the unaudited interim consolidated 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 wholly-owned subsidiaries. All material intercompany accounts have been eliminated upon consolidation. Equity investments, which we have an ownership less than 20%, are recorded at cost. |
Use of Estimates | Use of Estimates The consolidated 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, intangible assets, 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 In May 2014 the Financial Accounting Standards Board (which we refer to as the “FASB”) issued Accounting Standards Update (ASU) 2014-19, Revenue from Contracts with Customers (ASU 2014-19). ASU 2014-19 established a single revenue recognition model for all contracts with customers, eliminates industry specific requirements and expands disclosure requirements. The core principle of the guidance is that an entity should recognize revenue 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, an entity should 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. Effective July 1, 2018, we adopted ASU 2014-19 using the modified retrospective method. The adoption of ASU 2014-19 did not have an impact on our consolidated financial statements but required enhanced footnote disclosures. See Note 3, Revenue from Contracts with Customers, for additional information. We derive revenue from several types of activities – medical device sales, branded generic pharmaceutical sales, and commercial real estate leasing. Our medical device sales include the marketing and distribution of certain professional and consumer grade digital non-contact thermometers, our needle destruction unit, personal protection equipment, and advanced bleeding control. Through our United Kingdom based subsidiary, we manufacture, and market, branded generic pharmaceuticals. 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 revenues are reduced for such discounts at the time of the sale. Shipping and handling costs are included in revenue and costs of goods sold. |
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 March 31, 2021 or June 30, 2020. |
Accounts Receivable | Accounts Receivable Accounts receivables are amounts due from customers of our medical device, pharmaceutical, and financial services divisions. We do not require collateral from our customers. 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 March 31, 2021 or June 30, 2020. |
Inventory | Inventory Inventory consists of needle destruction devices and its components, purchased thermometers, UV sanitation lights, face masks, an advanced bleeding control, 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. A portion of our inventory is located in the United Kingdom, which due to the COVID-19 pandemic has been in a lockdown environment since approximately March 31, 2020. As a result, sales efforts related to this inventory have temporarily ceased. The Company still expects to be able to sell this inventory, but may incur additional costs in order to do so. Accordingly, an inventory reserve of approximately $60,000 has been recorded as of March 31, 2021 to reduce the inventory to net realizable value. |
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. Tooling and equipment are depreciated over a useful life of ten years. Our Louisiana real estate holdings include our former corporate headquarters on Chemin Metairie Road in Youngsville, Louisiana and a property located on Jefferson Street in Lafayette, Louisiana, that we are currently leasing to a third party. The Company is also continuing to use a portion of the Chemin Metairie Road property for equipment storage for our real estate management unit. The current lease for the Jefferson Street property is through December 31, 2022, at a rental cost of $3,250 per month. Beginning September 1, 2020, the Chemin Metairie Road property was leased through February 28, 2021, at a rental rate of $2,000 per month. At the end of the lease term, the Company listed the Chemin Metairie Road property for sale and/or lease. |
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 follows Accounting Standard Codification (which we refer to as “ASC”) 740, Income Taxes, which requires the Company to compute tax asset benefits for net operating losses carried forward. The potential benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense in the period they are incurred. The Company does not believe that it has any uncertain tax positions. |
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, which requires presentation of both basic and diluted earnings per share (EPS) on the face of the consolidated statements of operations. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and the convertible notes and the convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. There were outstanding warrants to purchase 139,558,450 shares of common stock as of March 31, 2021 of which 113,508,450 have an exercise price of $0.005 per share and 26,050,000 have an exercise price of $0.01 per share. At March 31, 2021, including accrued but unpaid interest, there was one remaining 2016 Fixed Rate Convertible Note outstanding (See Note 7) which totaled $64,118 and was convertible into 4,274,512 shares of common stock upon conversion. During the nine month period ended March 31, 2021, we issued in private offerings exempt from registration, debt securities in the form of 2019 Variable Rate Convertible Notes (See Note 7) in the aggregate principal amount of $281,500. The 2019 Variable Rate Convertible Notes are convertible into shares of common stock at a variable conversion rate. During the nine month period ended March 31, 2021, we issued in private offerings exempt from registration, debt securities in the form of 2019 Fixed Rate Convertible Notes (See Note 7) in the aggregate principal amount of $200,000. The 2019 Fixed Rate Convertible Notes mature on 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 and include 25% warrant coverage at $0.01 per share. During the nine month period ended March 31, 2021, we issued $268,236 in 2020 Fixed Rate Convertible Notes. The 2020 Fixed Rate Convertible Notes accrue interest at 10% per annum, are convertible into shares of our common stock at a price of $0.005 per share, mature twelve months after issuance and are unsecured. At March 31, 2021, including accrued but unpaid dividends, there were potentially 208,373,494 shares of common stock issuable upon the conversion of our outstanding Series A Preferred Stock and, including accrued but unpaid dividends, there were potentially 127,987,549 shares of common stock issuable upon the conversion of our outstanding Series B Preferred Stock (See Note 9). The shares of common stock that could be issued upon exercise of the warrants and the shares issuable from the conversion of the promissory notes (each discussed above), the Series A Preferred Stock, and the Series B Preferred Stock, have been excluded from earnings per share calculations because these shares are anti-dilutive due to the Company’s net loss. |
Comprehensive Income (Loss) | Comprehensive Income (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, and stated interest rates. |
Leases | Leases In February 2016, the FASB issued ASU 2016-02, Leases (ASU 2016-02), which amended guidance for lease arrangements in order to increase transparency and comparability by providing additional information to users of financial statements regarding an entity’s leasing activities. The revised guidance requires reporting entities to recognize lease assets and lease liabilities on the balance sheet for substantially all long-term lease arrangements. The Company has elected to use the short-term lease exception allowed in ASU 2016-02. We did enter into a long-term lease in the quarter ended March 31, 2020 for new office space and have recorded a right-of-use asset and the related lease obligation as of March 31, 2021 (See Note 6). |
Reclassification | Reclassification Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | For the three and nine month periods ended March 31, 2021 and 2020, a summary of our revenue on a disaggregated basis is as follows: Three Months Ended Nine Months Ended March 31, March 31, 2021 2020 2021 2020 Sales of medical devices $ 15,769 $ 133,824 $ 639,222 $ 176,537 Rental revenue from operating lease payments 14,017 14,850 51,524 41,452 $ 29,786 $ 148,674 $ 690,746 $ 217,989 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment activity | The following table reflects our segments as of March 31, 2021 and 2020 and for the nine and three month periods then ended. MEDICAL Nine months ended LAND & DEVICE & OTHER March 31, 2021 HOSPITALITY PHARMA SERVICES CORPORATE TOTAL Operating revenues $ 51,524 $ 639,222 $ — $ — $ 690,746 Operating loss $ (6,296 ) $ (2,778 ) $ (169 ) $ (416,236 ) $ (425,479 ) Interest expense $ 18,289 $ 69,507 $ — $ 579,086 $ 666,882 Depreciation and amortization $ 23,500 $ 23,100 $ — $ — $ 46,600 Identifiable assets $ 743,584 $ 866,260 $ 77,875 $ 190,729 $ 1,878,448 MEDICAL Nine months ended LAND & DEVICE & OTHER March 31, 2020 HOSPITALITY PHARMA SERVICES CORPORATE TOTAL Operating revenues $ 41,452 $ 176,537 $ — $ — $ 217,989 Operating loss $ (15,145 ) $ (248,760 ) $ (160 ) $ (554,246 ) $ (818,311 ) Interest expense $ 35,452 $ 627 $ — $ 243,159 $ 279,238 Depreciation and amortization $ 23,500 $ 39,875 $ — $ — $ 63,375 Identifiable assets $ 903,403 $ 607,928 $ 77,814 $ 1,090,906 $ 2,680,051 MEDICAL Three months ended LAND & DEVICE & OTHER March 31, 2021 HOSPITALITY PHARMA SERVICES CORPORATE TOTAL Operating revenues $ 14,017 $ 15,769 $ — $ — $ 29,786 Operating loss $ (528 ) $ (76,316 ) $ (56 ) $ (159,286 ) $ (236,186 ) Interest expense $ 3,559 $ 1,822 $ — $ 184,863 $ 190,244 Depreciation and amortization $ 7,833 $ 7,700 $ — $ — $ 15,533 23 MEDICAL Three months ended LAND & DEVICE & OTHER March 31, 2020 HOSPITALITY PHARMA SERVICES CORPORATE TOTAL Operating revenues $ 14,849 $ 133,825 $ — $ — $ 148,674 Operating loss $ 831 $ (51,151 ) $ (85 ) $ (164,041 ) $ (214,446 ) Interest expense $ 8,883 $ 310 $ — $ 58,530 $ 67,723 Depreciation and amortization $ 7,833 $ 13,625 $ — $ — $ 21,458 |
NATURE OF OPERATIONS AND CONT_2
NATURE OF OPERATIONS AND CONTINUANCE OF BUSINESS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Revenues | $ 29,786 | $ 148,674 | $ 690,746 | $ 217,989 | ||
Consolidated net loss | 445,574 | 439,259 | 1,152,577 | 1,210,112 | ||
Net cash used in operating activities | 313,303 | 1,205,950 | ||||
Cash | 72,003 | $ 99,246 | 72,003 | $ 99,246 | $ 75,850 | $ 1,648 |
Working capital | 1,484,065 | 1,484,065 | ||||
Accumulated deficit | $ (8,962,457) | $ (8,962,457) | $ (7,710,152) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 9 Months Ended | ||
Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Warrant outstanding | 139,558,450 | ||
Common Stock par value (in dollars per shares) | $ 0.001 | $ 0.001 | |
Inventory reserve | $ 60,000 | ||
Series A Preferred Stock [Member] | |||
Accrued but unpaid interest | 208,373,494 | ||
Series B Preferred Stock [Member] | |||
Accrued but unpaid interest | 127,987,549 | ||
2019 Fixed Rate Convertible Notes [Member] | |||
Convertible notes, amount | $ 64,118 | ||
Number of conversion shares issued (in shares) | 4,274,512 | ||
New 2019 Variable Rate Convertible Notes [Member] | |||
Convertible notes, amount | $ 281,500 | ||
2019 Fixed Rate Convertible Notes [Member] | |||
Aggregate principal amount | $ 200,000 | ||
Common Stock par value (in dollars per shares) | $ 0.015 | ||
2020 Fixed Rate Convertible Notes [Member] | |||
Aggregate principal amount | $ 268,236 | ||
Interest rate | 10.00% | ||
Common stock conversion price | $ 0.005 | ||
Maturity term | 12 months | ||
Warrant [Member] | |||
Warrant outstanding | 113,508,450 | ||
Exercise price of warrants (in dollars per share) | $ 0.005 | ||
Warrant [Member] | 2019 Fixed Rate Convertible Notes [Member] | |||
Equity method ownership percentage | 25.00% | ||
Warrant outstanding | 0.01 | ||
Warrant [Member] | |||
Warrant outstanding | 26,050,000 | ||
Exercise price of warrants (in dollars per share) | $ 0.01 | ||
Jefferson Street Property [Member ] | |||
Rental rate per month | $ 3,250 | ||
Renewed lease term | Dec. 31, 2022 | ||
Chemin Metairie Road [Member] | |||
Rental rate per month | $ 2,000 | ||
Renewed lease term | Feb. 28, 2021 | ||
Tooling and Equipment [Member] | |||
Useful life | 10 years | ||
Minimum [Member] | |||
Equity method ownership percentage | 20.00% | ||
Common stock conversion price | $ 0.0024 | ||
Minimum [Member] | Building [Member] | |||
Useful life | 20 years | ||
Minimum [Member] | Building Improvements [Member] | |||
Useful life | 5 years | ||
Maximum [Member] | |||
Common stock conversion price | $ 0.0050 | ||
Maximum [Member] | Building [Member] | |||
Useful life | 30 years | ||
Maximum [Member] | Building Improvements [Member] | |||
Useful life | 10 years |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of revenue | $ 29,786 | $ 148,674 | $ 690,746 | $ 217,989 |
Sales Of Medical Devices [Member] | ||||
Disaggregation of revenue | 15,769 | 133,824 | 639,222 | 176,537 |
Rental Revenue From Operating Lease Payments [Member] | ||||
Disaggregation of revenue | $ 14,017 | $ 14,850 | $ 51,524 | $ 41,452 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Reduce reveune amount | $ 2,951 | $ 52,859 | $ 177,095 | $ 95,508 | |
Net revenue | 29,786 | 148,674 | 690,746 | 217,989 | |
Shipping and Handling [Member] | |||||
Cost of revenue | $ 185 | $ 805 | $ 7,600 | $ 1,305 | |
Minimum Purchase [Member] | |||||
Net revenue | $ 50,000 |
OTHER ASSETS (Details Narrative
OTHER ASSETS (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Mar. 31, 2021 | Jun. 30, 2020 | |
Intangible assets related to licenses | $ 377,826 | $ 389,762 | |
Net of accumulated amortization | $ 441,071 | $ 418,571 | |
Number of shares issued | |||
Written off of intangible assets | $ 428,125 | ||
Remaining unpaid obligations | 403,750 | ||
License Agreement [Member] | |||
Payments to acquire license rights | $ 21,250 | ||
Consulting Agreement [Member] | COMMON STOCK [Member] | |||
Number of shares issued | 20,000,000 | ||
Consulting Agreement [Member] | Common Stock [Member] | |||
Number of shares issued | 40,000,000 | ||
September 2018 [Member] | |||
Impairment | $ 24,375 | ||
September 2018 [Member] | COMMON STOCK [Member] | |||
Number of shares issued | 14,000,000 | ||
September 2018 [Member] | License Agreement [Member] | |||
Payments to acquire license rights | $ 25,000 | ||
Total number quarterly payments | Twenty | ||
September 2018 [Member] | Developed Technology Rights [Member] | |||
Payments to acquire license rights | $ 450,000 | ||
Consulting fee | 1,000 | ||
Broker's fee | $ 17,500 | ||
EcoGen Europe Ltd [Member] | |||
Intangible assets related to licenses | 367,661 | ||
Net of accumulated amortization | $ 247,021 | ||
Intangible assets, useful life | 20 years | ||
Hawaii Tourism Industry [Member] | |||
Impairment | $ 130,000 | ||
Percentage of carrying value investment | 50.00% |
INSURANCE NOTE PAYABLE (Details
INSURANCE NOTE PAYABLE (Details Narrative) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2020 | |
Insurance notes payable | $ 39,983 | $ 11,645 |
Description of the maturity date | June 2021 and November 2021 | |
Minimum [Member] | ||
Interest rates | 9.42% | |
Maximum [Member] | ||
Interest rates | 10.15% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Jan. 31, 2020 | Mar. 31, 2021 | Jun. 30, 2019 | Jun. 30, 2020 | Dec. 01, 2016 |
Operating right-of-use | $ 47,016 | $ 62,363 | |||
Outstanding principal balance | 100,000 | $ 242,000 | |||
Minimum [Member] | |||||
Conversion rate | $ 0.0024 | ||||
Maximum [Member] | |||||
Conversion rate | $ 0.0050 | ||||
Commercial Note Line of Credit [Member] | |||||
Outstanding principal balance | 0 | ||||
General and Administrative Expense [Member] | |||||
Annual rent | 15,347 | ||||
Accounts Payable and Accrued Liabilities [Member] | |||||
Unpaid management fees | $ 50,000 | $ 50,000 | |||
Related Party [Member] | |||||
Conversion of common stock issued | 55,916,667 | ||||
Advances from related parties | $ 142,000 | ||||
Line of Credit [Member] | Stockholder and Officer [Member] | |||||
Commercial note line of credit | $ 250,000 | ||||
Line of credit interest rate | 5.00% | ||||
Line of credit maturity date | Mar. 31, 2021 | ||||
Line of Credit [Member] | SERIES A PREFERRED STOCK [Member] | Stockholder and Officer [Member] | |||||
Preferred stock, stated value (in dollars per share) | $ 1,000 | ||||
Board Of Directors And Stockholders [Member] | |||||
Conversion of common stock issued | 75,916,667 | ||||
Advances from stockholder | $ 242,000 | ||||
Office Space Lease [Member] | Board of Directors [Member] | |||||
Lease maturity terms | 3 years | ||||
Lease beginning date | Apr. 1, 2020 | ||||
Annual rent | $ 25,830 | ||||
Operating right-of-use | $ 62,363 |
LONG-TERM DEBT, DEBENTURES AN_2
LONG-TERM DEBT, DEBENTURES AND LINES OF CREDIT (Details Narrative) - USD ($) | Mar. 12, 2019 | Nov. 13, 2015 | Nov. 12, 2015 | Mar. 31, 2016 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 |
Convertible notes payable, unamortized deferred loan costs | $ 67,107 | $ 67,107 | $ 217,167 | ||||||
Convertible notes payable, unamortized beneficial conversion | 25,000 | 25,000 | 250,000 | ||||||
Interest paid in kind | 2,340 | $ 2,000 | |||||||
Line of credit outstanding | 137,727 | $ 137,727 | 129,389 | ||||||
Number of share issued | |||||||||
Repayments of convertible debt | $ 20,737 | 458,375 | |||||||
Loss on extinguishment of debt | $ (129,338) | (84,811) | |||||||
Real Estate Loan [Member] | Financial Institution [Member] | |||||||||
Convertible promissory note principal | $ 180,000 | ||||||||
Convertible promissory notes interest rate | 12.00% | ||||||||
Debt maturity date | Apr. 1, 2020 | ||||||||
SERIES A PREFERRED STOCK [Member] | |||||||||
Number of shares issued on conversion | 1,473 | ||||||||
Number of share issued | 215 | ||||||||
Convertible Notes [Member] | |||||||||
Convertible promissory note principal | $ 265,000 | ||||||||
Debt instrument, monthly payment | $ 1,962 | ||||||||
Frequency of periodic payment | Monthly | ||||||||
Convertible promissory notes interest rate | 5.95% | ||||||||
Debt maturity date | Jun. 30, 2021 | ||||||||
Description of collateral | 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. | ||||||||
Variable Rate Convertible Notes [Member] | |||||||||
Convertible promissory note principal | $ 216,766 | $ 216,766 | |||||||
Convertible promissory notes interest rate | 12.00% | 12.00% | |||||||
Variable Rate Convertible Notes [Member] | Third Parties [Member] | |||||||||
Convertible promissory note principal | $ 281,500 | 1,078,862 | $ 281,500 | 1,078,862 | |||||
Net of financing costs | 265,000 | 960,000 | 265,000 | 960,000 | |||||
Fixed Rate Convertible Notes [Member] | |||||||||
Convertible promissory note principal | $ 764,000 | $ 764,000 | |||||||
Convertible promissory notes interest rate | 5.00% | 5.00% | |||||||
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. | ||||||||
Number of converted shares | 281,124,078 | ||||||||
Number of shares issued on conversion | 545,000 | ||||||||
Number of share issued | 4,274,512 | ||||||||
Accrued interest | $ 64,000 | $ 64,000 | 62,000 | ||||||
2019 Fixed Rate Convertible Notes [Member] | |||||||||
Convertible promissory note principal | $ 200,000 | $ 832,000 | $ 200,000 | $ 832,000 | |||||
Frequency of periodic payment | Semi-annually | ||||||||
Convertible promissory notes interest rate | 7.00% | 7.00% | |||||||
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 #2. The Company may only issue the notice of its intent to redeem the Fixed Rate Convertible Notes $2 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 #2 has the right to convert all or any portion of the Fixed Rate Convertible Notes #2 at the conversion price at any time prior to redemption. | ||||||||
Convertible notes outstanding | $ 1,042,000 | $ 1,042,000 | |||||||
Accrued interest and prepayment penalties | 20,737 | 20,737 | |||||||
2020 Fixed Rate Convertible Notes [Member] | |||||||||
Convertible promissory note principal | $ 268,236 | $ 268,236 | $ 0 | ||||||
Convertible promissory notes interest rate | 10.00% | 10.00% | |||||||
Common stock conversion price | $ / shares | $ 0.005 | $ 0.005 | |||||||
Convertible notes payable, unamortized deferred loan costs | $ 546,387 | $ 546,387 | |||||||
Convertible notes payable, unamortized beneficial conversion | 168,812 | $ 168,812 | |||||||
Number of converted shares | 10,000,000 | ||||||||
Accrued interest | 50,000 | $ 50,000 | |||||||
Repayments of convertible debt | 21,000 | ||||||||
2020 Fixed Rate Convertible Notes [Member] | |||||||||
Convertible notes payable, unamortized deferred loan costs | 517,195 | 517,195 | |||||||
Convertible notes payable, unamortized beneficial conversion | 25,000 | 25,000 | |||||||
Deferred loan costs | $ 568,235 | 568,235 | |||||||
Beneficial Conversion Feature (BCF) [Member] | |||||||||
Debt discount and additional paid-in capital | $ 85,000 | ||||||||
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 | ||||||||
Chief Executive Officer [Member] | |||||||||
Payment to acquired real estate from a related party | $ 480,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | Sep. 04, 2020 | Aug. 04, 2020 | Jul. 17, 2020 | Jul. 19, 2019 | Nov. 12, 2015 | Mar. 31, 2021 | Jun. 30, 2019 |
Number of shares issued | |||||||
SERIES A PREFERRED STOCK [Member] | |||||||
Number of shares issued | 215 | ||||||
Settlement Agreement [Member] | |||||||
Settlement agreement terms | (i) Mr. Schreiber and the Schreiber Trust would transfer all Company stock they then owned (52,377,108 common shares) to the Company and (ii) the Company would (a) make to Mr. Schreiber and the Schreiber Trust a cash payment of Two Hundred Fifty Thousand dollars ($250,000) and (b) issue two Promissory Notes, each in the principal amount of Two Hundred Thousand dollars ($200,000), one of which was due and payable on or before September 6, 2020 (“Note 1”) and the other was due and payable on or before September 5, 2021 | ||||||
Settlement amount | $ 250,000 | ||||||
Settlement shares | 52,377,108 | ||||||
Issue promissory notes | $ 200,000 | ||||||
Settlement loss | $ 471,880 | ||||||
Settlement Agreement [Member] | Mr. Schreiber and the Schreiber Trust[Member] | |||||||
Settlement agreement terms | The Company in the amount of $143,491 representing (i) the remaining, unsatisfied amount of the Judgment; plus (ii) post-Judgment interest of $80; plus, (iii) 20% of the combined amount ($23,915). | ||||||
Settlement amount | $ 519,496 | ||||||
Attorneys fees | 40,000 | ||||||
Settlement liabilities amount | (119,496) | ||||||
Settlement Agreement [Member] | Mr. Schreiber and the Schreiber Trust[Member] | 18% Note 1 [Member] | |||||||
Principal amount | 200,000 | ||||||
Settlement Agreement [Member] | Mr. Schreiber and the Schreiber Trust[Member] | 18% Note 2 [Member] | |||||||
Principal amount | $ 200,000 | ||||||
Consultant Agreement [Member] | |||||||
Paid for royalties | 800 | ||||||
Royalties included in accrued liabilities | $ 850 | ||||||
Consultant Agreement [Member] | Drew Pinsky, Inc [Member] | |||||||
Number of shares issued | 68,700,000 | ||||||
Percentage of royalty to net sale | 3.00% | ||||||
Agreement terms | The Company’s Sharps Needle and Destruction Device (“SANDD”) mini™, SANDD Pro™ and any related products and/or accessories (“Products”) for an initial period of two (2) years (“Initial Period”), under the terms and conditions described in the Agreement. At the end of the Initial Period, there shall be an automatic, immediately consecutive two (2) year extension period unless DPI, within 60 days of the expiration of the Initial Period, provides written notice of its intention not to extend the Agreement. | ||||||
Contractual obligation number of share issued | 68,700,000 | ||||||
Consultant Agreement [Member] | Drew Pinsky, Inc [Member] | SANDD mini TM [Member] | |||||||
Royalty be less than unit sold | $ 3.50 | ||||||
Consultant Agreement [Member] | Drew Pinsky, Inc [Member] | SANDD Pro TM [Member] | |||||||
Royalty be less than unit sold | $ 13.50 | ||||||
Security Agreement [Member] | SERIES A PREFERRED STOCK [Member] | |||||||
Number of shares issued | 1,473 | 1,473 | |||||
Number of converted shares | 122,730,903 | 122,730,903 | |||||
Security Agreement [Member] | SERIES B PREFERRED STOCK [Member] | |||||||
Number of shares issued | 1,000 | 1,000 | |||||
Number of converted shares | 124,849,365 | 124,849,365 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) | Nov. 04, 2020 | Oct. 06, 2020 | Aug. 04, 2020 | Feb. 16, 2016 | Nov. 12, 2015 | Jun. 20, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 |
Preferred stock, authorized | 5,000 | 5,000 | 5,000 | ||||||||
Common stock, authorized | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | ||||||||
Dividends, preferred stock, paid-in-kind | $ 99,728 | $ 168,068 | |||||||||
Common Stock issued | 1,518,490,545 | 1,518,490,545 | 1,165,199,800 | ||||||||
Common Stock par value (in dollars per shares) | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Warrant outstanding | 139,558,450 | 139,558,450 | |||||||||
Gain on extinguishment of debt | $ (129,338) | $ (84,811) | |||||||||
Number of shares issued | |||||||||||
Beechwood [Member] | |||||||||||
Preferred stock, stated value (in dollars per share) | $ 1,133.81 | ||||||||||
Number of shares issued on conversion | 122,730,903 | ||||||||||
Number of converted shares | 1,473 | ||||||||||
Warrant [Member] | |||||||||||
Warrant outstanding | 113,508,450 | 113,508,450 | |||||||||
Exercise price (in dollars per shares) | $ 0.005 | $ 0.005 | |||||||||
Warrant [Member] | 2019 Fixed Rate Convertible Notes [Member] | |||||||||||
Common Stock par value (in dollars per shares) | $ 0.01 | $ 0.01 | |||||||||
Number of warrants issued | 26,050,000 | 26,050,000 | |||||||||
Warrant term | 10 years | 10 years | |||||||||
Warrant [Member] | |||||||||||
Warrant outstanding | 139,558,450 | 139,558,450 | |||||||||
Weighted average exercise price (in dollars per shares) | $ 0.006 | ||||||||||
Weighted average remaining life term | 8 years 3 months 22 days | 8 years 3 months 22 days | |||||||||
Security Agreement [Member] | |||||||||||
Preferred stock, conversion basis | The Company’s Board of Directors, Mr. Klug and Beechwood, agreed to exchange 124,849,365 and 122,730,903 of the Company’s Common Stock into 1,000 shares of Series B Preferred Company Stock and the 1,473 shares of Series A Preferred Company Stock, respectively. | ||||||||||
Stock Exchange Agreement [Member] | G. Darcy Klug [Member] | Warrant [Member] | |||||||||||
Common Stock issued | 113,508,450 | ||||||||||
Common Stock par value (in dollars per shares) | $ 0.005 | ||||||||||
Warrant expire date | Jun. 20, 2029 | ||||||||||
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 | ||||||||||
Preferred stock cumulative dividend rate | 5.00% | ||||||||||
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 | ||||||||||
SERIES B PREFERRED STOCK [Member] | |||||||||||
Number of shares issued on conversion | (250) | ||||||||||
SERIES B PREFERRED STOCK [Member] | Security Agreement [Member] | |||||||||||
Number of shares issued | 1,000 | 1,000 | |||||||||
Number of converted shares | 124,849,365 | 124,849,365 | 124,849,365 | ||||||||
SERIES A PREFERRED STOCK [Member] | |||||||||||
Number of shares issued on conversion | 1,473 | ||||||||||
Number of shares issued | 215 | ||||||||||
SERIES A PREFERRED STOCK [Member] | Beechwood [Member] | |||||||||||
Number of converted shares | 1,473 | 1,473 | |||||||||
Number of shares repurchased (in shares) | 122,730,903 | ||||||||||
SERIES A PREFERRED STOCK [Member] | Security Agreement [Member] | |||||||||||
Number of shares issued | 1,473 | 1,473 | |||||||||
Number of converted shares | 122,730,903 | 122,730,903 | 122,730,903 | ||||||||
SERIES A PREFERRED STOCK [Member] | Stock Exchange Agreement [Member] | G. Darcy Klug [Member] | |||||||||||
Preferred stock cumulative dividend rate | 5.00% | 5.00% | |||||||||
Number of shares converted | 1,277 | ||||||||||
Stock Exchange Agreement [Member] | G. Darcy Klug [Member] | |||||||||||
Common Stock issued | 113,700,000 |
ASSET IMPAIRMENTS (Details Narr
ASSET IMPAIRMENTS (Details Narrative) | 12 Months Ended |
Jun. 30, 2020USD ($) | |
Asset Impairment Charges [Abstract] | |
Asset impairments | $ 214,675 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Operating revenues | $ 29,786 | $ 148,674 | $ 690,746 | $ 217,989 | |
Operating loss | (236,186) | (214,446) | (425,479) | (818,311) | |
Interest expense | 190,244 | 67,723 | 666,882 | 279,238 | |
Depreciation and amortization | 15,533 | 21,458 | 46,600 | 63,375 | |
Identifiable assets | 1,878,448 | 2,680,051 | 1,878,448 | 2,680,051 | $ 1,968,539 |
LAND & HOSPITALITY [Member] | |||||
Operating revenues | 14,017 | 14,849 | 51,524 | 41,452 | |
Operating loss | (528) | 831 | (6,296) | (15,145) | |
Interest expense | 3,559 | 8,883 | 18,289 | 35,452 | |
Depreciation and amortization | 7,833 | 7,833 | 23,500 | 23,500 | |
Identifiable assets | 743,584 | 903,403 | 743,584 | 903,403 | |
MEDICAL DEVICE & PHARMA [Member] | |||||
Operating revenues | 15,769 | 133,825 | 639,222 | 176,537 | |
Operating loss | (76,316) | (51,151) | (2,778) | (248,760) | |
Interest expense | 1,822 | 310 | 69,507 | 627 | |
Depreciation and amortization | 7,700 | 13,625 | 23,100 | 39,875 | |
Identifiable assets | 866,260 | 607,928 | 866,260 | 607,928 | |
OTHER SERVICES [Member] | |||||
Operating revenues | |||||
Operating loss | (56) | (85) | (169) | (160) | |
Interest expense | |||||
Depreciation and amortization | |||||
Identifiable assets | 77,875 | 77,814 | 77,875 | 77,814 | |
CORPORATE [Member] | |||||
Operating revenues | |||||
Operating loss | (159,286) | (164,041) | (416,236) | (554,246) | |
Interest expense | 184,863 | 58,530 | 579,086 | 243,159 | |
Depreciation and amortization | |||||
Identifiable assets | $ 190,729 | $ 1,090,906 | $ 190,729 | $ 1,090,906 |
SEGMENT INFORMATION (Details Na
SEGMENT INFORMATION (Details Narrative) | 9 Months Ended |
Mar. 31, 2021Number | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - 2019 Fixed Rate Convertible Notes and Warrants [Member] - Subsequent Event [Member] | Apr. 02, 2021USD ($)shares |
Subsequent Event [Line Items] | |
Convertible notes, amount | $ | $ 150,000 |
Number of share purchase | shares | 3,750,000 |