| Convertible Debentures | NOTE 5 – CONVERTIBLE DEBENTURES The following table sets forth activity associated
with the convertible debentures:
September 30, June 30, Debenture
2018 2018 Reference
(unaudited)
Convertible debentures issued in September 2014 $ 25,050 $ 25,050 A
Convertible debentures issued in January 2015 500,000 500,000 B
Convertible debentures issued in April - June 2016 1,075,000 1,075,000 C
Convertible debenture issued in August 2016 200,000 200,000 C
Convertible debentures issued in January - March 2017 60,000 60,000 D
Convertible promissory notes issued in March 2017 222,350 222,350 G
Convertible debenture issued in June 2017 100,000 100,000 I
Convertible debenture issued in July 2017 100,000 100,000 J
Convertible debenture issued in September 2017 645,000 645,000 K
Convertible debenture issued in November 2017 247,500 247,500 K
Convertible debenture issued in November 2017 27,000 27,000 L
Convertible debenture issued in December 2017 75,000 75,000 N
Convertible debenture issued in February 2018 45,000 45,000 O
Convertible debentures issued in March 2018 65,000 65,000 P
Convertible debentures issued in April 2018 60,000 60,000 Q
Convertible debentures issued in April 2018 70,000 70,000 R
Convertible debentures issued in April 2018 20,000 20,000 S
Convertible debentures issued in June 2018 40,000 40,000 T
Convertible debentures issued in July 2018 45,000 - U
Convertible debentures issued in August 2018 30,000 - V
Convertible debentures issued in September 2018 25,000 - W
3,676,900 3,576,900
Less: unamortized discount 119,447 134,255
3,557,453 3,442,645
Less: current portion 3,472,214 3,402,421
Total convertible debentures, net of current portion $ 85,239 $ 40,224 A) September 2014 Convertible Debenture Between September 16, 2014 and October 28,
2014, the Company entered into Convertible Debenture Agreements to obtain a total of $500,050 in gross proceeds from five non-affiliated
parties (collectively hereinafter referred to as the “Debenture Holders”). The Debentures have terms of five years
maturing between September 16, 2019 and October 30, 2019. The Debentures bear interest at the rate of 6% per annum and are pre-payable
by the Company at any time without penalty. The Debenture Holders have the right of conversion into unregistered and restricted
shares of Common Stock at a conversion price of $0.15 per share at any date and will receive an equal number of warrants having
a strike price of $0.30 per share and a term of five years. None of the Debentures were converted into common shares during the
year ended June 30, 2018. Interest expense for the three months ended
September 30, 2018 and 2017 was $384 and $384, respectively As of September 30, and June 30, 2018, $25,050
of principal was outstanding. B) January 2015 Convertible Debenture On January 15, 2015, the Company entered into
Convertible Debenture Agreements to obtain $500,000 in gross proceeds from two non-affiliated parties (collectively hereinafter
referred to as the “Debenture Holders”). The Debentures have a term of two years maturing on January 15, 2017 and bear
interest at the rate of 8% per annum. The debentures are pre-payable by the Company at any time without penalty. The Debenture
Holders have the right of conversion into unregistered and restricted shares of Common Stock at a conversion price of $0.06 per
share at any date. The Debenture Holders received 6,250,000 common stock warrants exercisable at $0.06 per share through January
15, 2017. The debt is secured by a security interest in certain microreactor equipment. The Agreement also provides for the investors
to have the right to appoint one member to the Company’s Board of Directors in the event any one of the aforementioned debentures
are converted into common stock of the Company. On October 10, 2016, the maturity date of the debentures was extended to January
15, 2018 and the 6,250,000 warrants were converted into common stock for total proceeds of $375,000. On January 12, 2018 the debentures
were extended for ten days to January 25, 2018. On January 24, 2018, the debentures were extended to December 15, 2018. As compensation
for extending the debentures, the Debenture Holders received 3,500,000 shares of Common Stock, which were valued at $0.06 per share,
a total of $210,000 recorded as debt extension expense. In accounting for the convertible debentures,
the Company allocated the fair value of the warrants to the proceeds received in the amount of $348,105, recorded as debt discount
and is amortized using the effective interest rate method over the life of the loan, two years. Interest expense for the three
months ended September 30, 2018 and 2017 was $10,082 and $10,082, respectively. As of September 30, and June 30, 2018, $500,000
of principal was outstanding. C) April – June, August, October and
November 2016 Convertible Debentures During the fourth quarter of the year ended
June 30, 2017, the Company sold 1,565 Units for total proceeds of $1,565,000 from three affiliated and fourteen non-affiliated
parties. In August 2016 the Company sold 200 additional Units for total proceeds of $200,000 and sold $50,000 in proceeds in October
2016. Each Unit consists of a $1,000 Unsecured Convertible Promissory Note (each, a “Note”) and a warrant to purchase
4,166 shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) at a purchase price
of $0.15 per share (each, a “Warrant”) over a period of five years. The Notes which were issued at face value have
a maturity of two years from the date of issuance, bear interest at the rate of 8% per annum and are convertible into unregistered
and restricted shares of Common Stock at $0.12 per-share, subject to normal and customary adjustments including (a) any subdivisions,
combinations and classifications of the Common Stock; or (b) any payment, issuance or distribution by the Company to its stockholders
of (i) a stock dividend, (ii) debt securities of the Company, or (iii) assets (other than cash dividends payable out of earnings
or surplus in the ordinary course of business). The conversion price also is subject to a full ratchet adjustment upon the Company’s
issuance of Common Stock, warrants, or rights to purchase Common Stock or securities convertible into Common Stock for a consideration
per share which is less than the then applicable conversion price of the Notes excluding Common Stock and options issued to officers,
directors, and employees of the Company, except for the exercise or conversion of existing convertible securities of the Company.
The conversion price was reset to $0.012 per share in June 2018 as a result of a triggering event. In accounting for the convertible debentures,
the Company allocated the fair value of the warrants to the proceeds received in the amount of $609,595, recorded as debt discount
and is amortized using the effective interest rate method over the life of the loan, two years. The Company recognized accretion
of debt discount expense for the years ended June 30, 2018, and 2017, of $2,564 and $96,331, respectively. The Company recognized a beneficial conversion
expense for the three months ended September 30, 2018, and 2017, of $0 and $530,000, respectively. Interest expense for the three months ended
September 30, 2018, and 2017, of $26,067 and $31,444, respectively. During the years ended June 30, 2018 and 2017,
$455,000 and $285,000 of principal was converted into 3,791,666 and 2,375,000 shares of common stock respectively. As of September
30, and June 30, 2018, $1,275,000 of principal was outstanding. As of the date of this report, maturities totaling $825,000 of
principal have been extended for one year until March and April of 2019, and the remaining $250,000 have not been extended, and
are past due as of the date of this report. D) January-March 2017 Convertible Debentures During the third quarter of the year ended
June 30, 2017, the Company sold 2,600 Units for total proceeds of $260,000 from five non-affiliated parties. Each Unit consists
of a $1,000 Unsecured Convertible Promissory Note (each, a “Note”) and a warrant to purchase 4,166 shares of the Company’s
common stock, par value $0.001 per share (the “Common Stock”) at a purchase price of $0.15 per share (each, a “Warrant”)
over a period of five years. The Notes which were issued at face value have a maturity of two years from the date of issuance,
bear interest at the rate of 8% per annum and are convertible into unregistered and restricted shares of Common Stock at $0.12
per-share, subject to normal and customary adjustments including (a) any subdivisions, combinations and classifications of the
Common Stock; or (b) any payment, issuance or distribution by the Company to its stockholders of (i) a stock dividend, (ii) debt
securities of the Company, or (iii) assets (other than cash dividends payable out of earnings or surplus in the ordinary course
of business). The conversion price also is subject to a full ratchet adjustment upon the Company’s issuance of Common Stock,
warrants, or rights to purchase Common Stock or securities convertible into Common Stock for a consideration per share which is
less than the then applicable conversion price of the Notes excluding Common Stock and options issued to officers, directors, and
employees of the Company, except for the exercise or conversion of existing convertible securities of the Company. In evaluating
the accounting treatment of this anti-dilution feature, the Company believes that is has control over whether the anti-dilution
feature will be exercised. The Company is able to decide on which type of financing is raised, and thus the Company can prevent
the issuance of shares at a price below the anti-dilution strike price. The number of Warrants and exercise price is proportionately
adjustable for events including subdivisions, combinations or consolidations, reclassifications, exchanges, mergers, and reorganizations. In accounting for the convertible debentures,
the Company allocated the fair value of the warrants to the proceeds received in the amount of $73,250, recorded as debt discount
and is amortized using the effective interest rate method over the life of the loans, two years. The Company recognized accretion
of debt discount expense for the three months ended September 30, 2018 and 2017 of $1,547 and $8,864, respectively. During the year ended June 30, 2018, $200,000
of these debentures converted into 1,666,667 shares of common stock. Interest expense for the three months ended
September 30, 2018 and 2017 of $1,210 and $5,243, respectively. As of September 30, and June 30, 2018, $60,000
of principal was outstanding. G) March 2017 Convertible Promissory Notes In March 2017, the Company entered into Convertible
Promissory Notes with SBI Investment LLC, 2014-1 (“SBI”) and L2 Capital, LLC (“L2 Capital”) to obtain $285,000
in gross proceeds. In connection with the first funding tranche, SBI and L2 received 253,525 and 760,576 common stock warrants,
respectively, exercisable at $0.13 per share through March 28, 2022. At each subsequent funding to the first tranche, the Company
will issue to each of SBI and L2 Capital warrants to purchase 50% of the total amount of each tranche funded plus the applicable
original issue discount, divided by the lesser of (i) the closing bid of the common stock on March 29, 2017 and (ii) the closing
bid price of the common stock on the funding date of each respective tranche. The promissory notes have a term of six months from
the issuance date and bear interest at the rate of 6% per annum. The promissory notes are not pre-payable by the Company without
penalty. The promissory notes are convertible into unregistered and restricted shares of Common Stock only if there is an Event
of Default as defined in the notes. In March 2017, the Company entered into an
equity purchase agreement (“Eloc”) with SBI and L2 Capital, allowing them to purchase up to $5,000,000 of the Company’s
common stock. As consideration for SBI and L2 Capital, the Company agreed to pay SBI and L2 Capital commitment fees of $63,000
and $147,000, respectively. These commitment fees were issued in the form of promissory notes, which bear interest at 8% per annum
and have mature nine months from the date of issuance. The promissory notes are convertible into unregistered and restricted shares
of Common Stock only if there is an Event of Default as defined in the notes. In accounting for the convertible promissory
note, the Company allocated the fair value of the warrants to the proceeds received in the amount of $86,673, recorded as debt
discount and is amortized using the effective interest rate method over the life of the loan, eight months. The Company also recorded
original issue discount (“OID”) of $31,850 as debt discount and is amortized using the effective interest rate method
over the life of the loan, eight months. The Company recognized accretion of debt discount
expense for the three months ended September 30, 2018 and 2017 of $0 and $43,661, respectively. Interest expense for the three months ended
September 30, 2018 and 2017 of $0 and $8,364, respectively. As of September 30, 2017, the Company had a
derivative liability of $307,301, unamortized discount of $69,333, and recognized interest expense of $340,476, and a change in
derivative liability benefit of $65,703. As of September 30, 2018, the Company no longer had a derivative liability, and recognized
a change in derivative liability benefit of $0 for the three months ended September 30, 2018. As of September 30, and June 30, 2018, and
2017, $222,350 of principal was outstanding, respectively. During the year ended June 30, 2018, the Company paid $319,500 of principal. I) June 2017 Convertible Debenture In June 2017, the Company entered into a Securities
Purchase Agreement and Convertible Promissory Note to obtain $100,000 in gross proceeds from a non-affiliated party (collectively
hereinafter referred to as the “Note Holder”) in exchange for a convertible promissory note in the principal amount
of $100,000. The Note Holder received 250,000 common stock warrants exercisable at $0.12 per share through June 15, 2020. The promissory
note has a term of six months maturing on December 16, 2017 and stipulates a one-time interest charge of eight percent (8%) shall
be applied on the issuance date to the principal. The maturity date of the Note was extended to May 1, 2018 in an extension agreement
dated April 6, 2018. The promissory note is pre-payable by the Company at any time without penalty. The Note Holder has the right
of conversion into unregistered and restricted shares of Common Stock at a conversion price of $0.12 per share at any date. The
promissory note includes piggyback registration rights and the Company shall include on the next registration statement it files
with the SEC all shares issuable upon conversion of the note. In accounting for the convertible promissory
note, the Company allocated the fair value of the warrants to the proceeds received in the amount of $54,340, recorded as debt
discount and is amortized using the effective interest rate method over the life of the loan, six months. Interest expense was
recorded for the three months ended September 30, 2018 and 2017 of $0. Beneficial conversion expense was recorded for the three
months ended September 30, 2018 and 2017 of $0. The Company recognized accretion of debt discount expense for the three months
ended September 30, 2018 and 2017 of $0 and $27,079, respectively. As of September 30, and June 30, 2018, and 2017, $100,000 of
principal was outstanding. In May 2018 the maturity date was extended to February 1, 2019. J) July 2017 Convertible Debenture In July 2017, the Company entered into a Securities
Purchase Agreement and Convertible Promissory Note to obtain $100,000 in gross proceeds from a non-affiliated party (collectively
hereinafter referred to as the “Note Holder”) in exchange for a convertible promissory note in the principal amount
of $100,000. The Note Holder received 1,000,000 shares of common stock and 250,000 common stock warrants exercisable at $0.12 per
share through September 11, 2000. The promissory note has a term of six months maturing on December 16, 2017 and stipulates a interest
charge of eight percent (8%) shall be applied to the principal. The maturity date of the Note was extended to May24, 2018 in an
extension agreement dated April 6, 2018. The promissory note is pre-payable by the Company at any time without penalty. The Note
Holder has the right of conversion into unregistered and restricted shares of Common Stock at a conversion price of $0.12 per share
at any date. The promissory note includes piggyback registration rights and the Company shall include on the next registration
statement it files with the SEC all shares issuable upon conversion of the note. In accounting for the convertible promissory
note, the Company allocated the fair value of the warrants to the proceeds received in the amount of $19,010 recorded as debt discount
and is amortized using the effective interest rate method over the life of the loan, six months. The Company recognized a fair
value of the common shares issued at $100,000. The Company recorded a debenture discount of $53,876 and a beneficial conversion
expense of $45,544. The Company recognized accretion of debt discount expense for the three months ended September 30, 2018 and
2017 of $0 and $21,300, respectively. As of September 30, and June 30, 2017, $100,000 of principal was outstanding. In May 2018
the maturity date was extended to February 1, 2019. As part of the extension agreement, a derivative
liability was created, in connection to a “make-whole” provision. The value of this derivative at September 30, 2018
was $49,798, and a change in derivative liability expense of $28,561 for the three months then ended. Interest expense for the three months ended
September 30, 2018 and 2017 of $0 and $8,000, respectively. K) September 2017 Convertible Debenture Debenture A) In September 2017, the Company entered into
a Securities Purchase Agreement and Convertible Promissory Note to obtain $150,000 in gross proceeds from a non-affiliated party
(collectively hereinafter referred to as the “Note Holder”) in exchange for a convertible promissory note in the principal
amount of $150,000. The Note Holder received 1,650,000 shares of common stock and 375,000 common stock warrants exercisable at
$0.12 per share through September 11, 2000. The promissory note has a term of six months maturing on March 26, 2018 and stipulates
an interest charge of eight percent (8%) shall be applied to the principal. The maturity date of the Note was extended to February
1, 2019 in an extension agreement dated May 2018. The promissory note is pre-payable by the Company at any time without penalty.
The Note Holder has the right of conversion into unregistered and restricted shares of Common Stock at a conversion price of $0.12
per share at any date. The promissory note includes piggyback registration rights and the Company shall include on the next registration
statement it files with the SEC all shares issuable upon conversion of the note. In accounting for the convertible promissory
note, the Company allocated the fair value of the warrants to the proceeds received in the amount of $19,420 recorded as debt discount
and is amortized using the effective interest rate method over the life of the loan, six months. The Company recognized a fair
value of the common shares issued at $165,000. The Company recorded a debenture discount of $82,720 and a beneficial conversion
expense of $45,219. The Company recognized accretion of debt discount expense for the three months ended September 30, 2018 and
2017 of $0 and $8,587, respectively. As of September 30, and June 30, 2018, $150,000 of principal was outstanding. In May 2018
the maturity date was extended to February 1, 2019. As part of the extension agreement, a derivative
liability was created, in connection to a “make-whole” provision. The value of this derivative at September 30, 2018
was $22,666, and a change in derivative liability expense of $14,483 for the three months then ended. Interest expense for the three months ended
June 30, 2018 and 2017 of $0 and $12,000, respectively. Debenture B) In September 2017, the Company entered into
a Securities Purchase Agreement and Convertible Promissory Note to obtain $450,000 in gross proceeds from a non-affiliated party
(collectively hereinafter referred to as the “Note Holder”) in exchange for a convertible promissory note in the principal
amount of $495,000. The Note Holder received 10,000,000 shares of common stock and 2,000,000 common stock warrants exercisable
at $0.12 per share through September 11, 2000. The promissory note has a term of seven months maturing on April 26, 2018 and stipulates
an interest charge of eight percent (8%) shall be applied to the principal. The maturity date of the Note was extended to January
26, 2019 in an extension agreement dated April 2018. The promissory note is pre-payable by the Company at any time without penalty.
The Note Holder has the right of conversion into unregistered and restricted shares of Common Stock at a conversion price of $0.12
per share at any date. The promissory note includes piggyback registration rights and the Company shall include on the next registration
statement it files with the SEC all shares issuable upon conversion of the note. In accounting for the convertible promissory
note, the Company allocated the fair value of the warrants to the proceeds received in the amount of $318,337 recorded as debt
discount and is amortized using the effective interest rate method over the life of the loan, seven months. The Company also recorded
original issue discount (“OID”) of $45,000 as debt discount and is amortized using the effective interest rate method
over the life of the loan, eight months. The Company recognized a fair value of the common shares issued at $1,000,000. The Company
recorded a debenture discount of $318,337 and a beneficial conversion expense of $131,663. The Company recognized accretion of
debt discount expense for the three months ended September 30, 2018 and 2017 of $0 and $7,429, respectively. As of September 30,
and June 30, 2018, $495,000 of principal was outstanding. In May 2018 the maturity date was extended to February 1, 2019. As part of the extension agreement, a derivative
liability was created, in connection to a “make-whole” provision. The value of this derivative at September 30, 2018
was $43,998, and a change in derivative liability expense of $28,864 for the three months then ended. Interest expense for the three months ended
September 30, 2018 and 2017 of $0 and $36,000, respectively. Debenture C) In November 2017, the Company entered into
a Securities Purchase Agreement and Convertible Promissory Note to obtain $225,000 in gross proceeds from a non-affiliated party
(collectively hereinafter referred to as the “Note Holder”) in exchange for a convertible promissory note in the principal
amount of $247,500. The promissory note has a term of six months maturing on April 26, 2018 and stipulates an interest charge of
eight percent (8%) shall be applied to the principal. The maturity date of the Note was extended to January 26, 2019 in an extension
agreement dated April 2018. The promissory note is pre-payable by the Company at any time without penalty. The Note Holder has
the right of conversion into unregistered and restricted shares of Common Stock at a conversion price of $0.12 per share at any
date. The promissory note includes piggyback registration rights and the Company shall include on the next registration statement
it files with the SEC all shares issuable upon conversion of the note. The Company also recorded original issue discount
(“OID”) of $22,500 as debt discount and is amortized using the effective interest rate method over the life of the
loan, six months. As of September 30, and June 30, 2018, $247,500
of principal was outstanding. Interest expense for the three months ended
September 30, 2018 and 2017 of $0 and $18,000, respectively. L) November 2017 Convertible Debenture In November 2017, the Company entered into
a Securities Purchase Agreement and Convertible Promissory Note to obtain $27,000 in gross proceeds from a non-affiliated party
(collectively hereinafter referred to as the “Note Holder”) in exchange for a convertible promissory note in the principal
amount of $27,000. The Note Holder received 416,600 common stock warrants exercisable at $0.15 per share through November 7, 2022.
The promissory note has a term of 24 months maturing on November 13, 2019 and stipulates an interest charge of eight percent (8%)
shall be applied to the principal. The promissory note is pre-payable by the Company at any time without penalty. The Note Holder
has the right of conversion into unregistered and restricted shares of Common Stock at a conversion price of $0.12 per share at
any date. The promissory note includes piggyback registration rights and the Company shall include on the next registration statement
it files with the SEC all shares issuable upon conversion of the note. In accounting for the convertible promissory
note, the Company allocated the fair value of the warrants to the proceeds received in the amount of $8,310 recorded as debt discount
and is amortized using the effective interest rate method over the life of the loan, 24 months. The Company recognized accretion
of debt discount expense for the three months ended September 30, 2018 and 2017 of $780 and $0, respectively. Interest expense
for the three months ended September 30, 2018 and 2017 of $552 and $0, respectively. As of September 30, and June 30, 2018, $27,000
of principal was outstanding. N) December 2017 Convertible Debenture In December 2017, the Company entered into
a Securities Purchase Agreement and Convertible Promissory Note to obtain $75,000 in gross proceeds from a non-affiliated party
(collectively hereinafter referred to as the “Note Holder”) in exchange for a convertible promissory note in the principal
amount of $75,000. The Note Holder received 1,000,000 shares of common stock and 250,000 common stock warrants exercisable at $0.12
per share through December 27, 2020. The promissory note has a term of 6 months maturing on June 30, 2018 and stipulates an interest
charge of eight percent (8%) shall be applied to the principal. The maturity date of the Note was extended to March 30, 2019 in
an extension agreement dated June 2018. The promissory note is pre-payable by the Company at any time without penalty. The Note
Holder has the right of conversion into unregistered and restricted shares of Common Stock at a conversion price of $0.12 per share
at any date. The promissory note includes piggyback registration rights and the Company shall include on the next registration
statement it files with the SEC all shares issuable upon conversion of the note. In accounting for the convertible promissory
note, the company recorded a beneficial conversion expense of $16,176 and the Company allocated the fair value of the warrants
to the proceeds received in the amount of $41,175 recorded as debt discount and is amortized using the effective interest rate
method over the life of the loan, six months. The Company recognized accretion of debt discount expense for the three months ended
September 30, 2018 and 2017 of $0. Interest expense for the three months ended September 30, 2018 and 2017 of $0. As of September
30, and June 30, 2018, $75,000 of principal was outstanding. The debenture agreement includes a “make-whole”
provision, creating a potential derivative liability. The value of this derivative at September 30, 2018 was $10,380, and a change
in derivative liability expense of $8,061 for the three months then ended. O) February 2018 Convertible Debenture In February 2018, the Company entered into
a Securities Purchase Agreement and Convertible Promissory Note to obtain $45,000 in gross proceeds from a non-affiliated party
(collectively hereinafter referred to as the “Note Holder”) in exchange for a convertible promissory note in the principal
amount of $45,000. The Note Holder received 1,500,000 shares of common stock and 500,000 common stock warrants exercisable at $0.12
per share through December 27, 2020. The promissory note has a term of 6 months maturing on August 8, 2018 and stipulates an interest
charge of eight percent (8%) shall be applied to the principal. The maturity date of the Note was extended to February 8, 2019
in an extension agreement dated August 2018. The promissory note is pre-payable by the Company at any time without penalty. The
Note Holder has the right of conversion into unregistered and restricted shares of Common Stock at a conversion price of $0.12
per share at any date. The promissory note includes piggyback registration rights and the Company shall include on the next registration
statement it files with the SEC all shares issuable upon conversion of the note. In accounting for the convertible promissory
note, the company recorded a beneficial conversion expense of $9,046 and the Company allocated the fair value of the warrants to
the proceeds received in the amount of $31,546 recorded as debt discount and is amortized using the effective interest rate method
over the life of the loan, six months. The Company recognized accretion of debt discount expense for the three months ended September
30, 2018 and 2017 of $6,761 and $0, respectively. Interest expense for the three months ended September 30, 2018 and 2017 of $0.
As of September 30, and June 30, 2018, $45,000 of principal was outstanding. The debenture agreement includes a “make-whole”
provision, creating a potential derivative liability. The value of this derivative at September 30, 2018 was $64, and a change
in derivative liability expense of $64 for the three months then ended. P) March 2018 Convertible Debenture In March 2018, the Company entered into a Securities
Purchase Agreement and Convertible Promissory Note to obtain $30,000 in gross proceeds from a non-affiliated party (collectively
hereinafter referred to as the “Note Holder”) in exchange for a convertible promissory note in the principal amount
of $30,000. The Note Holder received 1,500,000 shares of common stock and 500,000 common stock warrants exercisable at $0.12 per
share through March 6, 2021. The promissory note has a term of 6 months maturing on August 8, 2018 and stipulates an interest charge
of eight percent (8%) shall be applied to the principal. The maturity date of the Note was extended to March 6, 2019 in an extension
agreement dated August 2018. The promissory note is pre-payable by the Company at any time without penalty. The Note Holder has
the right of conversion into unregistered and restricted shares of Common Stock at a conversion price of $0.12 per share at any
date. The promissory note includes piggyback registration rights and the Company shall include on the next registration statement
it files with the SEC all shares issuable upon conversion of the note. In accounting for the convertible promissory
note, the company recorded a beneficial conversion expense of $6,625 and the Company allocated the fair value of the warrants to
the proceeds received in the amount of $23,374 recorded as debt discount and is amortized using the effective interest rate method
over the life of the loan, six months. The Company recognized accretion of debt discount expense for the three months ended September
30, 2018 and 2017 of $8,677 and $0, respectively. Interest expense for the three months ended September 30, 2018 and 2017 of $0
was recognized. As of September 30, and June 30, 2018, $30,000 of principal was outstanding. In March 2018, the Company entered into a Securities
Purchase Agreement and Convertible Promissory Note to obtain $35,000 in gross proceeds from a non-affiliated party (collectively
hereinafter referred to as the “Note Holder”) in exchange for a convertible promissory note in the principal amount
of $35,000. The Note Holder received 1,500,000 shares of common stock and 500,000 common stock warrants exercisable at $0.12 per
share through March 23, 2021. The promissory note has a term of six months maturing on September 23, 2018 and stipulates an interest
charge of eight percent (8%) shall be applied to the principal. The maturity date of the Note was extended to March 23, 2019 in
an extension agreement dated September 2018. The promissory note is pre-payable by the Company at any time without penalty. The
Note Holder has the right of conversion into unregistered and restricted shares of |
