Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2023 | May 25, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | T-REX Acquisition Corp. | |
Entity Central Index Key | 0001437750 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Mar. 31, 2023 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Entity Common Stock Shares Outstanding | 18,223,952 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 333-266766 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 26-1754034 | |
Entity Interactive Data Current | Yes | |
Entity Address Address Line 1 | 7301 NW 4th Street | |
Entity Address Address Line 2 | Suite 102 | |
Entity Address City Or Town | Plantation | |
Entity Address State Or Province | FL | |
Entity Address Postal Zip Code | 33317 | |
City Area Code | 954 | |
Local Phone Number | 742-3001 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
CURRENT ASSETS: | ||
Cash | $ 0 | $ 104 |
Prepaid consulting | 104,500 | 47,834 |
TOTAL CURRENT ASSETS | 104,500 | 47,938 |
Plant and equipment | 454,254 | 421,633 |
Crypto currency held | 0 | 9,211 |
Prepaid consulting | 228,320 | 408,804 |
Facility deposit | 0 | 10,570 |
TOTAL ASSETS | 787,074 | 898,156 |
CURRENT LIABILITIES: | ||
Bank overdraft | 10 | 0 |
Accounts payable and accrued expenses | 71,502 | 18,954 |
Due to related party | 326,100 | 120,000 |
TOTAL CURRENT LIABILITIES | 397,612 | 138,954 |
TOTAL LIABILITIES | 397,612 | 138,954 |
Commitments and contingencies | 0 | 0 |
STOCKHOLDERS' EQUITY (DEFICIT) | ||
Common stock, 0.0001 par value, authorized 350,000,000 shares and 18,223,952 and 19,573,952 issued and outstanding as of March 31, 2023, and June 30, 2022, respectively | 1,821 | 1,957 |
Additional paid in capital | 5,813,782 | 4,918,002 |
Accumulated deficit | (5,426,142) | (4,160,757) |
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) | 389,462 | 759,202 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $ 787,074 | $ 898,156 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Jun. 30, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, shares par value | $ 0.0001 | $ 0.001 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares issued | 18,223,952 | 19,573,952 |
Common stock, shares outstanding | 18,223,952 | 19,573,952 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||
REVENUE | $ 19,944 | $ 26,305 | $ 57,731 | $ 26,305 |
Cost of goods sold | 34,899 | 39,654 | 117,584 | 39,654 |
Gross Profit | (14,955) | (13,349) | (59,853) | (13,349) |
EXPENSES | ||||
Transfer agent and filing fees | 13,032 | 637 | 17,835 | 4,433 |
Professional fees | 14,002 | 41,000 | 63,686 | 113,330 |
Management and consulting fees | 58,500 | 30,000 | 317,500 | 90,000 |
Share based compensation | 112,500 | 0 | 747,857 | 770,850 |
Administration fees | 45,634 | 8,326 | 58,654 | 15,212 |
TOTAL EXPENSES | 243,668 | 79,963 | 1,205,532 | 993,825 |
Loss from operations | (258,623) | (93,312) | (1,265,385) | (1,007,174) |
LOSS BEFORE TAXES | (258,623) | (93,312) | (1,265,385) | (1,007,174) |
Provision for Income Taxes | 0 | 0 | 0 | 0 |
NET LOSS | $ (258,623) | $ (93,312) | $ (1,265,385) | $ (1,007,174) |
NET LOSS PER COMMON SHARE - BASIC & DILUTED | $ (0.01) | $ (0.01) | $ (0.06) | $ (0.06) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC & DILUTED | 18,906,544 | 16,169,106 | 19,495,849 | 15,851,171 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Total | Common Stock | Shares to be issued | Additional Paid-in Capital | Accumulated Deficit |
Balance, shares at Jun. 30, 2021 | 14,669,106 | ||||
Balance, amount at Jun. 30, 2021 | $ (46,124) | $ 1,467 | $ 0 | $ 2,818,968 | $ (2,866,559) |
Shares issued for related party debt conversion, shares | 1,500,000 | ||||
Shares issued for related party debt conversion, amount | 45,000 | $ 150 | 0 | 44,850 | |
Share based expense for warrants issued | 770,850 | $ 0 | 770,850 | ||
Shares issued for subscriptions, shares | 747,837 | ||||
Shares issued for subscriptions, amount | 560,875 | $ 75 | 0 | 560,800 | |
Shares issued for services, shares | 1,475,000 | ||||
Shares issued for services, amount | 604,749 | $ 148 | 604,601 | ||
Shares issued for debt conversion, shares | 1,182,009 | ||||
Shares issued for debt conversion, amount | 118,050 | $ 118 | 0 | 117,932 | |
Net Loss | (1,294,198) | 0 | 0 | 0 | (1,294,198) |
Balance, amount at Jun. 30, 2022 | 759,202 | $ 1,958 | 0 | 4,918,001 | (4,160,757) |
Balance, shares at Jun. 30, 2022 | 19,573,952 | ||||
Share based expense for warrants issued | 483,145 | $ 0 | 483,145 | ||
Net Loss | (823,949) | $ 0 | 0 | 0 | (823,949) |
Shares issued for cash, shares | 266,666 | ||||
Shares issued for cash, amount | 200,000 | $ 27 | 0 | 199,973 | |
Adjustment for par value | 0 | 0 | |||
Balance, amount at Sep. 30, 2022 | 618,398 | $ 1,984 | 0 | 5,601,119 | (4,984,706) |
Balance, shares at Sep. 30, 2022 | 19,840,618 | ||||
Balance, shares at Jun. 30, 2022 | 19,573,952 | ||||
Balance, amount at Jun. 30, 2022 | 759,202 | $ 1,958 | 0 | 4,918,001 | (4,160,757) |
Net Loss | 1,265,385 | ||||
Balance, amount at Mar. 31, 2023 | 389,462 | $ 1,821 | 0 | 5,813,782 | (5,426,142) |
Balance, shares at Mar. 31, 2023 | 18,223,952 | ||||
Balance, shares at Sep. 30, 2022 | 19,840,618 | ||||
Balance, amount at Sep. 30, 2022 | 618,398 | $ 1,984 | 0 | 5,601,119 | (4,984,706) |
Net Loss | (182,813) | 0 | 0 | 0 | (182,813) |
Shares issued for cash | 100,000 | 0 | 100,000 | 0 | |
Balance, amount at Dec. 31, 2022 | 535,585 | $ 1,985 | 100,000 | 5,601,120 | (5,167,519) |
Balance, shares at Dec. 31, 2022 | 19,840,618 | ||||
Shares issued for services, shares | 150,000 | ||||
Shares issued for services, amount | 112,500 | $ 15 | 0 | 112,485 | |
Net Loss | (258,623) | $ 0 | 0 | 0 | (258,623) |
Shares issued for cash, shares | 133,334 | ||||
Shares issued for cash, amount | 0 | $ 12 | (100,000) | 99,988 | |
Shares surrendered, shares | (1,900,000) | ||||
Shares surrendered, amount | 0 | $ (190) | 190 | ||
Balance, amount at Mar. 31, 2023 | $ 389,462 | $ 1,821 | $ 0 | $ 5,813,782 | $ (5,426,142) |
Balance, shares at Mar. 31, 2023 | 18,223,952 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
OPERATING ACTIVITIES | |||||
Net income (loss) | $ 258,623 | $ 823,949 | $ (1,265,385) | $ (1,007,174) | $ 1,294,198 |
Share based expense | 595,645 | 770,850 | |||
Depreciation | 55,379 | 7,956 | |||
Change in crypto currency held | 9,211 | (26,305) | |||
Change in facility deposit | 10,570 | (10,570) | |||
Change in prepaid expense | 123,818 | (148,049) | |||
Change Accounts Payable and Accrued Expenses | 52,548 | 21,848 | |||
Net Cash Used by Operating Activities | (418,214) | (95,346) | |||
INVESTING ACTIVITIES: | |||||
Purchase of Equipment | (88,000) | (445,500) | |||
Net cash used by investing activities | (88,000) | (445,500) | |||
FINANCING ACTIVITIES: | |||||
Proceeds from related party | 206,100 | 0 | |||
Proceeds from subscriptions receivable | 300,000 | 560,875 | |||
Net cash provided by financing activities | 506,100 | 560,875 | |||
NET INCREASE (DECREASE) IN CASH | (114) | 20,029 | |||
CASH AT BEGINNING OF PERIOD | $ 104 | 104 | 0 | 0 | |
CASH AT END OF PERIOD | $ 10 | 10 | 20,029 | $ 104 | |
Supplemental Cashflow Information | |||||
Interest Paid | 0 | 0 | |||
Taxes Paid | 0 | 0 | |||
Supplemental Non-Cash Information | |||||
Share based compensation and warrants vested | 483,145 | 150,850 | |||
Share based compensation and shares vested | $ 264,712 | $ 620,000 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 9 Months Ended |
Mar. 31, 2023 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS T-REX Acquisition Corp. (The “ Company As of March 31, 2023, the Company is a holding company with the following subsidiaries: Raptor Mining LLC, a Florida limited liability company (“ Raptor Mining Merger Sub Megalodon 2020 TRXA Merger Sub Inc. On March 13, 2020, the Company incorporated the Merger Sub to facilitate the acquisition of a pre-revenue Software-as-a-Service internet platform business. The Company’s sole Officer and Director currently serves as the sole officer and director of the Merger Sub. As of the date of this filing, neither the Company nor the Merger Sub have entered into a definitive agreement or non-binding letter of intent to acquire a company and Merger Sub is an inactive subsidiary of the Company. 2021 Raptor Mining LLC and 2022 Megalodon Mining and Electric LLC On July 9, 2021, the Company formed Raptor Mining to pursue the Company’s new business operating strategy to engage in cryptocurrency mining, which is used to secure decentralized network protocols and decentralized distributed ledgers. On July 1, 2022, the Company formed Megalodon to investigate and potentially pursue a cryptocurrency co-location business model. The cryptocurrency co-location business model is based on a company, which has access to data centers and inexpensive cryptocurrency mining inputs, such as low-cost electricity supply, offering to host third-party owned cryptocurrency mining equipment in exchange for a fee, which may consist of a mix of cash and cryptocurrency consideration. Prior to the Company’s fiscal year end, the Company intends to acquire all of the assets of yet to be disclosed competitor in the crypto mining and co-location industry. The asset purchase shall include all crypto mining equipment, established co-location customers / business, intellectual property, and its physical co-location facility. The Purchase price is agreed to be $885,000 closing in two tranches, the first on or before May 30, 2023, and the second within 180 days from the initial Closing. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s financial statements and notes thereto included in the Company’s fiscal year end June 30, 2022, and June 30, 2021, respectively. The Company assumes that the users of the interim financial information herein have read, or have access to, the audited financial statements for the preceding period, and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. The results of operations for the three and nine months ended March 31, 2023, are not necessarily indicative of results for the entire year ending June 30, 2023. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires 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. Actual results could differ from those estimates. Determination of Bad Debts The Company’s policy is to analyze the collectability of Accounts and Notes Receivable on a monthly basis to determine whether any allowance for doubtful accounts is necessary. Once the allowance has been determined the offset is booked to bad debt expense and subsequently if the account is deemed to be a bad debt, it is written off the allowance for doubtful accounts. Principles of Consolidation As of March 31, 2023, the accounts include those of the Company and its 100% owned subsidiaries, Merger Sub, Raptor Mining and Megalodon Mining and Electric. These entities are inactive and without balances. As a result, there were no intercompany transactions or balances to be eliminated. As of January 5, 2023, the Company has commenced researching the acquisition of land to begin offering co-location services to other cryptocurrency miner owners. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires 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. Significant estimates include the estimated useful lives of property and equipment. Actual results could differ from those estimates. Cash equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Fair value of financial instruments The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S.) GAAP and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally unobservable inputs and not corroborated by market data. The carrying amount of the Company’s financial assets and liabilities, such as cash, and accrued expenses approximate their fair value because of the short maturity of those instruments. The Company’s notes payable approximate the fair value of such instruments based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangements as of March 31, 2023. The assets and liabilities recorded on the balance sheet approximate their fair value. Equipment Equipment is recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation of equipment is computed by the straight-line method (after taking into account their respective estimated residual values) over the assets estimated useful life of seven (7) years. Upon sale or retirement of equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in statements of operations. Equipment consists solely of bitcoin miners used in the operation. The equipment value is based on the cost and the potential impairment is reviewed periodically and as of June 30, 2022, there was no impairment of any of the mining equipment. The depreciation expense for the three and nine months ended March 31. 2023, was $19,307 and $55,498 respectively. Depreciation expense for the three and nine months ended March 31, 2022, was $7,956 and $7,956 respectively. Stock based compensation The Company accounts for stock-based compensation in accordance with ASC Section 718 Compensation – Stock Compensation. Under the fair value recognition provisions of ASC 718 stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expensed ratably over the requisite service period/vesting period. The company accounts for its non-employee stock-based compensation in accordance with Update 2018-07—Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Commitments and contingencies The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. From time to time, the Company may be a defendant in pending or threatened legal proceedings arising in the normal course of its business. Management is not aware of any pending, threatened or asserted litigation, petition, or claim. Revenue recognition The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers. The core principle of the new revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: · Step 1: Identify the contract with the customer · Step 2: Identify the performance obligations in the contract · Step 3: Determine the transaction price · Step 4: Allocate the transaction price to the performance obligations in the contract · Step 5: Recognize revenue when the Company satisfies a performance obligation The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. When determining the transaction price, an entity must consider the effects of all of the following: · Variable consideration · Constraining estimates of variable consideration · The existence of a significant financing component in the contract · Noncash consideration · Consideration payable to a customer Crypto asset transaction verification is the output generated from the Company's ordinary activities. The consideration the Company receives is a bitcoin reward, which the Company measures fair value on the date received. Rewards are earned when the Company successfully places a block (by being the first to solve an algorithm). As a result, the Company receives confirmation from the mining pool of the block placed and reward/s earned. The Company uses the quoted price of the bitcoin at closing on the date the coin is mined to value its reward/s. There is no significant financing component in these transactions. Expenses associated with running the digital currency mining business, such as rent, and electricity cost are also recorded as cost of revenue. Depreciation on digital currency mining equipment is recorded as a component of cost of revenue. Digital currencies - Bitcoin Bitcoin is included as a non-current, intangible asset in the balance sheets. It is recorded at cost less impairment. If it is determined that more likely than not an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. The Bitcoin’s cost is accounted for using FIFO cost basis. Rewards in bitcoin are earned for mining activity. The reward a bitcoin miner earns changes roughly every four years, or after every 210,000 blocks are mined and gets reduced by half each time; this whole process is called bitcoin halving. The last halving occurred on May 11, 2020, and reduced the reward per block to 6.25 BTC. Income taxes Federal Income taxes are not currently due since we have had losses since inception. Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes – Recognition. Deferred income tax amounts reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes. As of March 31, 2023, we had a net operating loss carry-forward of approximately $1,849,716 and a deferred tax asset of $388,440 using the statutory rate of 21%. The deferred tax asset may be recognized in future periods, not to exceed 20 years. However, due to the uncertainty of future events we have booked valuation allowance of $(388,440). FASB ASC 740 prescribes recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. As of March 31, 2023, the Company had not taken any tax positions that would require disclosure under FASB ASC 740. March 31, 2023 June 30, 2022 Deferred Tax Asset $ 388,440 $ 873,759 Valuation Allowance (388,440 ) (873,759 ) Deferred Tax Asset (net) $ - $ - Due to the changes the Tax Reform Act of 1986 and the Tax Cut and Jobs Act of 2017, net operating loss carryforwards for Federal Income tax reporting purposes are subject to additional limitations. Should certain changes in ownership occur, our net operating loss carryforwards may be limited to use in future years. In addition, tax rates on corporations were reduced and certain other deductions limited. These changes may affect the income tax benefit calculation and related allowance during subsequent fiscal years. Net income (loss) per common share Net income (loss) per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period. The weighted average number of common shares outstanding and potentially outstanding common shares assumes that the Company incorporated as of the beginning of the first period presented. There were outstanding warrants that could convert into 3,285,332 shares of common stock as of March 31, 2023. At the end of all interim periods reported in the “Statements of Operation potentially dilutive shares were excluded because the effect would have been anti-dilutive. Cash flows reporting The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification. Advertising Costs The Company expenses the cost of advertising and promotional materials when incurred. Total Advertising costs were zero for all periods. Par value of common stock The par value of common stock was previously reported at $0.001 and was adjusted to $0.0001 resulting in an adjustment from common stock to additional paid in capital, with no change to total equity. Subsequent events The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements are issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer, considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR. |
GOING CONCERN
GOING CONCERN | 9 Months Ended |
Mar. 31, 2023 | |
GOING CONCERN | |
GOING CONCERN | NOTE 3 – GOING CONCERN As reflected in the accompanying financial statements, the Company incurred a net loss of $1,265,385 during the nine months ended March 31, 2023, and had an accumulated deficit of $5,426,142 and a working capital deficit of $293,112 as of March 31, 2023. While the Company is attempting to generate greater revenues, the Company’s cash position may not be significant enough to support the Company’s daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate revenues and in its ability to raise additional funds, there can be no assurances to that effect and there is substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate revenues. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Mar. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 4 – RELATED PARTY TRANSACTIONS Office space The Company leases office space from its Chief Executive Officer at a cost of $250 per month. The term of the lease is for 365 days and ends on June 30, 2023. On March 31, 2023, $2,250 of rent expense was accrued and is included in Accounts Payable and Accrued Expenses. Due to Related Parties For the year ended June 30, 2022, the Company issued 1,182,009 for the conversion of $118,050 in related party payables. As of March 31, 2023, the Company owed $245,900 due to related parties for accumulated management fees. |
COMMON STOCK
COMMON STOCK | 9 Months Ended |
Mar. 31, 2023 | |
COMMON STOCK | |
COMMON STOCK | NOTE 5 – COMMON STOCK On June 25, 2022, Frank Horkey received 350,000 shares for acting in the capacity of President and sole Director since his previous contract expired December 31, 2019. On June 25 , As compensation for acting on the Company’s Board of Directors, on June 25, 2022, Michael Christiansen received 250,000 shares of the Company’s common stock vesting as follows: eighty-three thousand three hundred thirty-three (83,333) shares upon signing as of July 1, 2022; eighty three thousand three hundred thirty three (83,333) shares for year two to vest quarterly at the rate twenty thousand eight hundred thirty three (20,833) shares per quarter; and eighty three thousand three hundred thirty three (83,333) shares for year three to vest quarterly at the rate twenty thousand eight hundred thirty three (20,833) shares per quarter. On June 25, 2022, Squadron Marketing LLC received 250,000 shares of the Company common stock for acting on the Company’s Advisory Board for fiscal 2023 vesting as follows: eighty-three thousand three hundred thirty-three (83,333) shares upon signing as of July 1, 2022; eighty three thousand three hundred thirty three (83,333) shares for year two to vest quarterly at the rate twenty thousand eight hundred thirty three (20,833) shares per quarter; and eighty three thousand three hundred thirty three (83,333) shares for year three to vest quarterly at the rate twenty thousand eight hundred thirty three (20,833) shares per quarter. On June 25, 2022, Lazarus Asset Management LLC - received 250,000 shares of the Company common stock for acting on the Company’s Advisory Board for fiscal 2023 vesting as follows: eighty-three thousand three hundred thirty-three (83,333) shares upon signing as of July 1, 2022; eighty three thousand three hundred thirty three (83,333) shares for year two to vest quarterly at the rate twenty thousand eight hundred thirty three (20,833) shares per quarter; and eighty three thousand three hundred thirty three (83,333) shares for year three to vest quarterly at the rate twenty thousand eight hundred thirty three (20,833) shares per quarter. Shares issued that were not vested for unrestricted use resulted in Prepaid consulting expense of $304,426 (current - $76,106; non-current - $228,320) on March 31, 2023, and $456,638 (current - $47,834, non-current - $408,804) on June 30, 2022. On July 1, 2022, James Marshall III received 75,000 shares of the Company’s common stock for acting as the Company’s technical consultant for fiscal 2023. On July 1, 2022, John Bennet was issued 50,000 shares for extending his accounting and consulting contract through fiscal year end 2023. During the year ended June 30, 2022, the Company issued 1,182,009 for the conversion of $118,050 in related party payables. During the quarter ending September 30, 2022, the Company has issued 266,666 shares of the Company’s common stock pursuant to private placement transactions described below. On February 10, 2023, John Bennet received 100,000 shares as inducement and partial payment for assuming the position of the Company’s Chief Financial Officer for the period January 1, 2023, through June 30, 2024. On February 10, 2023 Shawn Perez received 50,000 shares of the Company’s common stock as partial payment for acting as the Company’s in-house counsel. Beginning January 1, 2023, through June 30, 2024. On February 16, 2023, 2023 two related party shareholders returned a combined 1,900,000 shares of the Company’s common stock to treasury. Private Placement Transactions The Securities Purchase Agreements On July 22, 2022, we entered into a Securities Purchase Agreement with one private investor who is not a Selling Stockholder (defined above) to whom we sold $100,000 in aggregate principal amount for 133,333 shares of our common stock and warrants to purchase 133,333 shares of our common stock, with an exercise price of $1.50 per share and exercisable at any time before the close of business on September 8,, 2025. On August 8, 2022, the same private investor purchased another $100,000 in aggregate principal amount for an additional 133,333 shares of our common stock and warrants to purchase 133,333 shares of our common stock, with an exercise price of $1.50 per share and exercisable at any time before the close of business on September 8,, 2025.On November 28, 2022, the same private investor purchased another $100,000 in aggregate principal amount for an additional 133,334 shares of our common stock and warrants to purchase 133,334 shares of our common stock, with an exercise price of $1.50 per share and exercisable at any time before the close of business on November 28, 2025. As of the close of December 31, 2022, these shares were recorded as “shares to be issued” and subsequently issued on February 10, 2023. We closed the transactions noted above in reliance on Securities Purchase Agreement dated November 10, 2021, noted below. We issued the securities contemplated under the Securities Purchase Agreement in reliance upon the exemption from registration pursuant to Section 4(a)(2) of the Securities Act. Consolidate The Registration Rights Agreements On November 10, 2021, in connection with the closing of the transactions contemplated by the Securities Purchase Agreement, we entered into Registration Rights Agreements with the selling stockholders who are parties to the Securities Purchase Agreement. With respect to the selling stockholders who are party to the Securities Purchase Agreement, we are obligated to file a registration statement registering the resale of (i) their Warrant Shares, (ii) any Shares issuable under the terms of the Securities Purchase Agreement, and (iii) any securities issued or then issuable upon any stock split, dividend or other distribution, recapitalization, or similar event with respect to the foregoing. Pursuant to the Registration Rights Agreements, we agreed to file the registration statement(s) no later than the earlier of (a) 180-days after an initial public offering by the Company or (b) twelve (12) months after effective date of the Registration Rights Agreement. Furthermore, we agreed to grant the parties to the Securities Purchase Agreement a “piggy-back” registration right upon at least 10-day notice prior to the Company’s filing of a registration statement (or confidential submission in draft form) with the SEC. As contemplated by the terms of the Registration Rights Agreements, the Company filed a registration statement on Form S-1, as amended, that became effective on September 8, 2022. Company’s Registration Statement on Form S-1, as amended On September 8, 2022, the Company’ registration statement on Form S-1, as amended, concerning the registration of 6,505,267 shares of its common stock, has been declared effective by the Securities and Exchange Commission. The registration statement relates to the possible resale, from time to time, by the selling stockholders of up to an aggregate of 6,530,267 shares of the Company’s common stock, par value $0.0001 per share (the “ Shares PIPE Investors PIPE Warrant Shares Non-PIPE Warrant Shares The Shares will be offered and sold by the selling stockholders at a fixed price of $1.50 per share until our common stock is quoted on OTC Market Group, Inc.’s “OTCQB” or “OTCQX” tiers, and thereafter the Shares may be sold at prevailing market prices or privately negotiated prices or in transactions that are not in the public market. Although the Company has applied for listing on the OTCQB tier, we cannot assure you that our common stock will, in fact, be quoted on the OTCQB tier. The Company will not receive any proceeds from the sale of the Shares by the selling stockholders, although the Company will receive the proceeds from any cash exercise of the Warrants. |
WARRANTS
WARRANTS | 9 Months Ended |
Mar. 31, 2023 | |
WARRANTS | |
WARRANTS | NOTE 6 – WARRANTS On May 3, 2014, it was resolved that the Company shall offer 250,000 Units at a price of $.80 per unit. Each Unit shall consist of (a) one (1) share of common stock and (b) a combination of series A warrants (which may be exercised within three (3) years) and series B warrants exercised within five (5) years of the consummation of a merger. On May 14, 2014, the company entered into a subscription agreement for 157,500 units at $.80 per share for a total of $125,000. Each unit consists of one (1) share of common stock and one (1) series A warrant to purchase one share of common stock at $1.25 per share. Each A warrant expires three years from the date of issuance. On May 14, 2014, the company entered into a subscription agreement for 32,000 units at $.80 per share for a total of $25,000. Each unit consists of one (1) share of common stock and one (1) series A warrant to purchase one share of common stock at $1.25 per share. Each A warrant expires three years from the date of issuance. On July 14, 2014, the company entered into a subscription agreement for 62,500 units at $.80 per share for a total of $50,000. Each unit consists of one (1) share of common stock, and two (2) Series A warrants to purchase one (1) share of common stock at $.65 per share and one (1) series B warrant to purchase one (1) share of common stock at $.80. Each series A warrant expires three years from the consummation of a merger and each series B warrant expires 5 years from the consummation of a merger. The Company may call the B Warrants at such point the quoted market closing price is at least $2.50 for 20 consecutive trading days. In the event the Company calls the Warrants, it shall immediately notify holders of the Warrants of the call. Warrants holders will be granted a period of 45 calendar days to redeem the Warrants by returning the Warrant to the Company accompanied by payment of $.80 per share. The warrants were valued using a Black Scholes calculation. The inputs for series A used a price $.59, a strike price range of $.65 – $1.25, maturity 3 years, a risk-free interest rate of 3.9% and a beta of 50% estimated and were valued at $.202. The inputs for series B used a price $.59, a strike price of .80, maturity 5 years, a risk-free interest rate of 3.9% and a beta of 50% estimated and were valued at $.232. As of the filing date of this quarterly report, 189,500 A warrants have expired leaving only 125,000 A Warrants and 62,500 B Warrants remaining effective since the Company has yet to consummate a merger. On May 5, 2022, the Company issued shares and warrants related to that certain Securities Purchase Agreement dated November 10, 2021 with certain of the selling stockholders referenced in our most recent registration statement pursuant to which we sold to such selling stockholders $560,875 in aggregate principal amount of our common stock (747,837 shares) and C warrants to purchase shares of our common stock (which we refer to as the “PIPE Warrants”), exercisable at any time before the close of business on September 8, 2025. The PIPE Warrants are comprised of 747,837 warrants with an exercise price of $1.50 per share. Warrants Issued to Management and Consultants On July 1, 2021, Squadron Marketing LLC and Lazarus Asset Management LLC were each issued a Class C warrant to purchase 250,000 shares of the Company’s common stock for a period of three years at an exercise price of $1.50. On May 26, 2022, the Company issued to Frank Horkey a Class C warrant to purchase 250,000 shares of the Company’s common stock exercisable at any time before the close of business on September 8, 2025 at an exercise price of $1.50 as part of his executive compensation during the 2022 fiscal year. On May 26, 2022, Squadron Marketing LLC and Lazarus Asset Management LLC were each issued Class C warrants to purchase 500,000 shares of the Company’s common stock exercisable at any time before the close of business on September 8, 2025, at an exercise price of $1.50, related to consulting services during fiscal 2022. On June 25, 2022, Frank Horkey and Michael Christiansen were each issued 250,000 Class D warrants to purchase 250,000 shares of the Company’s common stock exercisable at any time before the close of business on September 8, 2025, at an exercise price of $1.50 for serving on the Company’s Board of Directors for the upcoming 2023 fiscal year. On June 25, 2022, Squadron Marketing LLC and Lazarus Asset Management LLC were each issued Class D warrants to purchase 250,000 shares of the Company’s common stock exercisable at any time before the close of business on September 8, 2025, at an exercise price of $1.50 for serving on the Company’s Advisory Board for the upcoming 2023 fiscal year. Certain of the shares and warrants noted above were cumulative amounts due for prior service. In addition, certain other of the shares and warrants noted above were issued to Board Members, Advisory Board Members and Consultants for services to be rendered for periods subsequent to June 30, 2022. The amounts related to restricted shares issued to board members and consultants are treated as prepaid consulting until vested at which time service periods would be satisfied. The following is the outstanding warrant activity: Warrants - Common Share Equivalents Weighted Average Exercise price Warrants exercisable - Common Share Equivalents Weighted Average Exercise price Weighted average life in years Outstanding June 30, 2020 187,500 $ 0.75 187,500 $ 0.75 3.67 Additions Granted - - - - Expired Expired - $ - - - Exercised - - - - Outstanding June 30, 2021 187,500 $ 0.75 187,500 $ 0.75 3.67 Additions Granted 3,497,833 1.50 1,247,833 1.50 2.92 Expired Expired - $ - - - Exercised - - - - Outstanding June 30, 2022 3,685,333 $ 1.47 1,435,333 $ 1.47 3.04 Additions Granted 399,999 1.50 1,849,999 1.50 2.92 Expired Expired - $ - - - Exercised - - - - Outstanding March 31, 2023 4,085,332 $ 1.47 3,285,332 $ 1.47 3.04 |
DIGITAL CURRENCY BITCOIN
DIGITAL CURRENCY BITCOIN | 9 Months Ended |
Mar. 31, 2023 | |
DIGITAL CURRENCY BITCOIN | |
DIGITAL CURRENCY - BITCOIN | NOTE 7. DIGITAL CURRENCY - BITCOIN The Company carries digital currencies at cost using the first in first out method. Bitcoin activity and balances were as follows: Nine Months Ended March 31, 2023 Year Ended June 30, 2022 Beginning balance $ 9,211 $ 0 Increase Revenue recognized from bitcoin mined 57,731 61,906 66,942 61,906 Decrease Bitcoin used for operational expenses 66,942 52,695 Ending balance $ 0 $ 9,211 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Mar. 31, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 8 – SUBSEQUENT EVENTS The Company has evaluated all events that occurred after the balance sheet date through the date when the financial statements were issued to determine if they must be reported. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires 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. Actual results could differ from those estimates. |
Determination of Bad Debts | The Company’s policy is to analyze the collectability of Accounts and Notes Receivable on a monthly basis to determine whether any allowance for doubtful accounts is necessary. Once the allowance has been determined the offset is booked to bad debt expense and subsequently if the account is deemed to be a bad debt, it is written off the allowance for doubtful accounts. |
Principles of Consolidation | As of March 31, 2023, the accounts include those of the Company and its 100% owned subsidiaries, Merger Sub, Raptor Mining and Megalodon Mining and Electric. These entities are inactive and without balances. As a result, there were no intercompany transactions or balances to be eliminated. As of January 5, 2023, the Company has commenced researching the acquisition of land to begin offering co-location services to other cryptocurrency miner owners. |
Use of estimates | The preparation of financial statements in conformity with generally accepted accounting principles requires 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. Significant estimates include the estimated useful lives of property and equipment. Actual results could differ from those estimates. |
Cash equivalents | The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. |
Fair value of financial instruments | The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S.) GAAP and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally unobservable inputs and not corroborated by market data. The carrying amount of the Company’s financial assets and liabilities, such as cash, and accrued expenses approximate their fair value because of the short maturity of those instruments. The Company’s notes payable approximate the fair value of such instruments based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangements as of March 31, 2023. The assets and liabilities recorded on the balance sheet approximate their fair value. |
Equipment | Equipment is recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation of equipment is computed by the straight-line method (after taking into account their respective estimated residual values) over the assets estimated useful life of seven (7) years. Upon sale or retirement of equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in statements of operations. Equipment consists solely of bitcoin miners used in the operation. The equipment value is based on the cost and the potential impairment is reviewed periodically and as of June 30, 2022, there was no impairment of any of the mining equipment. The depreciation expense for the three and nine months ended March 31. 2023, was $19,307 and $55,498 respectively. Depreciation expense for the three and nine months ended March 31, 2022, was $7,956 and $7,956 respectively. |
Stock based compensation | The Company accounts for stock-based compensation in accordance with ASC Section 718 Compensation – Stock Compensation. Under the fair value recognition provisions of ASC 718 stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expensed ratably over the requisite service period/vesting period. The company accounts for its non-employee stock-based compensation in accordance with Update 2018-07—Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. |
Commitments and contingencies | The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. From time to time, the Company may be a defendant in pending or threatened legal proceedings arising in the normal course of its business. Management is not aware of any pending, threatened or asserted litigation, petition, or claim. |
Revenue recognition | The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers. The core principle of the new revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: · Step 1: Identify the contract with the customer · Step 2: Identify the performance obligations in the contract · Step 3: Determine the transaction price · Step 4: Allocate the transaction price to the performance obligations in the contract · Step 5: Recognize revenue when the Company satisfies a performance obligation The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. When determining the transaction price, an entity must consider the effects of all of the following: · Variable consideration · Constraining estimates of variable consideration · The existence of a significant financing component in the contract · Noncash consideration · Consideration payable to a customer Crypto asset transaction verification is the output generated from the Company's ordinary activities. The consideration the Company receives is a bitcoin reward, which the Company measures fair value on the date received. Rewards are earned when the Company successfully places a block (by being the first to solve an algorithm). As a result, the Company receives confirmation from the mining pool of the block placed and reward/s earned. The Company uses the quoted price of the bitcoin at closing on the date the coin is mined to value its reward/s. There is no significant financing component in these transactions. Expenses associated with running the digital currency mining business, such as rent, and electricity cost are also recorded as cost of revenue. Depreciation on digital currency mining equipment is recorded as a component of cost of revenue. |
Digital currencies - Bitcoin | Bitcoin is included as a non-current, intangible asset in the balance sheets. It is recorded at cost less impairment. If it is determined that more likely than not an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. The Bitcoin’s cost is accounted for using FIFO cost basis. Rewards in bitcoin are earned for mining activity. The reward a bitcoin miner earns changes roughly every four years, or after every 210,000 blocks are mined and gets reduced by half each time; this whole process is called bitcoin halving. The last halving occurred on May 11, 2020, and reduced the reward per block to 6.25 BTC. |
Income taxes | Federal Income taxes are not currently due since we have had losses since inception. Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes – Recognition. Deferred income tax amounts reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes. As of March 31, 2023, we had a net operating loss carry-forward of approximately $1,849,716 and a deferred tax asset of $388,440 using the statutory rate of 21%. The deferred tax asset may be recognized in future periods, not to exceed 20 years. However, due to the uncertainty of future events we have booked valuation allowance of $(388,440). FASB ASC 740 prescribes recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. As of March 31, 2023, the Company had not taken any tax positions that would require disclosure under FASB ASC 740. March 31, 2023 June 30, 2022 Deferred Tax Asset $ 388,440 $ 873,759 Valuation Allowance (388,440 ) (873,759 ) Deferred Tax Asset (net) $ - $ - Due to the changes the Tax Reform Act of 1986 and the Tax Cut and Jobs Act of 2017, net operating loss carryforwards for Federal Income tax reporting purposes are subject to additional limitations. Should certain changes in ownership occur, our net operating loss carryforwards may be limited to use in future years. In addition, tax rates on corporations were reduced and certain other deductions limited. These changes may affect the income tax benefit calculation and related allowance during subsequent fiscal years. |
Net income (loss) per common share | Net income (loss) per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period. The weighted average number of common shares outstanding and potentially outstanding common shares assumes that the Company incorporated as of the beginning of the first period presented. There were outstanding warrants that could convert into 3,285,332 shares of common stock as of March 31, 2023. At the end of all interim periods reported in the “Statements of Operation potentially dilutive shares were excluded because the effect would have been anti-dilutive. |
Cash flows reporting | The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification. |
Advertising Costs | The Company expenses the cost of advertising and promotional materials when incurred. Total Advertising costs were zero for all periods. |
Par value of common stock | The par value of common stock was previously reported at $0.001 and was adjusted to $0.0001 resulting in an adjustment from common stock to additional paid in capital, with no change to total equity. |
Subsequent events | The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements are issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer, considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of net deferred tax assets | March 31, 2023 June 30, 2022 Deferred Tax Asset $ 388,440 $ 873,759 Valuation Allowance (388,440 ) (873,759 ) Deferred Tax Asset (net) $ - $ - |
WARRANTS (Tables)
WARRANTS (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
WARRANTS | |
Schedule of outstanding warrant activity | Warrants - Common Share Equivalents Weighted Average Exercise price Warrants exercisable - Common Share Equivalents Weighted Average Exercise price Weighted average life in years Outstanding June 30, 2020 187,500 $ 0.75 187,500 $ 0.75 3.67 Additions Granted - - - - Expired Expired - $ - - - Exercised - - - - Outstanding June 30, 2021 187,500 $ 0.75 187,500 $ 0.75 3.67 Additions Granted 3,497,833 1.50 1,247,833 1.50 2.92 Expired Expired - $ - - - Exercised - - - - Outstanding June 30, 2022 3,685,333 $ 1.47 1,435,333 $ 1.47 3.04 Additions Granted 399,999 1.50 1,849,999 1.50 2.92 Expired Expired - $ - - - Exercised - - - - Outstanding March 31, 2023 4,085,332 $ 1.47 3,285,332 $ 1.47 3.04 |
DIGITAL CURRENCY BITCOIN (Table
DIGITAL CURRENCY BITCOIN (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
DIGITAL CURRENCY BITCOIN | |
Schedule of bitcoin activity and balances | Nine Months Ended March 31, 2023 Year Ended June 30, 2022 Beginning balance $ 9,211 $ 0 Increase Revenue recognized from bitcoin mined 57,731 61,906 66,942 61,906 Decrease Bitcoin used for operational expenses 66,942 52,695 Ending balance $ 0 $ 9,211 |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) | Jul. 09, 2021 USD ($) |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Purchase price | $ 885,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Jun. 30, 2022 | Mar. 31, 2022 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Deferred Tax Asset | $ 873,759 | $ 388,440 |
Valuation Allowance | (873,759) | (388,440) |
Deferred Tax Asset (Net) | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Net operating loss carry forward | $ 1,849,716 | $ 1,849,716 | |||
Common stock par value | $ 0.0001 | $ 0.0001 | $ 0.001 | ||
Owned subsidiary percentage | 100% | ||||
Common stock par value Adjustment | $ 0.0001 | $ 0.0001 | |||
Depreciation expense | $ 19,307 | $ 7,956 | $ 55,498 | $ 7,956 | |
Deferred Tax Asset | 388,440 | $ 388,440 | |||
Statutory rate | 21% | ||||
Valuation Allowance | $ (388,440) | $ (388,440) | |||
Shares issued upon conversion of warrant, shares | 3,285,332 | 3,285,332 | |||
Equipments [Member] | |||||
Estimated useful life | 7 years |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 9 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2022 | |
GOING CONCERN | ||
Accumulated deficit | $ 5,426,142 | $ 4,160,757 |
Incurred net loss | (1,265,385) | |
Working capital deficit | $ 293,112 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Due to Related Party | $ 245,900 | ||
Shares issued for related party payables conversion, shares | 1,182,009 | ||
Shares issued for related party payables conversion, amount | $ 118,050 | ||
Rent expense | 595,645 | $ 770,850 | |
Chief Executive Officer [Member] | |||
Cost | 250 | ||
Rent expense | $ 2,250 | ||
Description of lease term | The term of the lease is for 365 days and ends on June 30, 2023. On March 31, 2023 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Feb. 10, 2023 | Sep. 08, 2022 | Aug. 08, 2022 | Feb. 16, 2023 | Nov. 28, 2022 | Jul. 22, 2022 | Jun. 25, 2022 | May 26, 2022 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2025 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2022 | Jul. 01, 2022 | |
Shares issued for related party payables conversion, amount | $ 118,050 | ||||||||||||||
Prepaid consulting expense | $ 304,426 | 456,638 | |||||||||||||
Prepaid amount current | 76,106 | 47,834 | |||||||||||||
Prepaid amount non current | $ 228,320 | $ 408,804 | |||||||||||||
Company issued of aggregate common stock shares | 2,437,500 | 6,530,267 | |||||||||||||
Warrants issued | 747,837 | ||||||||||||||
Common stock, shares par value | $ 0.0001 | $ 0.001 | |||||||||||||
Company issued of common stock shares | 18,223,952 | 19,573,952 | |||||||||||||
Squadron Marketing LLC [Member] | |||||||||||||||
Common stock shares issuable | 250,000 | ||||||||||||||
Consulting Shares | 83,333 | 83,333 | 20,833 | 83,333 | |||||||||||
James Marshall [Member] | |||||||||||||||
Shares received | 75,000 | ||||||||||||||
John Bennet [Member] | |||||||||||||||
Consulting contract | 50,000 | ||||||||||||||
Shares issued for services | 100,000 | ||||||||||||||
Lazarus Asset Management LLC [Member] | |||||||||||||||
Vesting Shares | 83,333 | 83,333 | 20,833 | 83,333 | |||||||||||
Common stock shares issuable | 250,000 | ||||||||||||||
Shawn Perez [Member] | |||||||||||||||
Shares issued for services | 50,000 | ||||||||||||||
Two Related Party [Member] | |||||||||||||||
Returned shares of common stock to treasury | 1,900,000 | ||||||||||||||
Investor | |||||||||||||||
Company issued of common stock shares | 2,597,093 | ||||||||||||||
common stock pursuant (Member) | |||||||||||||||
Company issued of common stock shares | 1,182,009 | 266,666 | |||||||||||||
Michael Christiansen [Member] | |||||||||||||||
Vesting Shares | 83,333 | 83,333 | 20,833 | 83,333 | |||||||||||
Common stock shares issuable | 250,000 | ||||||||||||||
Class C Warrant [Member] | Frank Horkey [Member] | |||||||||||||||
Purchase of warrant | 250,000 | 250,000 | |||||||||||||
September 8, 2022 | |||||||||||||||
Exercise price per shares | $ 1.50 | ||||||||||||||
Common stock, shares par value | $ 0.0001 | ||||||||||||||
Company issued of common stock shares | 6,505,267 | ||||||||||||||
Securities Purchase Agreement [Member] | |||||||||||||||
Warrants issued | 747,837 | ||||||||||||||
Principal amount | $ 100,000 | $ 100,000 | $ 100,000 | ||||||||||||
Common stock shares | 133,333 | 133,334 | 133,333 | ||||||||||||
Exercise price per shares | $ 1.50 | $ 1.50 | $ 1.50 | ||||||||||||
Purchase of warrant | 133,333 | 133,334 | 133,333 | ||||||||||||
Management Agreement [Member] | Frank Horkey [Member] | |||||||||||||||
Shares received | 350,000 | ||||||||||||||
Vesting Shares | 83,333 | 83,333 | 20,833 | 83,333 | |||||||||||
Common stock shares issuable | 250,000 |
WARRANTS (Details Narrative)
WARRANTS (Details Narrative) - USD ($) | 1 Months Ended | 4 Months Ended | 9 Months Ended | ||||||
Sep. 08, 2022 | May 05, 2022 | Jul. 14, 2014 | May 14, 2014 | May 03, 2014 | Jun. 25, 2022 | May 26, 2022 | Jul. 02, 2021 | Mar. 31, 2023 | |
Description of warrants exercise | Each Unit shall consist of (a) one (1) share of common stock and (b) a combination of series A warrants (which may be exercised within three (3) years) and series B warrants exercised within five (5) years of the consummation of a merger | ||||||||
Restricted share issued | 250,000 | ||||||||
Warrants issued, shares | 250,000 | ||||||||
Exercise price | $ 0.80 | $ 1.50 | |||||||
Warrants issued | 747,837 | ||||||||
Subscriptions Arrangements [Member] | |||||||||
Warrants issued, shares | 157,500 | ||||||||
Exercise price | $ 0.80 | ||||||||
Warrants issued, amount | $ 125,000 | ||||||||
Description of warrant issued | Each unit consists of one (1) share of common stock and one (1) series A warrant to purchase one share of common stock at $1.25 per share | ||||||||
Subscription Arrangement One [Member] | |||||||||
Warrants issued, shares | 32,000 | ||||||||
Exercise price | $ 0.80 | ||||||||
Warrants issued, amount | $ 25,000 | ||||||||
Description of warrant issued | Each unit consists of one (1) share of common stock and one (1) series A warrant to purchase one share of common stock at $1.25 per share | ||||||||
Subscription Arrangement Two [Member] | |||||||||
Warrants issued, shares | 62,500 | ||||||||
Exercise price | $ 0.80 | ||||||||
Warrants issued, amount | $ 50,000 | ||||||||
Description of warrant issued | Each unit consists of one (1) share of common stock, and two (2) Series A warrants to purchase one (1) share of common stock at $.65 per share and one (1) series B warrant to purchase one (1) share of common stock at $.80. Each series A warrant expires three years from the consummation of a merger and each series B warrant expires 5 years from the consummation of a merger | ||||||||
Securities Purchase Arrangement [Member] | |||||||||
Warrants issued, amount | $ 560,875 | ||||||||
Warrant exercise price | $ 1.50 | ||||||||
Warrants issued | 747,837 | ||||||||
Class C Warrant [Member] | Frank Horkey [Member] | |||||||||
Exercise price | $ 1.50 | ||||||||
Warrants Purchase | 250,000 | 250,000 | |||||||
Warrants Series C [Member] | Squadron Marketing LLC and Lazarus Asset Management LLC [Member] | |||||||||
Exercise price | $ 1.50 | $ 1.50 | |||||||
Warrants Purchase | 250,000 | 500,000 | |||||||
Warrants Series C [Member] | Frank Horkey And Michea lChristiansen [Member] | |||||||||
Warrants Purchase | 250,000 | ||||||||
Warrant exercise price | $ 1.50 | ||||||||
Warrants issued | 250,000 | ||||||||
Warrants Series A [Member] | |||||||||
Warrants issued | 125,000 | ||||||||
Warrants, outstanding | 189,500 | ||||||||
Description of warrant | The inputs for series A used a price $.59, a strike price range of $.65 – $1.25, maturity 3 years, a risk-free interest rate of 3.9% and a beta of 50% estimated and were valued at $.202. The inputs for series B used a price $.59, a strike price of .80, maturity 5 years, a risk-free interest rate of 3.9% and a beta of 50% estimated and were valued at $.232 | ||||||||
Warrants B [Member] | |||||||||
Warrants issued | 62,500 | ||||||||
Description of closing price of warrant | The Company may call the B Warrants at such point the quoted market closing price is at least $2.50 for 20 consecutive trading days. In the event the Company calls the Warrants, it shall immediately notify holders of the Warrants of the call. Warrants holders will be granted a period of 45 calendar days to redeem the Warrants by returning the Warrant to the Company accompanied by payment of $.80 per share |
WARRANTS (Details)
WARRANTS (Details) - $ / shares | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Warrants exercisable - Common Share Equivalents | |||
Warrants, outstanding, beginning balance | 1,435,333 | 187,500 | 187,500 |
Warrants exercisable - common share equivalents, Additions, Granted | 1,849,999 | 1,247,833 | |
Warrants exercisable - common share equivalents, Expired | 0 | 0 | 0 |
Warrants, outstanding, ending balance | 3,285,332 | 1,435,333 | 187,500 |
Weighted average exercise price per share beginning balance | $ 1.47 | $ 0.75 | $ 0.75 |
Weighted average exercise price per share granted | 1.50 | 1.50 | 0 |
Weighted average exercise price per share ending balance | $ 1.47 | $ 1.47 | $ 0.75 |
Warrants exercisable - common share equivalents, Exercised | 0 | 0 | 0 |
Warrant[Member] | |||
Warrants, outstanding, beginning balance | 3,685,333 | 187,500 | 187,500 |
Warrants exercisable - common share equivalents, Additions, Granted | 399,999 | 3,497,833 | |
Warrants exercisable - common share equivalents, Expired | 0 | 0 | 0 |
Warrants, outstanding, ending balance | 4,085,332 | 3,685,333 | 187,500 |
Weighted average exercise price per share beginning balance | $ 1.47 | $ 0.75 | $ 0.75 |
Weighted average exercise price per share granted | 1.50 | 1.50 | 0 |
Weighted average exercise price per share ending balance | $ 1.47 | $ 1.47 | $ 0.75 |
Exercised | 0 | 0 | 0 |
Weighted average life in years, beginning outstanding | 3 years 14 days | 3 years 8 months 1 day | 3 years 8 months 1 day |
Weighted average life in years, Granted | 2 years 11 months 1 day | 2 years 11 months 1 day | |
Weighted average life in years, ending outstanding | 3 years 14 days | 3 years 15 days | 3 years 8 months 1 day |
DIGITAL CURRENCY BITCOIN (Detai
DIGITAL CURRENCY BITCOIN (Details)) - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Jun. 30, 2022 | |
DIGITAL CURRENCY BITCOIN | ||
Beginning balance | $ 9,211 | $ 0 |
Revenue recognized from bitcoin mined | 57,731 | 61,906 |
Total of increase in recognized from bitcoin mined | 66,942 | 61,906 |
Bitcoin used for operational expenses | 66,942 | 52,695 |
Ending balance | $ 0 | $ 9,211 |