Notes Payable and Notes Payable - Other | Note 7 – Notes Payable and Notes Payable - Other Notes payable consists of line of credit, notes payable incurred by our subsidiary, notes payable-other, convertible notes payable, notes payable for stock purchases under Reg A, and short-term bridge loans, as follows: Short term bridge loan - COHEN On July 31, 2020, the Company secured a $ 500,000 12 12 At June 30, 2021, the Company had recorded short term note payable of $ 500,000 55,027 On August 19, 2021, the Company repaid $ 300,000 100,000 At June 30, 2022, the Company recorded a short term note payable of $ 100,000 21,649 76,677 Note payable – stock purchases under Reg A In March 2021 and June 2021, the Company accepted payments of $ 115,000 At June 30, 2022 and 2021, the Company has recorded $ 115,000 115,000 1,539 1,539 Note Payable – Other In November 2016, the Company secured a $ 50,000 4 As of June 30, 2022 and 2021, the Company expensed $ 2,000 2,000 11,283 9,283 Convertible note payable – BENZA, D2CF On March 1, 2016 and March 3, 2016, the Company closed a private placement of debt and received an aggregate of $612,500 by issuing $ 13,750 660,000 The Company is currently in negotiations to settle the $660,000 BENZA loan with principles in the company, although there has been no settlement to date. As of June 30, 2022 and 2021, the Company reported $ 673,750 673,750 Convertible note payable: Leonite Capital, LLC On November 19, 2019, the Company, together with Hypersoft Ventures (collectively, the “Borrower”), received $ 135,000 150,000 15,000 2,700,000 260,000 The Company has determined that the conversion feature embedded in the Leonite Convertible Note constitutes a derivative and has been bifurcated from the Leonite Convertible Note and recorded as a derivative liability, with a corresponding discount recorded to the associated debt, on the accompanying balance sheet, and revalued to fair market value at each reporting period. The initial issuance yielded a derivative liability of $ 94,225 Significant assumptions used in calculating fair value of conversion feature of Leonite Convertible Note at issuance date are as follows: Notes Payable - Schedule of assumptions Expected Dividends Expected volatility Risk-free rate of interest Expected term (year) Exercise (Conversion) price Common stock price per share 0.00% 809.71% 0.0154% 0.75 $0.02 $ 0.01300 On June 4, 2021, the Company and Leonite renegotiated the convertible note for two years, face value of $260,000. At June 30, 2021, the Company recorded $ 281,845 On July 29, 2021, Leonite converted $ 42,750 2,250 15,000,000 44,475 2,250 10,269,253 On October 6, 2021, Leonite converted $ 57,952 2,250 13,231,209 125,000 2,250 27,917,969 96,145 Schedule of extinguishment of debt Balance at June 30, 2021 $ 260,000 Accrued interest 9,954 Leonite Convertible Note converted (269,954 ) Total – Less: debt discount – Balance at June 30, 2022 $ – The resulting derivative valuation is calculated as follows: Schedule of derivative liabilities at fair value Derivative as of June 30, 2021 $ 281,845 Change in fair value 213,053 494,898 Write off due to conversions (398,753 ) 96,145 Gain on extinguishment (96,145 ) Derivative as of June 30, 2022 $ – Significant assumptions used in calculating fair value of conversion feature of Leonite convertible Note as of June 30, 2022 are as follows. Note Payable - Schedule of assumptions Expected Dividends Expected volatility Risk-free rate of interest Expected term (year) Exercise (Conversion) price Common stock price per share 0.00% 269.75% 0.0007% 1.9288 $0.00550 $ 0.010 As of June 30, 2022 and June 30, 2021, the Company has recorded $- 0 260,000 Credit line – MediPendant New York Inc. On September 30, 2014, the subsidiary received a line of credit with Medi Pendant New York, Inc. (“MNY). Under the original terms of the line of credit agreement, the Company was able to borrow up to $ 500,000 6.5 September 30, 2017 500,000 200,000 25,653 8,436 397,500 397,500 Notes Payable - subsidiary The Company has various loans and credit lines outstanding. The credit line carries an interest rate of 16.24 9.24 10.90 Schedule of notes payable 2022 2021 Wells Fargo Loan $ 8,770 $ 12,454 On Deck Loan 139,569 139,569 Susquehanna Salt Loan 10,500 52,500 Prosper Loans 9,994 17,771 MARCUS Loan 5,410 15,950 Notes payable - subsidiary 174,243 238,244 Loans – See Stock purchases under Reg A and short-term bridge loans 238,856 615,000 TOTAL LOANS $ 413,099 $ 853,244 As of June 30, 2022 and 2021, the Company has outstanding $ 413,099 853,244 Notes Payable - SBA The Company obtained SBA loans through pandemic offerings in 2020. As of March 2, 2021, the loans were forgiven, and the Company recorded gain on debt forgiveness of $ 81,000 Debt settlement – On Deck, Susquehanna, MCA Cure In 2019, our subsidiary engaged MCA CURE to negotiate settlements with two creditors: On Deck and Susquehanna Salt, noted in the table above. The Company ceased paying the loan payments and paid to MCA Cure $ 43,875 47,000 90,875 0 0 139,569 139,569 10,500 52,500 |