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, short-term notes payable and notes payable-BOAPIN portal, as follows: Schedule of short term notes payable June 30, 2023 2022 Notes from subsidiary $ 158,333 $ 174,243 Notes payable - Reg A deposits 140,000 138,856 Short term bridge loan 100,000 100,000 Total Notes Payable $ 398,333 $ 413,099 Notes Payable - Subsidiary The Company has various loans and credit lines outstanding. The credit line carries an interest rate of 6.24 9.24 10.90 Schedule of notes payable 2023 2022 Wells Fargo Loan $ 8,770 $ 8,770 On Deck Loan 139,569 139,569 Susquehanna Salt Loan – 10,500 Prosper Loans 9,994 9,994 Marcus Loan – 5,410 Notes payable - subsidiary $ 158,333 $ 174,243 Short term bridge loan - COHEN On July 31, 2020, the Company secured a $ 500,000 12 At June 30, 2021, the Company recorded short term note payable of $ 500,000 55,027 300,000 100,000 At June 30, 2023 and 2022, the Company recorded a short term note payable of $ 100,000 12,000 21,649 88,677 76,677 Note payable – stock purchases under Reg A At June 30, 2023 and 2022 the Company has recorded $ 140,000 138,856 10,800 12,277 20,407 1,539 Note Payable – Other In November 2016, the Company secured a $ 50,000 4 1,000,000 During the years ended June 30, 2023 and 2022, the Company recorded interest expense of $ 2,000 2,000 13,282 11,282 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 13,750 660,000 On July 21, 2023, the Company entered into settlement agreements with the principals of the company. In the Nevada Lawsuit (see Note 10), the Company agreed to settle for $345,000, with $145,000 paid upon signing and $200,000 due within 6 months. The Settlement Agreement allows for an increased payment of $600,000 if the Second Nevada Settlement Payment isn’t made within six months. In the New York Lawsuit (see Note 10), the Company will pay $80,000, with $10,000 due upon execution of the Settlement. Payments received by the Company will be applied first to the Second New York Payment. As of June 30, 2023 and 2022, the Company reported $ 673,750 673,750 Convertible note payable - Leonite Capital, LLC 2022 Note On December 5, 2022, the Company received $ 250,000 on issuing the first tranche of $ 1,000,000 senior secured convertible note (“Leonite 2022 Convertible Note”) from Leonite, net of an original issue discount of $ 62,500 . The term of the convertible note is fifteen months from the date of closing and matures on March 5, 2024 . The Company is required to only pay interest expense on a monthly basis for the first six months of the term. During the year ended June 30, 2023, the Company accrued $ 19,482 of interest expense related to the convertible notes. As of June 30, 2023, the company reported $246,148 as Convertible notes – Leonite payable. The Company will begin making nine equal amortization payments of $ 34,722 15,000,000 78,000 28,064 10,000 59,936 27,455 28,629 10 0.007 2019 Note On November 19, 2019, the Company, together with Hypersoft Ventures (collectively, the “Borrower”), received $ 135,000 150,000 15,000 250,000 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, with a discount of $150,000 to be amortized over the 9-month life of the Leonite Convertible Note. Significant assumptions used in calculating fair value of conversion feature of Leonite Convertible Note at issuance date are as follows. 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 in derivative liabilities. 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. 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 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 $ 300,000 6.5 September 30, 2017 500,000 200,000 25,653 8,436 397,500 397,500 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 0 10,500 |