Document and Entity Information
Document and Entity Information | 9 Months Ended |
Mar. 31, 2018shares | |
Document And Entity Information | |
Entity Registrant Name | ESPORTS ENTERTAINMENT GROUP, INC. |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2018 |
Amendment Flag | false |
Entity Central Index Key | 1,451,448 |
Current Fiscal Year End Date | --06-30 |
Entity Common Stock, Shares Outstanding | 82,713,592 |
Entity Filer Category | Smaller Reporting Company |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q3 |
Condensed Interim Consolidated
Condensed Interim Consolidated Balance Sheets - USD ($) | Mar. 31, 2018 | Jun. 30, 2017 |
Current Assets | ||
Cash | $ 62,790 | $ 546,110 |
Other Receivable | 29,340 | 0 |
Other Current Asset | 5,048 | 302 |
Prepaid Expense | 105,836 | 76,125 |
Total Current Assets | 203,014 | 622,537 |
Rent Security Deposit | 4,346 | 3,554 |
Office Furniture and Equipment (Note 12) | 16,867 | 19,904 |
Computer Software and Equipment (Note 4) | 131,925 | 61,477 |
Website (Note 4) | 6,000 | 21,578 |
License | 30,000 | 30,000 |
Total Assets | 392,152 | 759,050 |
Current Liabilities | ||
Accounts payable (Notes 5, 7) | 181,572 | 29,017 |
Accrued Liabilities | 52,364 | 56,859 |
Due to related parties (Note 6) | 1,551 | 1,229 |
Total Liabilities | 235,487 | 87,105 |
Stockholders' Equity | ||
Common Stock Authorized, 500,000,000 shares, par value $0.001, 82,713,592 and 79,768,458 shares issued and outstanding as of March 31, 2018 and June 30, 2017, respectively (Note 10) | 82,714 | 79,768 |
Additional Paid-in Capital | 3,935,886 | 2,396,637 |
Subscription Receivable | (300) | (30,300) |
Deficit accumulated during development stage | (3,861,635) | (1,774,160) |
Total Stockholders' Equity | 156,665 | 671,945 |
Total Liabilities and Stockholders' Equity | $ 392,152 | $ 759,050 |
Condensed Interim Consolidated3
Condensed Interim Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Jun. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par Value | $ .001 | $ 0.001 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares Issued | 82,713,592 | 79,768,458 |
Common Stock, Shares Outstanding | 82,713,592 | 79,768,458 |
Condensed Interim Consolidated4
Condensed Interim Consolidated Statement of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||||
Directors Compensation | $ 32,926 | $ 51,250 | $ 98,242 | $ 97,500 |
Consulting Fees | 326,340 | 0 | 659,092 | 0 |
General and Administrative | 399,086 | 75,555 | 1,203,581 | 347,001 |
Professional Fees | 39,768 | 11,879 | 103,734 | 40,225 |
Total Operating Expenses | 798,120 | 138,684 | 2,064,649 | 484,726 |
Non-operating (gain) loss | ||||
Interest Expense (Note 8) | 0 | 14,836 | 0 | 57,696 |
Foreign Exchange (Gain) loss | (164) | 59 | 212 | (125) |
Loss on Debt Settlement | 0 | 26,015 | 0 | 26,015 |
Asset Write-Off (Note 4) | 22,614 | 0 | 22,614 | 0 |
Net Loss | $ 820,570 | $ 179,594 | $ (2,087,475) | $ (568,312) |
Net Loss Per Share - Basic and Diluted | $ .01 | $ 0 | $ .03 | $ .01 |
Weighted Average Shares Outstanding | 82,713,592 | 71,734,342 | 81,694,813 | 70,723,805 |
Condensed Interim Statement of
Condensed Interim Statement of Cash Flows - USD ($) | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities | ||
Net loss | $ (2,087,475) | $ (568,312) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Amortization | 6,368 | 0 |
Stock based compensation | 836,278 | 0 |
Stock issuance for services | 0 | 162,500 |
Loss on debt settlement | 0 | 26,015 |
Accretion expense | 0 | 28,051 |
Asset write Off | 22,614 | 0 |
Changes in operating assets and liabilities | ||
Accounts Receivable | (29,340) | 0 |
Accounts Payable | 152,556 | 6,838 |
Accrued Liabilities | (4,495) | 44,437 |
Prepaid Expenses | (29,711) | 55,547 |
Other Current Assets | (4,746) | 0 |
Rent Security Deposit | (792) | 0 |
Net cash used in operating activities | (1,138,743) | (244,924) |
Cash flows from investing activities | ||
Purchase of computer software | (73,780) | (50,000) |
Website development | (7,036) | (15,578) |
Net cash provided by (used in) investing activities | (80,816) | (65,578) |
Cash flows from financing activities | ||
Repayment of convertible debenture | 0 | (15,000) |
Proceeds from issuance of common stock | 663,442 | 634,404 |
Due to related parties | 322 | (9,126) |
Proceeds from exercise of warrants | 72,475 | 0 |
Net cash provided (used) by financing activities | 736,239 | 610,278 |
Net increase/ (decrease) in cash | (483,320) | 299,776 |
Cash, beginning of period | 546,110 | 47,922 |
Cash, end of period | 62,790 | 347,698 |
Non-Cash Items: | ||
Consideration for exercise of cashless warrants | $ 25,000 | $ 0 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) | Common Stock | Additional Paid-in Capital | Deficit Accumulated During the Development Stage | Subscription Receivable | Total |
Beginning Balance, Shares at Jun. 30, 2016 | 70,105,514 | ||||
Beginning Balance, Amount at Jun. 30, 2016 | $ 70,106 | $ 955,015 | $ (936,228) | $ (300) | $ 88,593 |
Common stock issued for cash, Shares | 4,503,347 | ||||
Common stock issued for cash, Amount | $ 4,503 | 629,901 | 0 | 0 | 634,405 |
Common stock issued for service, Shares | 650,000 | ||||
Common stock issued for service, Amount | $ 650 | 161,850 | 0 | 0 | 162,500 |
Issuance of stock options | 650 | 161,850 | 0 | 0 | 162,500 |
Net loss for the period | $ 0 | 0 | (568,312) | 0 | (568,312) |
Ending Balance, Shares at Mar. 31, 2017 | 75,258,861 | ||||
Ending Balance, Amount at Mar. 31, 2017 | $ 75,259 | 1,746,766 | (1,504,540) | (300) | 317,185 |
Beginning Balance, Shares at Jun. 30, 2017 | 79,768,458 | ||||
Beginning Balance, Amount at Jun. 30, 2017 | $ 79,768 | 2,396,637 | (1,774,160) | (30,300) | 671,945 |
Common stock issued for cash, Shares | 2,305,300 | ||||
Common stock issued for cash, Amount | $ 2,306 | 631,136 | 0 | 30,000 | 663,442 |
Common stock issued for service, Amount | 836,278 | 0 | 0 | 836,278 | |
Warrants exercised for cash, Shares | 639,834 | ||||
Warrants exercised for cash, Amount | $ 640 | 71,835 | 0 | 0 | 72,475 |
Issuance of stock options | 836,278 | 0 | 0 | 836,278 | |
Net loss for the period | (2,087,475) | 0 | (2,087,475) | ||
Ending Balance, Shares at Mar. 31, 2018 | 82,713,592 | ||||
Ending Balance, Amount at Mar. 31, 2018 | $ 82,714 | $ 3,935,886 | $ (3,861,635) | $ (300) | $ 156,665 |
1. Nature of Operations and Con
1. Nature of Operations and Continuance of Business | 9 Months Ended |
Mar. 31, 2018 | |
Nature Of Operations And Continuance Of Business | |
1. Nature of Operations and Continuance of Business | 1. Nature of Operations and Continuance of Business Esports Entertainment Group, Inc. (formerly VGambling Inc.) (the “Company”) was incorporated in the state of Nevada on July 22, 2008. On April 18, 2017, the majority of the shareholders of the Company’s common stock voted to approve a change of the name of the Company from VGambling, Inc. to Esports Entertainment Group, Inc. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
2. Summary of Significant Accounting Policies | 2 . Summary of Significant Accounting Policies a) Basis of Presentation The accompanying unaudited condensed interim consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) set forth in Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These financial statements should be read along with the Annual Report filed on Form 10-K of the Company for the period ended June 30, 2017 and notes thereto contained. The Company's consolidated financial statements are prepared using the accrual method of accounting. These consolidated statements include the accounts of the Company and its subsidiaries Esports Services Antigua Ltd., Vie Esports Services B.V., Esport Services (Malta) Limited and Esports Entertainment (Malta) Ltd. All material intercompany transactions and balances have been eliminated. |
3. Going Concern
3. Going Concern | 9 Months Ended |
Mar. 31, 2018 | |
Going Concern | |
3. Going Concern | 3. Going Concern These condensed interim consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize it assets and discharge its liabilities in the normal course of business. As at March 31, 2018, the Company had an accumulated deficit of $3,861,635 and a working capital deficiency of $(32,473). The Company has not generated any revenues during the period ended March 31, 2018. The Company is licensed to conduct online gambling. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, and the attainment of profitable operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
4. Computer Software and Equipm
4. Computer Software and Equipment and Website | 9 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
4. Computer Software and Equipment and Website | 4. Computer Software and Equipment and Website Computer software and equipment totaled $131,925 as at March 31, 2018, and $61,477 as at June 30, 2017. Website totaled $6,000 as at March 31, 2018, and $21,578 as at June 30, 2017, after a write off of $22,614 during the nine month period ended March 31, 2018. Computer software and website, related to the development of the Company’s online gambling system. As at March 31, 2018, the online gambling system was still under development and accordingly, no amortization was recorded during the nine-month periods ended March 31, 2018 and 2017. Computer equipment depreciates on a straight line basis over three years. Computer equipment totaled $14,450 (June 30, 2017 - $11,805) less accumulated amortization of $3,659 (June 30, 2017 - $328) for a net present value of $10,791 as of March 31, 2018 and $11,477 as of June 30, 2017. |
5. Accounts Payable
5. Accounts Payable | 9 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
5. Accounts Payable | 5. Accounts Payable Accounts payable were $181,572 as at March 31, 2018 and $29,017 as at June 30, 2017. Accounts payable are primarily comprised of trade payables as well as payroll liabilities. |
6. Due to Related Parties
6. Due to Related Parties | 9 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
6. Due to Related Parties | 6. Due to Related Parties Due to related parties were $1,551 as at March 31, 2018 and $1,229 as at June 30, 2017. Due to related parties are primarily comprised of rent expense owned to the President of the Company. |
7. Related Party Transactions
7. Related Party Transactions | 9 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
7. Related Party Transactions | 6. Due to Related Parties Due to related parties were $1,551 as at March 31, 2018 and $1,229 as at June 30, 2017. Due to related parties are primarily comprised of rent expense owned to the President of the Company. |
8. Convertible Promissory Notes
8. Convertible Promissory Notes | 9 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
8. Convertible Promissory Notes | 8. Convertible Promissory Notes On June 3, 2016, the Company entered into a convertible promissory note agreement with an arms-length individual whereby the Company has borrowed $60,000. The convertible note was issued at a discount of $5,000 and the Company paid a finder’s fee of $5,000. The note was interest bearing at 8% per annum commencing June 3, 2016. If the note was paid off in full within 90 days following the Effective Date, the interest would be waived. The Company was obligated to repay the principal with any interest by March 3, 2017 (the “maturity date”). In the event of default, additional interest would accrue from the date of the event of default at the rate equal to the lower of 18% per annum or the highest rate permitted by law. The Company assessed the terms of the convertible debenture in accordance with 470-20-55, Debt with Conversion and Other Options |
9. Commitments
9. Commitments | 9 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
9. Commitments | 9. Commitments On May 20, 2013, the Company appointed Grant Johnson as President and a Director of the Company. Mr. Johnson is $120,000 per year for serving as President. In addition, the Company may pay a performance bonus of up to 50% of base salary. The Company must pay three months’ salary for terminating the President without cause. On June 12, 2014, the Company a Betting Gaming Platform Software Agreement with Swiss Interactive Software GmbH. The Company entered into a three-year lease agreement with Caribbean Developments (Antigua) Ltd. to rent commercial space starting on May 1, 2017 terminating on April 30, 2020 for annual rental payments of $20,976. After the first twelve months, either party can terminate the lease agreement. On August 1, 2017, the Company entered into a one-year lease agreement with TT Villas Antigua Ltd. for a residential housing unit. Monthly rental payments are $1,166. The Company has served notice to terminate the lease agreement effective July 31, 2018. On December 7, 2017, the Company appointed Yan Rozum as Chief Technology Officer of the Company. Mr. Rozum will be paid $75,000 per year before the Company’s common stock is listing on the NASDAQ stock exchange, and $120,000 per year after the Company’s common stock is listed on the NASDAQ stock exchange, for serving as Chief Technology Officer. The Company must pay three months’ salary for terminating the Chief Technology Officer without cause. On December 11, 2017, the Company appointed Michał Kozłowski as Vice President Finance. Mr. Kozłowski will be paid $5,367 (20,000 Polish Sloty) per month before March 15, 2018 and $6,709 (25,000 Polish Zloty) per month after March 15, 2018 for serving as Vice President Finance. The Company must pay three months’ salary for terminating the Vice President Finance without cause. On April 12, 2018 the Company entered into an agreement with EveryMatrix to provide payment processing services. The minimum fees due under the agreement is $1,403 (GBP 1,000) per month. The Company must provide two months notice to terminate the agreement. On May 22, 2018, the Company entered into an agreement with EveryMatrix to provide an affiliate management system. The minimum fees due under the agreement is $87 (75 Euros) per month. The Company must provide three months notice to terminate the agreement. |
10. Common Stock
10. Common Stock | 9 Months Ended |
Mar. 31, 2018 | |
Common Stock Tables | |
10. Common Stock | 10. Common Stock a) On September 21, 2016, the Company issued 200,000 units at $0.15 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at $0.15. The warrants are exercisable before December 1, 2019. b) On November 30, 2016, the Company issued 66,680 units at $0.15 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at $0.15. The warrants are exercisable before December 31, 2019. c) On December 31, 2016, the Company issued 550,000 common shares at $0.25 per share for consulting services. d) On February 21, 2017, the Company issued 100,000 units at $0.15 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at $0.15. The warrants are exercisable before February 28, 2020. e) On March 1, 2017, the Company issued 100,000 common shares at $0.25 per share for director fees. f) On March 8, 2017, the Company issued 360,000 units at $0.15 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at $0.15. The warrants are exercisable before March 8, 2022. g) On March 31, 2017, the Company issued 4,136,667 units at $0.15 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at $0.15. The warrants are exercisable before March 31, 2020. The warrants are callable by the Company any time after 12 months from the date the equity investment was completed with 30 days notice at a price of $0.05 per warrant. h) On April 1, 2017, the Company issued 400,000 common shares at $0.15 per share for investor relations services. i) On April 1, 2017, the Company issued 2,896,857 units at $0.15 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at $0.15. The warrants are exercisable before April 1, 2020. j) On April 22, 2017, the Company issued 92,000 common shares at $0.25 per share. j) On May 16, 2017, the Company issued 600,000 units at $0.25 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at $0.25. The warrants are exercisable before May 16, 2020. The warrants are callable by the Company any time after November 16, 2018 with 30 days notice at a price of $0.05 per warrant. k) On May 24, 2017, the Company issued 250,000 common shares at $0.25 per share to a consultant as a finder’s fee. l) On June 30, 2017, the Company issued 40,440 common shares at $0.80 per share for director fees. m) On July 5, 2017, the Company issued 800,000 units at $0.25 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at $0.25. The warrants are exercisable before July 5, 2020. The warrants are callable by the Company any time after July 5, 2018 with 30 days notice at a price of $0.05 per warrant. n) On July 6, 2017, the Company issued 400,000 units at $0.25 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at $0.25. The warrants are exercisable before July 6, 2020. The warrants are callable by the Company any time after July 6, 2018 with 30 days notice at a price of $0.05 per warrant. o) On July 16, 2017, the Company issued 100,000 units at $0.25 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at $0.25. The warrants are exercisable before July 16, 2020. The warrants are callable by the Company any time after July 16, 2018 with 30 days notice at a price of $0.05 per warrant. p) On July 17, 2017, the Company issued 190,000 units at $0.25 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at $0.25. The warrants are exercisable before July 17, 2020. The warrants are callable by the Company any time after July 17, 2018 with 30 days notice at a price of $0.05 per warrant. q) On July 17, 2017, the Company issued 100,000 units at $0.25 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at $0.25. The warrants are exercisable before July 17, 2020. The warrants are callable by the Company any time after July 17, 2018 with 30 days notice at a price of $0.05 per warrant. r) On July 19, 2017, the Company issued 200,000 units at $0.15 per unit in exchange for services. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at $0.15. The warrants are exercisable before July 19, 2020. The warrants are callable by the Company any time after July 19, 2018 with 30 days notice at a price of $0.05 per warrant. s) On July 20, 2017, the Company issued 100,000 units at $0.25 per unit in exchange for services. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at $0.25. The warrant is exercisable before July 19, 2020. The warrants are callable by the issuer any time after July 20, 2018 with 30 days notice at a price of $0.05 per warrant. t) On July 24, 2017, the Company issued 5,000 units at $0.50 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at $2.00. The warrants are exercisable before July 24, 2018. u) On August 8, 2017, the Company issued 10,000 units at $1.25 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at $2.00. The warrants are exercisable before February 8, 2019. v) On August 27, 2017, the Company issued 300,000 common shares at $0.25 per share. w) On September 7, 2017, the Company issued 20,000 units at $1.25 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at $4.00. The warrants are exercisable before March 6, 2019. x) On September 21, 2017, the Company issued 156,667 common shares upon the exercise of 166,667 warrants exercised at $0.15 on a cashless basis. 10,000 common shares were held back by the Company as consideration for the exercise. y) On September 25, 2017, the Company issued 4,000 units at $1.25 per unit. Each unit consists of one common share, one warrant and one piggyback warrant. Each warrant entitles the holder to purchase one common share at $2.00. Each piggyback warrant entitles the holder to purchase one common share at $4.00. The warrant is exercisable before September 24, 2018 and the piggyback warrant is exercisable before September 24, 2019. z) On September 26, 2017, the Company issued 416,500 common shares at $0.15 per share upon the exercise of 416,500 warrants. aa) On September 29, 2017, the Company issued 16,000 units at $1.25 per unit. Each unit consists of one common share, one warrant and one piggyback warrant. Each warrant entitles the holder to purchase one common share at $2.00. Each piggyback warrant entitles the holder to purchase one common share at $4.00. The warrant is exercisable before September 28, 2018 and the piggyback warrant is exercisable before September 28, 2019. bb) On September 30, 2017, the Company issued 44,800 units at $1.25 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at $4.00. The warrants are exercisable before March 30, 2019. cc) On October 17, 2017, the Company issued 66,667 common shares at $0.15 per share upon the exercise of 66,667 warrants. dd) On November 7, 2017, the Company issued 15,500 common shares at $0.25 per share. Stock Purchase Warrant The following table summarizes all warrant activities for the nine months ended March 31, 2018 : Shares Weighted-Average Exercise Price Per Share Weighted Ave. Remaining Life Intrinsic value Outstanding, June 30, 2017 8,683,372 $ 0.16 3.67 years $ 5,593,393 Granted 2,009,800 0.43 2,297,250 Exercised (639,834) 0.15 1,447,468 Expired - - Outstanding and Exercisable at March 31, 2018 10,053,338 $0.21 2.74 years $ 7,029,020 |
11. Stock Options
11. Stock Options | 9 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
11. Stock Options | 1. Stock Options On June 26, 2017, the Company adopted an employee stock incentive plan (the “Plan”). The Plan is intended to encourage ownership of shares by employees and directors of and certain consultants to the Company and its affiliates in order to attract and retain such people, to induce them to work for the benefit of the Company or of an affiliate and to provide additional incentive for them to promote the success of the Company or of an affiliate. The number of options which may be issued from time to time pursuant to this Plan shall not exceed 2,500,000. On August 1, 2017, the Company adopted the 2017 Stock Incentive Plan (the “2017 Plan”) whereby incentive stock options issued to employees, officers, and directors of the Company shall not exceed 2,500,000 of which the purchase price of the stock options shall not be less than 100% of the fair market value of the Company’s common stock and the period for exercising the stock options not exceed 10 years from the date of grant. The option price per share with respect to each option shall be determined by the committee for non-qualified stock options. During the nine-month period ended March 31, 2018, the Company issued 786,360 stock options to employees, officers and directors of the Company. The stock options are exercisable at $1.25 per share for a period of five years, and vest over a period of one to three years from the date of grant. A summary of the Company’s stock option activity is as follows: Number of options Weighted average exercise price $ Outstanding, June 30, 2017 - - Granted 786,360 1.25 Outstanding, March 31, 2018 786,360 1.25 Additional information regarding stock options outstanding as at March 31, 2018, is as follows: Outstanding and Not Vested Number of stock options Weighted average remaining contractual life (years) Weighted average exercise price $ 786,360 4.3 1.25 The grant date fair value of the stock options granted was determined using the Black-Scholes option pricing model assuming no expected dividends and the following assumptions: Expected Life 5 years Expected Volatility 316 - 356% Risk-Free Rate 1.80-1.83% Exercise Price $1.25 Expected Dividend Rate 0% During the nine-month period ended March 31, 2018, the Company recorded stock-based compensation expense of $836,278 (March 31, 2017 - $Nil) and during the three-month period ended March 31, 2018, the Company recorded stock-based compensation expense of $348,407 (March 31, 2017 - $Nil) which has been recorded as salary in general and administrative and director compensation expense in the statements of operations. As of March 31, 2018, there was $1,078,638 of unrecognized expense related to non-vested stock-based compensation arrangements (June 30, 2017 - $Nil). |
12. Office Furniture and Equipm
12. Office Furniture and Equipment | 9 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
12. Office Furniture and Equipment | 12. Office Furniture and Equipment Office furniture and equipment is comprised of furniture and equipment depreciated on a straight-line basis over 5 years. Furniture and equipment totaled $20,240 (June 30, 2017 - $20,240) less accumulated amortization of $3,373 (June 30, 2017 - $337) for a net present value of $16,867 (June 30, 2017 - $19,904) as at March 31, 2018. |
13. Subsequent Events
13. Subsequent Events | 9 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
13. Subsequent Events | 13. Subsequent Events On April 4, 2018, the Company issued 16,000 common shares at $0.25 per share upon the exercise of 16,000 warrants. On April 26, 2018, the Company issued 100,000 common shares at $0.20 per share. On May 4, 2018, the Company issued 166,667 common shares at $0.20 per share. On May 4, 2018, the Company terminated an employee who had been granted 375,000 options which have now expired. On May 18, 2018, the Company issued 25,000 common shares at $0.20 per share. On May 21, 2018, the Company issued 170,000 common shares at $0.15 per share upon the exercise of 170,000 warrants. On May 31, 2018, the Company entered into a two-year consulting agreement for advisory services with a commitment to issue 120,000 options exercisable at $1.25 for a five year term. On June 11, 2018, the Company issued 250,000 common shares at $1.00 per share to a consultant for referral services provided. On June 15, 2018, the Company entered into a three-month consulting agreement for advisory services with a commitment to pay the consultant 20,000 common shares on June 15, 2018, 15,000 common shares on July 15, 2018, and 15,000 common shares on August 15, 2018. As of June 22, 2018, $96,514 in proceeds was received to exercise 643,427 warrants. |
2. Summary of Significant Acc20
2. Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | a) Basis of Presentation The accompanying unaudited condensed interim consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) set forth in Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These financial statements should be read along with the Annual Report filed on Form 10-K of the Company for the period ended June 30, 2017 and notes thereto contained. The Company's consolidated financial statements are prepared using the accrual method of accounting. These consolidated statements include the accounts of the Company and its subsidiaries Esports Services Antigua Ltd., Vie Esports Services B.V., Esport Services (Malta) Limited and Esports Entertainment (Malta) Ltd. All material intercompany transactions and balances have been eliminated. |
10. Common Stock (Tables)
10. Common Stock (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Common Stock Tables | |
Warrant Activities | Shares Weighted-Average Exercise Price Per Share Weighted Ave. Remaining Life Intrinsic value Outstanding, June 30, 2017 8,683,372 $ 0.16 3.67 years $ 5,593,393 Granted 2,009,800 0.43 2,297,250 Exercised (639,834) 0.15 1,447,468 Expired - - Outstanding and Exercisable at March 31, 2018 10,053,338 $0.21 2.74 years $ 7,029,020 |
11. Stock Options (Tables)
11. Stock Options (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Activity | Number of options Weighted average exercise price $ Outstanding, June 30, 2017 - - Granted 786,360 1.25 Outstanding, March 31, 2018 786,360 1.25 |
Stock Options Oustanding Value | Outstanding and Not Vested Number of stock options Weighted average remaining contractual life (years) Weighted average exercise price $ 786,360 4.3 1.25 |
Stock Options Valuation Assumptions | Expected Life 5 years Expected Volatility 316 - 356% Risk-Free Rate 1.80-1.83% Exercise Price $1.25 Expected Dividend Rate 0% |
3. Going Concern (Details Narra
3. Going Concern (Details Narrative) - USD ($) | Mar. 31, 2018 | Jun. 30, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated Deficit | $ (3,861,635) | $ (1,774,160) |
Working Capital Deficiency | $ (32,473) |
5. Accounts Payable (Details Na
5. Accounts Payable (Details Narrative) - USD ($) | Mar. 31, 2018 | Jun. 30, 2017 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 181,572 | $ 29,017 |
6. Due to Related Parties (Deta
6. Due to Related Parties (Details Narrative) - USD ($) | Mar. 31, 2018 | Jun. 30, 2017 |
Related Party Transactions [Abstract] | ||
Due to related parties | $ 1,551 | $ 1,229 |
7. Related Party Transactions (
7. Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 14, 2016 | |
Salary incurred to an officer | $ 60,000 | $ 30,000 | |||||
Owed to officer | $ 1,551 | 1,551 | $ 1,229 | ||||
Rent incurred to an officer | $ 1,500 | $ 1,500 | $ 45,000 | $ 3,407 | |||
Shares issued to affiliates for advisory services, shares | 200,000 | ||||||
Shares issued to affiliates for advisory services, price per share | $ 40,000 | ||||||
Owed to Lim | |||||||
Owed to officer | $ 0 | ||||||
Director compensation salary | 20,000 | ||||||
Owed to Rozum | |||||||
Owed to officer | $ 30,000 | ||||||
Shares issued to affiliates for advisory services, shares | 111,250 | ||||||
Shares issued to affiliates for advisory services, value | $ 45,000 | ||||||
Director compensation salary | 20,000 | ||||||
Owed to Watt | |||||||
Owed to officer | $ 7,357 | ||||||
Shares issued to affiliates for advisory services, shares | 29,190 | ||||||
Shares issued to affiliates for advisory services, value | $ 12,352 | ||||||
Director compensation salary | $ 25,000 |
8. Convertible Promissory Not27
8. Convertible Promissory Notes (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 03, 2016 | |
Convertible promissory note amount | $ 60,000 | ||
Interest of Convertible promissory note | 8.00% | ||
Due date of convertible promissory note | Mar. 3, 2016 | ||
Discount on convertible promissory note | $ 5,000 | ||
Finder's fee paid on convertible promissory note | $ 5,000 | ||
Default interest rate on convertible promissory note | 18.00% | ||
Warrants issued with promissory note | 427,777 | ||
Term of warrants | 5 years | ||
Exercise price of warrants | $ 0.14 | ||
Common shares issued from warrants converted | 230,300 | ||
Convertible to common shares, price per share | $ .13 | ||
Default conversion price equal to lowest trading price | 65.00% | ||
Additional paid in capital recognized from the warrants | $ 38,432 | ||
Amortization of debt discount to interest expense | $ 60,000 | $ 0 |
9. Commitments (Details)
9. Commitments (Details) - USD ($) | 12 Months Ended | 36 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Lease agreement commitment | $ 17,478 | $ 20,974 | $ 20,974 | $ 59,426 |
10. Common Stock (Details)
10. Common Stock (Details) - USD ($) | Mar. 31, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Jun. 30, 2017 |
Weighted Average Exercise Price of Warrants, duration | $ 0.14 | |||
Outstanding | ||||
Number of Warrant Shares, instant | 10,053,338 | 8,360,204 | 10,053,338 | 8,360,204 |
Weighted Average Exercise Price of Warrants, instant | $ .21 | $ .16 | $ .21 | $ .16 |
Remaining Term of Warrants | 2 years 9 months | 3 years 8 months | ||
Warrant Shares Intrinsic Value | $ 7,029,020 | $ 5,593,393 | $ 7,029,020 | $ 5,593,393 |
Granted | ||||
Number of Warrant Shares, duration | 2,009,800 | |||
Weighted Average Exercise Price of Warrants, duration | $ .43 | |||
Exercised | ||||
Number of Warrant Shares, duration | (649,834) | |||
Weighted Average Exercise Price of Warrants, duration | $ .15 | |||
Expired | ||||
Number of Warrant Shares, duration | 0 |
10. Common Stock (Details Narra
10. Common Stock (Details Narrative) - USD ($) | 9 Months Ended | |||||||||||||||||||||||||||||||||
Mar. 31, 2018 | Nov. 07, 2017 | Oct. 17, 2017 | Sep. 29, 2017 | Sep. 26, 2017 | Sep. 25, 2017 | Sep. 07, 2017 | Aug. 27, 2017 | Aug. 08, 2017 | Aug. 01, 2017 | Jul. 24, 2017 | Jul. 20, 2017 | Jul. 19, 2017 | Jul. 17, 2017 | Jul. 16, 2017 | Jul. 06, 2017 | Jul. 05, 2017 | Jun. 30, 2017 | May 16, 2017 | Apr. 22, 2017 | Apr. 01, 2017 | Mar. 31, 2017 | Mar. 24, 2017 | Mar. 08, 2017 | Mar. 01, 2017 | Feb. 21, 2017 | Dec. 31, 2016 | Nov. 30, 2016 | Sep. 21, 2016 | Jun. 30, 2016 | Apr. 07, 2016 | Mar. 14, 2016 | Aug. 24, 2015 | Jul. 27, 2015 | |
Common Stock Tables | ||||||||||||||||||||||||||||||||||
Shares issued for services, shares | 40,440 | 400,000 | 100,000 | 550,000 | 300,000 | 60,000 | 106,000 | |||||||||||||||||||||||||||
Shares issued for services, value | $ 32,352 | $ 60,000 | $ 25,000 | $ 137,500 | $ 60,000 | $ 12,000 | $ 21,200 | |||||||||||||||||||||||||||
Shares issued for cash, shares | 44,800 | 15,500 | 66,667 | 16,000 | 416,500 | 4,000 | 20,000 | 300,000 | 10,000 | 5,000 | 100,000 | 200,000 | 400,000 | 100,000 | 40,000 | 800,000 | 600,000 | 92,000 | 2,896,857 | 4,136,667 | 360,000 | 100,000 | 66,680 | 200,000 | 466,680 | 266,666 | 60,000 | |||||||
Shares issued for cash, price per share | $ 1.25 | $ .25 | $ .15 | $ 1.25 | $ .15 | $ 1.25 | $ 1.25 | $ .25 | $ .25 | $ .50 | $ .25 | $ .25 | $ .25 | $ .25 | $ .25 | $ .25 | $ 0.25 | $ .25 | $ .15 | $ .15 | $ .15 | $ 0.15 | $ 0.15 | $ 0.15 | $ .15 | $ .15 | $ .10 | |||||||
Warrants issued with Share purchases | 66,667 | 4,000 | 20,000 | 100,000 | 5,000 | 100,000 | 200,000 | 400,000 | 100,000 | 40,000 | 800,000 | 600,000 | 2,896,857 | 4,136,667 | 250,000 | 100,000 | 66,680 | 200,000 | ||||||||||||||||
Exercise price of stock purchase warrants | $ 2 | $ 4 | $ 2 | $ .50 | $ .25 | $ .25 | $ .25 | $ .25 | $ .25 | $ .25 | $ 0.25 | $ 0.15 | $ .15 | $ 62,500 | $ .15 | $ .15 | $ .15 | |||||||||||||||||
Shares issued to affiliates for advisory services, shares | 200,000 | |||||||||||||||||||||||||||||||||
Shares issued to affiliates for advisory services, price per share | $ 40,000 | |||||||||||||||||||||||||||||||||
Shares issued for warrant conversions | $ 166,667 | |||||||||||||||||||||||||||||||||
Stock Options Authorized | 2,500,000 | |||||||||||||||||||||||||||||||||
Stock options granted | 521,500 |
12. Office Furniture and Equi31
12. Office Furniture and Equipment (Details Narrative) - USD ($) | Mar. 31, 2018 | Jun. 30, 2017 |
Notes to Financial Statements | ||
Furniture and equipment | $ 20,240 | $ 20,240 |
less accumulated amortization | 3,373 | 337 |
net present value | $ 16,867 | $ 19,904 |
13. Subsequent Events (Details
13. Subsequent Events (Details Narrative) - USD ($) | Mar. 31, 2018 | Nov. 07, 2017 | Oct. 17, 2017 | Sep. 29, 2017 | Sep. 26, 2017 | Sep. 25, 2017 | Sep. 07, 2017 | Aug. 27, 2017 | Aug. 08, 2017 | Aug. 01, 2017 | Jul. 24, 2017 | Jul. 20, 2017 | Jul. 19, 2017 | Jul. 17, 2017 | Jul. 16, 2017 | Jul. 06, 2017 | Jul. 05, 2017 | Jun. 30, 2017 | May 16, 2017 | Apr. 22, 2017 | Apr. 01, 2017 | Mar. 31, 2017 | Mar. 24, 2017 | Mar. 08, 2017 | Mar. 01, 2017 | Feb. 21, 2017 | Dec. 31, 2016 | Nov. 30, 2016 | Sep. 21, 2016 | Jun. 30, 2016 | Apr. 07, 2016 | Mar. 14, 2016 | Aug. 24, 2015 | Jul. 27, 2015 |
Subsequent Events [Abstract] | ||||||||||||||||||||||||||||||||||
Shares issued for services, shares | 40,440 | 400,000 | 100,000 | 550,000 | 300,000 | 60,000 | 106,000 | |||||||||||||||||||||||||||
Shares issued for services, value | $ 32,352 | $ 60,000 | $ 25,000 | $ 137,500 | $ 60,000 | $ 12,000 | $ 21,200 | |||||||||||||||||||||||||||
Shares issued for cash, shares | 44,800 | 15,500 | 66,667 | 16,000 | 416,500 | 4,000 | 20,000 | 300,000 | 10,000 | 5,000 | 100,000 | 200,000 | 400,000 | 100,000 | 40,000 | 800,000 | 600,000 | 92,000 | 2,896,857 | 4,136,667 | 360,000 | 100,000 | 66,680 | 200,000 | 466,680 | 266,666 | 60,000 | |||||||
Shares issued for cash, price per share | $ 1.25 | $ .25 | $ .15 | $ 1.25 | $ .15 | $ 1.25 | $ 1.25 | $ .25 | $ .25 | $ .50 | $ .25 | $ .25 | $ .25 | $ .25 | $ .25 | $ .25 | $ 0.25 | $ .25 | $ .15 | $ .15 | $ .15 | $ 0.15 | $ 0.15 | $ 0.15 | $ .15 | $ .15 | $ .10 | |||||||
Warrants issued with Share purchases | 66,667 | 4,000 | 20,000 | 100,000 | 5,000 | 100,000 | 200,000 | 400,000 | 100,000 | 40,000 | 800,000 | 600,000 | 2,896,857 | 4,136,667 | 250,000 | 100,000 | 66,680 | 200,000 | ||||||||||||||||
Exercise price of stock purchase warrants | $ 2 | $ 4 | $ 2 | $ .50 | $ .25 | $ .25 | $ .25 | $ .25 | $ .25 | $ .25 | $ 0.25 | $ 0.15 | $ .15 | $ 62,500 | $ .15 | $ .15 | $ .15 | |||||||||||||||||
Stock Options Authorized | 2,500,000 | |||||||||||||||||||||||||||||||||
Stock options granted | 521,500 |