GL Brands (GRLB) 10-Q 21 Feb 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2017	Feb. 14, 2018
Document And Entity Information
Entity Registrant Name	Freedom Leaf Inc.
Entity Central Index Key	1,581,545
Document Type	10-Q
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		158,491,435
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Dec. 31, 2017	Jun. 30, 2017
Current assets
Cash	$ 0	$ 2,498
Inventory	27,200	0
Prepaid expense	300	1,600
Other receivable, net of discount	221,294	637,817
Total current assets	248,794	641,915
Fix assets, net	135,788	0
Intangible assets, net	24,057	10,820
Other assets	365,084	338,084
Total assets	773,723	990,819
Current liabilities
Convertible notes payable, net of discount	65,774	70,678
Notes payable	2,874	3,141
Accounts payable	179,407	15,789
Accrued expenses	30,118	31,891
Accrued expenses to related parties	66,000
Derivative liabilities	47,289	52,757
Total current liabilities	391,462	174,256
Non-current liabilities
Convertible notes payable, net of discount, non-current portion	52,058	0
Other non-current liabilities	123,342	188,075
Payable to related party	318,445	290,670
Total non-current liabilities	493,845	478,745
Total liabilities	885,307	653,001
Commitments and contingencies		150,000
Stockholders' equity (deficit)
Preferred stock, $0.001 par value, 10,000,000 shares authorized Series A preferred stock, 1,000,000 shares authorized, 948,022 shares issued and outstanding at December 31, 2017 and June 30, 2017, respectively	948	948
Common stock, $0.001 par value, 500,000,000 shares authorized, 147,620,698 and 111,101,795 shares issued, issuable, and outstanding at December 31, 2017 and June 30, 2017, respectively	147,621	111,102
Additional paid-in capital	6,110,832	4,996,756
Accumulated deficit	(6,370,985)	(4,920,988)
Total stockholders' equity (deficit)	(111,584)	187,818
Total liabilities and stockholders' equity (deficit)	$ 773,723	$ 990,819

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Dec. 31, 2017	Jun. 30, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ .001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	948,022	948,022
Preferred stock, shares outstanding	948,022	948,022
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	147,620,698	111,101,795
Common stock, shares outstanding	147,620,698	111,101,795

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Revenue, net	$ 6,332	$ 448,566	$ 7,659	$ 569,120
Operating expenses
Direct costs of revenue	36,680	46,099	69,826	71,364
General and administrative (includes stock-based compensation of $121,837 and $276,292 for the three months ended December 31, 2017 and 2016, respectively, and $416,077 and $533,192 for the six months ended December 31, 2017 and 2016, respectively)	338,250	472,657	822,357	924,328
Bad debt expense	263,315		426,848
Marketing and selling	1,734	5,925	4,317	19,719
Operating loss	(633,647)	(76,115)	(1,315,689)	(446,291)
Other income (expense)
Interest expense	(7,571)	(2,849)	(12,780)	(5,250)
Interest income	5,162	0	10,324	0
Change in fair value of embedded conversion features	(54,364)	0	(52,259)	0
Beneficial conversion feature	(51,994)	(32,397)	(79,594)	(61,712)
Provision for income taxes	0	0	0	0
Net loss	$ (742,413)	$ (111,361)	$ (1,449,997)	$ (513,253)
Net loss per share - basic and diluted	$ (0.01)	$ 0	$ (0.01)	$ (0.01)
Weighted average number of shares outstanding - basic and diluted	140,179,411	97,897,629	129,643,006	96,455,096

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Stock-based compensation	$ 121,837	$ 276,292	$ 416,077	$ 533,192

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net loss	$ (1,449,997)	$ (513,253)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization	23,312	370
Beneficial conversion feature	79,594	61,712
Issuance of common stock for services	416,077	533,192
Change in fair value of embedded conversion features	52,259	0
Bad debt expense	426,848
Changes in operating assets and liabilities:
Accounts receivable		250
Inventory		1,353
Prepaid expense	1,300
Other receivable		(247,601)
Other assets		(179,131)
Accounts payable	165,969	30,748
Accounts payable to related parties		950
Accrued expenses	45,386	83,061
Accrued expenses to related parties	66,000	54,000
Net cash used in operating activities	(173,252)	(174,349)
Cash flows used in investing activities
Intangible asset acquired	0	(3,271)
Net cash used in investing activities	0	(3,271)
Cash flows from financing activities:
Proceeds from capital contributed		28,148
Proceeds from related party	28,201	25,683
Proceeds from sale of common stock	98,246	80,000
Repayments on notes payable	(95,299)	46,000
Payments to related party	(426)
Proceeds from notes payable	140,032
Net cash provided by financing activities	170,754	179,831
Net increase in cash	(2,498)	2,211
Cash at beginning of period	2,498	1,758
Cash at end of period	0	3,969
Supplemental disclosure of cash flow information:
Cash paid for interest
Cash paid for taxes
Non-cash investing and financing activities:
Conversion of debt into common stock	214,254	15,065
Issuance of notes payable for financing fees	(37,249)
Issuance of common stock for inventory	(27,200)
Contingent liability	(123,000)
Issuance of common stock for acquisition of assets	197,764	0
Issuance of warrants	74,000
Derivative liability	(95,168)
Fixed asset additions	$ (149,400)

1. Nature of Operations and Sum

1. Nature of Operations and Summary of Significant Accounting Policies	6 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations and Summary of Significant Accounting Policies	Organization Freedom Leaf Inc. (the “Company,” “we,” “us,” “our,” or “Freedom Leaf”) was incorporated in the State of Nevada on February 21, 2013, under the name of Arkadia International, Inc. The Company was originally engaged in the business of the acquisition of in demand equipment, cars, and goods with the intent to resale these in the U.S. territory or export to overseas countries. On October 3, 2014, the Company experienced a change in control. Richard C. Cowan acquired a majority of the issued and outstanding common stock of the Company in accordance with stock purchase agreements by and between Mr. Cowan and Vladimir and Galina Shekhtman (“Sellers”). On the closing date, October 3, 2014, Cowan purchased from the Sellers 6,950,100 shares of the Company’s outstanding restricted common stock for $100,000, representing 93% of the then-outstanding common stock of the Company. On November 6, 2014, the Company merged with Freedom Leaf Inc., a private Nevada corporation. The Company changed its name from Arkadia International, Inc., to Freedom Leaf Inc. As a result of the merger, the private company was dissolved, the sole officer, director and shareholder of the private company, Clifford J. Perry, became an officer and director of the Company, and Mr. Perry received approximately 48.1% of the Company’s common stock post-merger. See Note 2 for related discussion. For financial reporting purposes, the merger was accounted for as a "reverse merger" and recapitalization rather than a business combination, and the private company was deemed to be the accounting acquirer in the transaction, with the Company deemed to be the acquired company for financial reporting purposes. Consequently, the assets and liabilities and the operations that are reflected in the historical consolidated financial statements of the Company prior to the merger are those of the private company, and were recorded at the historical cost basis of the private company, and the consolidated financial statements after completion of the merger include the assets and liabilities of both the predecessor public company and private company, the historical operations of private company, and the operations of both companies from the date of the merger. Cannabis Business Solutions Inc. (“Cannabis Business Solutions”), a Nevada corporation, was formed on February 5, 2014, and is a subsidiary of the Company. This subsidiary had no activity until the agreement with Valencia Web Technology S.L., B-97183354 (see Note 2). Leafceuticals Inc. (“Leafceuticals”), formerly known as Cannabiz U, Inc., a Nevada corporation, was formed on February 13, 2014, and is a wholly-owned subsidiary of the Company. This subsidiary has begun activity in January 2018. Freedom Leaf Cares Inc. (“Freedom Leaf Cares”), a Nevada corporation, was formed on October 1, 2014, and is a wholly-owned subsidiary of the Company. Freedom Leaf Cares was dissolved in 2016. Until dissolution, this subsidiary had no activity. Freedom Leaf International Inc. (“Freedom Leaf International”), a Nevada corporation, was formed on November 27, 2015, and is a wholly-owned subsidiary of the Company. This subsidiary has had no activity to date. Nature of Operations The Company is a leading go-to resource in the cannabis, medical marijuana, and industrial hemp industry. It is involved in mergers and acquisitions, and business consulting in the marijuana industry, including incubation/acceleration and spinoffs of new cannabis/hemp related companies. The Company’s flagship publication is Freedom Leaf Magazine “The Good News in Marijuana Reform.” The Company produces a portfolio of news, print and digital multi-media verticals, websites, blogs, and web advertising, for the ever-changing emerging cannabis, medical marijuana and industrial hemp industry. Through our online and print media channels, our efforts are in dissemination of current legislation and legal news, arts and entertainment. The Company does not handle, grow, sell, or dispense marijuana. The Company is making strides in the industrial hemp sector of the industry with the acquisition of Green Market Europe S.L. (“Green Market,” see Note 15), located in Elche Spain, relying on its quality organic growing of hemp for flower and seeds and developing new genetic strains that will deliver other rare cannabinoids (“CBD”). Leafceuticals is operating in North Las Vegas, Nevada, as a CO2 extraction and processing facility for hemp flower. Once the raw material is derived from the extraction process, it is then taken to a lab to create Full Spectrum CBD Oil to be sold to formulators to process into cosmetics, topical creams, vapes, and other Cannabidiol, CBD-based beauty and wellness products. Leafceuticals has also launched an e-commerce site, www.MyHempology.com, that markets through direct sales and retail distribution of full spectrum CBD products. The Company also sells licenses to use the Freedom Leaf brand in different countries and states. We have entered into three license agreements: for Spain and Portugal, for The Netherlands, and for Florida. Basis of Presentation The Company prepares its consolidated financial statements in conformity with generally accepted accounting principles in the United States of America. Principles of Consolidation The consolidated financial statements include the accounts of Freedom Leaf and its subsidiaries, Cannabis Business Solutions, Leafceuticals, Freedom Leaf Cares, and Freedom Leaf International. All significant inter-company balances and transactions have been eliminated in consolidation. Impairment of Long-Lived Assets The Company accounts for long-lived assets in accordance with the provisions of Statement of Financial Accounting Standards ASC 360-10, “Accounting for the Impairment or Disposal of Long-Lived Assets.” This statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Fair Value of Financial Instruments The Company measures its financial assets and liabilities in accordance with generally accepted accounting principles. For certain of our financial instruments, including cash, accounts payable, accrued expenses, and short-term loans the carrying amounts approximate fair value due to their short maturities. We follow accounting guidance for financial and non-financial assets and liabilities. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use. We currently measure and report at fair value our intangible assets (due to our impairment analysis) and derivative liabilities. The fair value of intangible assets has been determined using the present value of estimated future cash flows method. The fair value of derivative liabilities is measured using the Black-Scholes option pricing method. The following table summarizes our non-financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and June 30, 2017: Balance at December 31, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Assets: Trademarks $ 13,766 $ – $ – $ 13,766 Exclusive Rights 10,291 10,291 Total Financial Assets $ 24,057 $ – $ – $ 24,057 Balance at June 30, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Assets: Trademarks $ 10,820 $ – $ – $ 10,820 Total Financial Assets $ 10,820 $ – $ – $ 10,820 Following is a summary of activity through December 31, 2017 of the fair value of intangible assets valued using Level 3 inputs: Accumulated Asset Amortization Net Balance at June 30, 2017 $ 12,245 $ (1,425 ) $ 10,820 Additions 22,936 – 22,936 Amortization – (9,699 ) (9,699 ) Balance at December 31, 2017 $ 35,181 $ (11,124 ) $ 24,057 The Company evaluates its convertible debt, options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for. The result of this accounting treatment is that under certain circumstances the fair value of the derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as other income or expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. Equity instruments that are initially classified as equity that become subject to reclassification under this accounting standard are reclassified to liability at the fair value of the instrument on the reclassification date. The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis at December 31, 2017: Balance at December 31, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Liabilities: Derivative Liabilities $ 40,349 $ – $ – $ 40,349 Total Financial Assets $ 40,349 $ – $ – $ 40,349 The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis at June 30, 2017: Balance at June 30, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Liabilities: Derivative Liabilities $ 52,757 $ – $ – $ 52,757 Total Financial Assets $ 52,757 $ – $ – $ 52,757 Following is a summary of activity through December 31, 2017 of the fair value of derivative liabilities valued using Level 3 inputs: Balance at June 30, 2017 $ 52,757 Note inception date fair value 43,866 Change in fair value during fiscal year 2018 (56,274 ) Balance at December 31, 2017 $ 40,349 Stock-Based Compensation The Company accounts for stock-based instruments issued to employees in accordance with ASC Topic 718. ASC Topic 718 requires companies to recognize in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees. The value of the portion of an award that is ultimately expected to vest is recognized as an expense over the requisite service periods using the straight-line attribution method. The Company accounts for non-employee share-based awards in accordance with the measurement and recognition provisions ASC Topic 505-50. The Company estimates the fair value of stock options at the grant date by using the Black-Scholes option-pricing model. Use of Estimates The preparation of consolidated 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the accompanying consolidated financial statements include the amortization period for intangible assets, valuation and impairment valuation of intangible assets, depreciable lives of the web site and property and equipment, valuation of warrants and beneficial conversion feature debt discounts, valuation of derivatives, valuation of share-based payments and the valuation allowance on deferred tax assets. Reclassifications Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported losses, total assets, or stockholders’ equity as previously reported. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Inventory Inventory is recorded at the lower of cost or market and the cost of sales are recorded utilizing the first in first out (“FIFO”) method. Accounting for Derivatives The Company evaluates its convertible debt, options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for. The result of this accounting treatment is that under certain circumstances the fair value of the derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as other income or expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. Equity instruments that are initially classified as equity that become subject to reclassification under this accounting standard are reclassified to liability at the fair value of the instrument on the reclassification date. Revenue Recognition The Company recognizes revenue for our services in accordance with ASC 605-10, "Revenue Recognition in Financial Statements." Under these guidelines, revenue is recognized on transactions when all of the following exist: persuasive evidence of an arrangement did exist, delivery of service has occurred, the sales price to the buyer is fixed or determinable and collectability is reasonably assured. The Company has five primary revenue streams as follows: · Consulting services. · Advertising services. · Branding, marketing and selling products for companies. · Educational seminars. · Selling branded products. Advertising and Marketing Advertising and marketing is expensed as incurred and is included in selling, general and administrative expenses on the accompanying statement of operations. For the six months ended December 31, 2017 and 2016 advertising expense was $4,317 and $19,719, respectively. Income Taxes The Company accounts for income taxes in accordance with FASB ASC 740, “Income Taxes”. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and loss carry-forwards and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income (loss) in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rules on deferred tax assets and liabilities is recognized in operations in the year of change. A valuation allowance is recorded when it is “more likely-than-not” that a deferred tax asset will not be realized. Tax benefits of uncertain tax positions are recognized only if it is more likely than not that the Company will be able to sustain a position taken on an income tax return. The Company has no liability for uncertain tax positions as of December 31, 2017 and June 30, 2017. Interest and penalties in any, related to unrecognized tax benefits would be recognized as interest expense. The Company does not have any accrued interest or penalties associated with unrecognized tax benefits, nor was any significant interest expense recognized during the period ended December 31, 2017 and the period ended December 31, 2016. On December 22, 2017, the United States Government passed new tax legislation that, among other provisions, will lower the corporate tax rate from 35% to 21%. In addition to applying the new lower corporate tax rate in 2018 and thereafter to any taxable income we may have, the legislation affects the way we can use and carry forward net operating losses previously accumulated and results in a revaluation of deferred tax assets recorded on our balance sheet. Given that the deferred tax assets are offset by a full valuation allowance, these changes will have no net impact on the Company’s financial position and net loss. However, if and when we become profitable, we will receive a reduced benefit from such deferred tax assets. Had this legislation passed prior to our June 30, 2017, fiscal year-end, the effect of the legislation would have been a reduction in deferred tax assets and the corresponding valuation allowance. Net Earnings (Loss) Per Share In accordance with ASC 260-10, “Earnings Per Share,” basic net earnings (loss) per common share is computed by dividing the net earnings (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share are computed using the weighted average number of common and dilutive common stock equivalent shares outstanding during the period. Dilutive common stock equivalent shares which may dilute future earnings per share consist of warrants to purchase 1,918,167 shares of common stock at December 31, 2017 and convertible notes convertible into 8,881,954 common shares. Equivalent shares are not utilized when the effect is anti-dilutive. Segment Information In accordance with the provisions of ASC 280-10, “Disclosures about Segments of an Enterprise and Related Information”, the Company is required to report financial and descriptive information about its reportable operating segments. The Company does not have any operating segments as of December 31, 2017 and June 30, 2017. Effect of Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“ASU No. 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective for annual reporting periods beginning after December 15, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method, nor has it determined the effect of the standard on its ongoing financial reporting. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements (Topic 205) Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In February 2016, the Financial Accounting Standards Board (“FASB”) issued an ASU on lease accounting. The ASU requires the lease rights and obligations arising from lease contracts, including existing and new arrangements, to be recognized as assets and liabilities on the balance sheet. The ASU is effective for reporting periods beginning after December 15, 2018 with early adoption permitted. While the Company is still evaluating the ASU, the Company expects the adoption of the ASU to have a material effect on the Company’s financial condition due to the recognition of the lease rights and obligations as assets and liabilities. The Company does not expect the ASU to have a material effect on the Company’s results of operations, and the ASU will have no effect on cash flows. The Company has evaluated all other recent accounting pronouncements and believes that none of them will have a significant effect on the Company’s financial statement.

2. Entry Into a Definitive Agre

2. Entry Into a Definitive Agreement	6 Months Ended
	Dec. 31, 2017
Business Combinations [Abstract]
Entry Into a Definitive Agreement	Freedom Leaf Inc. f/k/a Arkadia International, Inc., a Nevada corporation and the public company (the “Company,” “Public Company,” “we,” “us,” “our”) entered into a merger agreement with a private Nevada corporation, Freedom Leaf Inc. (the “Private Company”). Prior to the reverse merger, Richard C. Cowan, the officer and director of the Public Company, had acquired the majority of its outstanding common stock. Clifford J. Perry, the Private Company’s sole officer and director pre-merger (“Perry”), was the owner of record of all of the outstanding common shares of the Private Company (the “Private Company Stock”) prior to the merger. Pursuant to the merger, the Private Company was merged into the Public Company, and Perry, the Private Company’s shareholder, received 83,401.2 shares of Public Company common stock for each share of Private Company stock pre-merger, or 83,401,200 total shares of the Company’s common stock. The closing of the merger was conditioned upon certain, limited customary representations and warranties, as well as the satisfaction or waiver of specified conditions to closing. As the parties satisfied all of the closing conditions, we filed Articles of Merger in Nevada consummating the merger, and shareholders of the Private Company pre-merger (Perry) owned approximately 48.1% of our issued and outstanding common stock post-merger. Following the merger, the Company focused on pursuing Private Company’s historical businesses. The foregoing description of the merger agreement and transaction does not purport to be complete and is qualified in its entirety by the merger agreement, a copy of which has been filed as Exhibit 10.1 to our Quarterly Report on Form 10-Q/A for the period ended December 31, 2014, which is incorporated herein by reference. Accounting Treatment of the Merger For financial reporting purposes, the merger represents a “reverse merger” rather than a business combination, and Private Company is deemed to be the accounting acquirer in the transaction. The merger is being accounted for as a reverse-merger and recapitalization. Private Company is the acquirer for financial reporting purposes and the Public Company (Freedom Leaf Inc., f/k/a Arkadia International, Inc.) is the acquired company. Consequently, the assets and liabilities and the operations that will be reflected in the historical financial statements prior to the merger will be those of the Private Company and will be recorded at the historical cost basis of the Private Company, and the financial statements after completion of the merger will include the assets and liabilities of the Public Company and the Private Company, the historical operations of the Private Company and operations of both companies from the closing date of the Merger. Licensing Rights On February 8, 2016, the Company and Freedom Leaf Netherlands, B.V. (“FLNL”), a company located in the Netherlands, executed a Memorandum of Understanding (“MOU”), wherein the Company granted FLNL a right of first refusal to license certain rights from the Company described below in exchange for a payment of $25,000, and the parties agreed to negotiate a definite license agreement for such rights with the terms of the definitive agreement incorporating the material terms set forth in the MOU. Such rights include FLNL’s rights to use various trademarks of the Company, primarily “Freedom Leaf,” and other related rights, for use in the Netherlands by FLNL, including FLNL’s right to publish a Freedom Leaf magazine in the Netherlands, sell Freedom Leaf products and perform other activities related to the business of the Company. FLNL is a shareholder (common stock and warrants to purchase additional common stock) of the Company. On December 15, 2016, the Company and FLNL executed the license agreement. The agreement provided for a licensing fee of $250,000 with a payment schedule as follows: $70,869 which has been paid from the date of the MOU until the date of the agreement; $25,000 payment every two months, commencing on April 10, 2017 with the last payment on April 10, 2018, and a final payment of $4,131 on June 10, 2018. As the Company is allowing for progress payments, the balance is shown net of imputed interest on the balance sheet. The Company also provided FLNL with warrants to purchase up to 1,000,000 shares of common stock. The warrants have an exercise price of $0.05. The warrants can be exercised as follows: 250,000 warrants between June 2017 and August 2017; 250,000 warrants between September 2017 and November 2017; 250,000 warrants between December 2017 and February 2018; and 250,000 warrants between March 2018 and May 2018. See Notes 7 and 11. On December 15, 2016, the Company and Freedom Leaf Iberia, B.V. (“FLI”), a company incorporated under the laws of the Netherlands, executed a license agreement. The licensing agreement provides FLI the distribution rights to the Company’s magazine and other “Freedom Leaf” branded merchandise. The territory of the agreement is Spain and Portugal. The agreement provided for a license fee of $250,000 payable to the Company. The payment schedule provides for a $25,000 payment every two months, beginning on April 20, 2017, concluding on April 20, 2018, with a final payment of $75,000 on June 20, 2018. As the Company is allowing for progress payments, the balance is shown net of imputed interest on the balance sheet. The Company also provided FLI with warrants to purchase up to 1,000,000 shares of common stock. The warrants have an exercise price of $0.05. The warrants can be exercised as follows: 250,000 warrants between June 2017 and August 2017; 250,000 warrants between September 2017 and November 2017; 250,000 warrants between December 2017 and February 2018; and 250,000 warrants between March 2018 and May 2018. See Notes 7 and 11. On March 31, 2017, the Company entered into a license agreement with BBD Healthcare Strategies, LLC, a Florida limited liability company (“BBDHS”), pursuant to which BBDHS received distribution rights to the Company’s magazine and other “Freedom Leaf” branded merchandise for the State of Florida, in consideration of (1) a license fee of $250,000, paid $25,000 at execution, and $25,000 due August 2017, October 2017, December 2017, February 2018, March 2018, April 2018, May 2018 and concluding June 2018, with a final payment of $50,000, (2) ongoing royalties of 5% for sales of Company merchandise purchased from the Company, (3) ongoing royalties of 10% for sales of Company merchandise purchased from a third-party supplier, and (4) ongoing royalties of 33% for Company seminars and conferences. As the Company is allowing for progress payments, the balance is shown net of imputed interest on the balance sheet. The Company also provided BBDHS with warrants to purchase 1,200,000 shares of Company common stock at an exercise price of $0.05, exercisable as follows: 240,000 shares between September 1, 2017 and October 31, 2017, 240,000 shares between November 1, 2017 and December 31, 2017, 240,000 shares between January 1, 2018 and February 28, 2018, 240,000 shares between March 1, 2018 and May 30, 2018, and 240,000 shares between June 1, 2018 and July 30, 2018. See Notes 7 and 11. Incubation Agreement On January 18, 2016, the Company and Plants to Paper, LLC (“PTP”), a New Jersey limited liability company, executed an Incubation Agreement. PTP owned the patent pending application 62/245,153 (the “Patent”) with the title being “Rolling Papers and Blunt Wraps made from 100% Marijuana.” PTP agreed to transfer its ownership rights in the patent application to the Company, as well as PTP’s Medical Marijuana / Cannabis / Hemp Industry Incubator program. The Company agreed to supply management services and to fund the early stage development of PTP. The Incubation Agreement is for a period of twelve months. PTP will provide the Company with 20% of the outstanding membership shares of PTP in exchange for its services. The costs of patent registrations in the United States and other countries will be the liability of PTP. As of December 31, 2017, PTP had no activity. On February 1, 2017, the Agreement was modified for the following items: a) to provide 25% of the outstanding membership shares of PTP; b) require that the Patent be assigned to PTP; and c) acknowledge that the ownership rights have not been transferred to the Company as of December 31, 2017. Sales Representation Contract On December 22, 2016, the Company and NuAxon BioScience, Inc. (“NuAxon”), a Delaware corporation, executed a Sales Representation Contract. NuAxon is a manufacturer and distributor for bulk extracts, Rebel Herbs brand products, and Intelligence Tree brand products. The contract appoints the Company as NuAxon’s sales representative worldwide. The contract is for a period of one year and shall automatically renew for successive terms of the same duration. The contract provides a commission for sales by the Company at rates as follows: a) bulk extracts is 9% with a 2% bonus on annual sales above $500,000; b) Rebel Herbs and Intelligence Tree brand products is 10% with a 3% bonus on annual sales above $1,000,000. As of December 31, 2017, there have been no sales or commissions earned. Equipment Sales Representative Contract On December 22, 2016, the Company and NuAxon executed an Equipment Sales Representative Contract. NuAxon is a manufacturer and distributor for extraction equipment. The contract appoints the Company as NuAxon’s equipment sales representative worldwide. The contract is for a period of one year and shall automatically renew for successive terms of the same duration. The contract provides a commission for sales by the Company at various rates ranging from 3% to 10%, dependent on the cumulative annual sales. On March 15, 2017, the Company entered into an Exclusive Distribution Agreement with NuAxon to sell NuAxon’s CO2 extraction equipment pursuant to which the Company would be paid increasing commissions depending on gross sales of the equipment. On March 16, 2017, the Company issued a purchase order (the “Purchase Order”) to NuAxon to purchase extraction equipment for one of the Company’s customers. As of December 31, 2017, there were no sales. LaMarihuana Purchase On May 30, 2017, with an effective date of April 8, 2017 as per the Bill of Sale, Cannabis Business Solutions Inc. (the “Buyer”), a wholly-owned Nevada subsidiary of the registrant, Freedom Leaf Inc., entered into an Asset Purchase Agreement with Valencia Web Technology S.L., B-97183354, a Spanish limited liability company (Sociedad de Responsabilidad Limitada) (the “Seller,” or “Valencia”) to purchase the Seller’s assets, including its cash and cash equivalents, equipment, inventory, receivables, and two of its websites www.lamarihuana.com and www.marihuana-medicinal.com (but not including the Seller’s website cannabislandia.com), for a purchase price consisting of a 10% interest in the Buyer, and 3,000,000 shares of common stock of the registrant, valued at $300,000 (the “Initial FRLF Shares”), with additional shares of the registrant’s common stock due six months (October 8, 2017) following closing if, at such time, the average closing price of the registrant’s common stock during the previous five trading days is less than $0.10/share. Such additional shares shall be calculated as follows: $300,000 minus the product of (a) the Initial FRLF Shares multiplied by (b) the average closing price of the registrant’s common stock during the five trading days immediately preceding the True-Up Date (the “True-Up Price”), with such difference divided by the True-Up Price. On October 8, 2017, the Company removed the previously recorded contingent liability and recorded 4,142,857 shares of common stock as issuable, with a value of $126,000. On February 7, 2018, the Company and the Buyer agreed that with the increase in the value of the Company’s common stock, the Buyer waived its rights for additional issuance of common stock, as stated herein. Therefore, on February 7, 2018, the Company reversed its recording of the 4,142,857 shares of common stock recorded as issuable. See Note 16. The Company is in the process of meeting international requirements for the complete use of the web sites by the Company. This process is expected to be completed before the end of this fiscal year.

3. Going Concern

3. Going Concern	6 Months Ended
	Dec. 31, 2017
Going Concern
Going Concern	The Company has a net loss for the six months ended December 31, 2017 of $1,449,997 and working capital deficit as of December 31, 2017 of $142,668, and has used cash in operations of $173,252 for the six months ended December 31, 2017. In addition, as of December 31, 2017, the Company had a stockholders’ deficit and accumulated deficit of $111,584 and $6,370,985, respectively. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplate continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The ability of the Company to continue its operations is dependent on the execution of management’s plans, which include the raising of capital through the debt and/or equity markets, until such time that funds provided by operations are sufficient to fund working capital requirements. If the Company were not to continue as a going concern, it would likely not be able to realize its assets at values comparable to the carrying value or the fair value estimates reflected in the balances set out in the preparation of the consolidated financial statements. There can be no assurances that the Company will be successful in generating additional cash from the equity/debt markets or other sources to be used for operations. The consolidated financial statements do not include any adjustments relating to the recoverability of assets and classification of assets and liabilities that might be necessary. Based on the Company’s current resources, the Company will not be able to continue to operate without additional immediate funding. Should the Company not be successful in obtaining the necessary financing to fund its operations, the Company would need to curtail certain or all operational activities and/or contemplate the sale of its assets, if necessary.

4. Commitments and Contingencie

4. Commitments and Contingencies	6 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Legal Matters From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. As of February 20, 2018, there were no pending or threatened lawsuits. Lease Commitment We lease approximately 2,800 square feet of office space in Las Vegas, Nevada, pursuant to a lease that will expire on December 31, 2019. This facility serves as our corporate headquarters. After December 31, 2017, the Company has the option to opt out of the lease. Future minimum lease payments under these leases are as follows: 2018 $ 11,964 2019 18,943 Total $ 30,907 Rent expense for the six months ended December 31, 2017 and 2016 was $14,604 and $19,309, respectively.

5. Related Parties

5. Related Parties	6 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Related Parties	Richard C. Cowan (“Cowan”), a former director and officer of the Company, has payables and accruals due to him of $318,445 and $269,226 as of December 31, 2017 and June 30, 2017, respectively. The payable, as agreed upon, is greater than one year, without any other set terms for repayment. Imputed interest is immaterial. Clifford J. Perry (“Perry”), Chief Executive officer, Chief Financial Officer, and a director of the Company, has payables and accruals due to him of $45,000 and $21,444 as of December 31, 2017 and June 30, 2017, respectively. Imputed interest is immaterial. On July 31, 2017, the Company issued 5,784,061 shares of common stock to Cliff Perry for accrued compensation of $112,500. See Note 15. Raymond P. Medeiros (“Medeiros”), a director of the Company, has payables and accruals due to him of $21,000 and $0 as of December 31, 2017 and June 30, 2017, respectively. Imputed interest is immaterial. On July 31, 2017, the Company issued 2,699,228 shares of common stock to Raymond Medeiros for accrued compensation of $52,500. See Note 16. On October 31, 2017, the Company issued 850,000 shares of common stock to Paul F. Pelosi, Jr. (“Pelosi”), in regards to his appointment as Chairman of the Board on November 1, 2017, for compensation for the period November 1, 2017 through January 31, 2018. The Company is obligated to issue on February 1, 2018, an additional 1,250,000 options for common stock with an exercise price of $0.04, with an expiration eighteen months after the issuance. On November 9, 2017, the Company sold 967,000 shares of common stock to Pelosi for $14,500, based on a per share price of $0.01499. On January 18, 2018, the Company appointed Richard Groberg (“Groberg”), via his company, RSGroberg Consulting, LLC, as its Chief Financial Officer to serve for an initial, two-year term. In consideration of the services to be performed by Groberg, the Company: (i) issued 800,000 shares of common stock, and (ii) $5,000 per month compensation payable: (1) prior to the date that the Company is paying monthly compensation to its directors primarily in cash, in 600,000 shares of common stock (representing the first 12 months’ compensation), and (2) payable in cash thereafter. See Note 16. The 800,000 and 600,000 shares of common stock were issuable as of January 18, 2018.

6. Other Receivables

6. Other Receivables	6 Months Ended
	Dec. 31, 2017
Receivables [Abstract]
Other Receivables	The Company has three licensing agreements with the following: FLNL, FLI and BBDHS (see Note 2). The receivable, per entity, as recorded in Other Receivables as of December 31, 2017, is as follows: FLNL $ 176,779 FLI 246,178 BBDHS 225,186 Subtotal 648,143 Less: Allowance 426,849 Net Balance $ 221,294 As of December 31, 2017, FLNL, FLI and BBDHS are behind on payments of $75,000, $75,000, and $25,000, respectively. The Company and FLI agreed to a legal right of offset in regards to a balance of $60,000 owed by the Company to FLI. The Company granted deferment on the payments with each entity as FLNL and FLI both have revenue streams that will begin in March 2018, which will facilitate the past due payments accordingly. The revenue streams as stated herein were delayed due to unforeseen circumstances. This has been rectified therefore the Company believes that payments will commence accordingly, starting in March 2018. The Company has recorded an allowance of $426,849. The balances are projected to be paid in full by September 2018.

7. Fixed Assets

7. Fixed Assets	6 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Fixed Assets	The Company has fixed assets related to equipment and capital improvements. The depreciation of the equipment and capital improvements is over a five-year and two-year period, respectively. As of December 31, 2017, and June 30, 2017, the Company had fixed assets, net of accumulated depreciation, of $135,788 and $0, respectively. The fixed assets are as follows: December 31, June 30, 2017 2017 Equipment $ 148,500 $ – Capital improvements 900 – Total fixed assets 149,400 – Less: Accumulated depreciation 13,612 – Fixed assets, net $ 135,788 $ – The depreciation expense for the six months ended December 31, 2017 and 2016, was $13,612 and $0, respectively.

8. Intangible Assets

8. Intangible Assets	6 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	The Company has intangible assets related to website development. The amortization of the intangible assets is over a fifteen-year period. As of December 31, 2017, and June 30, 2017, the Company had intangible assets, net of accumulated amortization, of $24,057 and $10,820, respectively. The intangible assets are as follows: December 31, June 30, 2017 2017 Website development $ 15,682 $ 12,245 Exclusive rights 19,500 – Total intangible assets 35,182 12,245 Less: Accumulated amortization 11,125 1,425 Intangible assets, net $ 24,057 $ 10,820 The amortization expense for the six months ended December 31, 2017 and 2016, was $9,700 and $370, respectively. The following table presents the amortization for the next five years: 2018 $ 10,273 2019 1,587 2020 1,045 2021 1,045 2022 and thereafter 10,107 Total $ 24,057

9. Derivatives

9. Derivatives	6 Months Ended
	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	Embedded Conversion Option Derivatives Due to the conversion terms of certain promissory notes, the embedded conversion options met the criteria to be bifurcated and presented as derivative liabilities. The Company calculated the estimated fair values of the liabilities for embedded conversion option derivative instruments at the original note inception date and as of December 31, 2017 and June 30, 2017, using the Black-Scholes option pricing model using the share prices of the Company’s stock on the dates of valuation and using the following ranges for volatility, expected term and the risk-free interest rate at each respective valuation date, no dividend has been assumed for any of the periods: December 31, 2017 June 30, 2017 Note Inception Date Volatility 204% 141% 170% - 232% Expected Term 0.22 - 0.74 years 0.33 - 0.96 years 0.75 - 1.0 years Risk-Free Interest Rate 1.76% 0.84% 1.07% - 1.33% The following reflects the initial fair value on the note inception date and changes in fair value through December 31, 2017: Note inception date fair value allocated to debt discount $ 122,500 Change in fair value in fiscal year 2016 (122,500 ) Embedded conversion option derivative liability fair value on June 30, 2016 – Note inception date fair value allocated to debt discount 163,000 Note modifications adjustment (88,737 ) Change in fair value in fiscal year 2017 (21,506 ) Embedded conversion option derivative liability fair value on June 30, 2017 52,757 Note modifications adjustment 46,791 Change in fair value in fiscal year 2018 (52,259 ) Embedded conversion option derivative liability fair value on December 31, 2017 $ 47,289

10. Convertible Notes Payable,

10. Convertible Notes Payable, Net of Premiums and Notes Payable	6 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Convertible Notes Payable, Net of Premiums and Notes Payable	Convertible notes, net of discounts and notes payable December 31, 2017 June 30, 2017 Principal, Principal, Debt net of Debt net of Principal Discounts Discounts Principal Discounts Discounts PureEnergy $ – $ – $ – $ 15,475 $ (7,489 ) $ 7,986 PureEnergy – – – 13,480 (5,565 ) 7,915 PowerUp – – – 75,000 (39,330 ) 35,670 PowerUp 38,000 (7,374 ) 30,626 38,000 (18,893 ) 19,107 PowerUp 33,842 (12,410 ) 21,432 – – – PowerUp 53,000 (15,964 ) 37,036 – – – LG 42,000 (13,262 ) 28,738 – – – Total 166,842 (49,010 ) 117,832 141,955 (71,277 ) 70,678 Less: current portion 95,000 (29,226 ) 65,774 141,955 (71,277 ) 70,678 Non-current portion $ 71,842 $ (19,784 ) $ 52,058 $ – $ – $ – On July 7, 2015, the Company executed a convertible promissory note for $5,000 with Bruce Perlowin. The note is for one year, 12% interest rate, and convertible at $0.10 per share. The current price at that date was $0.085, which is less than the conversion price. The stock price for our common stock as of September 30, 2015 was $0.40. Our common stock is thinly traded therefore our price, as management has determined, is not indicative of our valuation. In October 2015, the Company issued common stock for services to unrelated parties and the common stock was values at $0.20, therefore, the $0.20 was used for valuation purposes for this note. A beneficial conversion feature of $5,000 was recorded and subsequently amortized. The Company has recorded accrued interest of $467 as of December 31, 2017. On April 15, 2016, Mr. Perlowin converted the principal of this promissory note into 50,000 shares of common stock. The accrued interest was not converted. On August 12, 2015, the Company executed a convertible promissory note for $5,000 with Bruce Perlowin. The note is for one year, 12% interest rate, and convertible at $0.10 per share. The current price at that date was $0.10, which is less than the conversion price. The stock price for our common stock as of September 30, 2015 was $0.40. Our common stock is thinly traded therefore our price, as management has determined, is not indicative of our valuation. In October 2015, the Company issued common stock for services to unrelated parties and the common stock was values at $0.20, therefore, the $0.20 was used for valuation purposes for this note. A beneficial conversion feature of $5,000 was recorded and subsequently amortized. The Company has recorded accrued interest of $408 as of December 31, 2017. On April 15, 2016, Mr. Perlowin converted the principal of this promissory note into 50,000 shares of common stock. The accrued interest was not converted. On August 20, 2015, the Company executed a convertible promissory note for $12,500 with Svetlana Ogorodnikova. The note matures on February 19, 2016, 12% interest rate, and convertible at $0.10 per share. The current price at that date was $0.085, which is less than the conversion price. The stock price for our common stock as of December 31, 2015 was $0.40. Our common stock is thinly traded therefore our price, as management has determined, is not indicative of our valuation. In October 2015, the Company issued common stock for services to unrelated parties and the common stock was values at $0.20, therefore, the $0.20 was used for valuation purposes for this note. A beneficial conversion feature of $12,500 was recorded and subsequently amortized. The Company has recorded accrued interest of $986 as of December 31, 2017. On February 19, 2016, Ms. Ogorodnikova granted the Company an extension on the due date to June 30, 2016. On April 15, 2016, Ms. Ogorodnikova converted the principal of this promissory note into 125,000 shares of common stock. The accrued interest was not converted. On November 1, 2016, the Company executed a collateralized secured promissory note with Eagle Equities, LLC (“Eagle”) for $25,000. The Company netted $23,000 due to legal fees of $2,000. The note has a conversion discount of 45% based on the lowest closing price of the 20 days prior to conversion. The Company recorded a debt discount of $25,000 and as of December 31, 2017, had recorded $25,000 of amortization. The note matures on November 1, 2017 and bears interest at 8%. On April 26, 2017, Eagle sold its convertible note to PureEnergy 714 LLC (“PureEnergy”) with no change in terms. As of December 31, 2017, there is $0 of accrued interest. On June 29, 2017, the Company issued 791,140 shares of common stock to PureEnergy for the conversion of $12,501. On July 19, 2017, the Company issued 748,934 shares of common stock to PureEnergy related to the conversion of $13,481. On May 23, 2017, the Company executed a convertible promissory note with PureEnergy for $15,475. The note has a conversion discount of 45% based on the lowest closing price of the 20 days prior to conversion. The Company recorded a debt discount of $8,481. The note matures on February 23, 2018 and bears interest at 8%. On November 3, 2017, the balance of the note and the accrued interest was converted into 1,006,768 shares of common stock. See Note 11. On May 10, 2017, the Company executed a convertible promissory note with Power Up for $75,000. The note has a conversion discount of 35% based on the lowest closing price of the 20 days prior to conversion. The note matures on February 23, 2018 and bears interest at 8%. On September 28, 2017, Pure Energy purchased the May 10, 2017 convertible promissory note between the Company and Power Up. The Power Up convertible promissory note was for $78,427. The Company and Pure Energy entered into a revised convertible promissory note to replace the Power Up convertible promissory note as stated below. On November 9, 2017, Pure Energy converted the entire note and accrued interest into 5,764,490 shares of common stock. See Note 11. On June 20, 2017, the Company executed a convertible promissory note with Power Up for $38,000. The note has a conversion discount of 35% based on the lowest closing price of the 20 days prior to conversion. The Company recorded a debt discount of $19,611 and as of the date of pay off, had recorded $6,609 of amortization. The note matures on February 23, 2018 and bears interest at 8%. On December 15, 2017, the principal and accrued interest was paid in full. On July 20, 2017, the Company executed a convertible promissory note with Power Up for $38,000. The note has a conversion discount of 35% based on the lowest closing price of the 20 days prior to conversion. The Company recorded a debt discount of $14,829 and as of December 31, 2017, had recorded $6,284 of amortization. The note matures on August 11, 2018 and bears interest at 8%. As of December 31, 2017, there is $2,061 of accrued interest. On August 11, 2017, the Company executed a convertible promissory note with LG Capital (“LG”) for $42,000. The note has a conversion discount of 35% based on the lowest closing price of the 12 days prior to conversion. The Company recorded a debt discount of $21,707 and as of December 31, 2017, had recorded $13,947 of amortization. The note matures on March 20, 2018 and bears interest at 8%. As of December 31, 2017, there is $1,316 of accrued interest. On September 26, 2017, the Company executed a convertible promissory note with Power Up for $53,000. The note has a conversion discount of 35% based on the lowest closing price of the 10 days prior to conversion. The Company recorded a debt discount of $24,892 and as of December 31, 2017, had recorded $8,627 of amortization. The note matures on June 30, 2018 and bears interest at 12%. As of December 31, 2017, there is $1,690 of accrued interest. On September 27, 2017, the Company executed a convertible promissory note with Pure Energy for $78,427 to replace the May 10, 2017 convertible note with Power Up, as reflected above. The note has a conversion discount of 35% based on the lowest closing price of the 12 days prior to conversion. The Company recorded a debt discount of $38,880 and as of December 31, 2017, all of the debt discount had been of amortization as of the date of conversion. The note matures on September 27, 2018 and bears interest at 8%. On November 9, 2018, the principal and accrued interest was converted into 5,765,490 shares of common stock. See Note 11. On September 27, 2017, in conjunction with the payoff of the May 10, 2017 Power Up convertible note, the Company incurred a prepayment penalty of $28,496, which Pure Energy paid to Power Up. The Company issued a second convertible promissory note for $33,842, which included the prepayment penalty and legal fees of $5,346. The second convertible promissory note matures on September 27, 2018 and bears interest of 8%. The Company recorded a debt discount of $16,777 and as of December 31, 2017, had recorded $4,367 of amortization. As of December 31, 2017, there is $712 of accrued interest.

11. Stockholders' Equity

11. Stockholders' Equity	6 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Stockholders' Equity	Series A Preferred Stock On May 24, 2016, the Board of Directors of the Company authorized amending the Company’s Articles of Incorporation to authorize 10,000,000 shares of “blank check” preferred stock and designate 1,000,000 of the shares as Series A preferred stock. Each share of the Series A preferred stock is entitled to 500 votes and is convertible into 100 shares of common stock. Common Stock The Company was authorized to issue up to 75,000,000 shares of common stock, par value $0.001 per share. On January 21, 2015, the Company increased its authorized capital to 500,000,000 shares of common stock. Each outstanding share of common stock entitles the holder to one vote per share on all matters submitted to a stockholder vote. All shares of common stock are non-assessable and non-cumulative, with no pre-emptive rights. In the first quarter of fiscal year 2018, the Company issued 1,793,195 shares of common stock which were recorded as issuable as of June 30, 2017. On July 19, 2017, the Company issued 748,934 shares of common stock to PureEnergy related to the conversion of $13,481 of a convertible promissory note. On July 31, 2017, the Company issued 5,784,061 shares of common stock to Cliff Perry for accrued compensation of $112,500. See Note 5. On July 31, 2017, the Company issued 2,699,228 shares of common stock to Raymond Medeiros for accrued compensation of $52,500. See Note 5. On August 23, 2017, the Company issued 500,000 shares of common stock to Frank Dobrucki for services valued at $22,000. On August 14, 2017, the Company issued 500,000 shares of common stock to Nuaxon Bioscience as part of the agreement for exclusive rights to market and sell their equipment. The shares were valued at $19,500. On August 17, 2017, the Company issued 345,451 shares of common stock to Lakeport Business Services, Inc. for accounts payable $9,450. On August 25, 2017, the Company issued 600,000 shares of common stock to Christopher Thompson as a bonus in August 2017. The shares were valued at $48,900. On August 25, 2017, the Company issued 550,000 shares of common stock to Joshua Halford for services in August 2017. The shares were valued at $44,825. On August 28, 2017, the Company issued 1,061,500 shares of common stock to Christopher Sloan for services in May 2017 (661,500 shares) and for accrued expenses of $23,075 (400,000 shares of common stock). The shares were valued at $52,175. On August 28, 2017, the Company issued 500,303 shares of common stock to Neil Dutson for services valued at $37,173. On August 29, 2017, the Company issued 100,000 shares of common stock to Marc Hatch for services valued at $7,430. On August 29, 2017, the Company issued 100,000 shares of common stock to Marc Hatch for services valued at $7,430. On October 6, 2017, the Company issued 400,000 shares of common stock to Jason Edwards for services in October 2017 valued at $16,280. On October 6, 2017, the Company issued 600,000 shares of common stock to Michael Ostrander for services in October 2017 valued at $33,870. On October 7, 2017, due to the agreement with Valencia (see Note 2), the Company owed Valencia an additional 4,142,857 shares of common stock, which were recorded as issuable. The Company recorded a contingent liability of $174,000 associated with this obligation. On January 29, 2018, because of the increase of the Company’s common stock, Valencia agreed to the accept the initially issued 3,000,000 shares of common stock as satisfaction of the obligation to pay to Valencia in connection with the Company’s May 30, 2017 Asset Purchase Agreement with Valencia to acquire certain of its assets without the need to issue additional true-up shares of the Company’s common stock. The January 29, 2018 agreement relieved the Company of the contingent liability of issuing additional shares. See Note 16. On October 23, 2017, the Company issued 1,001,250 shares of common stock to Timothy Puetz for services in October 2017 valued at $20,025. On October 26, 2017, the Company issued 255,000 shares of common stock to Ronald Voight for services in October 2017 valued at $7,727. On October 28, 2017, the Company issued 273,333 shares of common stock to Lakeport Business Services, Inc. for services in October 2017 valued at $8,200. On October 28, 2017, the Company issued 30,000 shares to Neil Dutson for leasehold improvement performed in October 2017 valued at $900. On October 30, 2017, the Company issued 122,500 shares of common stock to legal counsel for services in October 2017 valued at $3,225. On October 31, 2017, the Company issued 850,000 shares of common stock to Paul F. Pelosi, Jr. (“Pelosi”), in regards to his appointment as Chairman of the Board on November 1, 2017, for compensation for the period November 1, 2017 through January 31, 2018. The Company is obligated to issue on February 1, 2018, an additional 1,250,000 options for common stock with an exercise price of $0.04, with an expiration eighteen months after issuance. On October 25, 2017, the Company issued 250,000 shares of common stock to Frank Dobrucki for services in October 2017 valued at $7,500. On November 2, 2017, the Company issued 250,000 shares of common stock to Victor Park, a vendor, for services in October 2017 valued at $7,725. On November 3, 2017, the Company issued 1,006,768 shares of common stock to PureEnergy for the conversion of $15,475 of a convertible promissory note (see Note 10). On October 23, 2018, the Company issued 1,000,000 shares of Common Stock to Breadfruit Tree, Inc. for inventory received in October 2017 valued at $27,200. On November 9, 2017, the Company issued 5,764,490 shares of common stock to Pure Energy for the conversion of $80,077 of principal and accrued interest of a convertible promissory note (see Note 10). On November 9, 2017, the Company sold 4,785,459 shares of common Stock to Pure Energy for $83,745.53, based on a per share price of $0.0175. On November 10, 2017, the Company sold 967,000 shares of common stock to Pelosi for $14,500, based on a per share price of $0.01499. On November 28, 2017, the Company issued 730,769 shares of common Stock to Michael Ostrander for services in October 2017 and November 2017. The shares for October 2017, which were effective October 1, 2017, were 500,000, whereas the shares for November 2017, which were effective November 1, 2017, were 230,769. The shares were valued at $40,119. On November 30, 2017, the Company recorded 600,000 shares of common stock as issuable to Alan Stone & Co. (“Stone”) in connection with various consulting services provided in 2017. The shares were valued at $36,750. Warrants On November 2, 2015, the Company issued 1,000,000 warrants for common stock to Freedom Leaf Iberia, B.V., in regards to a contemplated future transaction between the Company and Freedom Leaf Iberia, B.V. The warrants mature on May 2, 2016. The exercise price is $0.02; and the warrant has a cashless exercise option. The warrants were valued at $0.20 per share, as defined in the section. The Company recorded an expense of $200,000. On May 2, 2016, Freedom Leaf Iberia exercised a cashless conversion of its 1,000,000 warrants for common stock of the Company into 889,868 shares of common stock of the Company. On November 2, 2015, the Company issued 1,000,000 warrants for common stock to Freedom Leaf Netherlands, B.V., in regards to a contemplated future transaction between the Company and Freedom Leaf Netherlands, B.V. The warrants mature on May 2, 2016. The exercise price is $0.02, and the warrant has a cashless exercise option. The warrants were valued at $0.20 per share, as defined in the section. The Company recorded an expense of $200,000. On May 2, 2016, Freedom Leaf Netherlands, B.V. exercised a cashless conversion of its 1,000,000 warrants for common stock of the Company into 889,868 shares of common stock of the Company. On November 2, 2015, the Company issued 500,000 warrants for common stock to a subcontractor as an incentive to their services. The warrants mature on May 2, 2016. The exercise price is $0.02, and the warrant has a cashless exercise option. The warrants were valued at $0.20 per share, as defined in the section. The Company recorded an expense of $100,000. On February 2, 2016, Dobrucki exercised a warrant for 500,000 shares of common stock for $10,000, the exercise price of the warrants at $0.02 per share. On December 14, 2015, the Company executed a convertible promissory note for $100,000 with Swiss Allied. The Company issued Swiss Allied four warrants as an incentive to the note, each for 20,000,000 shares of the Company’s common stock, for a total of 80,000,000 warrants. Each warrant has an exercise price of $0.005 per share. The four warrants, each for 20,000,000 shares of common stock, mature on March 31, 2016, June 30, 2016, October 31, 2016, and March 31, 2017, respectively. The warrants, as an incentive to the note, should have a beneficial conversion feature. As the note’s beneficial conversion feature is at the maximum, there is no beneficial conversion feature to record. If Swiss Allied exercises all warrants, the Company would receive an additional $400,000 for said shares of common stock. If Swiss Allied does not exercise all 80,000,000 warrants, by the maturation dates, as described herein, the exercise price shall be adjusted to $0.06, an increase of $0.055 per share as a penalty, which is payable to the Company at the time Swiss Allied requests to have the Rule 144 restriction removed. The interest rate for each loan tranche is 8% and is accrued with a payment date of December 15, 2016 for the first tranche and January 15, 2017 for the second tranche. The conversion price for the $100,000, which may happen any time prior to December 14, 2016, shall be the greater of $0.03 or 50% of the lowest closing price on the primary trading market on which the Company’s common stock is quoted for the five trading days immediately prior to, but not including, the conversion date, assuming that Swiss Allied has not exercised all 80,000,000 warrants for common stock. The conversion price for the $100,000, assuming that Swiss Allied has exercised all 80,000,000 warrants for common stock, shall be $0.005 per share. Swiss Allied has a right of first refusal on any future funding to the Company. Swiss Allied has the right to name a party to serve as a member of the Company’s board of directors if Swiss Allied owns at least 40,000,000 shares of the Company’s common stock. If Swiss Allied owns at least 80,000,000 shares of the Company’s common stock, they have the right to name two parties to the Company’s board of directors. The two directors will remain as long as Swiss Allied owns 55,000,000 shares of the Company’s common stock. On October 17, 2016, the Company issued 268,167 shares of common stock and 268,167 warrants for common stock to Weintraub Law Group, LLC for the settlement of payables of $15,065. On December 15, 2016, the Company and FLNL executed a license agreement (see Note 2). As part of the agreement, the Company provided FLNL with warrants to purchase up to 1,000,000 shares of common stock. The warrants have an exercise price of $0.05. The warrants can be exercised as follows: 250,000 warrants between June 2017 and August 2017; 250,000 warrants between September 2017 and November 2017; 250,000 warrants between December 2017 and February 2018, and; 250,000 warrants between March 2018 and May 2018. The warrants will be expensed according to their respective vesting schedule. On December 15, 2016, the Company and FLI executed a license agreement (see Note 2). The Company provided FLI with warrants to purchase up to 1,000,000 shares of common stock. The warrants have an exercise price of $0.05. The warrants can be exercised as follows: 250,000 warrants between June 2017 and August 2017; 250,000 warrants between September 2017 and November 2017; 250,000 warrants between December 2017 and February 2018, and; 250,000 warrants between March 2018 and May 2018. The warrants will be expensed according to their respective vesting schedule. On January 16, 2017, the Company issued 1,000,000 warrants for common stock to Vincent Moreno for future consulting services. The warrants have an exercise price of $0.05 and expire in five years. On January 30, 2017, the Company entered into an agreement with CorporateAds.com, LLC for services. The compensation provides a minimal $500 payment, 150,000 shares of common stock, and 150,000 warrants for common stock. The warrants have an exercise price of $0.10 per share with an expiration 18 months after issuance. The agreement is for 15 days and has an auto renewal feature for an additional 75 days. During the 75-day period, the Company will pay $500 for each additional 15 days. On February 1, 2017, both parties agreed to an addendum to the agreement to change the exercise price of $0.10 for the warrants to the following: 50,000 of the warrants have an exercise price of $0.10 per share; 50,000 of the warrants have an exercise price of $0.125 per share; and 50,000 of the warrants have an exercise price of $0.15 per share. Stock Option Plan On June 27, 2016, the Board of Directors approved the 2016 Stock Option Plan which has reserved 10,000,000 shares of common stock.

12. Revenue Classes

12. Revenue Classes	6 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Revenue Classes	Selected financial information for the Company’s operating revenue classes for the six months ended December 31, 2017 and 2016, are as follows: For the six months ended Revenues: December 31, 2017 2016 Magazine related $ 5,826 $ 15,974 Referral fees – 1,724 Licensing fees – 536,864 Equipment sales commissions – 9,750 Seminar and training – 838 Sale of products 1,833 3,970 Total $ 7,659 $ 569,120 For the six months ended Direct costs of revenue: December 31, 2017 2016 Magazine related $ 68,850 $ 66,322 Referral fees – – Licensing fees – – Equipment sales commissions – – Seminar and training – – Sale of products 976 5,042 Total $ 69,826 $ 71,364 The Company’s six revenue classes are magazine related, referral fees, licensing fees (see Note 2), equipment sales commissions (see Note 2), seminar and training, and sale of products.

13. Concentrations

13. Concentrations	6 Months Ended
	Dec. 31, 2017
Risks and Uncertainties [Abstract]
Concentrations	Concentration of Credit Risk Financial instruments, which potentially subject the Company to a concentration of credit risk, consist principally of temporary cash investments. The Company places its temporary cash investments with financial institutions insured by the FDIC. No amounts exceeded federally insured limits as of December 31, 2017. There have been no losses in these accounts through December 31, 2017. Concentration of Revenue For the six months ended December 31, 2017, the Company had no material customer. Concentration of Supplier The Company does not rely on any particular suppliers for its services. Concentration of Intellectual Property The Company owns or has filed for the trademarks “Freedom Leaf,” “Hemp Inspired,” “Cannabizu,” and “Cannabiz” as filed with the United States Patent and Trademark Office. The Company has filed for “Freedom Leaf” in Jamaica and Uruguay.

14. Inventory

14. Inventory	6 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
Inventory	NOTE 14 – INVENTORY The Company has inventory consisting of various CBD products. As of December 31, 2017, and June 30, 2017, the Company had inventory of $27,200 and $0, respectively. The Company accounts for its inventory using the lower of cost or market and the cost of sales are recorded utilizing the first in first out (“FIFO”) method.

15. Income Tax

15. Income Tax	6 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Tax	As of December 31, 2017, and June 30, 2017, the Company has net operating loss carry forwards of $6,370,985 and $4,920,988, respectively. The carry forwards expire through the year 2034. The Company’s net operating loss carry forwards may be subject to annual limitations, which could reduce or defer the utilization of the losses as a result of an ownership change as defined in Section 382 of the Internal Revenue Code. The Company’s tax expense differs from the “expected” tax expense for Federal income tax purposes (computed by applying the United States Federal tax rate of 21% to loss before taxes for fiscal year 2018 and 34% to loss before taxes for fiscal year 2017), as follows: December 31, December 31, Tax expense (benefit) at the statutory rate $ (304,499 ) $ (107,783 ) State income taxes, net of federal income tax benefit – – Change in valuation allowance 304,499 107,783 Total $ – $ – The tax effects of the temporary differences between reportable financial statement income and taxable income are recognized as deferred tax assets and liabilities. The tax years 2014 through 2017 remain to examination by federal agencies and other jurisdictions in which it operates. The tax effect of significant components of the Company’s deferred tax assets and liabilities at December 31, 2017 and June 30, 2017, respectively, are as follows: December 31, June 30, Deferred tax assets: Net operating loss carryforward $ 1,337,907 $ 1,073,183 Timing differences 974,778 908,366 Total gross deferred tax assets 2,312,685 1,981,549 Less: Deferred tax asset valuation allowance (2,312,685 ) (1,981,549 ) Total net deferred taxes $ – $ – In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Because of the historical earnings history of the Company, the net deferred tax assets for 2018 were fully offset by a 100% valuation allowance. The valuation allowance for the remaining net deferred tax assets was $2,312,685 and $1,981,549 as of December 31, 2017 and June 30, 2017, respectively. On December 22, 2017, the United States Government passed new tax legislation that, among other provisions, will lower the corporate tax rate from 34% to 21%. In addition to applying the new lower corporate tax rate in 2018 and thereafter to any taxable income we may have, the legislation affects the way we can use and carry forward net operating losses previously accumulated and results in a revaluation of deferred tax assets recorded on our balance sheet. Given that the deferred tax assets are offset by a full valuation allowance, these changes will have no net impact on the Company’s financial position and net loss. However, if and when we become profitable, we will receive a reduced benefit from such deferred tax assets. Had this legislation passed prior to our June 30, 2017, fiscal year-end, the effect of the legislation would have been a reduction in deferred tax assets and the corresponding valuation allowance.

16. Subsequent Events

16. Subsequent Events	6 Months Ended
	Dec. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	The Company has evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. The Company has determined that there are no other such events that warrant disclosure or recognition in the financial statements, except as stated herein. On January 5, 2018 as amended on February 5, 2018, with an effective date of January 5, 2018, the Company consummated its previously-announced acquisition of 100% of the capital stock of Green Market, a Spanish producer of hemp products. In consideration for the acquisition, the Company paid to Green Market’s seller: (i) $24,805 (which amount was paid by a third party, and to whom the Company owes that amount), and (ii) 4,220,000 shares of the Company’s common stock. Additionally: (i) additional shares will be issuable if the volume weighted-average price of the Company’s stock between January 5, 2018 and July 3, 2018 is less than $0.10 per share, and (ii) the sellers of Green Market have the option to repurchase all of the assets of Green Market for €100 (and the assumption of Green Market liabilities) if the volume weighted-average price of the Company’s stock between January 5, 2018 and January 5, 2019 is less than $0.01 per share. Green Market’s facilities include: a 21,000 square foot light deprivation greenhouse; a 43,000 square foot indoor growing research facility, and over 200 acres of outdoor production space. The light deprivation allows the increase of the number of yearly crops from 3 to 4 crops a year, and the 43,000 square foot indoor grow facility is used for genetic research and cultivating additional hemp crops. Green Market is strategically located in Elche, Alicante, an important Spanish business hub, with great year-round weather conditions for agricultural growing and a long tradition of growing hemp. The Company will report proforma financials when they are available. On January 17, 2018, Pure Energy acquired 526,315 shares of the Company’s common stock for $25,000. On January 18, 2018, the Company appointed Richard Groberg (“Groberg”), via his company, RSGroberg Consulting, LLC, as its Chief Financial Officer to serve for an initial, two-year term. In consideration of the services to be performed by Groberg, the Company: (i) issued 800,000 shares of common stock, and (ii) $5,000 per month compensation payable: (1) prior to the date that the Company is paying monthly compensation to its directors primarily in cash, in 600,000 shares of common stock (representing the first 12 months’ compensation), and (2) payable in cash thereafter. The 800,000 and 600,000 shares of common stock were issuable on January 18, 2018. See Note 5. On January 18, 2018, Pelosi entered into a stock purchase agreement with the Company to purchase 1,050,000 shares of common stock. On January 19, 2018, Pure Energy converted into 2,008,740 shares of Company common stock: (i) the principal balance of the $38,000 convertible promissory note it previously acquired from Power Up and (ii) $2,175 of accrued interest in connection with that note ($40,175 in total). That note, executed by the Company on July 20, 2017, had a conversion discount of 35% based on the lowest closing price of the 20 days prior to conversion. On January 19, 2018, in conjunction with its conversion of that note, Pure Energy received 800,918 shares of common stock – (i) $19,826.19 in conjunction with the settlement amount owed by the Company to Power Up at the time Pure Energy acquired that note from Power Up in connection with that note, and (ii) $3,000 as a transaction fee ($22,826.19 in total). On January 22, 2018, the Company issued 60,616 shares of common stock to Joseph Gurreri, an employee, in consideration of $8,550 of accrued wages. On January 26, 2018, the Company issued to Pure Energy 1,933,848 shares of common stock in consideration of its conversion of a second convertible promissory note for $33,842 (see Note 10) that the Company issued to Pure Energy on September 27, 2017 in conjunction with Pure Energy’s payoff of the May 10, 2017 Power Up convertible note. On January 31, 2018, the Company issued Reliable Steel 229,671 shares of common stock for a portion of its debt of $33,532. On January 31, 2018, the Company issued to Michael Ostrander: (i) 150,000 shares of common stock for services performed in December 2017 valued at $15,000, and (ii) 59,930 shares of common stock for services performed in January 2018 valued at $15,000. On January 31, 2018, the Company issued 226,497 shares of common stock to Christopher Thompson, an employee, in connection with services provided in 2017 valued at $33,069. On January 31, 2018, the Company issued to Stone 600,000 shares of common stock which were recorded as issuable as of December 31, 2017. On January 31, 2018, the Company issued 82,192 shares of common stock to Steven Bloom in connection with consulting services provided in 2017 totaling $12,000. On January 31, 2018, the Company issued 16,952 shares of common stock to the Company’s legal counsel, in connection with services rendered from November 2017 through January 2018 totaling $2,475. On January 31, 2018, the Company issued 122,466 shares of common stock to Christopher Sloan, a former employee of the Company, in connection with services rendered by him to the Company in 2017 totaling $17,880. On January 31, 2018, the Company issued 47,945 shares of common Stock to Lakeport Business Services, Inc. in connection with services rendered to the Company in 2018 valued at $7,000. The stock was valued at $15,558 based on the current stock price. On January 31, 2018, Pure Energy purchased 838,126 shares of common stock for $83,813. On February 1, 2018, the Company paid LG Capital $58,813 to retire the convertible promissory note it issued to LG Capital on August 11, 2017 for $42,000. The repayment amount included $1,565 of accrued interest and a payment premium of $15,248. On February 7, 2018, Neil Dutson acquired 624,000 shares of common stock for $78,000. On February 7, 2018, Valencia Web Technology S.L. (“Valencia”) agreed to the accept the initially issued 3,000,000 shares of common stock as satisfaction of the obligation to pay additional shares to Valencia in connection with the Company’s April 8, 2017 Asset Purchase Agreement with Valencia to acquire certain of its assets. As of October 8, 2017, the True-Up Date (the six-month anniversary of the Asset Purchase Agreement), the Company recorded 4,142,857 shares of common stock as issuable in regards to the true-up clause in the agreement. The February 7, 2018 agreement relieved the Company of the obligation of issuing the additional 4,142,857 shares which will be cancelled accordingly. See Notes 2 and 11. On February 8, 2018, the Company paid Power Up $71,913 to retire the convertible promissory it issued to Power Up on September 26, 2017 for $53,000. On February 9, 2018, Weintraub Law Group, LLC (“Weintraub”) surrendered 52,779 warrants at a value of $0.3048 per share, $16,090 in total, to effect the cashless exercise of warrants to acquire 215,378 shares of common stock at $0.06 per share. The Company had issued to Weintraub 268,167 warrants to acquire common stock and 268,167 shares of common stock on October 17, 2016 for the settlement of payables of $15,065. On February 9, 2018, Douglas Montgomery, Greg Montgomery and Lesley Montgomery acquired from the Company 160,000, 80,000 and 160,000, respectively, shares of the Company’s common stock, in each case for a purchase price of $0.125 per share, for total proceeds of $50,000.

1. Nature of Operations and S23

1. Nature of Operations and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Freedom Leaf Inc. (the “Company,” “we,” “us,” “our,” or “Freedom Leaf”) was incorporated in the State of Nevada on February 21, 2013, under the name of Arkadia International, Inc. The Company was originally engaged in the business of the acquisition of in demand equipment, cars, and goods with the intent to resale these in the U.S. territory or export to overseas countries. On October 3, 2014, the Company experienced a change in control. Richard C. Cowan acquired a majority of the issued and outstanding common stock of the Company in accordance with stock purchase agreements by and between Mr. Cowan and Vladimir and Galina Shekhtman (“Sellers”). On the closing date, October 3, 2014, Cowan purchased from the Sellers 6,950,100 shares of the Company’s outstanding restricted common stock for $100,000, representing 93% of the then-outstanding common stock of the Company. On November 6, 2014, the Company merged with Freedom Leaf Inc., a private Nevada corporation. The Company changed its name from Arkadia International, Inc., to Freedom Leaf Inc. As a result of the merger, the private company was dissolved, the sole officer, director and shareholder of the private company, Clifford J. Perry, became an officer and director of the Company, and Mr. Perry received approximately 48.1% of the Company’s common stock post-merger. See Note 2 for related discussion. For financial reporting purposes, the merger was accounted for as a "reverse merger" and recapitalization rather than a business combination, and the private company was deemed to be the accounting acquirer in the transaction, with the Company deemed to be the acquired company for financial reporting purposes. Consequently, the assets and liabilities and the operations that are reflected in the historical consolidated financial statements of the Company prior to the merger are those of the private company, and were recorded at the historical cost basis of the private company, and the consolidated financial statements after completion of the merger include the assets and liabilities of both the predecessor public company and private company, the historical operations of private company, and the operations of both companies from the date of the merger. Cannabis Business Solutions Inc. (“Cannabis Business Solutions”), a Nevada corporation, was formed on February 5, 2014, and is a subsidiary of the Company. This subsidiary had no activity until the agreement with Valencia Web Technology S.L., B-97183354 (see Note 2). Leafceuticals Inc. (“Leafceuticals”), formerly known as Cannabiz U, Inc., a Nevada corporation, was formed on February 13, 2014, and is a wholly-owned subsidiary of the Company. This subsidiary has begun activity in January 2018. Freedom Leaf Cares Inc. (“Freedom Leaf Cares”), a Nevada corporation, was formed on October 1, 2014, and is a wholly-owned subsidiary of the Company. Freedom Leaf Cares was dissolved in 2016. Until dissolution, this subsidiary had no activity. Freedom Leaf International Inc. (“Freedom Leaf International”), a Nevada corporation, was formed on November 27, 2015, and is a wholly-owned subsidiary of the Company. This subsidiary has had no activity to date.
Nature of Operations	Nature of Operations The Company is a leading go-to resource in the cannabis, medical marijuana, and industrial hemp industry. It is involved in mergers and acquisitions, and business consulting in the marijuana industry, including incubation/acceleration and spinoffs of new cannabis/hemp related companies. The Company’s flagship publication is Freedom Leaf Magazine “The Good News in Marijuana Reform.” The Company produces a portfolio of news, print and digital multi-media verticals, websites, blogs, and web advertising, for the ever-changing emerging cannabis, medical marijuana and industrial hemp industry. Through our online and print media channels, our efforts are in dissemination of current legislation and legal news, arts and entertainment. The Company does not handle, grow, sell, or dispense marijuana. The Company is making strides in the industrial hemp sector of the industry with the acquisition of Green Market Europe S.L. (“Green Market,” see Note 14), located in Elche Spain, relying on its quality organic growing of hemp for flower and seeds and developing new genetic strains that will deliver other rare cannabinoids (“CBD”). Leafceuticals is operating in North Las Vegas, Nevada, as a CO2 extraction and processing facility for hemp flower. Once the raw material is derived from the extraction process, it is then taken to a lab to create Full Spectrum CBD Oil to be sold to formulators to process into cosmetics, topical creams, vapes, and other Cannabidiol, CBD-based beauty and wellness products. Leafceuticals has also launched an e-commerce site, www.MyHempology.com, that markets through direct sales and retail distribution of full spectrum CBD products. The Company also sells licenses to use the Freedom Leaf brand in different countries and states. We have entered into three license agreements: for Spain and Portugal, for The Netherlands, and for Florida.
Basis of Presentation	Basis of Presentation The Company prepares its consolidated financial statements in conformity with generally accepted accounting principles in the United States of America.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Freedom Leaf and its subsidiaries, Cannabis Business Solutions, Leafceuticals, Freedom Leaf Cares, and Freedom Leaf International. All significant inter-company balances and transactions have been eliminated in consolidation.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company accounts for long-lived assets in accordance with the provisions of Statement of Financial Accounting Standards ASC 360-10, “Accounting for the Impairment or Disposal of Long-Lived Assets.” This statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company measures its financial assets and liabilities in accordance with generally accepted accounting principles. For certain of our financial instruments, including cash, accounts payable, accrued expenses, and short-term loans the carrying amounts approximate fair value due to their short maturities. We follow accounting guidance for financial and non-financial assets and liabilities. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use. We currently measure and report at fair value our intangible assets (due to our impairment analysis) and derivative liabilities. The fair value of intangible assets has been determined using the present value of estimated future cash flows method. The fair value of derivative liabilities is measured using the Black-Scholes option pricing method. The following table summarizes our non-financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and June 30, 2017: Balance at December 31, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Assets: Trademarks $ 13,766 $ – $ – $ 13,766 Exclusive Rights 10,291 10,291 Total Financial Assets $ 24,057 $ – $ – $ 24,057 Balance at June 30, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Assets: Trademarks $ 10,820 $ – $ – $ 10,820 Total Financial Assets $ 10,820 $ – $ – $ 10,820 Following is a summary of activity through December 31, 2017 of the fair value of intangible assets valued using Level 3 inputs: Accumulated Asset Amortization Net Balance at June 30, 2017 $ 12,245 $ (1,425 ) $ 10,820 Additions 22,936 – 22,936 Amortization – (9,699 ) (9,699 ) Balance at December 31, 2017 $ 35,181 $ (11,124 ) $ 24,057 The Company evaluates its convertible debt, options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for. The result of this accounting treatment is that under certain circumstances the fair value of the derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as other income or expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. Equity instruments that are initially classified as equity that become subject to reclassification under this accounting standard are reclassified to liability at the fair value of the instrument on the reclassification date. The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis at December 31, 2017: Balance at December 31, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Liabilities: Derivative Liabilities $ 40,349 $ – $ – $ 40,349 Total Financial Assets $ 40,349 $ – $ – $ 40,349 The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis at June 30, 2017: Balance at June 30, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Liabilities: Derivative Liabilities $ 52,757 $ – $ – $ 52,757 Total Financial Assets $ 52,757 $ – $ – $ 52,757 Following is a summary of activity through December 31, 2017 of the fair value of derivative liabilities valued using Level 3 inputs: Balance at June 30, 2017 $ 52,757 Note inception date fair value 43,866 Change in fair value during fiscal year 2018 (56,274 ) Balance at December 31, 2017 $ 40,349
Stock-based Compensation	Stock-Based Compensation The Company accounts for stock-based instruments issued to employees in accordance with ASC Topic 718. ASC Topic 718 requires companies to recognize in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees. The value of the portion of an award that is ultimately expected to vest is recognized as an expense over the requisite service periods using the straight-line attribution method. The Company accounts for non-employee share-based awards in accordance with the measurement and recognition provisions ASC Topic 505-50. The Company estimates the fair value of stock options at the grant date by using the Black-Scholes option-pricing model.
Use of Estimates	Use of Estimates The preparation of consolidated 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the accompanying consolidated financial statements include the amortization period for intangible assets, valuation and impairment valuation of intangible assets, depreciable lives of the web site and property and equipment, valuation of warrants and beneficial conversion feature debt discounts, valuation of derivatives, valuation of share-based payments and the valuation allowance on deferred tax assets.
Reclassifications	Reclassifications Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported losses, total assets, or stockholders’ equity as previously reported.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
Inventory	Inventory Inventory is recorded at the lower of cost or market and the cost of sales are recorded utilizing the first in first out (“FIFO”) method.
Accounting for Derivatives	Accounting for Derivatives The Company evaluates its convertible debt, options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for. The result of this accounting treatment is that under certain circumstances the fair value of the derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as other income or expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. Equity instruments that are initially classified as equity that become subject to reclassification under this accounting standard are reclassified to liability at the fair value of the instrument on the reclassification date.
Revenue Recognition	Revenue Recognition The Company recognizes revenue for our services in accordance with ASC 605-10, "Revenue Recognition in Financial Statements." Under these guidelines, revenue is recognized on transactions when all of the following exist: persuasive evidence of an arrangement did exist, delivery of service has occurred, the sales price to the buyer is fixed or determinable and collectability is reasonably assured. The Company has five primary revenue streams as follows: · Consulting services. · Advertising services. · Branding, marketing and selling products for companies. · Educational seminars. · Selling branded products.
Advertising and Marketing	Advertising and Marketing Advertising and marketing is expensed as incurred and is included in selling, general and administrative expenses on the accompanying statement of operations. For the six months ended December 31, 2017 and 2016 advertising expense was $4,317 and $19,719, respectively.
Income Taxes	Income Taxes The Company accounts for income taxes in accordance with FASB ASC 740, “Income Taxes”. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and loss carry-forwards and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income (loss) in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rules on deferred tax assets and liabilities is recognized in operations in the year of change. A valuation allowance is recorded when it is “more likely-than-not” that a deferred tax asset will not be realized. Tax benefits of uncertain tax positions are recognized only if it is more likely than not that the Company will be able to sustain a position taken on an income tax return. The Company has no liability for uncertain tax positions as of December 31, 2017 and June 30, 2017. Interest and penalties in any, related to unrecognized tax benefits would be recognized as interest expense. The Company does not have any accrued interest or penalties associated with unrecognized tax benefits, nor was any significant interest expense recognized during the period ended December 31, 2017 and the period ended December 31, 2016. On December 22, 2017, the United States Government passed new tax legislation that, among other provisions, will lower the corporate tax rate from 35% to 21%. In addition to applying the new lower corporate tax rate in 2018 and thereafter to any taxable income we may have, the legislation affects the way we can use and carry forward net operating losses previously accumulated and results in a revaluation of deferred tax assets recorded on our balance sheet. Given that the deferred tax assets are offset by a full valuation allowance, these changes will have no net impact on the Company’s financial position and net loss. However, if and when we become profitable, we will receive a reduced benefit from such deferred tax assets. Had this legislation passed prior to our June 30, 2017, fiscal year-end, the effect of the legislation would have been a reduction in deferred tax assets and the corresponding valuation allowance.
Net Earnings (Loss) Per Share	Net Earnings (Loss) Per Share In accordance with ASC 260-10, “Earnings Per Share,” basic net earnings (loss) per common share is computed by dividing the net earnings (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share are computed using the weighted average number of common and dilutive common stock equivalent shares outstanding during the period. Dilutive common stock equivalent shares which may dilute future earnings per share consist of warrants to purchase 1,918,167 shares of common stock at December 31, 2017 and convertible notes convertible into 8,881,954 common shares. Equivalent shares are not utilized when the effect is anti-dilutive.
Segment Information	Segment Information In accordance with the provisions of ASC 280-10, “Disclosures about Segments of an Enterprise and Related Information”, the Company is required to report financial and descriptive information about its reportable operating segments. The Company does not have any operating segments as of December 31, 2017 and June 30, 2017.
Effect of Recent Accounting Pronouncements	Effect of Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“ASU No. 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective for annual reporting periods beginning after December 15, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method, nor has it determined the effect of the standard on its ongoing financial reporting. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements (Topic 205) Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In February 2016, the Financial Accounting Standards Board (“FASB”) issued an ASU on lease accounting. The ASU requires the lease rights and obligations arising from lease contracts, including existing and new arrangements, to be recognized as assets and liabilities on the balance sheet. The ASU is effective for reporting periods beginning after December 15, 2018 with early adoption permitted. While the Company is still evaluating the ASU, the Company expects the adoption of the ASU to have a material effect on the Company’s financial condition due to the recognition of the lease rights and obligations as assets and liabilities. The Company does not expect the ASU to have a material effect on the Company’s results of operations, and the ASU will have no effect on cash flows. The Company has evaluated all other recent accounting pronouncements and believes that none of them will have a significant effect on the Company’s financial statement.

1. Nature of Operations and S24

1. Nature of Operations and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of non-financial instruments at fair value	Balance at December 31, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Assets: Trademarks $ 13,766 $ – $ – $ 13,766 Exclusive Rights 10,291 10,291 Total Financial Assets $ 24,057 $ – $ – $ 24,057 Balance at June 30, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Assets: Trademarks $ 10,820 $ – $ – $ 10,820 Total Financial Assets $ 10,820 $ – $ – $ 10,820
Schedule of activity in Level 3	Accumulated Asset Amortization Net Balance at June 30, 2017 $ 12,245 $ (1,425 ) $ 10,820 Additions 22,936 – 22,936 Amortization – (9,699 ) (9,699 ) Balance at December 31, 2017 $ 35,181 $ (11,124 ) $ 24,057
Schedule of financial liabilities on a recurring basis	Balance at December 31, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Liabilities: Derivative Liabilities $ 40,349 $ – $ – $ 40,349 Total Financial Assets $ 40,349 $ – $ – $ 40,349 The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis at June 30, 2017: Balance at June 30, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Liabilities: Derivative Liabilities $ 52,757 $ – $ – $ 52,757 Total Financial Assets $ 52,757 $ – $ – $ 52,757
Schedule of activity of fair value of derivatives	Balance at June 30, 2017 $ 52,757 Note inception date fair value 43,866 Change in fair value during fiscal year 2018 (56,274 ) Balance at December 31, 2017 $ 40,349

4. Commitments and Contingenc25

4. Commitments and Contingencies (Tables)	6 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Future minimum lease payments	2018 $ 11,964 2019 18,943 Total $ 30,907

6. Other Receivables (Tables)

6. Other Receivables (Tables)	6 Months Ended
	Dec. 31, 2017
Receivables [Abstract]
Schedule of other receivables	FLNL $ 176,779 FLI 246,178 BBDHS 225,186 Subtotal 648,143 Less: Allowance 426,849 Net Balance $ 221,294

7. Fixed Assets (Tables)

7. Fixed Assets (Tables)	6 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Schedule of fixed assets	December 31, June 30, 2017 2017 Equipment $ 148,500 $ – Capital improvements 900 – Total fixed assets 149,400 – Less: Accumulated depreciation 13,612 – Fixed assets, net $ 135,788 $ –

8. Intangible Assets (Tables)

8. Intangible Assets (Tables)	6 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	December 31, June 30, 2017 2017 Website development $ 15,682 $ 12,245 Exclusive rights 19,500 – Total intangible assets 35,182 12,245 Less: Accumulated amortization 11,125 1,425 Intangible assets, net $ 24,057 $ 10,820
Amortization table	2018 $ 10,273 2019 1,587 2020 1,045 2021 1,045 2022 and thereafter 10,107 Total $ 24,057

9. Derivatives (Tables)

9. Derivatives (Tables)	6 Months Ended
	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Assumptions	December 31, 2017 June 30, 2017 Note Inception Date Volatility 204% 141% 170% - 232% Expected Term 0.22 - 0.74 years 0.33 - 0.96 years 0.75 - 1.0 years Risk-Free Interest Rate 1.76% 0.84% 1.07% - 1.33%
Schedule of derivative instruments	Note inception date fair value allocated to debt discount $ 122,500 Change in fair value in fiscal year 2016 (122,500 ) Embedded conversion option derivative liability fair value on June 30, 2016 – Note inception date fair value allocated to debt discount 163,000 Note modifications adjustment (88,737 ) Change in fair value in fiscal year 2017 (21,506 ) Embedded conversion option derivative liability fair value on June 30, 2017 52,757 Note modifications adjustment 46,791 Change in fair value in fiscal year 2018 (52,259 ) Embedded conversion option derivative liability fair value on December 31, 2017 $ 47,289

10. Convertible Notes Payable30

10. Convertible Notes Payable, Net of Premiums and Notes Payable (Tables)	6 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Schedule of convertible notes	Convertible notes, net of discounts and notes payable December 31, 2017 June 30, 2017 Principal, Principal, Debt net of Debt net of Principal Discounts Discounts Principal Discounts Discounts PureEnergy $ – $ – $ – $ 15,475 $ (7,489 ) $ 7,986 PureEnergy – – – 13,480 (5,565 ) 7,915 PowerUp – – – 75,000 (39,330 ) 35,670 PowerUp 38,000 (7,374 ) 30,626 38,000 (18,893 ) 19,107 PowerUp 33,842 (12,410 ) 21,432 – – – PowerUp 53,000 (15,964 ) 37,036 – – – LG 42,000 (13,262 ) 28,738 – – – Total 166,842 (49,010 ) 117,832 141,955 (71,277 ) 70,678 Less: current portion 95,000 (29,226 ) 65,774 141,955 (71,277 ) 70,678 Non-current portion $ 71,842 $ (19,784 ) $ 52,058 $ – $ – $ –

12. Revenue Classes (Tables)

12. Revenue Classes (Tables)	6 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Revenues and Costs by revenue class	For the six months ended Revenues: December 31, 2017 2016 Magazine related $ 5,826 $ 15,974 Referral fees – 1,724 Licensing fees – 536,864 Equipment sales commissions – 9,750 Seminar and training – 838 Sale of products 1,833 3,970 Total $ 7,659 $ 569,120 For the six months ended Direct costs of revenue: December 31, 2017 2016 Magazine related $ 68,850 $ 66,322 Referral fees – – Licensing fees – – Equipment sales commissions – – Seminar and training – – Sale of products 976 5,042 Total $ 69,826 $ 71,364

15. Income Tax (Tables)

15. Income Tax (Tables)	6 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Reconciliation of income tax expense	December 31, December 31, Tax expense (benefit) at the statutory rate $ (304,499 ) $ (107,783 ) State income taxes, net of federal income tax benefit – – Change in valuation allowance 304,499 107,783 Total $ – $ –
Schedule of deferred taxes	December 31, June 30, Deferred tax assets: Net operating loss carryforward $ 1,337,907 $ 1,073,183 Timing differences 974,778 908,366 Total gross deferred tax assets 2,312,685 1,981,549 Less: Deferred tax asset valuation allowance (2,312,685 ) (1,981,549 ) Total net deferred taxes $ – $ –

1. Nature of Operations (Detail

1. Nature of Operations (Details - Fair Value) - USD ($)	Dec. 31, 2017	Jun. 30, 2017
Assets:
Trademarks	$ 13,766	$ 10,820
Exclusive Rights	10,291
Total Financial Assets	24,057	10,820
Liabilities:
Derivative Liabilities	40,349	52,757
Total Financial Liabilities	40,349	52,757
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Trademarks	0	0
Total Financial Assets	0	0
Liabilities:
Derivative Liabilities	0	0
Total Financial Liabilities	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Trademarks	0	0
Total Financial Assets	0	0
Liabilities:
Derivative Liabilities	0	0
Total Financial Liabilities	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Trademarks	13,766	10,820
Exclusive Rights	10,291
Total Financial Assets	24,057	10,820
Liabilities:
Derivative Liabilities	40,349	52,757
Total Financial Liabilities	$ 40,349	$ 52,757

1. Nature of Operations (Deta34

1. Nature of Operations (Details - Level 3 assets) - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2017	Jun. 30, 2017
Intangible gross, beginning balance	$ 12,245
Accumulated amortization, beginning balance	(1,425)
Intangibles net, beginning balance	10,820
Intangible gross, ending balance	35,182	$ 12,245
Accumulated amortization, ending balance	(11,125)	(1,425)
Intangibles net, ending balance	24,057	10,820
Fair Value, Inputs, Level 3 [Member] | Intangible Assets [Member]
Intangible gross, beginning balance	12,245
Intangibles net, beginning balance	10,820
Additions	22,936
Amortization	(9,699)
Intangible gross, ending balance	35,181	12,245
Accumulated amortization, ending balance	(11,124)
Intangibles net, ending balance	$ 24,057	10,820
Fair Value, Inputs, Level 3 [Member] | Accumulated Amortization [Member]
Accumulated amortization, beginning balance		(1,425)
Amortization		$ (9,699)

1. Nature of Operations (Deta35

1. Nature of Operations (Details - Level 3 liabilities) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Derivative liabilities, beginning balance			$ 52,757
Note inception date fair value			43,866
Change in fair value	$ 54,364	$ 0	52,259	$ 0
Derivative liabilities, ending balance	$ 40,349		$ 40,349

1. Nature of Operations (Deta36

1. Nature of Operations (Details Narrative) - USD ($)	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Advertising expense	$ 4,317	$ 19,719
Warrants [Member]
Antidilutive shares	1,918,167
Convertible Notes [Member]
Antidilutive shares	8,881,954

3. Going Concern (Details Narra

3. Going Concern (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2017
Going Concern
Net loss	$ (742,413)	$ (111,361)	$ (1,449,997)	$ (513,253)
Net cash used in operating activities			(173,252)	$ (174,349)
Working capital	(135,730)		(135,730)
Stockholders' equity	(111,584)		(111,584)		$ 187,818
Accumulated deficit	$ (6,370,985)		$ (6,370,985)		$ (4,920,988)

4. Commitments and Contingenc38

4. Commitments and Contingencies (Details)	Jun. 30, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,018	$ 11,964
2,019	18,943
Total	$ 30,907

4. Commitments and Contingenc39

4. Commitments and Contingencies (Details Narrative) - USD ($)	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 14,604	$ 19,309

5. Related Parties (Details Nar

5. Related Parties (Details Narrative) - USD ($)	6 Months Ended
	Dec. 31, 2017	Jun. 30, 2017
Cowan
Due to related parties	$ 318,445	$ 269,226
Perry
Due to related parties	45,000	21,444
Stock issued for accrued compensation, value	$ 112,500
Stock issued for accrued compensation, shares issued	5,784,061
Medeiros [Member]
Due to related parties	$ 21,000	$ 0
Stock issued for accrued compensation, value	$ 52,500
Stock issued for accrued compensation, shares issued	2,699,228
Pelosi [Member]
Stock issued for compensation, shares	850,000
Stock issued for cash, shares	967,000
Proceeds from sale of stock	$ 14,500

6. Other Receivables (Details)

6. Other Receivables (Details) - USD ($)	Dec. 31, 2017	Jun. 30, 2017
Other receivables, gross	$ 648,143
Allowance for other receivables	426,849
Other receivables, net	221,294	$ 637,817
FLNL [Member]
Other receivables, gross	176,779
FLI [Member]
Other receivables, gross	246,178
BBDHS [Member]
Other receivables, gross	$ 225,186

7. Fixed Assets (Details)

7. Fixed Assets (Details) - USD ($)	Dec. 31, 2017	Jun. 30, 2017	Jun. 30, 2016
Property and equipment, gross	$ 149,400	$ 0
Less: Accumulated depreciation	13,612	0
Property and equipment, net	135,788	0
Equipment [Member]
Property and equipment, gross	148,500	$ 0
Capital Improvements [Member]
Property and equipment, gross	$ 900		$ 0

7. Fixed Assets (Details Narrat

7. Fixed Assets (Details Narrative) - USD ($)	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Property and equipment, net	$ 135,788		$ 0
Depreciation expense	$ 13,612	$ 0

8. Intangible Assets (Details -

8. Intangible Assets (Details - Intangible assets) - USD ($)	Dec. 31, 2017	Jun. 30, 2017
Intangible assets, gross	$ 35,182	$ 12,245
Less: Accumulated amortization	11,125	1,425
Intangible assets, net	24,057	10,820
Website Development [Member]
Intangible assets, gross	15,682	12,245
Exclusive Rights [Member]
Intangible assets, gross	$ 19,500	$ 0

8. Intangible Assets (Details-a

8. Intangible Assets (Details-amortization) - USD ($)	Dec. 31, 2017	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
2,018	$ 10,273
2,019	1,587
2,020	1,045
2,021	1,045
2022 and thereafter	10,107
Total	$ 24,057	$ 10,820

8. Intangible Assets (Details N

8. Intangible Assets (Details Narrative) - USD ($)	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 9,700	$ 370

9. Derivatives (Details-assumpt

9. Derivatives (Details-assumptions) - Embedded Conversion Option [Member	6 Months Ended	12 Months Ended
	Dec. 31, 2017	Jun. 30, 2017
Volatility	204.00%	141.00%
Expected Term	0.22 - 0.74 years	0.33-0.96 years
Risk Free Interest Rate	1.76%	0.84%

9. Derivatives (Details - Embed

9. Derivatives (Details - Embedded conversion option) - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2017	Jun. 30, 2017	Jun. 30, 2016
Derivative liabilities, beginning balance	$ 52,757
Derivative liabilities, ending balance	40,349	$ 52,757
Embedded Conversion Option [Member
Derivative liabilities, beginning balance	52,757	0	$ 0
Note inception date fair value allocated to debt discount		163,000	122,500
Change in fair value	(52,259)	(21,506)	(122,500)
Note modifications adjustment	46,791	(88,737)
Derivative liabilities, ending balance	$ 47,289	$ 52,757	$ 0

10. Convertible Notes Payable49

10. Convertible Notes Payable, Net of Premiums and Notes Payable (Details) - USD ($)	Dec. 31, 2017	Jun. 30, 2017
Principal	$ 166,842	$ 141,955
Debt discounts	(49,010)	(71,277)
Convertible notes payable, net	117,832	70,678
Current portion	65,774	70,678
Non-current portion	52,058	0
Pure Energy 1 [Member]
Principal	0	15,475
Debt discounts	0	(7,489)
Convertible notes payable, net	0	7,986
Pure Energy 2 [Member]
Principal	0	13,480
Debt discounts	0	(5,565)
Convertible notes payable, net	0	7,915
Power Up 1 [Member]
Principal	0	75,000
Debt discounts	0	(39,330)
Convertible notes payable, net	0	35,670
Power Up 2 [Member]
Principal	38,000	38,000
Debt discounts	(7,374)	(18,893)
Convertible notes payable, net	30,626	19,107
Power Up 3 [Member]
Principal	33,842	0
Debt discounts	(12,410)	0
Convertible notes payable, net	21,432	0
Power Up 4 [Member]
Principal	53,000	0
Debt discounts	(15,964)	0
Convertible notes payable, net	37,036	0
LG Capital [Member]
Principal	42,000	0
Debt discounts	(13,262)	0
Convertible notes payable, net	$ 28,738	$ 0

10. Convertible Notes Payable50

10. Convertible Notes Payable, Net of Premiums and Notes Payable (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		4 Months Ended	6 Months Ended		12 Months Ended		24 Months Ended
	Jul. 19, 2017	Dec. 31, 2017	Dec. 31, 2016	Nov. 03, 2017	Dec. 31, 2017	Dec. 31, 2016	Jun. 29, 2017	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2017
Beneficial conversion feature		$ (51,994)	$ (32,397)		$ (79,594)	$ (61,712)
Perlowin [Member] | Convertible Debt [Member]
Accrued interest		467			467
Conversion of debt, stock issued									50,000
Perlowin [Member] | Convertible Debt 2 [Member]
Accrued interest		408			408
Conversion of debt, stock issued								50,000
Ogorodnikova [Member] | Convertible Debt [Member]
Accrued interest		986			$ 986
Conversion of debt, stock issued								125,000
Eagle Equities [Member] | Convertible Debt [Member]
Debt issuance date					Nov. 1, 2016
Debt face value										$ 25,000
Debt interest rate										8.00%
Debt discount										$ 25,000
Proceeds from convertible note					$ 23,000
Payment of debt issuance fees					2,000
Amortization of beneficial conversion feature					25,000
Accrued interest		0			$ 0
Debt maturity date					Nov. 1, 2017
Pure Energy [Member]
Conversion of debt, stock issued					7,520,192
Conversion of debt, debt converted					$ 109,033
Pure Energy [Member] | Convertible Debt [Member]
Conversion of debt, stock issued	748,934			1,006,768			791,140
Conversion of debt, debt converted	$ 13,481			$ 14,497			$ 12,501
Pure Energy 1 [Member] | Convertible Debt [Member]
Debt issuance date					May 23, 2017
Debt face value										15,475
Debt discount										8,481
Convertible rate					45.00%
Debt maturity date					Feb. 23, 2018
Conversion of debt, stock issued					1,006,768
Power Up 1 [Member] | Convertible Debt [Member]
Debt issuance date					May 10, 2017
Debt face value										$ 75,000
Debt interest rate										8.00%
Debt maturity date					Feb. 23, 2018
Conversion of debt, stock issued					5,764,490
Conversion of debt, debt converted					$ 78,427
Power Up 2 [Member] | Convertible Debt [Member]
Debt issuance date					Jun. 20, 2017
Debt face value										$ 38,000
Debt interest rate										8.00%
Debt discount										$ 19,611
Amortization of beneficial conversion feature					$ 6,609
Debt maturity date					Feb. 23, 2018
LG Capital [Member] | Convertible Debt [Member]
Debt issuance date					Aug. 11, 2017
Debt face value		$ 42,000			$ 42,000
Debt interest rate		8.00%			8.00%
Debt discount		$ 21,707			$ 21,707
Amortization of debt discount					$ 8,445
Convertible rate					35.00%
Accrued interest		1,316			$ 1,316
Debt maturity date					Mar. 20, 2018
Power Up 3 [Member] | Convertible Debt [Member]
Debt issuance date					Sep. 26, 2017
Debt face value		$ 53,000			$ 53,000
Debt interest rate		8.00%			8.00%
Debt discount		$ 14,898			$ 14,898
Amortization of debt discount					$ 8,467
Convertible rate					35.00%
Accrued interest		1,690			$ 1,690
Debt maturity date					Jun. 30, 2018
Pure Energy 4 [Member] | Convertible Debt [Member]
Debt issuance date					Sep. 27, 2017
Debt face value		$ 78,427			$ 78,427
Debt interest rate		8.00%			8.00%
Debt discount		$ 38,880			$ 38,880
Amortization of debt discount					$ 93
Convertible rate					35.00%
Debt maturity date					Sep. 27, 2018
Conversion of debt, stock issued					5,765,490
Pure Energy 3 [Member] | Convertible Debt [Member]
Debt issuance date					Sep. 27, 2017
Debt face value		$ 33,842			$ 33,842
Debt interest rate		8.00%			8.00%
Debt discount		$ 16,777			$ 16,777
Amortization of debt discount					4,367
Accrued interest		712			$ 712
Debt maturity date					Sep. 27, 2018
Prepayment penaly and legal fees		$ 5,346			$ 5,346

11. Stockholders' Equity (Detai

11. Stockholders' Equity (Details Narrative) - USD ($)	6 Months Ended
	Dec. 31, 2017	Jun. 30, 2017
2016 Stock Option Plan [Member]
Shares reserved under plan	10,000,000
Pelosi [Member]
Stock issued for compensation, shares issued	850,000
Sale of common stock, shares	967,000
Sale of common stock, value	$ 14,500
Pure Energy [Member]
Debt converted, shares issued	7,520,192
Debt converted, debt amount	$ 109,033
Sale of common stock, shares	4,785,459
Sale of common stock, value	$ 83,746
Cliff Perry [Member]
Stock issued for compensation, shares issued	5,784,061
Stock issued for compensation, value	$ 112,500
Raymond Medeiros [Member]
Stock issued for compensation, shares issued	2,699,228
Stock issued for compensation, value	$ 52,500
Frank Dobrucki [Member]
Stock issued for services, shares issued	750,000
Stock issued for services, value	$ 29,500
Nuaxon Bioscience [Member]
Stock issued for licensing rights, shares	500,000
Stock issued for licensing rights, value	$ 19,500
Lakeport Business Services [Member]
Stock issued for services, shares issued	273,333
Stock issued for services, value	$ 8,200
Stock issued for accounts payable, shares issued	345,451
Stock issued for accounts payable, amount	$ 9,450
Christopher Thompson [Member]
Stock issued for services, shares issued	600,000
Stock issued for services, value	$ 48,900
Joshua Halford [Member]
Stock issued for services, shares issued	550,000
Stock issued for services, value	$ 44,825
Christopher Sloan [Member]
Stock issued for services, shares issued	661,500
Stock issued for services, value	$ 52,175
Stock issued for accounts payable, shares issued	400,000
Stock issued for accounts payable, amount	$ 23,075
Neil Dutson [Member]
Stock issued for services, shares issued	500,303
Stock issued for services, value	$ 37,173
Stock issued for leasehold improvement, shares issued	30,000
Stock issued for leasehold improvement, value	$ 900
Marc Hatch [Member]
Stock issued for services, shares issued	100,000
Stock issued for services, value	$ 7,430
Jason Edwards [Member]
Stock issued for services, shares issued	400,000
Stock issued for services, value	$ 16,280
Michael Ostrander [Member]
Stock issued for services, shares issued	600,000
Stock issued for services, value	$ 33,870
Valencia [Member]
Common stock issuable	4,142,857
Contingent liability	$ 174,000
Timothy Puetz [Member]
Stock issued for services, shares issued	1,001,250
Stock issued for services, value	$ 20,025
Ronald Voight [Member]
Stock issued for services, shares issued	255,000
Stock issued for services, value	$ 7,727
Legal counsel [Member]
Stock issued for services, shares issued	122,500
Stock issued for services, value	$ 3,225
Victor Park [Member]
Stock issued for services, shares issued	250,000
Stock issued for services, value	$ 7,725
Breadfruit Tree Inc [Member]
Stock issued for inventory received, shares issued	1,000,000
custom:StockIssuedForInventoryReceivedValue	$ 27,200
Stone [Member]
Stock issued for services, shares issued	600,000
Stock issued for services, value	$ 36,750
The Company [Member]
Common stock issuable		1,793,195

12. Revenue Classes (Details)

12. Revenue Classes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Revenues	$ 6,332	$ 448,566	$ 7,659	$ 569,120
Cost of revenues	$ 36,680	$ 46,099	69,826	71,364
Magazine related [Member]
Revenues			5,826	15,974
Cost of revenues			68,850	66,322
Referral Fees [Member]
Revenues			0	1,724
Cost of revenues			0	0
Licensing Fees [Member]
Revenues			0	536,864
Cost of revenues			0	0
Equipment sales commissions [Member]
Revenues			0	9,750
Cost of revenues			0	0
Seminars and Training [Member]
Revenues			0	838
Cost of revenues			0	0
Sale of Products [Member]
Revenues			1,833	3,970
Cost of revenues			$ 976	$ 5,042

14. Inventory (Details Narrativ

14. Inventory (Details Narrative) - USD ($)	Dec. 31, 2017	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventory	$ 27,200	$ 0

15. Income Tax (Details)

15. Income Tax (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Tax expense (benefit) at the statutory rate			$ (304,499)	$ (107,783)
State income taxes, net of federal income tax benefit			0.00%	0.00%
Change in valuation allowance			$ 304,499	$ 107,783
Total	$ 0	$ 0	$ 0	$ 0

15. Income Tax (Details - Defer

15. Income Tax (Details - Deferred taxes) - USD ($)	Dec. 31, 2017	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Net operating loss carryforward	$ 337,907	$ 1,073,183
Timing differences	974,778	908,366
Total gross deferred tax assets	2,312,685	1,981,549
Less: Deferred tax asset valuation allowance	(2,312,685)	(1,981,549)
Total net deferred taxes	$ 0	$ 0

15. Income Tax (Details Narrati

15. Income Tax (Details Narrative) - USD ($)	6 Months Ended
	Dec. 31, 2017	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Net operating loss carryforward	$ 6,370,985	$ 4,920,988
Operating loss carryforward expiration date	Dec. 31, 2034