Leafbuyer (LBUY) 10-Q 16 May 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2019	May 09, 2019
Document And Entity Information
Entity Registrant Name	LEAFBUYER TECHNOLOGIES, INC.
Entity Central Index Key	0001643721
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		47,749,427
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Entity Emerging Growth Company	true
Entity Small Business	true
Entity Ex Transition Period	false

UNAUDITED INTERIM CONDENSED CON

UNAUDITED INTERIM CONDENSED CONSOLDIATED BALANCE SHEETS - USD ($)	Mar. 31, 2019	Jun. 30, 2018
Current assets:
Cash and cash equivalents	$ 563,383	$ 375,938
Accounts receivable, net (allowance for doubtful accounts was $53,815 at March 31, 2019 and $6,617 at June 30, 2018)	58,318	8,279
Inventory	3,530	3,530
Prepaid expenses and other current assets	147,721	172,566
Total current assets	772,952	560,313
Noncurrent assets:
Intangible assets, net	3,215,250
Fixed assets, net	495	873
Total noncurrent assets	3,215,745	873
Total assets	3,988,697	561,186
Current liabilities:
Accounts Payable	194,498	290,783
Accrued liabilities	459,086	66,087
Deferred revenue	221,715	156,530
Debt, current	1,640,197	805,684
Total current liabilities	2,515,496	1,319,084
Debt, long-term	110,145
Total liabilities	2,625,641	1,319,084
Commitments and contingencies (Note 7)
Equity:
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 6,750,000 shares issued and outstanding for class A convertible preferred stock and 70,000 shares issued and outstanding for class B convertible preferred stock at March 31, 2019 and June 30, 2018, respectively	6,820	6,820
Common stock, $0.001 par value; 150,000,000 shares authorized; 47,147,804 shares issued and outstanding at March 31, 2019 and 42,661,228 shares issued and outstanding at June 30, 2018	47,148	42,661
Additional paid in capital	10,064,214	3,130,831
Accumulated deficit	(8,755,126)	(3,938,210)
Total equity (deficit)	1,363,056	(757,898)
Total liabilities and equity	$ 3,988,697	$ 561,186

UNAUDITED INTERIM CONDENSED C_2

UNAUDITED INTERIM CONDENSED CONSOLDIATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2019	Jun. 30, 2018
Current assets:
Allowance for doubtful accounts receivable	$ 53,815	$ 6,617
Equity:
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	47,147,804	42,661,228
Common stock, shares outstanding	47,147,804	42,661,228
Class A Convertible Preferred Stock [Member]
Equity:
Preferred stock, shares issued	6,750,000	6,750,000
Preferred stock, shares outstanding	6,750,000	6,750,000
Class B Convertible Preferred Stock [Member]
Equity:
Preferred stock, shares issued	70,000	70,000
Preferred stock, shares outstanding	70,000	70,000

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Unaudited Condensed Consolidated Statements Of Operations
Sales revenue	$ 489,320	$ 287,224	$ 1,296,550	$ 785,969
Cost of sales
Gross profit	489,320	287,224	1,296,550	785,969
Operating expenses:
Selling expenses	70,025	53,966	200,300	138,821
General and administrative	1,947,795	1,060,829	5,556,901	1,945,141
Total operating expenses	2,017,820	1,114,795	5,757,201	2,083,962
Loss from operations	(1,528,500)	(827,571)	(4,460,651)	(1,297,993)
Other income (expense):
Interest expense	(181,643)	(12,919)	(356,265)	(12,948)
Other income
Other income (expense), net	(181,643)	(12,919)	(356,265)	(12,948)
Income tax expense
Net loss	$ (1,710,143)	$ (840,490)	$ (4,816,916)	$ (1,310,941)
Net loss per common share:
Basic and diluted	$ (0.04)	$ (0.02)	$ (0.10)	$ (0.03)
Weighted average common shares outstanding:
Basic and diluted	45,418,004	40,418,163	48,337,990	39,197,367

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($)	Preferred Stock	Common Stock	APIC	Accumulated Deficit	Total
Beginning Balance, Shares at Jun. 30, 2017	7,000,000	38,000,663
Beginning Balance, Amount at Jun. 30, 2017	$ 7,000	$ 38,000	$ 1,010,000	$ (958,535)	$ 96,465
Issuance of common stock for cash, Shares		380,000
Issuance of common stock for cash, Amount		$ 380	(380)
Stock based compensation			120,000		120,000
Net loss				(229,814)	(229,814)
Ending Balance, Shares at Sep. 30, 2017	7,000,000	38,380,663
Ending Balance, Amount at Sep. 30, 2017	$ 7,000	$ 38,380	1,129,620	(1,188,349)	(13,349)
Beginning Balance, Shares at Jun. 30, 2017	7,000,000	38,000,663
Beginning Balance, Amount at Jun. 30, 2017	$ 7,000	$ 38,000	1,010,000	(958,535)	96,465
Net loss					(1,310,941)
Ending Balance, Shares at Mar. 31, 2018	6,910,000	40,205,663
Ending Balance, Amount at Mar. 31, 2018	$ 6,910	$ 40,205	1,649,868	(2,269,475)	(572,492)
Beginning Balance, Shares at Sep. 30, 2017	7,000,000	38,380,663
Beginning Balance, Amount at Sep. 30, 2017	$ 7,000	$ 38,380	1,129,620	(1,188,349)	(13,349)
Net loss				(240,636)	(240,636)
Ending Balance, Shares at Dec. 31, 2017	7,000,000	38,380,663
Ending Balance, Amount at Dec. 31, 2017	$ 70,000	$ 38,380	1,129,620	(1,428,985)	(253,985)
Issuance of common stock for cash, Shares		240,000
Issuance of common stock for cash, Amount		$ 240	119,760		120,000
Stock based compensation			119,133		119,133
Issuance of common stock for exercise of options, Shares		8,000
Issuance of common stock for exercise of options, Amount		$ 8	1,992		2,000
Issuance of common stock in conversion of preferred stock, Shares	(90,000)	1,440,000
Issuance of common stock in conversion of preferred stock, Amount	$ (90)	$ 1,440	(1,350)
Issuance of common stock for services, Shares		137,000
Issuance of common stock for services, Amount		$ 137	280,713		280,850
Net loss				(840,490)	(840,490)
Ending Balance, Shares at Mar. 31, 2018	6,910,000	40,205,663
Ending Balance, Amount at Mar. 31, 2018	$ 6,910	$ 40,205	1,649,868	(2,269,475)	(572,492)
Beginning Balance, Shares at Jun. 30, 2018	6,820,000	42,661,228
Beginning Balance, Amount at Jun. 30, 2018	$ 6,820	$ 42,661	3,130,831	(3,938,210)	(757,898)
Stock based compensation			598,076		598,076
Issuance of common stock for exercise of options, Shares		86,000
Issuance of common stock for exercise of options, Amount		$ 86	21,414		21,500
Issuance of common stock in conversion of notes payable and accrued interest, Shares		123,324
Issuance of common stock in conversion of notes payable and accrued interest, Amount		$ 123	119,800		119,923
Issuance of warrant in connection with convertible notes payable			85,724		85,724
Net loss				(1,428,903)	(1,428,903)
Ending Balance, Shares at Sep. 30, 2018	6,820,000	42,870,552
Ending Balance, Amount at Sep. 30, 2018	$ 6,820	$ 42,870	3,955,845	(5,367,113)	(1,361,578)
Beginning Balance, Shares at Jun. 30, 2018	6,820,000	42,661,228
Beginning Balance, Amount at Jun. 30, 2018	$ 6,820	$ 42,661	3,130,831	(3,938,210)	$ (757,898)
Issuance of common stock for cash, Shares					1,116,738
Issuance of common stock for cash, Amount					$ 1,045,000
Net loss					(4,816,916)
Ending Balance, Shares at Mar. 31, 2019	6,820,000	47,147,804
Ending Balance, Amount at Mar. 31, 2019	$ 6,820	$ 47,148	10,064,214	(8,755,126)	1,363,056
Beginning Balance, Shares at Sep. 30, 2018	6,820,000	42,870,552
Beginning Balance, Amount at Sep. 30, 2018	$ 6,820	$ 42,870	3,955,845	(5,367,113)	(1,361,578)
Issuance of common stock for cash, Shares		1,116,738
Issuance of common stock for cash, Amount		$ 1,117	1,043,883		1,045,000
Stock based compensation			597,293		597,293
Issuance of common stock for exercise of options, Shares		92,947
Issuance of common stock for exercise of options, Amount		$ 93	23,144		23,237
Issuance of common stock for services, Shares		60,000
Issuance of common stock for services, Amount		$ 60	39,540		39,600
Issuance of warrant in connection with convertible notes payable			171,447		171,447
Issuance of common stock for acquisition, Shares		2,666,667
Issuance of common stock for acquisition, Amount		$ 2,667	2,557,333		2,560,000
Net loss				(1,677,870)	(1,677,870)
Ending Balance, Shares at Dec. 31, 2018	6,820,000	46,806,904
Ending Balance, Amount at Dec. 31, 2018	$ 6,820	$ 46,807	8,388,485	(7,044,983)	1,397,129
Stock based compensation			573,507		573,507
Issuance of common stock for exercise of options, Shares		88,900
Issuance of common stock for exercise of options, Amount		$ 89	22,136		22,225
Issuance of common stock for services, Shares		2,000
Issuance of common stock for services, Amount		$ 2	958		960
Issuance of common stock for acquisition, Shares		250,000
Issuance of common stock for acquisition, Amount		$ 250	239,750		240,000
Beneficial Conversion Feature of Notes Payable			839,378		839,378
Net loss				(1,710,143)	(1,710,143)
Ending Balance, Shares at Mar. 31, 2019	6,820,000	47,147,804
Ending Balance, Amount at Mar. 31, 2019	$ 6,820	$ 47,148	$ 10,064,214	$ (8,755,126)	$ 1,363,056

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($)	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net loss	$ (4,816,916)	$ (1,310,941)
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Stock compensation expense	1,768,876	239,133
Stock issued for services	40,560	280,850
Amortization of note payable discount	281,130
Depreciation and amortization expense	234,369	214
Changes in assets and liabilities:
Accounts receivable	(50,039)	(9,538)
Inventory		(3,652)
Prepaid expenses and other	24,845	(187,547)
Accounts payable	(96,285)
Accrued liabilities	258,184	109,791
Net cash used in operating activities	(2,355,276)	(881,690)
Cash flows from investing activities:
Software acquisition	(449,241)
Net cash provided by (used in) investing activities	(449,241)
Cash flows from financing activities:
Proceeds from issuance of stock	1,111,962	122,000
Proceeds from issuance of debt	2,100,000	790,603
Repayment of debt	(220,000)
Net cash provided by financing activities	2,991,962	912,603
Net change in cash and cash equivalents	187,445	30,913
Cash and cash equivalents, beginning of period	375,938	164,680
Cash and cash equivalents, end of period	563,383	195,593
Cash paid for interest
Cash paid for taxes
Supplemental information for non-cash investing and financing activities:
Conversion of debt and interest plus issuance of warrants	377,094
Software acquisitoin	$ 2,800,000

Description of Business

Description of Business	9 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 1 - Description of Business	Formation of the Company On March 23, 2017, AP Event Inc. (“AP” or the “Registrant”) consummated an Agreement and Plan of Merger (the “Merger Agreement”) with LB Media Group, LLC, a Colorado limited liability Company (“LB Media”), August Petrov (the principal stockholder of AP), and LB Acquisition Corp., a Colorado corporation and a wholly-owned subsidiary of AP (“Acquisition”) whereby Acquisition was merged with and into LB Media (the “Merger”). (See Note 3). As a result of the Merger, LB Media became a wholly-owned subsidiary of the Registrant, and immediately following the consummation of the Merger and giving effect to the securities sold in the Offering, the members of LB Media beneficially owned approximately fifty-five percent (55%) of the issued and outstanding Common Stock of the Registrant. The Merger Agreement contains customary representations, warranties, and covenants of the Registrant and LB Media for like transactions. As a result of the reorganization and name change discussed later, Leafbuyer Technologies, Inc. (“Leafbuyer”) became the publicly quoted parent holding company with LB Media becoming a wholly-owned subsidiary of Leafbuyer. Upon consummation of the Agreement, Leafbuyer common stock was deemed to be registered under Section 12(b) of the Securities Exchange Act of 1934, as amended, pursuant to Rule 12g-3(a) promulgated thereunder. For purposes of Rule 12g-3(a), Leafbuyer is the successor issuer to AP. AP was established under the corporation laws in the State of Nevada on October 16, 2014. On March 24, 2017, the Registrant changed its name to Leafbuyer Technologies, Inc. All references herein to “us,” “we,” “our,” “Leafbuyer,” or the “Company” refer to Leafbuyer Technologies, Inc. and its subsidiary, LB Media. Description of Business We are focused on providing valuable information for the savvy cannabis consumer looking to make a purchase via deals and a dispensary database. We connect consumers with dispensaries by working alongside businesses to showcase their unique products and build a network of loyal patrons. Our national network of cannabis deals and information reaches millions of consumers monthly. LB Media was founded in 2012 by a group of technology and industry veterans and provides online resources for cannabis deals and specials. Our headquarters is located in Greenwood Village, Colorado. Basis of Presentation The accompanying condensed consolidated balance sheet as of March 31, 2019, has been derived from audited financial statements. The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual financial statements being audited and in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. In the opinion of management, such unaudited information includes all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of this interim information. All intercompany transactions have been eliminated in consolidation. Operating results and cash flows for interim periods are not necessarily indicative of results that can be expected for the entire year. The information included in this report should be read in conjunction with our audited financial statements and notes thereto. Going Concern As shown in the accompanying condensed consolidated financial statements, we had equity of approximately $1,363,056 and a working capital deficit of $1,742,544 as of March 31, 2019. We reported a net loss of $4,816,916 for the nine months ended March 31, 2019, and we anticipate further losses in the development of our business. Accordingly, there is substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent upon our generating profitable operations in the future and/or obtaining the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they come due. Management believes that actions presently being taken to further implement our business plan and generate additional revenues provide opportunity for the Company to continue as a going concern. While we believe in the viability of our strategy to generate additional revenues and our ability to raise additional funds, there can be no assurances to that effect. Reclassifications Certain prior period amounts have been reclassified to conform with the current period presentation.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 2 - Summary of Significant Accounting Policies	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, LB Media. All significant inter-company transactions and balances have been eliminated in consolidation. Use of Estimates Management uses estimates and assumptions in preparing these condensed consolidated financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Examples of estimates include loss contingencies; useful lives of our tangible and intangible assets; allowances for doubtful accounts; and stock-based compensation forfeiture rates. Examples of assumptions include: the elements comprising a software arrangement, including the distinction between upgrades or enhancements and new products; when technological feasibility is achieved for our products; the potential outcome of future tax consequences of events that have been recognized in our financial statements or tax returns. Actual results could differ from those estimates. Fair Value Measurements The Company adopted the provisions of FASB Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures”, which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements. The estimated fair value of certain financial instruments, including cash and cash equivalents are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions) The Company has no assets or liabilities valued at fair value on a recurring basis. Revenue Recognition Topic ASC 606 is effective as of the annual reporting period beginning after December 15, 2017 using either of two methods: (1) retrospective application of Topic ASC 606 to each prior reporting period presented with the option to elect certain practical expedients as defined within Topic ASC 606 or (2) retrospective application of Topic ASC 606 with the cumulative effect of initially applying Topic ASC 606 recognized at the date of initial application and providing certain additional disclosures as defined per Topic ASC 606. We adopted Topic ASC 606 pursuant to the method (2) and we determined that any cumulative effect for the initial application did not require an adjustment to retained earnings at July 1, 2018. For revenue recognition arrangements that we determine are within the scope of Topic ASC 606, we perform the following five steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We only apply the five-step model to arrangements that meet the definition of a contract under Topic 606, including when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, we evaluate the goods or services promised within each contract related performance obligation and assess whether each promised good or service is distinct. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. We recognize revenue upon completion of our performance obligations or expiration of the contractual time to use services such as bulk texting. Cash and Cash Equivalents For purposes of the condensed consolidated statements of cash flows, cash and cash equivalents includes demand deposits, time deposits, certificates of deposit and short-term liquid investments with original maturities of three months or less when purchased. As of March 31, 2019 and June 30, 2018, the Company did not hold any cash equivalents. The Federal Deposit Insurance Corporation provides coverage for all accounts of up to $250,000. Accounts Receivable, Net Accounts receivable are stated at the amount management expects to collect. An allowance for doubtful accounts is recorded, as a charge to bad debt expense, where collection is considered to be doubtful due to credit issues. These allowances together reflect the Company’s estimate of potential losses inherent in accounts receivable balances, based on historical loss and known factors impacting its customers. Management has determined that an allowance is required at March 31, 2019 and June 30, 2018 of $53,815 and $6,617, respectively. The Company does not accrue interest on past due receivables. Inventory Inventory consists of merchandise and is stated at the lower of cost, determined by last-in, first-out method or market. Market is determined based on the net realizable value, with appropriate consideration given to obsolescence, excessive levels, deterioration and other factors. At March 31, 2019 and June 30, 2018, the Company had $3,530 and $3,530 of inventory, respectively. A write-off is recorded for any inventory deemed excessive or obsolete. No write off was necessary at March 31, 2019 and at June 30, 2018. Internal Use Software Software development costs associated with internal use software are incurred in three stages of development: the preliminary project stage, the application development stage, and the post-implementation stage. Costs incurred during the preliminary project and post-implementation stages are expensed as incurred. Certain internal and external qualifying costs incurred during the application development stage are capitalized as property and equipment. Internal use software is amortized on a straight-line basis over its estimated useful life of seven years, beginning when the software is ready for its intended use. During the nine months ended March 31, 2019, the Company capitalized approximately $3.4 million of software acquisition costs. Amortization expense related to internal use software totaled $233,991 during the nine months ended March 31, 2019. Identified Intangible Assets The Company reviews identified intangible assets and long-lived assets to be held-and-used for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the sum of the undiscounted expected future cash flows over the remaining useful life of a long-lived asset is less than its carrying amount, the asset is considered to be impaired. Impairment losses are measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. When fair values are not available, the Company estimates fair value using the expected future cash flows discounted at a rate commensurate with the risks associated with the recovery of the asset. As of March 31, 2019 and June 30, 2018, there were no impairments of intangible assets. Stock-Based Compensation The Company accounts for stock-based awards to employees in accordance with applicable accounting principles, which requires compensation expense related to share-based transactions, including employee stock options, to be measured and recognized in the financial statements based on a determination of the fair value of the stock options. The grant date fair value is determined using the Black-Scholes-Merton (“Black-Scholes”) pricing model. For all employee stock options, we recognize expense over the requisite service period on an accelerated basis over the employee’s requisite service period (generally the vesting period of the equity grant). The Company’s option pricing model requires the input of highly subjective assumptions, including the expected stock price volatility and expected term. Any changes in these highly subjective assumptions significantly impact stock-based compensation expense. Options awarded to purchase shares of common stock issued to non-employees in exchange for services are accounted for as variable awards in accordance with applicable accounting principles. Such options are valued using the Black-Scholes option pricing model. See Note 9 for the assumptions used to calculate the fair value of stock-based employee and non-employee compensation. The Company’s accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of ASC 505-50 Equity-Based Payments to Non-Employees Income Taxes The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. As of March 31, 2019, the Company had approximately $7,652,000 of net operating loss carry forward that was unrecognized tax benefits. Under Internal Revenue Code 382, if a corporation undergoes an “ownership change,” the corporation’s ability to use its pre-change NOL carryforwards and other pre-change tax attributes to offset its post-change income may be limited. We have not completed a study to assess whether an “ownership change” has occurred or whether there have been multiple ownership changes since we became a “loss corporation” as defined in Section 382. Future changes in our stock ownership, which may be outside of our control, may trigger an “ownership change”. In addition, future equity offerings or acquisitions that have equity as a component of the purchase price could result in an “ownership change.” If an “ownership change” has occurred or does occur in the future, utilization of the NOL carryforwards or other tax attributes may be limited, which could potentially result in increased future tax liability to us. ASC Topic 740 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. There are no material uncertain tax positions at March 31, 2019. On December 22, 2017, the U.S. government enacted the Tax Act, which made significant changes to the Internal Revenue Code of 1986, as amended, including, but not limited to, reducing the U.S. corporate statutory tax rate and the net operating loss incurred after December 31, 2017 can be carried forward indefinitely and the two-year net operating loss carried back was eliminated. We continue to evaluate the impact of the Tax Act. New Accounting Pronouncements In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. In July 2018, the FASB issued ASU No. 2018-10, “Codification Improvements to Topic 842, Leases.” The amendments in ASU 2018-10 clarify, correct or remove inconsistencies in the guidance provided under ASU 2016-02 related to sixteen specific issues identified. Also in July 2018, the FASB issued ASU No. 2018-11 “Leases (Topic 842): Targeted Improvement” which now allows entities the option of recognizing the cumulative effect of applying the new standard as an adjustment to the opening balance of retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. The effective date and transition requirements for these two ASUs are the same as the effective date and transition requirements as ASU 2016-02. The standard will be effective for the Company for the quarter ended September 30, 2019. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard will be effective for the Company in the first quarter of 2020. The adoption of this standard does not have a material impact on the condensed consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, which simplifies the accounting for non-employee share-based payment transactions. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own operations by issuing share-based payment awards. The standard will be effective in the first quarter of fiscal year 2019, although early adoption is permitted. The adoption of this standard does not have a material impact on the condensed consolidated financial statements. No other recent accounting pronouncements were issued by FASB and the SEC that are believed by management to have a material impact on the Company's present or future condensed consolidated financial statements.

Recapitalization and Preferred

Recapitalization and Preferred Shares	9 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 3 - Recapitalization and Preferred Shares	On March 23, 2017, we completed the Merger Agreement with AP. The impact to equity of the Merger Agreement includes a) the issuance of 2,351,355 new pre-split shares of the Company’s common stock; b) the issuance of 324,327 new pre-split shares of the Company’s Series A Convertible Preferred Stock; c) the retirement of 5,000,000 shares of the Company’s pre-split common stock; and d) removing the Company’s accumulated deficit and adjusting equity for the recapitalization. Simultaneously with the Merger, the Company accepted subscriptions in a private placement offering of 476,092 new pre-split shares of the Company’s common stock in the amount of $600,000 as well as 27,027 new pre-split shares of the Company’s Series B Convertible Preferred Stock in the amount of $250,000. These shares are considered to be outstanding beginning January 1, 2015. However, as the cash to purchase these shares was received in 2017, we have recorded the cash received in connection with these shares in additional paid-in capital during 2017. Series A Convertible Preferred Stock was originally convertible into 3,000,000 common shares based on the total outstanding equity as of March 23, 2017. As of March 31, 2019, the Series A Convertible Preferred Stock would be convertible into approximately 10,660,000 common shares, based on 47,747,804 common shares outstanding as of March 31, 2019. The Series B Convertible Preferred Stock is convertible into 1,120,000 common shares.

Intangible Assets

Intangible Assets	9 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 4 - Intangible Assets	Intangible assets consist of the following: March 31, 2019 March 31, 2018 Loyalty software $ 3,449,241 - Less accumulated amortization (233,991 ) - Intangible assets, net $ 3,215,250 $ - On November 6, 2018, the Company acquired an identified intangible asset (“Loyalty Software”) through a Stock Purchase Agreement, where the Company acquired all the issued and outstanding capital stock of Greenlight Technologies, Inc. (“GTI”) from its shareholders. At the time of the transaction, there were no employees working for GTI, no systems and no assets, other than the Loyalty Software. GTI’s legal entity will be dissolved in the transition and the Loyalty Software will be assumed by the Company. Management determined that the purchase of GTI did not constitute a business purchase and recorded the transaction as a purchase of software. The consideration for the Loyalty Software was 2,666,667 shares of common stock, par value $0.001 per share and cash of approximately $450,000. Total value of the Loyalty Software was estimated at approximately $3,010,000. The additional consideration for future developments will be evaluated and considered enhancements which will either be capitalized to the software or expensed as research and development costs. The additional Incentive Shares is approximately $1,152,000. During the period ended March 31, 2019 the Company capitalized approximately $360,100 of software enhancements. GTI provides cannabis consumers real-time mobile ordering and loyalty rewards through an internally developed application that integrates with the local dispensary’s point of sale system. The Company plans to fully integrate this technology into the current platform and create an “Ultimate Bundle” of services for the cannabis industry. The current revenues of GTI are minimal, and the Company expects higher sales in the California market as the system is fully integrated.

Capital Stock and Equity Transa

Capital Stock and Equity Transactions	9 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 5 - Capital Stock and Equity Transactions	The Company has 150,000,000 shares of common stock authorized with a par value of $0.001 per share as of March 31, 2019. In addition, the Company has 10,000,000 preferred stock authorized with a par value of $0.001 per share as of March 31, 2019. On April 19, 2018, the Company entered into a Standby Equity Distribution Agreement (the “SEDA”) with YA II PN Ltd. (“Investor”), a Cayman Island exempt limited partnership and an affiliate of Yorkville Advisors Global, LLC, whereby the Company sold and the Investor purchased 869,565 shares (the “Initial Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”) for the purchase price of One Million Dollars ($1,000,000), Additionally, under the SEDA the Company may sell to the Investor up to $5 million of shares of Common Stock over a two-year commitment period. Under the terms of the SEDA, the Company may from time to time, in its discretion, sell newly-issued shares of its common stock to the Investor at a discount to market of 8% of the lowest daily volume weighted average price during the relevant pricing period. The Company is obligated to register the Initial Shares, the Commitment Shares (as defined below), and the shares of Common Stock issuable under the SEDA pursuant to a registration statement under the Securities Act of 1933, as amended (the “Securities Act”). The Company is not obligated to utilize any portion of the SEDA and there are no minimum commitments or minimum use penalties provided the Company does not terminate the SEDA within 18 months wherein the Company would be required to pay a termination fee of $100,000. The Company issued One Hundred Thousand (100,000) shares of Common Stock as a commitment fee (the “Commitment Shares”) to an affiliate of the Investor. The total amount of funds that ultimately can be raised under the SEDA over the two-year term will depend on the market price for the Company’s common stock and the number of shares actually sold. The SEDA does not impose any restrictions on the Company’s operating activities. During the term of the SEDA, the Investor is prohibited from engaging in any short selling or hedging transactions related to the Common Stock. In connection with the SEDA, the Company engaged Garden State Securities, Inc. (“GSS”) as its exclusive selling/placement agent. In connection with the transactions set forth in the SEDA, GSS shall receive a fee equal to 10% of the purchase price of the Initial Shares in cash plus warrants to purchase 86,957 shares of Common Stock at an exercise price of $1.15 per share, expiring in five years. GSS will also receive a cash fee equal to 5% of the amount paid by the Investor for each Advance under the SEDA. On October 9, 2018, the Company used the SEDA to receive $400,000. The Company issued 274,292 common shares for a per share price of the issuance of approximately $1.46 per common share. On October 22, 2018, the Company used the SEDA to receive $300,000. The Company issued 300,000 common shares for a per share price of the issuance of approximately $1.00 per common share. Merger Agreement All shares issued in accordance with the Merger Agreement are considered to be outstanding beginning January 1, 2015 as these shares relate to the change in capital structure. Furthermore, 5,000,000 pre-split shares of common stock were retired in accordance with the Merger Agreement. In connection with the Merger Agreement, the Company made distributions totaling $600,000 to officers of the Company. Both Series A Convertible Preferred Stock and Series B Convertible Preferred Stock have rights to dividends when declared; however, there is no stated dividend rate and no such dividends have yet been declared by the Company. We evaluated the convertible preferred stock agreements for derivatives and determined that they do not qualify for derivative treatment for financial reporting purposes. We also determined this does not qualify as a beneficial conversion feature. Accordingly, the balances have been reported at the carrying amounts. On March 24, 2017, the Company effected a forward split such that 9.25 shares of Common Stock were issued for every 1 share of Common Stock issued and outstanding immediately prior to the forward split. Immediately following the forward split, there were 38,000,663 shares of post-split common stock, 3,000,000 shares of post-split Series A Convertible Preferred Stock, and 250,000 shares of post-split Series B Convertible Preferred Stock outstanding. The par value of all classes of shares remained at $0.001 per share after the forward split. In March of 2017, an additional 3,750,000 shares of post-split Series A Convertible Preferred Stock were purchased from the Company. All references to shares herein refer to post-split shares, unless otherwise noted. Issuance of Common Stock During the year ended June 30, 2018, the Company accepted subscriptions for the issuance of 1,589,565 shares of Common Stock for total subscriptions of $1,020,000 in cash. During the year ended June 30, 2018, the Company issued 54,000 shares of Common Stock for the exercise of options and $13,500 cash. The Company also received notice from a Preferred Stock Series B stockholder to convert 180,000 shares of preferred stock into 2,880,000 shares of Common Stock. During the year ended June 30, 2018, the Company issued 137,000 shares of Common Stock to vendors for services rendered. These shares were valued at fair market value of $280,850 and expensed in the accompanying Condensed Consolidated Statements of Operations. During February 2018, the Company entered into two promissory notes with an investor of the Company in the amount of $28,000 and $84,000 in exchange for $25,000 and $75,000, respectively. Each of the notes have an original issue discount of $3,000 and $9,000, respectively that is being amortized to interest expense over the term of the notes. The principle and interest were converted into common stock during the quarter. The Company issued 123,324 shares of Common Stock in full satisfaction of the note on September 24, 2018. During the nine months ended March 31, 2019, the Company issued 267,847 shares of Common Stock to employees and consultants related to the exercise of stock options. The Company received $66,962 for the issuance of these shares. During the nine months ended March 31, 2019, the Company accepted subscriptions for the issuance of 1,116,738 shares of Common Stock for total subscriptions of $1,045,000 in cash. During the nine months ended March 31, 2019, the Company issued 62,000 shares of Common Stock to vendors for services rendered. These shares were valued at fair market value of $40,560 and expensed in the accompanying Condensed Consolidated Statements of Operations.

Debt

Debt	9 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 6 - Debt	The Company follows beneficial conversion feature guidance in ASC 470-20, which applies to convertible stock as well as convertible debt. A beneficial conversion feature is defined as a nondetachable conversion feature that is in the money at the commitment date. The beneficial conversion feature guidance requires recognition of the conversion option’s in-the-money portion, the intrinsic value of the option, in equity, with an offsetting reduction to the carrying amount of the instrument. The resulting discount is amortized as interest over the life of the instrument, if a stated maturity date exists, or to the earliest conversion date, if there is no stated maturity date. If the earliest conversion date is immediately upon issuance, the expense must be recognized at inception. When there is a subsequent change to the conversion ratio based on a future occurrence, the new conversion price may trigger the recognition of an additional beneficial conversion feature on occurrence. On September 28, 2017, the Company entered into a promissory note with an investor of the Company in the amount of $200,000. The note bears no interest and was payable in full on September 30, 2018. In addition, on December 20, 2017, the Company entered into a promissory note with the same investor of the Company in the amount of $150,000. During January 2018, the Company entered into a note with an investor of the Company in the amount of $224,000 in exchange for $200,000. As of December 31, 2018, the discount was fully amortized. The notes bear interest at 12% and were payable in full in July 2018. As of March 31, 2019, the amounts were fully repaid to the investor. During February 2018, the Company entered into two promissory notes with an investor of the Company in the amount of $28,000 and $84,000 in exchange for $25,000 and $75,000, respectively. Each of the notes have an original issue discount of $3,000 and $9,000, respectively that was amortized to interest expense over the term of the notes. The principle and interest were converted into common stock during the quarter. The Company issued 123,324 shares of Common Stock in full satisfaction of the notes. During February 2018, the Company issued a promissory note in favor of an investor of the Company in the amount of $150,000 in exchange for $132,000 cash. The note has an original issue discount of $18,000 that is being amortized to interest expense over the term of the note. As of March 31, 2019, the loan maturity date was extended to August 8, 2019, the discount is fully amortized and total unpaid principal and interest is approximately $170,564, accruing at 12%. Subsequent to March 31, 2019, the investor agreed to accept 245,207 shares of common stock for accrued interest and principal.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 7 - Commitments and Contingencies	The Company leases office space. Future minimum lease payments are as follows: June 30, 2019, remaining $ 30,432 June 30, 2020 $ 171,727 June 30, 2021 $ 125,419 June 30, 2022 $ 70,842 The Company does not have a concentration of revenues from any individual customer (less than 10%). To the best of the Company’s knowledge and belief, no legal proceedings of merit are currently pending or threatened against the Company.

Earnings or Loss per Share

Earnings or Loss per Share	9 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 8 - Earnings or Loss per Share	Basic earnings or loss per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted loss per share is computed similarly to basic loss per share, except that it includes the potential dilution that could occur if dilutive securities are exercised. We have prepared the calculation of earnings or loss per share using the weighted-average number of common shares of the Company that were outstanding during the three and nine months ended March 31, 2019 and 2018. Dilutive instruments had no effect on the calculation of earnings or loss per share during the three and nine months ended March 31, 2019 and 2018.

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 9 - Stock Based Compensation	The equity incentive plan of the Company was established in February of 2017. The Board of Directors of the Company may from time to time, in its discretion grant to directors, officers, consultants and employees of the Company, non-transferable options to purchase common shares, provided that the number of options issued do not exceed 10,000,000. The options are exercisable for a period of up to 10 years from the date of the grant. The number of options to purchase common shares was increased from 5,000,000 to 10,000,000 through a consent of stockholders to amend and restate the equity incentive plan. The following table reflects the continuity of stock options for the nine months ended March 31, 2019: A summary of stock option activity is as follows: March 31, 2019 Number of options outstanding: Beginning of year 4,145,735 Granted 1,698,239 Exercised, converted (267,847 ) Forfeited / exchanged / modification (138,535 ) End of period 5,437,592 Number of options exercisable at end of period 763,453 Number of options available for grant at end of period 4,562,408 Weighted average option prices per share: Granted during the period $ 0.66 Exercised during the period $ 0.25 Terminated during the period $ 1.19 Outstanding at end of period $ 0.25 Exercisable at end of period $ 0.25 The average fair value of stock options granted was estimated to be $0.61 per share for the period ended March 31, 2019. This estimate was made using the Black-Scholes option pricing model and the following weighted average assumptions: 2019 Expected option life (years) 3 - 5 Expected stock price volatility 147%-170 % Expected dividend yield — % Risk-free interest rate 2.35-3.01 % Stock-based compensation expense attributable to stock options was approximately $1,768,876 for the nine-month period ended March 31, 2019. As of March 31, 2019, there was approximately $4,050,975 of unrecognized compensation expense related to unvested stock options outstanding, and the weighted average vesting period for those options was 3 years.

Subsequent Events

Subsequent Events	9 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 10 - Subsequent Events	The Company has evaluated subsequent events through May 14, 2019 and has not identified any items requiring additional disclosure.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Mar. 31, 2019
Summary Of Significant Accounting Policies
Principles of Consolidation	The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, LB Media. All significant inter-company transactions and balances have been eliminated in consolidation.
Use of Estimates	Management uses estimates and assumptions in preparing these condensed consolidated financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Examples of estimates include loss contingencies; useful lives of our tangible and intangible assets; allowances for doubtful accounts; and stock-based compensation forfeiture rates. Examples of assumptions include: the elements comprising a software arrangement, including the distinction between upgrades or enhancements and new products; when technological feasibility is achieved for our products; the potential outcome of future tax consequences of events that have been recognized in our financial statements or tax returns. Actual results could differ from those estimates.
Fair Value Measurements	The Company adopted the provisions of FASB Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures”, which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements. The estimated fair value of certain financial instruments, including cash and cash equivalents are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions) The Company has no assets or liabilities valued at fair value on a recurring basis.
Revenue Recognition	Topic ASC 606 is effective as of the annual reporting period beginning after December 15, 2017 using either of two methods: (1) retrospective application of Topic ASC 606 to each prior reporting period presented with the option to elect certain practical expedients as defined within Topic ASC 606 or (2) retrospective application of Topic ASC 606 with the cumulative effect of initially applying Topic ASC 606 recognized at the date of initial application and providing certain additional disclosures as defined per Topic ASC 606. We adopted Topic ASC 606 pursuant to the method (2) and we determined that any cumulative effect for the initial application did not require an adjustment to retained earnings at July 1, 2018. For revenue recognition arrangements that we determine are within the scope of Topic ASC 606, we perform the following five steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We only apply the five-step model to arrangements that meet the definition of a contract under Topic 606, including when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, we evaluate the goods or services promised within each contract related performance obligation and assess whether each promised good or service is distinct. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. We recognize revenue upon completion of our performance obligations or expiration of the contractual time to use services such as bulk texting.
Cash and Cash Equivalents	For purposes of the condensed consolidated statements of cash flows, cash and cash equivalents includes demand deposits, time deposits, certificates of deposit and short-term liquid investments with original maturities of three months or less when purchased. As of March 31, 2019 and June 30, 2018, the Company did not hold any cash equivalents. The Federal Deposit Insurance Corporation provides coverage for all accounts of up to $250,000.
Accounts Receivable, Net	Accounts receivable are stated at the amount management expects to collect. An allowance for doubtful accounts is recorded, as a charge to bad debt expense, where collection is considered to be doubtful due to credit issues. These allowances together reflect the Company’s estimate of potential losses inherent in accounts receivable balances, based on historical loss and known factors impacting its customers. Management has determined that an allowance is required at March 31, 2019 and June 30, 2018 of $53,815 and $6,617, respectively. The Company does not accrue interest on past due receivables.
Inventory	Inventory consists of merchandise and is stated at the lower of cost, determined by last-in, first-out method or market. Market is determined based on the net realizable value, with appropriate consideration given to obsolescence, excessive levels, deterioration and other factors. At March 31, 2019 and June 30, 2018, the Company had $3,530 and $3,530 of inventory, respectively. A write-off is recorded for any inventory deemed excessive or obsolete. No write off was necessary at March 31, 2019 and at June 30, 2018.
Internal Use Software	Software development costs associated with internal use software are incurred in three stages of development: the preliminary project stage, the application development stage, and the post-implementation stage. Costs incurred during the preliminary project and post-implementation stages are expensed as incurred. Certain internal and external qualifying costs incurred during the application development stage are capitalized as property and equipment. Internal use software is amortized on a straight-line basis over its estimated useful life of seven years, beginning when the software is ready for its intended use. During the nine months ended March 31, 2019, the Company capitalized approximately $3.4 million of software acquisition costs. Amortization expense related to internal use software totaled $233,991 during the nine months ended March 31, 2019.
Identified Intangible Assets	The Company reviews identified intangible assets and long-lived assets to be held-and-used for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the sum of the undiscounted expected future cash flows over the remaining useful life of a long-lived asset is less than its carrying amount, the asset is considered to be impaired. Impairment losses are measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. When fair values are not available, the Company estimates fair value using the expected future cash flows discounted at a rate commensurate with the risks associated with the recovery of the asset. As of March 31, 2019 and June 30, 2018, there were no impairments of intangible assets.
Stock-Based Compensation	The Company accounts for stock-based awards to employees in accordance with applicable accounting principles, which requires compensation expense related to share-based transactions, including employee stock options, to be measured and recognized in the financial statements based on a determination of the fair value of the stock options. The grant date fair value is determined using the Black-Scholes-Merton (“Black-Scholes”) pricing model. For all employee stock options, we recognize expense over the requisite service period on an accelerated basis over the employee’s requisite service period (generally the vesting period of the equity grant). The Company’s option pricing model requires the input of highly subjective assumptions, including the expected stock price volatility and expected term. Any changes in these highly subjective assumptions significantly impact stock-based compensation expense. Options awarded to purchase shares of common stock issued to non-employees in exchange for services are accounted for as variable awards in accordance with applicable accounting principles. Such options are valued using the Black-Scholes option pricing model. See Note 9 for the assumptions used to calculate the fair value of stock-based employee and non-employee compensation. The Company’s accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of ASC 505-50 Equity-Based Payments to Non-Employees
Income Taxes	The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. As of March 31, 2019, the Company had approximately $7,652,000 of net operating loss carry forward that was unrecognized tax benefits. Under Internal Revenue Code 382, if a corporation undergoes an “ownership change,” the corporation’s ability to use its pre-change NOL carryforwards and other pre-change tax attributes to offset its post-change income may be limited. We have not completed a study to assess whether an “ownership change” has occurred or whether there have been multiple ownership changes since we became a “loss corporation” as defined in Section 382. Future changes in our stock ownership, which may be outside of our control, may trigger an “ownership change”. In addition, future equity offerings or acquisitions that have equity as a component of the purchase price could result in an “ownership change.” If an “ownership change” has occurred or does occur in the future, utilization of the NOL carryforwards or other tax attributes may be limited, which could potentially result in increased future tax liability to us. ASC Topic 740 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. There are no material uncertain tax positions at March 31, 2019. On December 22, 2017, the U.S. government enacted the Tax Act, which made significant changes to the Internal Revenue Code of 1986, as amended, including, but not limited to, reducing the U.S. corporate statutory tax rate and the net operating loss incurred after December 31, 2017 can be carried forward indefinitely and the two-year net operating loss carried back was eliminated. We continue to evaluate the impact of the Tax Act.
New Accounting Pronouncements	In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. In July 2018, the FASB issued ASU No. 2018-10, “Codification Improvements to Topic 842, Leases.” The amendments in ASU 2018-10 clarify, correct or remove inconsistencies in the guidance provided under ASU 2016-02 related to sixteen specific issues identified. Also in July 2018, the FASB issued ASU No. 2018-11 “Leases (Topic 842): Targeted Improvement” which now allows entities the option of recognizing the cumulative effect of applying the new standard as an adjustment to the opening balance of retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. The effective date and transition requirements for these two ASUs are the same as the effective date and transition requirements as ASU 2016-02. The standard will be effective for the Company for the quarter ended September 30, 2019. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard will be effective for the Company in the first quarter of 2020. The adoption of this standard does not have a material impact on the condensed consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, which simplifies the accounting for non-employee share-based payment transactions. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own operations by issuing share-based payment awards. The standard will be effective in the first quarter of fiscal year 2019, although early adoption is permitted. The adoption of this standard does not have a material impact on the condensed consolidated financial statements. No other recent accounting pronouncements were issued by FASB and the SEC that are believed by management to have a material impact on the Company's present or future condensed consolidated financial statements.

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Mar. 31, 2019
Intangible Assets
Schedule of intangible assets	March 31, 2019 March 31, 2018 Loyalty software $ 3,449,241 - Less accumulated amortization (233,991 ) - Intangible assets, net $ 3,215,250 $ -

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Mar. 31, 2019
Number of common shares issued in private placement, pre-split
Schedule of future minimum lease payments	June 30, 2019, remaining $ 30,432 June 30, 2020 $ 171,727 June 30, 2021 $ 125,419 June 30, 2022 $ 70,842

Stock Based Compensation (Table

Stock Based Compensation (Tables)	9 Months Ended
	Mar. 31, 2019
Stock Based Compensation
Stock option activity	March 31, 2019 Number of options outstanding: Beginning of year 4,145,735 Granted 1,698,239 Exercised, converted (267,847 ) Forfeited / exchanged / modification (138,535 ) End of period 5,437,592 Number of options exercisable at end of period 763,453 Number of options available for grant at end of period 4,562,408 Weighted average option prices per share: Granted during the period $ 0.66 Exercised during the period $ 0.25 Terminated during the period $ 1.19 Outstanding at end of period $ 0.25 Exercisable at end of period $ 0.25
Weighted average assumptions	2019 Expected option life (years) 3 - 5 Expected stock price volatility 147%-170 % Expected dividend yield — % Risk-free interest rate 2.35-3.01 %

Description of Business (Detail

Description of Business (Details Narrative) - USD ($)	3 Months Ended						9 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
State of incorporation							Nevada
Date of incorporation							Oct. 16, 2014
Net income (loss)	$ (1,710,143)	$ (1,677,870)	$ (1,428,903)	$ (840,490)	$ (240,636)	$ (229,814)	$ (4,816,916)	$ (1,310,941)
Working capital deficit	(1,742,544)						(1,742,544)
Total equity (deficit)	$ 1,363,056						$ 1,363,056		$ (757,898)

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Mar. 31, 2019	Jun. 30, 2018
Inventory	$ 3,530	$ 3,530
Federal Deposit Insurance Corporation, coverage	250,000
Allowance for doubtful accounts	53,815	$ 6,617
Operating loss carry forward	$ 7,652,000
Software Development [Member]
Estimated useful life	7 years
Amount of acquisition cost capitalized	$ 3,400,000
Amortization expense	$ 233,991

Recapitalization and Preferre_2

Recapitalization and Preferred Shares (Details Narrative) - USD ($)	1 Months Ended
	Mar. 23, 2017	Mar. 31, 2019	Jun. 30, 2018	Mar. 24, 2017
Number of common shares issued, pre-split (in shares)	2,351,355
Number of common shares retired, pre-split (in shares)	5,000,000
Number of common shares issued in private placement, pre-split (in shares)	476,092
Value of common shares issued in private placement	$ 600,000
Common stock shares outstanding		47,147,804	42,661,228	38,000,663
Series B Convertible Preferred Stock [Member]
Number of convertible preferred shares issued, pre-split (in shares)	27,027
Value of preferred shares issued in private placement	$ 250,000
Convertible preferred stock, shares issued upon conversion		1,120,000
Series A Convertible Preferred Stock [Member]
Number of convertible preferred shares issued, pre-split (in shares)	324,327
Convertible preferred stock, shares issued upon conversion	3,000,000	10,660,000
Common stock shares outstanding		47,747,804

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	Mar. 31, 2019	Mar. 31, 2018
Less accumulated amortization	$ (233,991)
Intangible assets, net	3,215,250
Loyalty software [Member]
Intangible assets	$ 3,449,241

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)	Nov. 06, 2018	Mar. 31, 2019	Jun. 30, 2018	Mar. 24, 2017
Common stock par value		$ 0.001	$ 0.001	$ 0.001
Loyalty Software [Member]
Purchase of software consideration transferred or transferrable, shares issued	$ 2,666,667
Common stock par value	$ 0.001
Purchase of software consideration paid in cash	$ 450,000
Purchase of software total consideration paid or payable	$ 3,010,000
Purchase of software additional incentive shares issued or issuable	1,152,000
Amount of software enhancement cost capitalized		$ 360,100

Capital Stock and Equity Tran_2

Capital Stock and Equity Transactions (Details Narrative)	Oct. 09, 2018USD ($)$ / sharesshares	Oct. 22, 2018USD ($)$ / sharesshares	Apr. 19, 2018USD ($)$ / sharesshares	Feb. 28, 2018USD ($)Integer	Jan. 31, 2018USD ($)	Mar. 31, 2017shares	Mar. 24, 2017$ / sharesshares	Mar. 23, 2017USD ($)shares	Dec. 31, 2018USD ($)shares	Mar. 31, 2018USD ($)shares	Sep. 30, 2017USD ($)shares	Mar. 31, 2019USD ($)$ / sharesshares	Mar. 31, 2018USD ($)	Jun. 30, 2018USD ($)$ / sharesshares	Sep. 24, 2018shares
Class of Stock [Line Items]
Common stock, shares authorized (in shares)												150,000,000		150,000,000
Common stock, par value (in dollars per share) | $ / shares							$ 0.001					$ 0.001		$ 0.001
Preferred stock, shares authorized (in shares)												10,000,000		10,000,000
Preferred stock, par value (in dollars per share) | $ / shares												$ 0.001		$ 0.001
Number of common shares retired, pre-split (in shares)								5,000,000
Distributions | $								$ 600,000
Issuance of common stock for cash, Shares												1,116,738
Issuance of common stock for cash, Amount | $									$ 1,045,000	$ 120,000		$ 1,045,000
Stock split ratio							9.25
Common stock, shares outstanding (in shares)							38,000,663					47,147,804		42,661,228
Stock subscriptions (in shares)														1,589,565
Stock subscriptions value | $														$ 1,020,000
Issuance of common stock for exercise of options (in shares)												267,847
Issuance of common stock for exercise of options, value | $												$ 66,962
Issuance of common stock for services (in shares)												62,000
Issuance of common stock for services, value | $												$ 40,560	$ 280,850
Proceeds from issuance of stock | $												$ 1,111,962	$ 122,000
Common stock shares issued												47,147,804		42,661,228
Face amount of note | $					$ 224,000
Debt instrument, exchange amount | $					$ 200,000
Number of promissory notes | Integer				2
Garden State Securities, Inc. ("GSS") [Member]
Class of Stock [Line Items]
Percentage of purchase price of common stock			10.00%
Warrant to purchase shares of common stock (in shares)			86,957
Exercise price of warrants (in dollars per share) | $ / shares			$ 1.15
Warrant expiration period			5 years
Percentage of amount paid by investor			5.00%
Standby Equity Distribution Agreement [Member]
Class of Stock [Line Items]
Common stock, par value (in dollars per share) | $ / shares	$ 1.46	$ 1
Proceeds from issuance of stock | $	$ 400,000	$ 300,000
Common stock shares issued	274,292	300,000
Common Stock [Member]
Class of Stock [Line Items]
Issuance of common stock for cash, Shares									1,116,738	240,000	380,000
Issuance of common stock for cash, Amount | $									$ 1,117	$ 240	$ 380
Issuance of common stock for exercise of options (in shares)														54,000
Issuance of common stock for exercise of options, value | $														$ 13,500
Issuance of common stock in conversion of preferred stock (in shares)														2,880,000
Issuance of common stock for services (in shares)														137,000
Issuance of common stock for services, value | $														$ 280,850
Common Stock [Member] | Yorkville Advisors Global, LLC [Member]
Class of Stock [Line Items]
Common stock, par value (in dollars per share) | $ / shares			$ 0.001
Stock subscriptions (in shares)			869,565
Value of shares authorized for sale | $			$ 5,000,000
Sale of stock, commitment period			2 years
Sale of stock at discount rate			8.00%
Termination period of SEDA			18 months
Termination fee of SEDA | $			$ 1,000,000
Shares issued as commitment fees (in shares)			100,000
Commitment period			2 years
Common Stock [Member] | Yorkville Advisors Global, LLC [Member] | Initial Shares [Member]
Class of Stock [Line Items]
Proceeds from issuance of stock | $			$ 1,000,000
Preferred Stock [Member]
Class of Stock [Line Items]
Issuance of common stock for cash, Shares
Issuance of common stock for cash, Amount | $
Series B Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, par value (in dollars per share) | $ / shares							$ 0.001
Preferred stock, shares outstanding (in shares)							250,000
Series B Convertible Preferred Stock [Member] | Preferred Stock [Member]
Class of Stock [Line Items]
Number of shares converted (in shares)														180,000
Series A Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, par value (in dollars per share) | $ / shares							$ 0.001
Common stock, shares outstanding (in shares)												47,747,804
Preferred stock, shares outstanding (in shares)							3,000,000
Stock subscriptions (in shares)						3,750,000
Loans Payable Three [Member]
Class of Stock [Line Items]
Face amount of note | $				$ 28,000
Debt instrument, exchange amount | $				25,000
Debt instrument, discount | $				3,000
Loans Payable Four [Member]
Class of Stock [Line Items]
Common stock shares issued															123,324
Face amount of note | $				84,000
Debt instrument, exchange amount | $				75,000
Debt instrument, discount | $				$ 9,000

Debt (Details Narrative)

Debt (Details Narrative)	1 Months Ended			3 Months Ended	9 Months Ended
	Sep. 21, 2018USD ($)Integer$ / sharesshares	Feb. 28, 2018USD ($)Integer	Jan. 31, 2018USD ($)	Mar. 31, 2019USD ($)shares	Mar. 31, 2019USD ($)shares	Sep. 24, 2018shares	Jun. 30, 2018shares	Dec. 20, 2017USD ($)	Sep. 28, 2017USD ($)
Face amount of note			$ 224,000
Interest rate			12.00%
Number of promissory notes | Integer		2
Debt instrument, exchange amount			$ 200,000
Common stock, shares issued | shares				47,147,804	47,147,804		42,661,228
Subsequent Event [Member]
Face amount of note				$ 233,334	$ 233,334
Loans Payable Five [Member]
Face amount of note		$ 150,000
Maturity date					Aug. 8, 2019
Interest rate				14.00%	14.00%
Debt instrument, exchange amount		132,000
Debt instrument, discount		18,000
Debt instrument, unamortized discount				$ 0	$ 0
Debt default, interest rate				12.00%	12.00%
Amount of unpaid principal and interest balance				$ 170,564	$ 170,564
Loans Payable Five [Member] | Subsequent Event [Member]
Common stock share issuable upon extinguishment of debt | shares				245,207	245,207
Loans Payable Four [Member]
Face amount of note		$ 84,000
Interest rate		12.00%
Debt instrument, exchange amount		$ 75,000
Debt instrument, discount		9,000
Common stock, shares issued | shares						123,324
Loans Payable Three [Member]
Face amount of note		28,000
Debt instrument, exchange amount		25,000
Debt instrument, discount		$ 3,000
Loans Payable Two [Member]
Face amount of note								$ 150,000
Loans Payable One [Member]
Face amount of note									$ 200,000
Several promissory notes [Member]
Face amount of note	$ 880,000
Interest rate	10.00%
Exchange for cash payment	$ 800,000
Common stock purchase price per share | $ / shares	$ 0.70
Debt Instrument, Term	12 months
Number of installments | Integer	6
Increase in interest	12.00%
Discount on conversion common stock	20.00%
Several promissory notes [Member] | Warrant [Member]
Common stock purchase price per share | $ / shares	$ 0.75
Warrant period	5 years
Warrant to purchase shares of common stock | shares	400,000
Several promissory notes [Member] | One investor [Member]
Maturity date				Sep. 30, 2019
Convertible debt				$ 220,000	$ 220,000
Several promissory notes [Member] | Other investors [Member]
Convertible debt				660,000	660,000
Convertible debt, accrued interest				987,641	987,641
Several promissory notes [Member] | Investors [Member]
Face amount of note				$ 960,000	$ 960,000
Interest rate				7.00%	7.00%
Exchange for cash payment				$ 900,000
Debt Instrument, Term				18 months
Convertible debt, beneficial conversion feature				$ 839,378
Description for the repayment of debt				After six months, the Company will repay the investors interest and principle in twelve equal installments
Convertible debt, terms of conversion feature				The principle and interest of the note is convertible into the Company’s common stock at a purchase price of $0.75 per common share at any time after the Original Issue Date
Debt default, description				If the Company defaults on the Notes, the interest is increased to 15% and at the investors option, the principle and interest can be converted into the Company common stock at a 20% discount to the then current market price
Promissory note [Member]
Face amount of note	$ 440,000
Interest rate	10.00%
Exchange for cash payment	$ 400,000
Common stock purchase price per share | $ / shares	$ 0.70
Debt Instrument, Term	12 months
Number of installments | Integer	6
Increase in interest	12.00%
Discount on conversion common stock	20.00%
Promissory note [Member] | Warrant [Member]
Warrant period	5 years
Warrant to purchase shares of common stock | shares	200,000

Commitments and Contingencies_2

Commitments and Contingencies (Details)	Mar. 31, 2019USD ($)
Commitments And Contingencies Details Abstract
June 30, 2019, remaining	$ 30,432
June 30, 2020	171,727
June 30, 2021	125,419
June 30, 2022	$ 70,842

Commitments and Contingencies_3

Commitments and Contingencies (Details Narrative)	9 Months Ended
	Mar. 31, 2019
Commitments And Contingencies Details Narrative Abstract
Description of commitments and contingencies	The Company does not have a concentration of revenues from any individual customer (less than 10%).

Stock Based Compensation (Detai

Stock Based Compensation (Details)	9 Months Ended
	Mar. 31, 2019$ / sharesshares
Number of options outstanding:
Exercised, converted (in shares)	(267,847)
Stock Options [Member]
Number of options outstanding:
Beginning of year (in shares)	4,145,735
Granted (in shares)	1,698,239
Exercised, converted (in shares)	(267,847)
Forfeited / exchanged / modification (in shares)	(138,535)
End of period (in shares)	5,437,592
Number of options exercisable at end of period (in shares)	763,453
Number of options available for grant at end of period (in shares)	4,562,408
Weighted average option prices per share:
Granted during the period (in dollars per share) | $ / shares	$ 0.66
Exercised during the period (in dollars per share) | $ / shares	0.25
Terminated during the period (in dollars per share) | $ / shares	1.19
Outstanding at end of period (in dollars per share) | $ / shares	0.25
Exercisable at end of period (in dollars per share) | $ / shares	$ 0.25

Stock Based Compensation (Det_2

Stock Based Compensation (Details 1) - Stock Options [Member]	9 Months Ended
	Mar. 31, 2019
Weighted Average Assumptions
Expected dividend yield	0.00%
Minimum [Member]
Weighted Average Assumptions
Expected option life (years)	3 years
Expected stock price volatility	147.00%
Risk-free interest rate	2.35%
Maximum [Member]
Weighted Average Assumptions
Expected option life (years)	5 years
Expected stock price volatility	170.00%
Risk-free interest rate	3.01%

Stock Based Compensation (Det_3

Stock Based Compensation (Details Narrative) - Stock Options [Member]	9 Months Ended
	Mar. 31, 2019USD ($)$ / sharesshares
Average fair value of stock options granted | $ / shares	$ 0.61
Stock-based compensation expense	$ 1,768,876
Unrecognized compensation expense	$ 4,050,975
Weighted average vesting period	3 years
Equity Incentive Plan 2017 [Member]
Stock options exercisable period	10 years
Description for shares issuable upon exercise of options	The number of options to purchase common shares was increased from 5,000,000 to 10,000,000 through a consent of stockholders to amend and restate the equity incentive plan
Equity Incentive Plan 2017 [Member] | Maximum [Member]
Options issued for purchase of common shares | shares	10,000,000