Leafbuyer (LBUY) 10-Q 15 Nov 23 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Sep. 30, 2023	Nov. 14, 2023
Cover [Abstract]
Entity Registrant Name	LEAFBUYER TECHNOLOGIES, INC.
Entity Central Index Key	0001643721
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2023
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Entity Ex Transition Period	true
Entity Common Stock Shares Outstanding		99,428,575
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	333-206745
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	38-3944821
Entity Address Address Line 1	6888 S. Clinton Street
Entity Address Address Line 2	Suite 300
Entity Address City Or Town	Greenwood Village
Entity Address State Or Province	CO
Entity Address Postal Zip Code	80112
City Area Code	720
Local Phone Number	235-0099

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Current assets:
Cash and cash equivalents	$ 202,931	$ 445,721
Accounts receivable (net of allowance for doubtful accounts of $49,982 and $14,037, respectively,)	127,200	135,476
Prepaid expenses and other current assets	15,732	29,268
Total current assets	345,863	610,465
Noncurrent assets:
Fixed assets and intangible assets, net	1,043,922	1,225,034
Total assets	1,389,785	1,835,499
Current liabilities:
Accounts payable	312,053	308,840
Accrued liabilities	1,089,327	1,165,815
Deferred revenue	7,012	10,029
Debt, related party (Note 9)	107,817	107,817
Debt	993,802	1,036,491
Total current liabilities	2,510,011	2,628,992
Debt, net of current portion	470,756	485,378
Total liabilities	2,980,767	3,114,370
Commitments and contingencies (Note 6)	0	0
Stockholders' Equity (Deficit):
Common stock, $0.001 par value; 700,000,000 shares authorized; 99,428,575 shares issued and outstanding at September 30, 2023 and 99,428,575 shares issued and outstanding at June 30, 2023	99,428	99,428
Additional paid in capital	23,143,554	23,057,067
Accumulated deficit	(24,834,296)	(24,435,698)
Total stockholders' equity (deficit)	(1,590,982)	(1,278,871)
Total liabilities and stockholders' equity (deficit)	1,389,785	1,835,499
Convertible Series A Preferred Shares [Member]
Stockholders' Equity (Deficit):
Preferred stock, value	324	324
Convertible Series B Preferred Shares [Member]
Stockholders' Equity (Deficit):
Preferred stock, value	$ 8	$ 8

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Allowance For Doubtful Accounts	$ 49,982	$ 14,037
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	700,000,000	700,000,000
Common Stock, Shares Issued	99,428,575	99,428,575
Common Stock, Shares Outstanding	99,428,575	99,428,575
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Convertible Series A Preferred Shares [Member]
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Shares Issued	324,325	324,325
Preferred Stock, Shares Outstanding	324,325	324,325
Preferred Stock, Shares Designated	324,325	324,325
Convertible Series B Preferred Shares [Member]
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	7,568	7,568
Preferred Stock, Shares Outstanding	7,568	7,568
Preferred Stock, Shares Designated	27,027	27,027

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Revenue	$ 1,169,622	$ 1,128,665
Cost of sales	813,344	652,520
Gross profit	356,278	476,145
Operating expenses:
Selling expenses	196,371	161,314
General and administrative	249,504	163,163
Personnel expenses	184,926	188,210
Stock based compensation expense	86,486	122,449
Total operating expenses	717,287	635,136
Loss from operations	(361,009)	(158,991)
Interest expense	(37,624)	(51,027)
Unrealized gain (loss) on derivative	0	0
Forgiveness of PPP loan	0	0
Other Income	35	46
Net income	$ (398,598)	$ (209,972)
Earnings per common share:
Basic	$ 0	$ 0
Fully diluted	$ 0	$ 0
Weighted average common shares outstanding:
Basic	99,428,575	94,040,463
Fully diluted	151,137,140	145,749,028

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)	Total	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Preferred Stock Series A	Preferred Stock Series B
Balance, shares at Jun. 30, 2022		93,316,288			324,325	7,567
Balance, amount at Jun. 30, 2022	$ (1,412,547)	$ 93,315	$ 22,344,293	$ (23,850,489)	$ 324	$ 8
Stock based compensation	88,211	$ 0	88,211	0	0	0
Issuance of common stock for vendor payments, shares		600,000
Issuance of common stock for vendor payments, amount	28,500	$ 600	27,900	0	0	0
Issuance of common stock as employee compensation, shares		698,735
Issuance of common stock as employee compensation, amount	34,238	$ 699	33,539	0	0	0
Net gain	(209,972)	$ 0	0	(209,972)	$ 0	$ 0
Balance, shares at Sep. 30, 2022		94,615,023			324,325	7,567
Balance, amount at Sep. 30, 2022	(1,471,572)	$ 94,614	22,493,943	(24,060,461)	$ 324	$ 8
Balance, shares at Jun. 30, 2023		99,428,575			324,325	7,567
Balance, amount at Jun. 30, 2023	(1,278,871)	$ 99,428	23,057,067	(24,425,698)	$ 324	$ 8
Stock based compensation	86,487		86,487		0	0
Issuance of common stock for vendor payments, amount					0	0
Issuance of common stock as employee compensation, amount					0	0
Net gain	(398,598)			(398,598)	$ 0	$ 0
Balance, shares at Sep. 30, 2023		99,428,575			324,325	7,567
Balance, amount at Sep. 30, 2023	$ (1,590,982)	$ 99,428	$ 23,143,554	$ (24,834,296)	$ 324	$ 8

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net Loss	$ (398,598)	$ (209,972)
Adjustments to reconcile net income to net cash used in operating activities:
Stock based compensation	86,487	122,449
Stock for services	0	28,500
Amortization of note payable discount	0	0
Loss (gain) on derivative liability	0	0
Forgiveness of PPP loan	0	0
Depreciation and amortization	181,112	181,111
Changes in assets and liabilities:
Accounts receivable	8,276	2,488
Prepaid expenses and other	13,536	8,376
Accounts payable	3,213	(42,048)
Accrued liabilities	(79,505)	(124,495)
Net cash used in operating activities	(185,479)	(33,591)
Cash flows from investing activities:
Net cash used in investing activities	0	0
Cash flows from financing activities:
Repayment of Debt	(57,311)	(108,333)
Net cash provided by financing activities	(57,311)	(108,333)
Net change in cash and cash equivalents	(242,790)	(141,924)
Cash and cash equivalents, beginning of period	445,721	367,245
Cash and cash equivalents, end of period	202,931	225,321
Cash paid for interest	0	0
Cash paid for taxes	0	0
Supplemental information for non-cash investing and financing activities:
Issuance of common stock for vendor payments	$ 0	$ 28,500

Description of Business

Description of Business	3 Months Ended
	Sep. 30, 2023
Description of Business
Description Of Business	Note 1 — Description of Business Description of Business The Company 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. Our subsidiary, LB Media Group, LLC has evolved and grown as a listing website to a comprehensive marketing technology platform. Our clients, medical and recreational dispensaries in legalized cannabis states, along with cannabis product companies subscribe to our technology platform to assist in new customer acquisition and provide retention tools that include texting/loyalty and order ahead technology. Basis of Presentation The accompanying condensed consolidated balance sheet as of September 30, 2023, 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 Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. The information included in this report should be read in conjunction with our audited financial statements and notes thereto. Going Concern As of September 30, 2023, we had $202,931 in cash and cash equivalents and a working capital deficit of $2,164,148. We are dependent on funds raised through equity financing. Our cumulative net loss of $24,435,698 was funded by debt and equity financing and we reported a net loss from operations of $398,598 for the three months ended September 30, 2023. Accordingly, there is substantial doubt about our ability to continue as a going concern within one year after the date the financial statements are issued. 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 of expansion of products, geographical locations we sell our services and deeper market penetration will generate additional revenues and eventually positive cash flow and 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Sep. 30, 2023
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	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. For a detailed discussion about the Company’s significant accounting policies, refer to Note 2 — “Summary of Significant Accounting Policies,” in the Company’s consolidated financial statements included in the Company’s June 30, 2023 Form 10-K. During the three months ended September 30, 2023, there were no significant changes made to the Company’s significant accounting policies 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. Reclassifications Certain prior period amounts have been reclassified to conform with the current period presentation. Earnings (Loss) per Share Basic loss per share is computed by dividing net loss 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. Dilutive instruments had no effect on the calculation of earnings or loss per share during the quarter ended September 30, 2023 and September 30,2022. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s own Equity (Subtopic 815-40). ASU 2020-06 requires entities to provide expanded disclosures about the terms and features of convertible instruments and reduces the number of accounting models for convertible instruments and allows more contracts to qualify for equity classification. The pronouncement will be effective for public business entities that are SEC filers in fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted but no earlier than fiscal years beginning December 15, 2020. 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.

Fixed Assets and Intangible Ass

Fixed Assets and Intangible Assets	3 Months Ended
	Sep. 30, 2023
Fixed Assets and Intangible Assets
Fixed Assets and Intangible Assets	Note 3 — Fixed Assets and Intangible Assets Fixed Assets and intangible assets consist of the following September 30, 2023 June 30, 2023 Software platform $ 4,482,225 $ 4,482,225 Furniture and fixtures 1,500 1,500 Less accumulated amortization (3,438,302 ) (3,258,691 ) Property and equipment, net $ 1,043,922 $ 1,225,034 On November 6, 2018, the Company acquired a customer facing software (“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 2,916,667 shares of common stock 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. During the year ended June 30, 2020 additional Incentive Shares of 366,667 for a value of $262,500 was issued to shareholders of GTI as final settlement of the 2018 agreement. Since the period ended September 30, 2021 there has been no software capitalized. 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. Amortization expense, recorded as cost of revenue, related to internal use software totaled $181,112 during the three months ended September 30, 2023 and for the same period ended 2022 amortization expenses was $181,111. Amortization expense for the next five years is as follows: 2024 $ 724,445 2025 319,478 Total Unamortized Expense $ 1,043,922

Capital Stock and Equity Transa

Capital Stock and Equity Transactions	3 Months Ended
	Sep. 30, 2023
Capital Stock and Equity Transactions
Capital Stock and Equity Transactions	Note 4 — Capital Stock and Equity Transactions The Company has 700,000,000 shares of common stock authorized with a par value of $0.001 per share as of September 30, 2023. On August 13, 2021 the Company filed Articles of Amendment to Amended and Restated Articles of Incorporation with the State of Nevada increasing the number of common shares from 150,000,000 to 700,000,000. In addition, the Company has 10,000,000 preferred stock authorized with a par value of $0.001 per share as of September 30, 2023. Effective October 13, 2021, the Company executed and filed with the State of Nevada a Certificate of Designation of Preferred Stock of the Corporation fixing the designations, power, preferences, and rights of the shares. The total of 324,325 shares of preferred stock series A with a par value of $0.001 per share, of the Corporation are herby designated as Series A Super Voting Preferred Stock. These shares are not entitled to receive dividends and shall not be entitled to any liquidation preference. Further the holders shall have no conversion rights and the holders shall have the right to vote in an amount equal to 600 votes per share of Series A Preferred Stock. The 7,567 shares of Series B Convertible Preferred Stock are convertible into 1,120,064 shares of common stock. Issuance of Common Stock During the three months period ended September 30, 2022 the Company issued 698,735 shares of Common Stock to employees. These shares were valued at fair market value of $40,135 and expensed in the accompanying Condensed Consolidated Statement of Operations. During the three months ended September 30, 2022, the Company issued 600,000 shares of Common Stock to vendors for services rendered. These shares were valued at fair market value of $29,500 and expensed in the accompanying Condensed Consolidated Statement of Operations.

Debt

Debt	3 Months Ended
	Sep. 30, 2023
Debt
Debt	Note 5 — Debt 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. The loan maturity date was extended to August 8, 2019, the discount is fully amortized and total unpaid principal and interest is approximately $251,392, accruing at 12% at September 30, 2023, and is payable upon demand. On September 21, 2018, the Company entered into a promissory note with an investor of the Company with a face value of $440,000 in exchange for $400,000 cash payment (“the Convertible Note”), the discount of the Convertible Note will be amortized over the life of the Convertible Note and have an interest rate of 10%. The Convertible Note has a twelve-month term with no payment required for the initial six months; after six months, the Company will repay the investors interest and principal in six equal installments. The principal and interest of the note is convertible into the Company’s common stock at a purchase price of $0.70 per common share after the six months. If the Company defaults on the Convertible Note, the interest is increased to 12% and at the investors’ option, the principal and interest can be converted into the Company’s common stock at a 20% discount to the then current market. In addition, the Company issued five-year warrants to purchase up to 200,000 common shares of the Company’s common stock at a price of $0.75 per share. The value assigned to the warrants of $125,723 has been fully amortized. The cash for this Convertible Note was received prior to September 30, 2018. As of September 30, 2023, the Convertible Note is payable upon demand and total unpaid principal and interest outstanding is approximately $269,402. On September 21, 2018, the Company entered several promissory notes with various investors of the Company with a face value of $440,000 in exchange for $400,000 cash payment (“the Notes”), the discount of the Notes will be amortized over the life of the Note and have an interest rate of 10%. The Notes have a twelve-month term with no payment required for the initial six months; after six months, the Company will repay the investors interest and principal in six equal installments. The principal and interest of the note is convertible into the Company’s common stock at a purchase price of $0.70 per common share after the six months. If the Company defaults on the Notes, the interest is increased to 12% and at the investors’ option, the principal and interest can be converted into the Company’s common stock at a 20% discount to the then current market price. In addition, the Company issued five-year warrants to purchase up to 200,000 of the Company’s common shares at a price of $0.75 per share. The cash for these Notes was received prior to September 30, 2018. The value assigned to the warrants of $62,862 has been fully amortized. In March 2020, $220,000 of the 2018 Notes have been fully extinguished and the remaining $220,000 is in default and payable upon demand. As of September 30, 2023, the total unpaid principal and interest is approximately $345,611. During the year ended June 30, 2019, the Company entered into several promissory notes with various investors of the Company with a face value of $960,000 in exchange for a total of $900,000 cash payments. The Notes have a beneficial conversion feature valued at $839,378, which is recorded as a discount. The total discount on the Notes will be amortized over the life of the Notes and recorded as interest expense. The notes have an interest rate of 7% and have an eighteen-month term with no payment required for the initial six months; after six months, the Company will repay the investors interest and principal in twelve equal installments. The principal 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. In March 2020, the Company did not make its required principal and interest payment which put the Notes in default. The interest rate increased to 15% and at the investors’ option, the principal and interest can be converted into the Company common stock at a 20% discount to the then current market price. The beneficial ownership value assigned to the conversion feature of $801,741 has been fully amortized. As of March 31, 2020, $533,000 of the 2019 Notes have been fully extinguished as $402,000 of debt repayment and the issuance of common stock valued at $131,000. On January 25, 2021, $300,000 of the 2019 Notes have been fully extinguished with the issuance of 4,000,000 of common stock at a price of $0.075 per share. The remaining principal of $90,125 is in default and payable upon demand. As of September 30, 2023, the total unpaid principal and interest is approximately $376,657. During the year ended June 30, 2020, the Company entered into a promissory note with a related party (see Note 9) with a face value of $600,000 in exchange for a total of $565,000 cash payments. The total discount of the Note will be amortized over the life of the Note and recorded as interest expense which matured on December 1, 2020. In January 2021, the Company repaid $300,000 and in July 2022 the Company repaid $100,000 of the promissory note balance. The note is in default and due upon demand and the interest rate was increased to 12%. As of September 30, 2023, the total unpaid principal and interest is approximately $147,322. During the year ended June 30, 2020, the Company entered into a promissory note with a related party (see Note 9) with a face value of $50,000. In January 2021, the Company repaid $25,000 and in July 2022 repaid $8,333 of the promissory note balance. The note is in default and the interest rate increased to 12%. As of September 30, 2023, the total unpaid principal and interest is approximately $12,732. On April 30, 2020 the Company executed the standard loan documents required for securing a loan (the “EIDL Loan”) from the United States Small Business Administration (the “SBA”) under its Economic Injury Disaster Loan (“EIDL”) assistance program in light of the impact of the COVID-19 pandemic on the Company’s business. The principal amount of the EIDL Loan is $500,000, with proceeds to be used for working capital purposes. Interest on the EIDL Loan accrues at the rate of 3.75% per annum and installment payments, including principal and interest, are due monthly beginning twelve months from the date of the EIDL Loan in the amount of $2,437. The balance of principal and interest is payable thirty years from the date of the promissory note. The Company recognized 37,624 and 51,027 of interest expense for the three months ended September 30, 2023 and 2022, respectively. As of September 30, 2023 and 2022, accrued interest on the above notes was $746,980 and $603,639, respectively. The weighted average interest rates as of September 30, 2023 and 2022 was 5.49% and 6.47%. Notes payable and long-term debt outstanding as of September 30, 2023 and June 30, 2023 are summarized below: Maturity Date September 30, 2023 June 30, 2023 12% $150,000 Convertible Note Payable, net of unamortized discount of $0 and $0, respectively Due on Demand $ 150,000 $ 150,000 12% $440,000 Convertible Note Payable, net of unamortized discount of $0 and $0, respectively Due on Demand 29,000 79,000 12% $220,000 Convertible Note Payable, net of unamortized discount of $0 and $0, respectively Due on Demand 220,000 220,000 7% $213,333 Convertible Note Payable, net of unamortized discount of $0 and $0, respectively Due on Demand 244,802 244,802 8% $600,000 Related Party Note Payable, net of unamortized discount of $0 and $0 respectively Due on Demand 100,000 100,000 8% $50,000 Related Party Note Payable Due on Demand 7,817 7,817 5% Note Payable Due on Demand (1) 350,000 350,000 - - 3.75% SBA EIDL Note Payable April 30, 2050 470,756 478,067 Total notes payable 1,572,375 1,629,686 Less current portion of notes payable 1,101,619 1,144,108 Notes payable, net of current portion $ 470,756 $ 485,378 (1)

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Sep. 30, 2023
Commitments and Contingencies
Commitments and Contingencies	Note 6 — Commitments and Contingencies The Company records tax contingencies when the exposure item becomes probable and reasonably estimable. As of September 30, 2023, the Company had a tax contingency related to stock options granted below the fair market value on date of grant. The Company is in the process of determining the possible exposure and necessary expense accrual for the related tax, penalties and interest. Management has not been able to determine the amount as of the date of this report, however, does not expect the amount to be material to the financial statements. To the best of the Company’s knowledge and belief, no legal proceedings of merit are currently pending or threatened against the Company.

Risks and Uncertainties

Risks and Uncertainties	3 Months Ended
	Sep. 30, 2023
Risks and Uncertainties
Risks and Uncertainties	Note 7 — Risks and Uncertainties The Company does not have a concentration of revenues from any individual customer (less than 10%). The Company operates in a rapidly evolving and highly regulated industry and will only conduct business in state legal cannabis markets. The Company was affected in 2020 by the COVID-19 outbreak and worldwide pandemic. The Company saw some postponements in orders in the first few weeks March 2020 but orders stabilized to a normal level by the end of fiscal year 2020. The Company made a significant pivot to a complete solution when it comes to online ordering and communication.

Stock Based Compensation

Stock Based Compensation	3 Months Ended
	Sep. 30, 2023
Stock Based Compensation
Stock Based Compensation	Note 8 — 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 20,000,000. The options are exercisable for a period of up to 4 years from the date of the grant. The number of shares authorized to be issued under the equity incentive plan was increased from 10,000,000 to 25,000,000 through consent of stockholders to amend and restate the equity incentive plan. The average fair value of stock options granted was estimated to be $0.14 and $0.07. This estimate was made using the Black-Scholes option pricing model and the following weighted average assumptions for the three months ended September 30, 2023: Expected option life (years) 2-4 Expected stock price volatility 227 to 258% Expected dividend yield - Risk-free interest rate 0.44 to 0.54% A summary of option activity under the employee share option pan as of September 30, 2023 and changes during the year then ended is presented below. Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Price Aggregate Intrinsic Value Options: Outstanding at July 1, 2023 17,774,000 $ 0.06 Granted - $ 0.00 Exercised, converted - $ 0.00 Forfeited / exchanged / modification - $ 0.00 Outstanding at September 30, 2023 17,774,000 $ 0.06 0.5 $ - Exercisable at September 30, 2023 5,330,411 $ 0.11 2.0 Number of options available for grant at end of period 426,870 A summary of the status of the Company’s nonvested shares as of September 30, 2023, and changes during the year quarter September 30, 2023, is presented below: Options Shares Weighted-Average Grant-Date Fair Value Nonvested at July 1, 2023 662,608 $ 0.11 Granted 0 $ 0.00 Vested - $ 0.00 Forfeited - $ 0.00 Nonvested at September 30, 2023 662,608 $ 0.11 Stock-based compensation expense attributable to stock options was approximately $86,487 for the quarter ended September 30, 2023. As of September 30, 2023, there was approximately $241,713 of unrecognized compensation expense related to 13,450,170 nonvested stock options outstanding, and the weighted average vesting period for those options was 1 year. Warrants At September 30, 2023, the Company had outstanding warrants to purchase the Company’s common stock which were issued in connection with multiple financing arrangements. Information relating to these warrants is summarized as follows: Warrants Remaining Number Outstanding Weighted Average Remaining Life (Years) Weighted Average Exercise Price Warrants A - Securities Purchase Agreement 28,072,364 0.75 $ 0.17 Total 28,072,364 Aggregate intrinsic value at September 30, 2023 $ 0

Related Party Transactions

Related Party Transactions	3 Months Ended
	Sep. 30, 2023
Related Party Transactions
Related Party Transactions	Note 9 — Related Party Transactions In March 2020, the Company entered into a promissory note with the Chief Executive Officer for $600,000 in exchange for a total of a $565,000 cash payment. The note matured in December 2020 and $500,000 of principal payments have been made to date. The note is in default and due upon demand and the interest rate was increased to 12%. In March 2020, the Company entered into a promissory note with the Chief Technology Officer for $50,000. The note matured on January 1, 2021 and $42,183 of principal payments have been made to date. The note is in default and due upon demand and the interest rate was increased to 12%.

Leases

Leases	3 Months Ended
	Sep. 30, 2023
Leases
Leases	Note 10 — Leases On January 1, 2023 the Company extended its Denver Colorado headquarter lease for 12 months through December 31, 2023. During the past fiscal year a majority of the Company’s employee have been working remotely and the Company does not know if they will continue to keep this location or relocate to a small facility. Therefore, in accordance with ASC 842 the Company will not record an operating right of use asset and operating lease liability because of the short term nature of this amendment. The Company will recognize lease expense on a monthly basis through the life of this lease of approximately $51,786.

Subsequent Events

Subsequent Events	3 Months Ended
	Sep. 30, 2023
Subsequent Events
Subsequent Events	Note 11 — Subsequent Events – nothing to report

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2023
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. For a detailed discussion about the Company’s significant accounting policies, refer to Note 2 — “Summary of Significant Accounting Policies,” in the Company’s consolidated financial statements included in the Company’s June 30, 2023 Form 10-K. During the three months ended September 30, 2023, there were no significant changes made to the Company’s significant accounting policies
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.
Reclassifications	Certain prior period amounts have been reclassified to conform with the current period presentation.
Earnings (loss) Per Share	Basic loss per share is computed by dividing net loss 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. Dilutive instruments had no effect on the calculation of earnings or loss per share during the quarter ended September 30, 2023 and September 30,2022.
Recently Issued Accounting Pronouncements	In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s own Equity (Subtopic 815-40). ASU 2020-06 requires entities to provide expanded disclosures about the terms and features of convertible instruments and reduces the number of accounting models for convertible instruments and allows more contracts to qualify for equity classification. The pronouncement will be effective for public business entities that are SEC filers in fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted but no earlier than fiscal years beginning December 15, 2020. 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.

Fixed Assets and Intangible A_2

Fixed Assets and Intangible Assets (Tables)	3 Months Ended
	Sep. 30, 2023
Fixed Assets and Intangible Assets
Schedule Of Fixed Assets And Intangible Assets	September 30, 2023 June 30, 2023 Software platform $ 4,482,225 $ 4,482,225 Furniture and fixtures 1,500 1,500 Less accumulated amortization (3,438,302 ) (3,258,691 ) Property and equipment, net $ 1,043,922 $ 1,225,034
Schedule Of Amortization Expense	2024 $ 724,445 2025 319,478 Total Unamortized Expense $ 1,043,922

Debt (Tables)

Debt (Tables)	3 Months Ended
	Sep. 30, 2023
Debt
Schedule Of Notes Payable And Long-term Debt Outstanding	Maturity Date September 30, 2023 June 30, 2023 12% $150,000 Convertible Note Payable, net of unamortized discount of $0 and $0, respectively Due on Demand $ 150,000 $ 150,000 12% $440,000 Convertible Note Payable, net of unamortized discount of $0 and $0, respectively Due on Demand 29,000 79,000 12% $220,000 Convertible Note Payable, net of unamortized discount of $0 and $0, respectively Due on Demand 220,000 220,000 7% $213,333 Convertible Note Payable, net of unamortized discount of $0 and $0, respectively Due on Demand 244,802 244,802 8% $600,000 Related Party Note Payable, net of unamortized discount of $0 and $0 respectively Due on Demand 100,000 100,000 8% $50,000 Related Party Note Payable Due on Demand 7,817 7,817 5% Note Payable Due on Demand (1) 350,000 350,000 - - 3.75% SBA EIDL Note Payable April 30, 2050 470,756 478,067 Total notes payable 1,572,375 1,629,686 Less current portion of notes payable 1,101,619 1,144,108 Notes payable, net of current portion $ 470,756 $ 485,378

Stock Based Compensation (Table

Stock Based Compensation (Tables)	3 Months Ended
	Sep. 30, 2023
Stock Based Compensation
Schedule Of Fair Value Of Stock Options Granted	Expected option life (years) 2-4 Expected stock price volatility 227 to 258% Expected dividend yield - Risk-free interest rate 0.44 to 0.54%
Stock Option Activity	Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Price Aggregate Intrinsic Value Options: Outstanding at July 1, 2023 17,774,000 $ 0.06 Granted - $ 0.00 Exercised, converted - $ 0.00 Forfeited / exchanged / modification - $ 0.00 Outstanding at September 30, 2023 17,774,000 $ 0.06 0.5 $ - Exercisable at September 30, 2023 5,330,411 $ 0.11 2.0 Number of options available for grant at end of period 426,870
Schedule Of Nonvested Shares	Options Shares Weighted-Average Grant-Date Fair Value Nonvested at July 1, 2023 662,608 $ 0.11 Granted 0 $ 0.00 Vested - $ 0.00 Forfeited - $ 0.00 Nonvested at September 30, 2023 662,608 $ 0.11
Summary Of Warrant Outstanding	Warrants Remaining Number Outstanding Weighted Average Remaining Life (Years) Weighted Average Exercise Price Warrants A - Securities Purchase Agreement 28,072,364 0.75 $ 0.17 Total 28,072,364 Aggregate intrinsic value at September 30, 2023 $ 0

Description of Business (Detail

Description of Business (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Description of Business
Cash and cash equivalents	$ 202,931	$ 225,321	$ 445,721	$ 367,245
Accumulated deficit	(24,435,698)
Working capital deficit	(2,164,148)
Net loss	$ (398,598)	$ (209,972)

Fixed Assets and Intangible A_3

Fixed Assets and Intangible Assets (Details) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Fixed Assets and Intangible Assets
Software platform	$ 4,482,225	$ 4,482,225
Furniture and fixtures	1,500	1,500
Less accumulated amortization	(3,438,302)	(3,258,691)
Property and equipment, net	$ 1,043,922	$ 1,225,034

Fixed Assets and Intangible A_4

Fixed Assets and Intangible Assets (Details 1) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Fixed Assets and Intangible Assets
2024	$ 724,445
2025	319,478
Total Unamortized expense	$ 1,043,922	$ 1,225,034

Fixed Assets and Intangible A_5

Fixed Assets and Intangible Assets (Details Narrative) - USD ($)		3 Months Ended		12 Months Ended
	Nov. 06, 2018	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2020
Depreciation and amortization		$ 181,112	$ 181,111
GTI [Member] | Loyalty Software [Member]
Purchase of software consideration transferred or transferrable, shares issued	2,916,667
Purchase of software consideration paid in cash	$ 450,000
Purchase of software total consideration paid or payable	$ 3,010,000
Additional incentive shares				366,667
Additional incentive value				$ 262,500

Capital Stock and Equity Tran_2

Capital Stock and Equity Transactions (Details Narrative) - USD ($)		3 Months Ended
	Aug. 13, 2021	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2022	Oct. 13, 2021
Common stock, shares authorized (in shares)		700,000,000	700,000,000
Common stock, par value (in dollars per share)		$ 0.001	$ 0.001
Articles of Amendment	the Company filed Articles of Amendment to Amended and Restated Articles of Incorporation with the State of Nevada increasing the number of common shares from 150,000,000 to 700,000,000
Preferred stock, shares authorized (in shares)		10,000,000	10,000,000
Preferred stock, par value (in dollars per share)		$ 0.001	$ 0.001
Common stock shares issued		99,428,575	99,428,575
Vendor [Member]
Fair market value				$ 29,500
Common stock shares issued				600,000
Employees [Member]
Fair market value				$ 40,135
Common stock shares issued				698,735
Series A Preferred Stocks Member
Preferred stock, par value (in dollars per share)					$ 0.001
Preferred stock designated					$ 324,325
Description of voting right	Further the holders shall have no conversion rights and the holders shall have the right to vote in an amount equal to 600 votes per share of Series A Preferred Stock
Series B Preferred Stock [Member]
Aggeregate shares of common stock		7,567
Common stock shares issued upon conversion of preferred stock		1,120,064

Debt (Details)

Debt (Details) - USD ($)	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023
Total notes payable	$ 1,572,375	$ 1,629,686
Less current portion of notes payables	1,101,619	1,144,108
Notes payable, Non-current portion	470,756	478,067
Convertible Notes Payable One [Member]
Total notes payable	150,000	150,000
Debt unamortized discount	$ 0	0
Debt instrument interest rate	12%
Convertible Note Payable	$ 150,000
Debt instrument maturity date description	Due on Demand
Convertible Notes Payable Two [Member]
Total notes payable	$ 29,000	79,000
Debt unamortized discount	$ 0	0
Debt instrument interest rate	12%
Convertible Note Payable	$ 440,000
Debt instrument maturity date description	Due on Demand
Convertible Notes Payable Three [Member]
Total notes payable	$ 220,000	220,000
Debt unamortized discount	$ 0	0
Debt instrument interest rate	12%
Convertible Note Payable	$ 220,000
Debt instrument maturity date description	Due on Demand
Convertible Notes Payable Four [Member]
Total notes payable	$ 244,802	244,802
Debt unamortized discount	$ 0	0
Debt instrument interest rate	7%
Convertible Note Payable	$ 213,333
Debt instrument maturity date description	Due on Demand
Convertible Notes Payable Five [Member]
Total notes payable	$ 100,000	100,000
Debt unamortized discount	$ 0	0
Debt instrument interest rate	8%
Related Party Note Payable	$ 600,000
Debt instrument maturity date description	Due on Demand
Convertible Notes Payable Six [Member]
Total notes payable	$ 7,817	7,817
Debt instrument interest rate	8%
Related Party Note Payable	$ 50,000
Debt instrument maturity date description	Due on Demand
Convertible Notes Payable Seven[Member]
Total notes payable	$ 350,000	350,000
Debt instrument interest rate	5%
Debt instrument maturity date description	Due on Demand
Convertible Notes Payable Eight[Member]
Total notes payable	$ 470,756	$ 485,378
Debt instrument interest rate	3.75%
Debt instrument maturity date	Apr. 30, 2050

Debt (Details Narrative)

Debt (Details Narrative) - USD ($)	1 Months Ended				3 Months Ended		12 Months Ended
	Jul. 31, 2022	Apr. 30, 2020	Sep. 21, 2018	Feb. 28, 2018	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2022
Total unpaid principal balance								$ 376,657
Loan amount		$ 500,000
Weighted average interest rate					5.49%	6.47%
Accrued interest					$ 746,980	$ 603,639
Repayment of debt					57,311	108,333		402,000
Amortization of beneficial conversion feature								801,741
Debt Extinguishment								533,000
Remaining principal amount								90,125
Proceeds from issuance of common stock								$ 131,000
Interest expenses					37,624	$ 51,027
EIDL [Member]
Interest Rate		3.75%
Loan amount		$ 2,437
Promissory Note [Member] | Related Party [Member]
Maturity date							Dec. 01, 2020
Cash payments in exchange of promissory note							$ 565,000
Convertable promissory note							600,000
Promissory Note One [Member] | Related Party [Member]
Amount of unpaid principal and interest balance							12,732
Repayment of promissory note balance	$ 8,333						25,000
Investors [Member]
Amount of unpaid principal and interest balance					$ 269,402
Investors [Member] | 2018 [Member]
Convert the loan into shares of common stock					437,500
Investors [Member] | Promissory Note [Member]
Total unpaid principal balance					$ 251,392		147,322
Repaymnet of promissory note	$ 100,000						300,000
Debt instrument, exchange amount				$ 132,000
Promissory note face value							$ 50,000
Interest Rate			10%					7%
Note issued			$ 440,000	$ 150,000
Exchange for cash payment			$ 400,000
Increased in interest			12%		12%		12%
Discount on conversion common stock			20%
Warrant to purchase shares of common stock			200,000
Amortization of warrants			$ 125,723
Common stock price per share			$ 0.75					$ 0.075
Common stock purchase price per share			$ 0.70
Maturity date				Aug. 08, 2019
Original issue discount				$ 18,000
Investors [Member] | Several Promissory Notes [Member]
Amount of unpaid principal and interest balance					$ 345,611
Interest Rate			10%
Note issued			$ 440,000					$ 960,000
Exchange for cash payment			$ 400,000					$ 900,000
Increased in interest			12%					15%
Discount on conversion common stock			20%
Warrant to purchase shares of common stock			200,000
Amortization of warrants			$ 62,862
Common stock price per share			$ 0.75					$ 0.75
Common stock purchase price per share			$ 0.70
Beneficial Conversion Feature								$ 839,378
Debt default, description					In March 2020, $220,000 of the 2018 Notes have been fully extinguished and the remaining $220,000 is in default and payable upon demand
Investors [Member] | Promissory Note Two [Member]
Note Payable									$ 350,000

Stock Based Compensation (Detai

Stock Based Compensation (Details) - StockOptions [Member]	3 Months Ended
	Sep. 30, 2023
Minimum [Member]
Expected option life (years)	2 years
Expected stock price volatility	227%
Risk-free interest rate	0.44%
Maximum [Member]
Expected option life (years)	4 years
Expected stock price volatility	258%
Risk-free interest rate	0.54%

Stock Based Compensation (Det_2

Stock Based Compensation (Details 1) - Stock Option [Member]	3 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares
Beginning of year | shares	17,774,000
Outstanding ending balance | shares	17,774,000
Number of options exercisable at end of period | shares	5,330,411
Number of options available for grant at end of period | shares	426,870
Exercisable at beginning of period	$ 0.06
Weighted-average exercise price, granted	0
Weighted-average exercise price, forfeited / exchanged / modification	0
Weighted-average exercise price, end of period	0.06
Exercisable at end of period	$ 0.11
Weighted-Average Remaining Contractual Price, outstanding	6 months
Aggregate intrinsic values | $	$ 0
Weighted-average remaining contractual price, exercisable	2 years

Stock Based Compensation (Det_3

Stock Based Compensation (Details 2)	3 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares
Stock Based Compensation
Options, nonvested beginning balance | shares	662,608
Options, granted | shares	0
Options, vested | $	$ 0
Options, nonvested ending balance | shares	662,608
Weighted-average grant-date fair falue, nonvested beginning	$ 0.11
Weighted-average grant-date fair falue, granted	0
Weighted-average grant-date fair falue, vested	0
Weighted-average grant-date fair falue, forfeited	0
Weighted-average grant-date fair falue, nonvested ending	$ 0.11

Stock Based Compensation (Det_4

Stock Based Compensation (Details 3)	3 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares
Total	28,072,364
Aggregate Intrinsic Value | $	$ 0
Warrants A - Securities Purchase Agreement [Member]
Total	28,072,364
Weighted Average Remaining Life (Years)	9 months
Weighted Average Exercise Price | $ / shares	$ 0.17

Stock Based Compensation (Det_5

Stock Based Compensation (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2022	Jun. 30, 2023
Stock based compensation	$ 86,487	$ 122,449
StockOptions [Member]
Stock based compensation	$ 86,487
Unrecognized compensation expense				$ 241,713
Unvested stock options				13,450,170
Weighted average vesting period	1 year
StockOptions [Member] | Equity Incentive Plan 2017 [Member]
Description for shares issuable upon exercise of options	The number of shares authorized to be issued under the equity incentive plan was increased from 10,000,000 to 25,000,000 through consent of stockholders to amend and restate the equity incentive plan
Maximum [Member] | StockOptions [Member]
Average fair value of stock options granted	$ 0.14		$ 0.07
Maximum [Member] | StockOptions [Member] | Equity Incentive Plan 2017 [Member]
Options issued for purchase of common shares	20,000,000
Stock options exercisable period	4 years

Related Party Transactions (Det

Related Party Transactions (Details Narrative)	3 Months Ended
	Sep. 30, 2023 USD ($)
March 2020 [Member] | Chief Technology Officer [Member]
Interest rate	12%
Principal payment of debt	$ 42,183
Maturity date	Jan. 01, 2021
Convertible promissory note	$ 50,000
Chief Executive Officer [Member]
Interest rate	12%
Convertible promissory note	$ 600,000
Principal payment of debt	500,000
Cash payments in exchange of promissory note	$ 565,000
Maturity date	December 2020

Leases (Details Narrative)

Leases (Details Narrative)	3 Months Ended
	Sep. 30, 2023 USD ($)
Leases
Recognized lease expense, description	The Company will recognize lease expense on a monthly basis through the life of this lease
Recognized lease expense	$ 51,786
Lease term	12 months