Cover
Cover - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Sep. 27, 2022 | Dec. 31, 2021 | |
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Jun. 30, 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity File Number | 001-41447 | ||
Entity Registrant Name | NeoVolta, Inc. | ||
Entity Central Index Key | 0001748137 | ||
Entity Tax Identification Number | 82-5299263 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Address, Address Line One | 13651 Danielson Street | ||
Entity Address, Address Line Two | Suite A | ||
Entity Address, City or Town | Poway | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92064 | ||
City Area Code | (800) | ||
Local Phone Number | 364-5464 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Elected Not To Use the Extended Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 197,800 | ||
Entity Common Stock, Shares Outstanding | 32,770,368 | ||
Auditor Firm ID | 206 | ||
Auditor Name | MaloneBailey, LLP | ||
Auditor Location | Houston, Texas | ||
Common Stock, par value $0.001 per share | |||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | NEOV | ||
Security Exchange Name | NASDAQ | ||
Warrants, each warrant exercisable for one share of common stock | |||
Title of 12(b) Security | Warrants, each warrant exercisable for one share of common stock | ||
Trading Symbol | NEOVW | ||
Security Exchange Name | NASDAQ |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 330,385 | $ 425,681 |
Accounts receivable | 1,317,738 | 1,128,444 |
Inventory | 2,238,208 | 1,662,140 |
Prepaid insurance and other current assets | 239,001 | 45,926 |
Total current assets | 4,125,332 | 3,262,191 |
Total assets | 4,125,332 | 3,262,191 |
Current liabilities: | ||
Accounts payable | 205,600 | 53,510 |
Accrued interest payable | 53,436 | 3,918 |
Other accrued liabilities | 127,356 | 36,821 |
Convertible notes payable | 1,068,000 | |
Total current liabilities | 1,454,392 | 94,249 |
Convertible notes payable (net of unamortized discount of $-0- and $41,307 as of June 30, 2022 and 2021, respectively) | 53,716 | 19,308 |
Total liabilities | 1,508,108 | 113,557 |
Commitments and contingencies (Note 5) | ||
Stockholders' equity: | ||
Common stock, $0.001 par value, 100,000,000 shares authorized, 21,977,251 and 19,640,888 shares issued and outstanding | 21,978 | 19,641 |
Additional paid-in capital | 18,394,641 | 13,169,363 |
Accumulated deficit | (15,799,395) | (10,040,370) |
Total stockholders' equity | 2,617,224 | 3,148,634 |
Total liabilities and stockholders' equity | $ 4,125,332 | $ 3,262,191 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Debt Instrument, Unamortized Discount | $ 0 | $ 41,307 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 21,977,251 | 19,640,888 |
Common Stock, Shares, Outstanding | 21,977,251 | 19,640,888 |
Statement of Operations
Statement of Operations - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||
Revenues from contracts with customers | $ 4,473,514 | $ 4,823,510 |
Cost of goods sold | 3,806,381 | 4,175,795 |
Gross profit | 667,133 | 647,715 |
Operating expenses: | ||
General and administrative | 6,353,920 | 8,255,865 |
Research and development | 68,503 | 42,801 |
Total operating expenses | 6,422,423 | 8,298,666 |
Loss from operations | (5,755,290) | (7,650,951) |
Other income (expense): | ||
Interest expense | (49,544) | (24,521) |
Gain on forgiveness of debt | 0 | 29,600 |
Total other income (expense) | (49,544) | 5,079 |
Net loss | $ (5,804,834) | $ (7,645,872) |
Statement of Operations (Parent
Statement of Operations (Parenthetical) - $ / shares | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||
Weighted Average Number of Shares Outstanding, Basic | 20,554,985 | 17,889,327 |
Weighted Average Number of Shares Outstanding, Diluted | 20,554,985 | 17,889,327 |
Earnings Per Share, Basic | $ (0.28) | $ (0.43) |
Earnings Per Share, Diluted | $ (0.28) | $ (0.43) |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Jun. 30, 2020 | $ 14,422 | $ 5,714,482 | $ (2,394,498) | $ 3,334,406 |
Shares, Outstanding, Beginning Balance at Jun. 30, 2020 | 14,421,528 | |||
Issuance of common stock for conversion of debt and accrued interest | $ 3,605 | 19,106 | 22,711 | |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 3,604,830 | |||
Stock compensation expense | $ 1,614 | 7,435,775 | 7,437,389 | |
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 1,614,530 | |||
Net loss | (7,645,872) | (7,645,872) | ||
Ending balance, value at Jun. 30, 2021 | $ 19,641 | 13,169,363 | (10,040,370) | 3,148,634 |
Shares, Outstanding, Ending Balance at Jun. 30, 2021 | 19,640,888 | |||
Issuance of common stock for conversion of debt and accrued interest | $ 1,099 | 5,823 | 6,922 | |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 1,098,630 | |||
Stock compensation expense | $ 1,238 | 5,306,571 | 5,307,809 | |
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 1,237,733 | |||
Net loss | (5,804,834) | (5,804,834) | ||
Ending balance, value at Jun. 30, 2022 | $ 21,978 | $ 18,394,641 | $ (15,799,395) | $ 2,617,224 |
Shares, Outstanding, Ending Balance at Jun. 30, 2022 | 21,977,251 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (5,804,834) | $ (7,645,872) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Stock compensation expense | 5,307,809 | 7,437,389 |
Amortization of beneficial conversion feature | 0 | 21,780 |
Gain on forgiveness of debt | 0 | (29,600) |
Changes in current assets and liabilities | ||
Accounts receivable | (189,294) | (737,332) |
Inventory | (576,068) | (108,844) |
Prepaid expenses and other current assets | (193,075) | 104,089 |
Accounts payable - others | 152,090 | 49,850 |
Accrued expenses | 140,076 | 24,917 |
Net cash flows used in operating activities | (1,163,296) | (883,623) |
Cash flows from financing activities: | ||
Proceeds from convertible notes payable | 1,068,000 | 0 |
Net cash flows from financing activities | 1,068,000 | 0 |
Net decrease in cash and cash equivalents | (95,296) | (883,623) |
Cash and cash equivalents at beginning of period | 425,681 | 1,309,304 |
Cash and cash equivalents at end of period | 330,385 | 425,681 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 0 | 0 |
Cash paid for income taxes | 0 | 0 |
Supplemental non-cash financing activities: | ||
Convertible notes payable and accrued interest converted to common stock | 6,922 | 22,711 |
Adjustment of debt discount related to adoption of new accounting principle | $ 87,116 | $ 0 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Summary of Significant Accounting Policies | (1) Business and Summary of Significant Accounting Policies Description of Business Basis of Presentation Cash and Cash Equivalents 80,385 Inventory No Schedule of inventory June 30, 2022 2021 Raw materials $ 1,845,973 $ 1,245,945 Work in process 22,768 416,195 Finished goods 369,467 – Total $ 2,238,208 $ 1,662,140 Revenue Recognition · Identification of the contact with a customer · Identification of the performance obligations in the contract · Determination of the transaction price · Allocation of the transaction price to the performance obligations in the contract · Recognition of revenue when, or as, the Company satisfies a performance obligation The Company generates revenues from contracts with customers, consisting of a relatively small number of wholesale dealers and installers, primarily in California. In the year ended June 30, 2022, two such dealers represented approximately 20 18 15 13 10 33 54 Allowance for Doubtful Accounts no Income Taxes The Company accounts for uncertain tax positions in accordance with the provisions of Accounting Standards Codification (“ASC”) 740-10 which prescribes a recognition threshold and measurement attribute for financial statement disclosure of tax positions taken, or expected to be taken, on its tax return. The Company evaluates and records any uncertain tax positions based on the amount that management deems is more likely than not to be sustained upon examination and ultimate settlement with the tax authorities in the tax jurisdictions in which it operates. Stock Compensation Expense Loss Per Common Share 9,404,867 267,000 Research and Development Costs Use of Estimates Related Parties Fair Value Measurements and Financial Instruments The three levels of the fair value hierarchy are described below: Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 - Inputs that are both significant to the fair value measurement and unobservable. The carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include cash and cash equivalents, accounts receivable, accounts payable, and long-term debt. The carrying value of long-term debt approximates fair value since the related rate of interest approximates current market rates. At June 30, 2022 and 2021, the Company did no Recent Accounting Pronouncements Effective as of July 1, 2021, the Company early adopted the provisions of ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Liquidity 3,855,000 |
Notes Payable
Notes Payable | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Notes Payable | (2) Notes Payable On various dates beginning in May 2018, the Company entered into six unsecured convertible notes payable for aggregate proceeds of $104,688. Each note bears interest at 12% per annum and both principal and accrued interest are due at maturity five years from the date of issuance. These notes are convertible at any time, at the option of the holder, into shares of the Company’s common stock at a conversion price of $0.0063 per share. The Company performed an analysis to determine whether there was a beneficial conversion feature and noted none. The notes are structured to be converted into shares of the Company’s common stock at the conversion price, subject to a shareholder limitation of 4.99% of the Company’s outstanding common stock. This conversion feature resulted in the full repayment of the notes payable owed to two such note holders in conjunction with the closing of an IPO in May 2019 and left the four remaining note holders with a total outstanding principal balance of $87,116 (see Notes 3 and 7). Effective May 19, 2019, the remaining holders of the convertible notes payable agreed to prospectively amend the terms of the outstanding balance of their notes to reduce the interest rate from 12% per annum to 3.99% per annum and to change the interest accrual method from a compound to a simple basis. Due to this amendment, the Company was required to perform an updated debt modification analysis under ASC 470 and determined that the amendment qualified as an extinguishment of debt and therefore a beneficial conversion feature was required to be evaluated as of the date of the modification. Since the fair value of the Company’s common stock at the time of the amendment was sufficiently higher than the conversion price, it was determined that a beneficial conversion feature in the amount of $87,116 existed as of that date. Accordingly, the Company recorded a debt discount, offset by a credit to additional paid-in capital, in the amount of $87,116 as of May 19, 2019, and began amortizing the debt discount to interest expense over the remaining term of the notes. As of July 1, 2021, the Company adopted a new accounting standard for convertible debt by reversing the previously recorded cumulative amortization expense of $45,809 and the remaining unamortized balance of the debt discount of $41,307, with an offsetting adjustment to reduce additional paid-in capital, in the amount of $87,116 (see Note 1). In the years ended June 30, 2022 and 2021, holders of certain convertible notes payable elected to convert portions of their notes, consisting of both principal and accrued interest, in the aggregate amounts of $ 6,922 22,711 1,098,630 3,604,830 On October 18, 2021, the Company completed a new convertible debt offering with a group of accredited investors via the issuance of notes in the total amount of $ 1,068,000 6 see Note 7 . As of June 30, 2022, the future maturities of all notes payable are as follows (see Note 7): Schedule of future maturities of long-term debt Year ending June 30, 2023 $ 1,068,000 Year ending June 30, 2024 53,716 Total long-term debt $ 1,121,716 As a result of the economic impact of the coronavirus pandemic in early 2020, the Company applied for and received a loan under the U.S. government sponsored Paycheck Protection Program (“PPP”) in May 2020 in the amount of $29,600. Under the terms of the PPP loan, the Company was allowed to apply to have the PPP loan forgiven provided that it met certain documentation requirements. The Company made such an application in late 2020 and the loan was subsequently forgiven in full, effective February 26, 2021. Accordingly, the Company recognized a gain on the forgiveness of debt for the year ended June 30, 2021 in the amount of $ 29,600 |
Equity
Equity | 12 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Equity | (3) Equity Common Stock 6,922 22,711 1,098,630 3,604,830 Stock Compensation Expense 700,000 700,000 In June 2020, the Company entered into new Board approved employment contracts with the Company’s two executive officers and also entered into a related contractor agreement with a company controlled by the Company’s CEO. Pursuant to such contracts, the company controlled by the Company’s CEO and the Company’s Chief Financial Officer, in his individual capacity, met the necessary milestones to earn a total of 1,600,000 incentive shares of common stock, with a fair value of $6,976,000, as of December 31, 2020. These shares, plus another 14,530 incentive shares earned by a wholesale dealer (see Note 5), were issued in February 2021. In the year ended June 30, 2021, the Company recognized non-cash stock compensation expense for the fair value of such shares, along with the final amortization expense attributable to shares previously granted to the marketing consultant, in the total amount of $ 7,437,389 Pursuant to the above noted contract with a company controlled by the Company’s CEO, such company met the necessary milestones to earn a total of an additional 500,000 incentive shares of common stock as of December 31, 2021, with a then current value of $3,505,000. These shares, plus another 500,000 incentive shares previously earned by that company, were issued in the quarter ended March 31, 2022, at which time the agreement with the company controlled by the Company’s CEO was terminated and the CEO entered into a new employment agreement, as described in the following paragraph. In the year ended June 30, 2022, the Company issued a total of 1,237,733 5,307,809 In February 2022, we entered into a new employment agreement with our CEO, effective April 1, 2022. The initial term of the employment agreement is one year and is automatically renewable for additional one-year terms unless either party chooses not to renew the agreement. The agreement provides for an initial annual salary of $165,000. Pursuant to the agreement, we issued our CEO a restricted stock unit (“RSU”) award for up to 150,000 shares of our common stock upon achieving the following milestones (which achievements shall be determined by the Board): (i) Milestone 1 - Successfully complete an uplisting of our common stock in 2022 and continue his employment with our company until January 1, 2023: 50,000 shares; and (ii) Milestone 2 - Produce 2,000 ESSs in 2022 and continue his employment with our company until January 1, 2023: 100,000 shares. In February 2022, we entered into a new employment agreement with our Chief Financial Officer (“CFO”), effective March 1, 2022. The initial term of the employment agreement is one year and is automatically renewable for additional one-year terms unless either party chooses not to renew the agreement. The agreement provides for an initial annual salary of $125,000. Pursuant to the agreement, we issued our CFO an RSU award for up to 300,000 shares of our common stock upon achieving the following milestones (which achievements shall be determined by the Board): (i) Milestone 1 - Successfully complete an uplisting of our common stock in 2022 and continue his employment with our company until January 1, 2023: 250,000 shares; and (ii) Milestone 2 - successfully complete and file the Company’s Form 10-K for the year ended June 30, 2023 no later than September 29, 2023 and continue his employment with our company until January 1, 2024: 50,000 shares. Based upon the Company’s assessment of the probability of the CEO and CFO ultimately achieving each milestone specified under the RSU awards indicated above, the Company has calculated the grant date value of such awards and is amortizing it as stock compensation expense over the underlying performance periods. As previously indicated, the Company has recognized stock compensation expense applicable to such RSU awards in the amount of $773,255 for the year ended June 30, 2022. Other Matters 2,500,000 450,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (4) Income Taxes The Company is subject to United States federal income taxes at an approximate rate of 21%. The reconciliation of the provision for income taxes at the federal statutory rate, compared to the Company’s income tax expense as reported, is as follows (rounded to nearest $00): Schedule of income tax expense Year Ended June 30, 2022 2021 Income tax benefit computed at statutory rate $ 104,400 $ 39,200 Change in valuation allowance (104,400 ) (39,200 ) Provision for income taxes $ – $ – Significant components of the Company’s deferred tax assets at the currently enacted corporate income tax rate are as follows (rounded to nearest $00): Schedule of deferred taxes June 30, 2022 June 30, 2021 Deferred income tax assets: Net operating losses $ 414,600 $ 310,200 Valuation allowance (414,600 ) (310,200 ) Net deferred income tax assets $ – $ – The Company has a cumulative tax operating loss carry forward as of June 30, 2022 of approximately $ 1,974,000 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (5) Commitments and Contingencies Effective January 1, 2021, the Company secured new corporate and manufacturing office space under a sublease agreement with its contract manufacturer (see Note 6). Under the terms of the sublease agreement, the Company is required to make rental payments of $10,350 per month during the initial one-year term of the agreement. The sublease agreement is renewable upon mutual agreement of both parties for up to four additional years at a modest increase in the monthly rent, however, the Company is under is no obligation to renew it. Management has determined that the exercise of the renewal option is not reasonably certain and, as such, the Company has accounted for it as a short-term lease under ASC 842, Leases As indicated in Note 1, the Company sells its proprietary ESS units through wholesale dealers, primarily in California. In that regard, the Company has entered into agreements with several wholesale dealers operating in California and other states under which the Company has incentivized the dealers to achieve quarterly sales above targeted levels by agreeing to grant them shares of the Company’s common stock for exceeding such quarterly sales targets, subject to defined maximums. Pursuant to such agreements, one dealer met the necessary milestones to earn 14,530 incentive shares of common stock in December 2020, which were issued in February 2021, and also earned another 8,568 incentive shares of common stock in December 2021, which were issued in March 2022. From time to time in the ordinary course of our business, the Company may be involved in legal proceedings, the outcomes of which may not be determinable. The Company is not involved in any legal proceedings at this time. The results of litigation are inherently unpredictable. Any claims against us, whether meritorious or not, could be time consuming, result in costly litigation, require significant amounts of management time and result in diversion of significant resources. We are not able to estimate an aggregate amount or range of reasonably possible losses for those legal matters for which losses are not probable and estimable. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (6) Related Party Transactions An executive officer of the corporate parent company of our contract manufacturer (see Note 5) was nominated to become a director of the Company in January 2022 and his appointment became effective upon our completion of a public offering in August 2022 (see Note 7). Pursuant to an agreement that we reached with our contract manufacturer prior to such nomination and appointment, we made payments to that company to assemble our energy storage systems during the year ended June 30, 2022 in the total amount of $ 857,025 126,000 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | (7) Subsequent Events On August 1, 2022, the Company completed an underwritten public offering of its equity securities in the form of Units with each Unit consisting of one share of common stock and one warrant (each, a “Warrant” and collectively, the “Warrants”) to purchase one share of common stock at an exercise price of $4.00 per share. The shares of common stock and the Warrants comprising the Units were immediately separated at closing of the offering and each is now independently listed on the NASDAQ Capital Market. Each Warrant became exercisable on the date of issuance and will expire five years from the date of issuance. At the initial closing, a total of 975,000 Units were sold in the offering at an offering price to the public of $4.00 per Unit. The gross proceeds of the offering were $3,900,000 and the net proceeds, after deduction of underwriting discounts and other offering costs were approximately $3,315,000. The Company granted the underwriter a 45-day option to purchase up to an additional 146,250 shares of common stock and/or 146,250 additional Warrants solely to cover any overallotments at the public offering price, less underwriting discounts and commissions. As of August 5, 2022, the underwriters had elected to exercise such option on both the common stock and Warrants resulting in additional net proceeds to the Company of approximately $540,000. The Company also granted the underwriter non-tradeable warrants to purchase a total of 58,500 shares of common stock at an exercise price of $4.40 per share for a period of five years. In conjunction with the public offering, all holders of the Company’s 2018 convertible notes in the total amount of $53,716 converted their debt into a total of 9,404,867 shares of common stock at the stated conversion rate, and all holders of the Company’s 2021 convertible notes in the total amount of $1,068,000 converted their debt into a total of 267,000 shares of common stock at the stated conversion rate (see Note 2). As a result of the closing of the public offering and the conversion of both sets of convertible notes, the Company has a total of 32,770,368 shares of common stock outstanding and has fully eliminated its convertible debt. |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business |
Basis of Presentation | Basis of Presentation |
Cash and Cash Equivalents | Cash and Cash Equivalents 80,385 |
Inventory | Inventory No Schedule of inventory June 30, 2022 2021 Raw materials $ 1,845,973 $ 1,245,945 Work in process 22,768 416,195 Finished goods 369,467 – Total $ 2,238,208 $ 1,662,140 |
Revenue Recognition | Revenue Recognition · Identification of the contact with a customer · Identification of the performance obligations in the contract · Determination of the transaction price · Allocation of the transaction price to the performance obligations in the contract · Recognition of revenue when, or as, the Company satisfies a performance obligation The Company generates revenues from contracts with customers, consisting of a relatively small number of wholesale dealers and installers, primarily in California. In the year ended June 30, 2022, two such dealers represented approximately 20 18 15 13 10 33 54 |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts no |
Income Taxes | Income Taxes The Company accounts for uncertain tax positions in accordance with the provisions of Accounting Standards Codification (“ASC”) 740-10 which prescribes a recognition threshold and measurement attribute for financial statement disclosure of tax positions taken, or expected to be taken, on its tax return. The Company evaluates and records any uncertain tax positions based on the amount that management deems is more likely than not to be sustained upon examination and ultimate settlement with the tax authorities in the tax jurisdictions in which it operates. |
Stock Compensation Expense | Stock Compensation Expense |
Loss Per Common Share | Loss Per Common Share 9,404,867 267,000 |
Research and Development Costs | Research and Development Costs |
Use of Estimates | Use of Estimates |
Related Parties | Related Parties |
Fair Value Measurements and Financial Instruments | Fair Value Measurements and Financial Instruments The three levels of the fair value hierarchy are described below: Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 - Inputs that are both significant to the fair value measurement and unobservable. The carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include cash and cash equivalents, accounts receivable, accounts payable, and long-term debt. The carrying value of long-term debt approximates fair value since the related rate of interest approximates current market rates. At June 30, 2022 and 2021, the Company did no |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Effective as of July 1, 2021, the Company early adopted the provisions of ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
Liquidity | Liquidity 3,855,000 |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of inventory | Schedule of inventory June 30, 2022 2021 Raw materials $ 1,845,973 $ 1,245,945 Work in process 22,768 416,195 Finished goods 369,467 – Total $ 2,238,208 $ 1,662,140 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of future maturities of long-term debt | Schedule of future maturities of long-term debt Year ending June 30, 2023 $ 1,068,000 Year ending June 30, 2024 53,716 Total long-term debt $ 1,121,716 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense | Schedule of income tax expense Year Ended June 30, 2022 2021 Income tax benefit computed at statutory rate $ 104,400 $ 39,200 Change in valuation allowance (104,400 ) (39,200 ) Provision for income taxes $ – $ – |
Schedule of deferred taxes | Schedule of deferred taxes June 30, 2022 June 30, 2021 Deferred income tax assets: Net operating losses $ 414,600 $ 310,200 Valuation allowance (414,600 ) (310,200 ) Net deferred income tax assets $ – $ – |
Inventory (Details)
Inventory (Details) - USD ($) | 2 Months Ended | 12 Months Ended | |
Aug. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Raw materials | $ 1,845,973 | $ 1,245,945 | |
Work in process | 22,768 | 416,195 | |
Finished goods | 369,467 | 0 | |
Total | 2,238,208 | $ 1,662,140 | |
Accounts Receivable, Allowance for Credit Loss | $ 0 | ||
Public Offering [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Proceeds from Issuance or Sale of Equity | $ 3,855,000 | ||
Convertible Notes May 2018 [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 9,404,867 | ||
Convertible Notes October 2021 [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 267,000 |
Business and Summary of Signi_4
Business and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Product Information [Line Items] | ||
Cash, Uninsured Amount | $ 80,385 | |
Inventory Valuation Reserves | 0 | |
Assets, Fair Value Disclosure | 0 | |
Liabilities, Fair Value Disclosure | $ 0 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Dealer [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 20% | 18% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Another Dealer [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 20% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Dealer Two [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 15% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Dealer Three [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 13% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Dealer Four [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 10% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Dealer [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 33% | 54% |
Notes Payable (Details - Maturi
Notes Payable (Details - Maturities of debt) | Jun. 30, 2022 USD ($) |
Debt Disclosure [Abstract] | |
Year ending June 30, 2023 | $ 1,068,000 |
Year ending June 30, 2024 | 53,716 |
Total long-term debt | $ 1,121,716 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | 12 Months Ended | ||
Oct. 18, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | |||
Debt Conversion, Converted Instrument, Amount | $ 6,922 | $ 22,711 | |
Debt Conversion, Converted Instrument, Shares Issued | 1,098,630 | 3,604,830 | |
Proceeds from Convertible Debt | $ 1,068,000 | $ 0 | |
Gain (Loss) on Extinguishment of Debt | $ 0 | 29,600 | |
PPP Loan [Member] | |||
Debt Instrument [Line Items] | |||
Gain (Loss) on Extinguishment of Debt | $ 29,600 | ||
Convertible Debt [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from Convertible Debt | $ 1,068,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 600% |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Jun. 30, 2022 | Jun. 30, 2021 | Feb. 28, 2019 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Debt Conversion, Converted Instrument, Amount | $ 6,922 | $ 22,711 | ||
[custom:DebtConversionConvertedInstrumentShares1] | 1,098,630 | 3,604,830 | ||
Share-Based Payment Arrangement, Noncash Expense | $ 5,307,809 | $ 7,437,389 | ||
2019 Stock Option Plan [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | 2,500,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 450,000 | |||
Chief Executive Officer And Marketing Consultant [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Shares Issued, Shares, Share-Based Payment Arrangement, before Forfeiture | 700,000 | |||
Shares Issued, Value, Share-Based Payment Arrangement, before Forfeiture | $ 700,000 | |||
All Grantees [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Shares Issued, Value, Share-Based Payment Arrangement, before Forfeiture | $ 1,237,733 | |||
Share-Based Payment Arrangement, Noncash Expense | $ 5,307,809 |
Income Taxes (Details - Income
Income Taxes (Details - Income tax expense) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit computed at statutory rate | $ 104,400 | $ 39,200 |
Change in valuation allowance | (104,400) | (39,200) |
Provision for income taxes | $ 0 | $ 0 |
Income Taxes (Details - Deferre
Income Taxes (Details - Deferred taxes) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Deferred income tax assets: | ||
Net operating losses | $ 414,600 | $ 310,200 |
Valuation allowance | (414,600) | (310,200) |
Net deferred income tax assets | $ 0 | $ 0 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | Jun. 30, 2022 USD ($) |
Income Tax Disclosure [Abstract] | |
Operating Loss Carryforwards | $ 1,974,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Director [Member] | |
Related Party Transaction [Line Items] | |
Operating Lease, Expense | $ 126,000 |
Director [Member] | |
Related Party Transaction [Line Items] | |
Cost of Revenue | $ 857,025 |