Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2023 | May 22, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | Hawkeye Systems, Inc. | |
Entity Central Index Key | 0001750777 | |
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 | No | |
Document Period End Date | Mar. 31, 2023 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Entity Ex Transition Period | true | |
Entity Common Stock Shares Outstanding | 5,477,222 | |
Document Quarterly Report | true | |
Entity File Number | 000-56332 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 83-0799093 | |
Entity Interactive Data Current | No | |
Entity Address Address Line 1 | 6605 Abercorn | |
Entity Address Address Line 2 | Suite 204 | |
Entity Address City Or Town | Savannah | |
Entity Address State Or Province | GA | |
Entity Address Postal Zip Code | 31405 | |
City Area Code | 912 | |
Local Phone Number | 253-0375 | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Current assets: | ||
Cash | $ 499,690 | $ 325 |
Accounts receivable | 5,000 | 0 |
Prepaid expenses | 5,925 | 1,333 |
Interest receivable | 10,521 | 0 |
Loan receivable | 200,000 | 0 |
Total current assets | 721,136 | 1,658 |
Total assets | 721,136 | 1,658 |
Current liabilities: | ||
Accounts payable - related party | 672,573 | 163,687 |
Accounts payable | 16,384 | 7,637 |
Accrued liabilities - related party | 30,218 | 22,322 |
Accrued interest - related party | 217,835 | 79,946 |
Convertible note payable - related party | 500,000 | 500,000 |
Line of credit - related party | 525,000 | 265,000 |
Promissory Loan Payable - related party | 700,000 | 0 |
Common stock payable - related party | 30,000 | 624,344 |
Total current liabilities | 2,692,010 | 1,662,936 |
Loan payable to Eagle - JV partner | 442,251 | 442,251 |
Total liabilities | 3,134,261 | 2,105,187 |
Stockholders' deficit: | ||
Preferred stock, $0.0001 par value, 50,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $0.0001 par value, 400,000,000 shares authorized; 4,227,222 and 2,560,416 shares issued and outstanding, respectively (see Note 13) | 423 | 256 |
Additional paid-in capital | 9,377,727 | 8,778,391 |
Accumulated deficit | (11,791,275) | (10,882,176) |
Total stockholders' deficit | (2,413,125) | (2,103,529) |
Total liabilities and stockholders' deficit | $ 721,136 | $ 1,658 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Jun. 30, 2022 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, shares par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 4,227,222 | 2,560,416 |
Common stock, shares outstanding | 4,227,222 | 2,560,416 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||
Sales | $ 0 | $ 0 | $ 0 | $ 0 |
Operating expenses: | ||||
General and administrative | 19,136 | 13,627 | 68,102 | 127,670 |
Management compensation | 111,250 | 124,167 | 333,802 | 520,906 |
Professional fees | 12,538 | 10,837 | 92,413 | 49,971 |
Professional fees - related party | 250,000 | 15,500 | 292,415 | 167,758 |
Marketing | 0 | 3,118 | 0 | 5,813 |
Total operating expenses | 392,924 | 167,249 | 786,732 | 872,118 |
Loss from operations | (392,924) | (167,249) | (786,732) | (872,118) |
Other income and expense: | ||||
Other income | 5,000 | 0 | 5,000 | 0 |
PPP loan forgiveness | 0 | 17,139 | 0 | 17,139 |
Interest income (expense) | 10,521 | 0 | 10,521 | 85 |
Interest expense - related party | (50,308) | (43,799) | (137,888) | (107,602) |
Total other expense | (34,787) | (26,660) | (122,367) | (90,548) |
Net loss | $ (427,711) | $ (193,909) | $ (909,099) | $ (962,666) |
Net loss per common share - basic and diluted | $ (0.10) | $ (0.08) | $ (0.22) | $ (0.43) |
Weighted average common shares outstanding - basic and diluted (1) | 4,227,142 | 2,560,416 | 4,062,935 | 2,229,896 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (DEFICIT) (Unaudited) - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance, shares at Jun. 30, 2021 | 1,792,115 | |||
Balance, amount at Jun. 30, 2021 | $ (1,754,860) | $ 179 | $ 7,958,622 | $ (9,713,661) |
Common stock issued for settlement of debt, shares | 30,000 | |||
Common stock issued for settlement of debt, amount | 30,000 | $ 3 | 29,997 | 0 |
Stock based compensation - options | 73,994 | 0 | 73,994 | 0 |
Net loss | (311,355) | $ 0 | 0 | (311,355) |
Balance, shares at Sep. 30, 2021 | 1,822,115 | |||
Balance, amount at Sep. 30, 2021 | (1,962,221) | $ 182 | 8,062,613 | (10,025,016) |
Stock based compensation - options | 284,727 | 0 | 284,727 | 0 |
Net loss | (486,842) | $ 0 | 0 | (486,842) |
Common shares issued for stock payable, shares | 110,800 | |||
Common shares issued for stock payable, amount | 277,000 | $ 11 | 276,989 | 0 |
Cumulative-effect adjustment from adoption of ASU 2020-06 | (19,627) | $ 0 | (169,354) | 0 |
Stock option cashless exercised, shares | 603,501 | |||
Stock option cashless exercised, amount | 0 | $ 61 | (61) | 0 |
Balance, shares at Dec. 31, 2021 | 2,536,416 | |||
Balance, amount at Dec. 31, 2021 | (1,906,963) | $ 254 | 8,452,632 | (10,362,131) |
Stock based compensation - options | 5,158 | 0 | 5,158 | 0 |
Net loss | (194,784) | $ 0 | 0 | (194,784) |
Stock option cashless exercised, shares | 24,000 | |||
Stock option cashless exercised, amount | 24 | $ 2 | 22 | 0 |
Balance, shares at Mar. 31, 2022 | 2,560,416 | |||
Balance, amount at Mar. 31, 2022 | (2,096,565) | $ 256 | 8,609,821 | (10,706,642) |
Balance, shares at Jun. 30, 2022 | 2,560,416 | |||
Balance, amount at Jun. 30, 2022 | (2,103,529) | $ 256 | 8,778,391 | (10,882,176) |
Stock based compensation - options | 5,159 | 0 | 5,159 | 0 |
Net loss | (215,096) | $ 0 | 0 | (215,096) |
Common stock issued for common stock payable, shares | 1,666,667 | |||
Common stock issued for common stock payable, amount | 594,344 | $ 167 | 594,177 | 0 |
Balance, shares at Sep. 30, 2022 | 4,227,083 | |||
Balance, amount at Sep. 30, 2022 | (1,719,122) | $ 423 | 9,377,727 | (11,097,272) |
Balance, shares at Jun. 30, 2022 | 2,560,416 | |||
Balance, amount at Jun. 30, 2022 | (2,103,529) | $ 256 | 8,778,391 | (10,882,176) |
Net loss | (909,099) | |||
Balance, shares at Mar. 31, 2023 | 4,227,222 | |||
Balance, amount at Mar. 31, 2023 | (2,413,125) | $ 423 | 9,377,727 | (11,791,275) |
Balance, shares at Sep. 30, 2022 | 4,227,083 | |||
Balance, amount at Sep. 30, 2022 | (1,719,122) | $ 423 | 9,377,727 | (11,097,272) |
Net loss | (266,292) | $ 0 | 0 | (266,292) |
Balance, shares at Dec. 31, 2022 | 4,227,083 | |||
Balance, amount at Dec. 31, 2022 | (1,985,414) | $ 423 | 9,377,727 | (11,363,564) |
Net loss | (427,711) | $ 0 | 0 | (427,711) |
Shares issued for rounding to reflect the 1 for 10 reverse stock split, shares | 139 | |||
Shares issued for rounding to reflect the 1 for 10 reverse stock split, amount | 0 | $ 0 | 0 | 0 |
Balance, shares at Mar. 31, 2023 | 4,227,222 | |||
Balance, amount at Mar. 31, 2023 | $ (2,413,125) | $ 423 | $ 9,377,727 | $ (11,791,275) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (909,099) | $ (962,666) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
PPP loan forgivenes | 0 | (17,139) |
Stock based compensation - options and warrant | 5,159 | 363,879 |
Change in operating assets and liabilities: | ||
Accounts receivable | (5,000) | 0 |
Prepaid expense | (4,592) | (1,833) |
Interest receivable | (10,521) | 0 |
Accounts payable and accrued liabilities | 8,747 | 51,475 |
Accounts payable and accrued liabilities - related party | 516,782 | 83,160 |
Accrued interest - related party | 137,889 | 44,710 |
Net cash used in operating activities | (260,635) | (438,414) |
Cash flows from investing activities: | ||
Note receivable from CNTNR | (200,000) | 0 |
Net cash used in investing activities | (200,000) | 0 |
Cash flows from financing activities: | ||
Net proceeds from line of credit - related party | 260,000 | 0 |
Net proceeds from promissory note - related party | 700,000 | 0 |
Net proceeds from convertible note - related party | 0 | 175,000 |
Net cash provided by financing activities | 960,000 | 175,000 |
Net change in cash | 499,365 | (263,414) |
Cash beginning of period | 325 | 282,131 |
Cash end of period | 499,690 | 18,717 |
Supplemental cash flow information | ||
Cash paid for interest | 0 | 0 |
Cash paid for taxes | 0 | 0 |
Non-cash investing and financing activities: | ||
Common stock issued exchanged for common stock payable - related party | 594,344 | 0 |
Common stock issued exchanged for common stock payable | 0 | 277,000 |
Replacement of Inventory financing payable to convertible note | 0 | 500,000 |
Common stock issued for settlement of debt | 0 | 30,000 |
Stock option cashless exercised | $ 0 | $ 627 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1 - Summary of Significant Accounting Policies Business Overview Hawkeye Systems, Inc. (the “Company”), a Nevada corporation incorporated on May 15, 2018. Our previous focus was on pandemic management products and services. We are currently seeking opportunities while actively trying to liquidate mask inventory and wind-up existing deals. The Company is currently looking for investment opportunities in diversified industries, such as affordable housing development, and technology applications to mitigate the effects of climate change. From inception until the date of this filing our activities have primarily consisted of (i) liquidating our stock of personal protective equipment (“PPE”) products, (ii) the development of our business plan and the evaluation of strategic investment and business development strategies, including the execution of letters of intent and the provision of funding to a few selected target companies, and (iii) recruiting and adding additional consultants and employees. Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the unaudited condensed consolidated financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K, for the year ended June 30, 2022, as filed with the SEC on December 14, 2022. Use of estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. Significant estimates in the accompanying financial statements include useful lives of property and equipment, fair value assumptions used for stock-based compensation, valuation of beneficial conversion feature on convertible notes and the valuation allowance on deferred tax assets. Accounts receivable and allowance for doubtful accounts Accounts receivable consist of balances due from other income in the current quarter ended March 31, 2023, compared to no accounts receivable for the same period in 2022. As the historical trends in collectability is not available to derive an appropriate estimated allowance, the allowance for doubtful accounts was $0 as of March 31, 2023. Fair value measurements When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. The Company has no assets or liabilities that are adjusted to fair value on a recurring basis. Revenue recognition As of March 31, 2023, the Company has generated revenues of $5,000 in consulting fees for an agreement with CNTNR. In the year ended June 30, 2022, the Company had no revenues. The revenue was recorded under other income. The consultant fees are payable on a monthly basis commencing March 1, 2023, pursuant to the agreement discussed in detail in Note 10 - Notes Receivable. The Company measures revenue within the scope of ASC 606 by applying 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 Company satisfies a performance obligation. At contract inception, the Company assesses the goods or services promised within each contract that falls under the scope of ASC 606, determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied. The application of these five steps necessitates the development of assumptions that require judgment. The Company records revenue based upon the consideration specified in the client arrangement, and revenue is recognized when the performance obligations in the client arrangement are satisfied. Cost of sales As of March 31, 2023, and 2022, the Company had no Cost of Sales. Basic and diluted earnings per share Basic earnings per share are calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share are calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including stock options, warrants to purchase the Company’s common stock, and convertible note payable with accrued interest. For the nine months ended March 31, 2023, and 2022, potentially dilutive common stock equivalents were excluded from the calculation of diluted earnings per share because they were anti-dilutive as follows: March 31, March 31, 2023 2022 Warrants 239,400 249,400 Options 425,600 100,600 Convertible notes 6,208,130 3,575,000 Common stock payable 75,000 - Total possible dilutive shares (See note 13) 6,948,129 3,925,000 The shares above have been adjusted to reflect a 1-for-10 reverse stock split that became effective on February 9, 2023. See further discussion on Note 13 – stock reverse split. Recent Accounting Pronouncements Management has considered all recent accounting pronouncements issued and their potential effect on our financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s unaudited condensed consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt-Debt with Conversion and Other Options” and ASC subtopic 815-40 “Hedging-Contracts in Entity’s Own Equity”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting; and, (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We early adopted this standard effective July 1, 2021 using the modified retrospective approach transition method. Therefore, the condensed financial statements for the nine months ended March 31, 2023 are presented under the new standard, while the comparative period presented is not adjusted and continues to be reported in accordance with the Company’s historical accounting policy. |
Going Concern
Going Concern | 9 Months Ended |
Mar. 31, 2023 | |
Going Concern | |
Going Concern | Note 2 - Going Concern The Company’s unaudited condensed consolidated financial statements are prepared using GAAP, applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. During the nine months ended March 31, 2023, the Company had a net loss of $909,099. As of March 31, 2023, the Company had an accumulated deficit of $11,791,275. The Company has not established sufficient revenue to cover its operating costs and will require additional capital to continue its operating plan. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. These factors raise substantial doubt about its ability to continue as a going concern. In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan to obtain such resources for the Company includes: sales of equity instruments; traditional financing, such as loans; and obtaining capital from management and significant stockholders sufficient to meet its minimum operating expenses. However, management cannot provide any assurance that the Company will be successful in accomplishing this plan. There is no assurance that the Company will be able to obtain sufficient additional funds when needed or that such funds, if available, will be obtainable on terms satisfactory to the Company. In addition, profitability will ultimately depend upon the level of revenues received from business operations. However, there is no assurance that the Company will attain profitability. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
Restatement of Financial Statem
Restatement of Financial Statements for the Quarter End March 31, 2022 | 9 Months Ended |
Mar. 31, 2023 | |
Restatement of Financial Statements for the Quarter End March 31, 2022 | |
Restatement of Financial Statements for the Quarter End March 31, 2022 | Note 3 – Restatement of Financial Statements for the Quarter End March 31, 2022 On July 17, 2020, the Company entered into a membership agreement with Eagle Equities LLC (“Eagle”) and Ikon Supplies (“Ikon”) to form a Nevada Limited Liability Company, HIE, LLC (“HIE”) for the purpose of procuring, funding the purchase of and sale of PPE (the “Membership Agreement”). Subject to the provision of the Agreement, the interest of any net profits would be shared in a ratio of 33.3% among each member. Upon the occurrence of any loss in some or all of the HIE’s capital, all members would be responsible to contribute capital to repay the loan, and additional contribution, with each party being responsible for 33.3% of the loss. Restatement Effect on Financial Statements The Company did not receive any updates of the fiscal year 2021 financial statements from HIE until October, 2022. For the fiscal year ended June 30, 2021, HIE had a loan balance of $2,122,963 secured by Eagle, of which the Company has recognized 1/3 amounting to $707,654 as a guarantee of loan payable to Eagle - JV partner, the same amount as investment in HIE, as stipulated in the Membership Agreement. In addition, HIE incurred an operating loss of $1,385,962, which resulted in the Company recording 1/3 of its loss of $461,987 under other expenses on the statement of income to offset the investment in HIE as under equity method in accordance with FASB ASC 323. As of March 31, 2022, the balance of investment in HIE was $245,667 and the balance of loan payable to Eagle - JV partner was $707,654. Since there were no operating activities or financial movement between July 1, 2021 to March 31, 2022, the investment in HIE and the loan payable to Eagle - JV partner are the same as of June 30, 2021. Effects on the previously issued year 2021 balance sheet referencing the restatement of asset, liability and equity are as follows: Balance Sheet at March 31, 2022: Originally Reported Restatement Adjustment As Restated ASSETS Current assets: Cash $ 18,717 $ - $ 18,717 Prepaid expenses 4,833 - 4,833 Total current assets 23,550 - 23,550 Investment in HIE - 245,667 245,667 Total assets $ 23,550 $ 245,667 $ 269,217 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current liabilities: Accounts payable and accrued liabilities $ 282,277 $ - $ 282,277 Convertible note payable, net of discount - related party 1,175,000 - 1,175,000 Common stock payable - related party 200,000 - 200,000 Total current liabilities 1,657,277 - 1,657,277 Long-term liabilities: Loan payable due to Eagle - JV partner - 707,654 707,654 PPP loan - - - Total liabilities 1,657,277 707,654 2,364,931 Stockholders’ deficit: Preferred stock, $0.0001 par value, 50,000,000 shares authorized; no shares issued or outstanding - - - Common stock, $0.0001 par value, 400,000,000 shares authorized; 2,560,416, and 2,560,416 shares issued and outstanding, respectively 256 - 256 Additional paid-in capital 8,460,070 - 8,460,070 Accumulated deficit (10,094,053 ) (461,987 ) (10,556,040 ) Total stockholders’ equity deficit (1,633,727 ) (461,987 ) (2,095,714 ) Total liabilities and stockholders’ deficit $ 23,550 $ $ 269,217 Since there were no operating activities between July 01, 2021 to March 31, 2022, the previously issued March 31, 2022 Statement of Operations has not changed. |
Joint Venture Investment in HIE
Joint Venture Investment in HIE LLC | 9 Months Ended |
Mar. 31, 2023 | |
Joint Venture Investment in HIE LLC | |
Joint Venture Investment in HIE LLC | Note 4 – Joint Venture Investment in HIE LLC On July 17, 2020, the Company entered into a membership agreement with Eagle Equities LLC (“Eagle”) and Ikon Supplies (“Ikon”) to form a Nevada Limited Liability Company, HIE, LLC (“HIE”) for the purpose of procuring, funding the purchase of and sale of PPE (the “Membership Agreement”). Subject to the provision of the Agreement, the interest of any net profits would be shared 33.3% among each member. If there is a loss in some or all of the capital, all members of HIE shall be responsible to contribute capital to repay the loan, and additional contribution, with each party being responsible for 33.3% of the loss. The joint venture investment in HIE LLC is accounted for by the Company using the equity method in accordance with FASB ASC 323. There were no operating activities in HIE during the quarter ended March 31, 2023. As of March 31, 2023, and June 30, 2022, the balances of investment in HIE were $0 in both periods. |
Loan payable due to Eagle - JV
Loan payable due to Eagle - JV partner | 9 Months Ended |
Mar. 31, 2023 | |
Loan payable due to Eagle - JV partner | |
Loan payable due to Eagle - JV partner | Note 5 – Loan payable due to Eagle - JV partner On July 17, 2020, the Company entered into a Membership Agreement (See “Note 4 - Joint Venture Investment in HIE LLC ”). Under the terms and conditions of the Membership Agreement, in the event of a loss of capital of HIE, the Company is contingently liable to contribute to repay 33.3% of the Origination Loan and Additional Contribution and of any losses of HIE. In addition, the Company is obliged to repay 1/3 of the loan contributed by Eagle or 1/3 of the capital paid by Eagle according to the membership agreement. As of March 31, 2023, and December 31, 2022, the balances of loan payable to Eagle - JV partner totaled $442,251, and $707,654, respectively. HIE had no operating activities for the nine months ended March 31, 2023. |
Convertible Notes Payable relat
Convertible Notes Payable related party | 9 Months Ended |
Mar. 31, 2023 | |
Convertible Notes Payable related party | |
Convertible Notes Payable - related party | Note 6 – Convertible Notes Payable – related party On February 19, 2021, Steve Hall, an investor who holds approximately 72% of the Company’s common stock advanced $1 million to the Company. The purpose of the advance was to purchase inventory to satisfy customer orders. The advance would be repaid upon cash being received from the end customer. In addition to the principal amount of the advance, the related party will be entitled to 1/3 of the gross profit earned on the transaction. The terms of the agreement are non-interest bearing. The creditor is 100% at risk as this is a non-recourse funding vehicle. In June 2021 the Company cancelled the contemplated purchase of inventory and returned $500,000 to Mr. Hall. Mr. Hall has agreed to allow the Company to retain the balance to fund future purchases and general operating expenses. On October 1, 2021, the Company and Steve Hall entered into an agreement to replace the inventory financing payable of $500,000 with a convertible note with annual simple interest rate of 12% for the first 90 days and annual simple interest rate of 20% thereafter, with a due date on September 30, 2022. At the option of holder, this note is convertible, at any time, into shares of common stock at a conversion price of $0.02 per share. The note’s maturity date was extended to September 30, 2023. As of March 31, 2023, and June 30, 2022, the accrued interest under the note was $140,000, and $64,932, and the principal balance was $500,000 at the end of both quarters, respectively. |
Line of Credit related party
Line of Credit related party | 9 Months Ended |
Mar. 31, 2023 | |
Line of Credit related party | |
Line of Credit - related party | Note 7 – Line of Credit – related party On October 1, 2021, Steve Hall agreed to provide a line of credit of up to $1,000,000 to the Company with simple interest at a rate of 12% for the first 90 days, and simple interest at a rate of 20% per annum thereafter. The principal and interest payable shall be added to the principal amount of the agreement and payable pursuant to the same terms. The line of credit shall expire on October 1, 2022 unless renewed and/or extended by lender and borrower. Subsequently, the line of credit has been renewed and extended with same terms and an expiration date of October 1, 2023. As of March 31, 2023 and June 30, 2022, the outstanding principal totaled $525,000, and $265,000 with accrued interest of $75,566, and $15,015, respectively. |
Promissory notes payable - rela
Promissory notes payable - related party | 9 Months Ended |
Mar. 31, 2023 | |
Promissory notes payable - related party | |
Promissory notes payable - related party | Note 8 – Promissory notes payable – related party On March 29, 2023, Steve Hall provided the Company with a loan in the principal amount of $1,000,000, as evidenced by a promissory note with an annual interest rate of 12% per year (the “Steve Hall Note”). The purpose of the Steve Hall Note was to provide the Company with a funding source to make follow on investment in CNTNR USA Inc., a Delaware corporation (“CNTNR”). On May 31, 2023 (or upon the closing of a debt financing), the Company will repay the outstanding principal balance of the Steve Hall Note to the lender and transfer 90% of the shares of CNTNR, issued by CNTNR to the Company pursuant to the Company’s investment in CNTNR, plus 90% of the CNTNR Warrants as described below in Note 10 - Note Receivable. As of March 31, 2023, the outstanding loan balance was $700,000 with accrued interest of $2,268. |
Accrued expenses - related part
Accrued expenses - related party | 9 Months Ended |
Mar. 31, 2023 | |
Accrued expenses - related party | |
Accrued expenses - related party | Note 9 – Accrued expenses – related party Between September 2021 to September 2022, the Company had accepted deposits in the total of $30,218 from CNG. on a sale of face masks on behalf of Steve Hall, the CEO of Hawkeye Systems, Inc. As of March 31, 2023, the deposits remain with the Company and has not been sent to Steve. In addition, there are no fixed repayment terms or any repayment arrangement on this accrued liability. |
Note receivable
Note receivable | 9 Months Ended |
Mar. 31, 2023 | |
Note receivable | |
Note receivable | Note 10 – Note receivable On February 27, 2023, the Company entered into an initial promissory note with CNTNR and made an advanced payment of $200,000 to the borrower the following date. Subsequently, on April 6, 2023, the Company restated the unsecured Promissory Note Agreement with CNTNR (the “CNTNR Note”) which superseded the prior agreement made in February 2023. In the restated agreement, the Company agreed to lend CNTNR the total principal amount (“Principal Amount”) of $1,000,000 with a commitment fee equivalent to 5% of the Principal Amount. CNTNR further agreed to pay the Company a monthly consulting fee of $5,000 beginning on March 1, 2023. The balance of the consulting fee is recorded to the accounts receivable. The CNTNR Note has an annual interest rate of 12% and matures at the earlier of September 30, 2023, or the closing of a material debt or equity financing. Upon maturity of the note, CNTNR will pay to the Company all outstanding Principal Amount and interest plus outstanding consulting fee and issue the Company 10% of the issued and outstanding shares of CNTNR (equivalent to 6,170,879 shares). Moreover, the CNTNR Note includes warrant coverage of one warrant for every share issued in repayment of the Principal Amount at the closing of an intended merger with CNTNR which is equal to 6,170,879 warrants. The warrants will have a 30% discount to the current fair market price when exercised and will expire 36 months after April 6, 2023. Both the shares and warrant shares have not been issued yet as of March 31, 2023 and will be recorded at fair value as financing income upon issuance at settlement. As the interest is calculated on the total balance of $1,000,000 starting on the date of the first transfer on February 28, 2023, The CNTNR Note has accrued an interest of $10,521 with an outstanding principal of $200,000 as of quarter ended March 31, 2023. |
Common stock payable related pa
Common stock payable related party | 9 Months Ended |
Mar. 31, 2023 | |
Common stock payable related party | |
Common stock payable related party | Note 11 – Common stock payable – related party On May 23, 2022, the board of directors granted Richard Cutler, former director who had resigned in August 2022, 50,000 shares (it was 500,000 shares prior to the reverse stock split described in Note 13) of restricted common stock valued at $20,000, with an exercise price of $0.4 per share. The shares were granted as consideration for services granted. All shares are restricted until an acquisition or reverse takeover of the Company. On May 23, 2022, the board of directors granted Chris Mulgrew, Chief Financial Officer, 25,000 shares (it was 250,000 shares prior to the stock reverse split) of restricted common stock, valued at $10,000 with an exercise price of $0.04 per share. The shares were granted as consideration for services granted. All shares are restricted until an acquisition or reverse takeover of the Company. As of March 31, 2023 and June 30, 2022, the Company reported common stock payable-related party of $30,000 and $624,343, which represents 75,000 (it was 750,000 shares prior to the stock reverse split), and 1,741,667 (it was 17,416,667 shares prior to the stock reverse split) shares of common stock to be issued, respectively. |
Stockholders Equity
Stockholders Equity | 9 Months Ended |
Mar. 31, 2023 | |
Stockholders Equity | |
Stockholders' Equity | Note 1 2 - Stockholders’ Equity Common Stock During the nine months ended March 31, 2023, the Company had the following common stock transactions: · 1,666,667 shares issued on July 28, 2022 valued at $594,344 for settlement of two convertible notes to Steve Hall in aggregate amount of $500,000 and accrued interest of $94,344. · 139 shares issued on February 9, 2023 with $0 value due to round up shares on stock reverse split. See note 13 for further discussion. Stock Purchase Warrants Transactions in stock purchase warrants for the nine months ended March 31, 2023 are as follows (the numbers set forth below have been adjusted to reflect the 1-for-10 reverse stock split of February 9, 2023): Number of Weighted Average Exercise Warrants Price Balance at June 30, 2021 249,401 $ 1.00 Expired - - Balance at September 30, 2022 249,401 $ 1.00 Expired (10,000 ) 0.20 Balance at December 31, 2022 239,401 $ 1.04 Expired - - Balance at March 31, 2023 239,401 $ 1.04 The composition of the Company’s warrants outstanding at March 31, 2023 are as follows: Exercise Price Number of Warrants Weighted Average Remaining Life (in years) $ 0.30 35,000 1.08 $ 0.50 66,667 1.08 $ 1.00 70,867 1.08 $ 2.00 66,867 1.08 239,401 1.08 At March 31, 2023, the intrinsic value of the 239,401 outstanding warrant was $0. Stock Options Transactions in stock options for the nine months ended March 31, 2023 are as follows: Number of options (1) Weighted average exercise price Weighted average remaining life (in years) Outstanding, June 30, 2022 425,600 0.14 4.41 Granted - - - Cancelled - - - Exercised - - - Outstanding, March 31, 2023 425,600 0.14 3.66 Exercisable, March 31, 2023 425,600 $ 0.14 3.66 (1) These quantities have been adjusted to reflect a 1-for-10 reverse stock split that became effective on February 9, 2023. During the nine months ended March 31, 2023 $5,159 was expensed to unrelated parties, and $0 remains unamortized. At March 31, 2023, the intrinsic value of the 425,600 outstanding options was $0. |
Stock Reverse Split
Stock Reverse Split | 9 Months Ended |
Mar. 31, 2023 | |
Stock Reverse Split | |
Stock Reverse Split | Note 13 – S tock Reverse Split Hawkeye filed a form of 8K/A on March 23, 2023 announcing the Company amended its Articles of Incorporation to effect a one-for-ten reverse stock split (the “Reverse Split”) of the Company’s common stock while par value of $0.0001 per share remind the same. The Reverse Split was approved by FINRA on February 8, 2023, and became effective on February 9, 2023. All fractional shares resulting from the Reverse Split were rounded up to the nearest whole share, which results in an additional 139 shares issued for rounding. As a result of the Reverse Split, the Company now has approximately 4,227,222 shares of common stock outstanding. In addition, at the effective time of the reverse stock splits, all common shares, warrants, and options and the related financial information in this Quarterly Report on Form 10-Q were retroactively restated to reflect the 1-for-10 reverse stock split for all periods presented. |
Consulting Agreement - Related
Consulting Agreement - Related Party | 9 Months Ended |
Mar. 31, 2023 | |
Consulting Agreement - Related Party | |
Consulting Agreement - Related Party | Note 14 – C onsulting Agreement Related Party On January 30, 2023, Hawkeye entered into a consulting agreement with Steve Hall, the Company’s CEO to provide real estate and development consulting services, including the supervision of the company's senior management, staff and all personnel, whether employees or consultants, strategic planning, property acquisitions and annual budget review. The contract period is 12 months with no option for renewal thereafter. The Company has paid Steve Hall a one-time flat service fee of $250,000. Compensation is without recourse and there is no requirement for performance of services during the term of the contract. In addition, Steve agreed that the Company may defer payment until such time as there is sufficient liquidity in the Company. The Company agrees that should the company not have the ability to pay the amount due, Steve will be permitted to convert any unpaid balance into company stock at a conversion rate of the prevailing market rate minus 20%. In the event of a merger or acquisition, Steve will not be permitted to convert the outstanding balance until 90 days after the transaction has closed. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2023 | |
Subsequent Events | |
Subsequent Events | Note 1 5 - Subsequent Events Management has evaluated subsequent events through the date these financial statements were available to be issued. Based on our evaluation, that the following subsequent events would require disclosure in the financial statements: · On February 27, 2023, Hawkeye System, Inc. entered into an initial promissory note with CNTNR USA Inc (“CNTNR”)., a Delaware corporation and made an advanced payment of $200,000 to the borrower the following date. Subsequently, on April 12, 2023, the Company filed an 8K announcing that the Company entered into an unsecured Promissory Note Agreement with CNTNR effective April 06, 2023, whereby the Company will lend CNTNR $1,000,000 with a 5% Commitment Fee of the Principal Amount in the sum of $50,000 due upon signing. This Agreement supersedes the agreement dated 27 February 2023, and carries an annual interest rate of 12% and matures at the earlier of September 30, 2023, or the closing of a material debt or equity financing. Upon maturity of the loan, CNTNR will issue the Company one warrant for every share issued in repayment at the closing of an intended merger with CNTNR. The warrants will have a 30% discount to the current trading price when exercised and will expire 36 months after April 6, 2023. Furthermore, upon Maturity, CNTNR will pay, in cash, all outstanding principal and interest and issue 10% (6,170,879) of the issued and outstanding shares of CNTNR. As of the issued date of this report, the CNTNR Note has an outstanding principal of $790,000. In addition, CNTNR will pay the Company a monthly financial and administrative consulting fee of $5,000 starting March 01, 2023, and the accumulated outstanding balance is recorded in accounts receivable. Further detail see notes 10 - Note receivable. · As we stated in Note 8 - Promissory Notes Payable - Related Parties, as of March 31, 2023, the outstanding principal amount on the note was $700,000. On April 03, 2023, the company borrows an additional $300,000, bringing the outstanding balance to $1,000,000. · On April 24, 2023, the Company granted and issued 750,000 shares and 500,000 shares of common stocks to Corby Marshall, the CEO, and Christopher Mulgrew, the CFO, for compensation, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies | |
Business Overview | Hawkeye Systems, Inc. (the “Company”), a Nevada corporation incorporated on May 15, 2018. Our previous focus was on pandemic management products and services. We are currently seeking opportunities while actively trying to liquidate mask inventory and wind-up existing deals. The Company is currently looking for investment opportunities in diversified industries, such as affordable housing development, and technology applications to mitigate the effects of climate change. From inception until the date of this filing our activities have primarily consisted of (i) liquidating our stock of personal protective equipment (“PPE”) products, (ii) the development of our business plan and the evaluation of strategic investment and business development strategies, including the execution of letters of intent and the provision of funding to a few selected target companies, and (iii) recruiting and adding additional consultants and employees. |
Basis of presentation | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the unaudited condensed consolidated financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K, for the year ended June 30, 2022, as filed with the SEC on December 14, 2022. |
Use of estimates | The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. Significant estimates in the accompanying financial statements include useful lives of property and equipment, fair value assumptions used for stock-based compensation, valuation of beneficial conversion feature on convertible notes and the valuation allowance on deferred tax assets. |
Accounts receivable and allowance for doubtful accounts | Accounts receivable consist of balances due from other income in the current quarter ended March 31, 2023, compared to no accounts receivable for the same period in 2022. As the historical trends in collectability is not available to derive an appropriate estimated allowance, the allowance for doubtful accounts was $0 as of March 31, 2023. |
Fair value measurements | When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. The Company has no assets or liabilities that are adjusted to fair value on a recurring basis. |
Revenue recognition | As of March 31, 2023, the Company has generated revenues of $5,000 in consulting fees for an agreement with CNTNR. In the year ended June 30, 2022, the Company had no revenues. The revenue was recorded under other income. The consultant fees are payable on a monthly basis commencing March 1, 2023, pursuant to the agreement discussed in detail in Note 10 - Notes Receivable. The Company measures revenue within the scope of ASC 606 by applying 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 Company satisfies a performance obligation. At contract inception, the Company assesses the goods or services promised within each contract that falls under the scope of ASC 606, determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied. The application of these five steps necessitates the development of assumptions that require judgment. The Company records revenue based upon the consideration specified in the client arrangement, and revenue is recognized when the performance obligations in the client arrangement are satisfied. |
Cost of sales | As of March 31, 2023, and 2022, the Company had no Cost of Sales. |
Basic and diluted earnings per share | Basic earnings per share are calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share are calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including stock options, warrants to purchase the Company’s common stock, and convertible note payable with accrued interest. For the nine months ended March 31, 2023, and 2022, potentially dilutive common stock equivalents were excluded from the calculation of diluted earnings per share because they were anti-dilutive as follows: March 31, March 31, 2023 2022 Warrants 239,400 249,400 Options 425,600 100,600 Convertible notes 6,208,130 3,575,000 Common stock payable 75,000 - Total possible dilutive shares (See note 13) 6,948,129 3,925,000 The shares above have been adjusted to reflect a 1-for-10 reverse stock split that became effective on February 9, 2023. See further discussion on Note 13 – stock reverse split. |
Recent Accounting Pronouncements | Management has considered all recent accounting pronouncements issued and their potential effect on our financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s unaudited condensed consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt-Debt with Conversion and Other Options” and ASC subtopic 815-40 “Hedging-Contracts in Entity’s Own Equity”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting; and, (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We early adopted this standard effective July 1, 2021 using the modified retrospective approach transition method. Therefore, the condensed financial statements for the nine months ended March 31, 2023 are presented under the new standard, while the comparative period presented is not adjusted and continues to be reported in accordance with the Company’s historical accounting policy. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies | |
Schedule Of restatement of asset, liability and equity | March 31, March 31, 2023 2022 Warrants 239,400 249,400 Options 425,600 100,600 Convertible notes 6,208,130 3,575,000 Common stock payable 75,000 - Total possible dilutive shares (See note 13) 6,948,129 3,925,000 |
Restatement of Financial Stat_2
Restatement of Financial Statements for the Quarter End March 31, 2022 (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Restatement of Financial Statements for the Quarter End March 31, 2022 | |
Schedule Of Basic and Diluted Earnings Per Share | Balance Sheet at March 31, 2022: Originally Reported Restatement Adjustment As Restated ASSETS Current assets: Cash $ 18,717 $ - $ 18,717 Prepaid expenses 4,833 - 4,833 Total current assets 23,550 - 23,550 Investment in HIE - 245,667 245,667 Total assets $ 23,550 $ 245,667 $ 269,217 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current liabilities: Accounts payable and accrued liabilities $ 282,277 $ - $ 282,277 Convertible note payable, net of discount - related party 1,175,000 - 1,175,000 Common stock payable - related party 200,000 - 200,000 Total current liabilities 1,657,277 - 1,657,277 Long-term liabilities: Loan payable due to Eagle - JV partner - 707,654 707,654 PPP loan - - - Total liabilities 1,657,277 707,654 2,364,931 Stockholders’ deficit: Preferred stock, $0.0001 par value, 50,000,000 shares authorized; no shares issued or outstanding - - - Common stock, $0.0001 par value, 400,000,000 shares authorized; 2,560,416, and 2,560,416 shares issued and outstanding, respectively 256 - 256 Additional paid-in capital 8,460,070 - 8,460,070 Accumulated deficit (10,094,053 ) (461,987 ) (10,556,040 ) Total stockholders’ equity deficit (1,633,727 ) (461,987 ) (2,095,714 ) Total liabilities and stockholders’ deficit $ 23,550 $ $ 269,217 |
Stockholders Equity (Tables)
Stockholders Equity (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Stockholders Equity | |
Transactions in stock purchase warrants | Number of Weighted Average Exercise Warrants Price Balance at June 30, 2021 249,401 $ 1.00 Expired - - Balance at September 30, 2022 249,401 $ 1.00 Expired (10,000 ) 0.20 Balance at December 31, 2022 239,401 $ 1.04 Expired - - Balance at March 31, 2023 239,401 $ 1.04 |
Schedule of warrants outstanding | Exercise Price Number of Warrants Weighted Average Remaining Life (in years) $ 0.30 35,000 1.08 $ 0.50 66,667 1.08 $ 1.00 70,867 1.08 $ 2.00 66,867 1.08 239,401 1.08 |
Schedule Of Transactions in stock options | Number of options (1) Weighted average exercise price Weighted average remaining life (in years) Outstanding, June 30, 2022 425,600 0.14 4.41 Granted - - - Cancelled - - - Exercised - - - Outstanding, March 31, 2023 425,600 0.14 3.66 Exercisable, March 31, 2023 425,600 $ 0.14 3.66 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - shares | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Convertible Note [Member] | ||
Total possible dilutive shares | 6,208,130 | 3,575,000 |
Options [Member] | ||
Total possible dilutive shares | 425,600 | 100,600 |
Common Stock Payable [Member] | ||
Total possible dilutive shares | 75,000 | |
Total Possible Dilutive Shares [Member] | ||
Total possible dilutive shares | 6,948,129 | 3,925,000 |
Warrant [Member] | ||
Total possible dilutive shares | 239,400 | 249,400 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Narrative) | 9 Months Ended |
Mar. 31, 2023 USD ($) | |
Summary of Significant Accounting Policies | |
Allowance for doubtful account | $ 0 |
Revenue against consulting fees | $ 5,000 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2023 | Jun. 30, 2022 | |
Going Concern | ||||||||
Net loss | $ (427,711) | $ (266,292) | $ (215,096) | $ (194,784) | $ (486,842) | $ (311,355) | $ (909,099) | |
Accumulated deficit | $ (11,791,275) | $ (11,791,275) | $ (10,882,176) |
Restatement of Financial Stat_3
Restatement of Financial Statements for the Quarter End March 31, 2022 (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Oct. 01, 2021 | Sep. 30, 2021 | Jun. 30, 2021 |
Prepaid expenses | $ 5,925 | $ 1,333 | |||||||
Total current assets | 721,136 | 1,658 | |||||||
Investment in HIE | $ 245,667 | ||||||||
Total assets | 721,136 | 1,658 | |||||||
Accounts payable and accrued liabilities | 16,384 | 7,637 | |||||||
Convertible note payable, net of discount - related party | $ 500,000 | ||||||||
Total current liabilities | 2,692,010 | 1,662,936 | |||||||
Loan payable to Eagle - JV partner | 707,654 | ||||||||
Total liabilities | 3,134,261 | 2,105,187 | |||||||
Preferred stock, $0.0001 par value, 50,000,000 shares authorized; no shares issued or outstanding | 0 | 0 | |||||||
Common stock, $0.0001 par value, 400,000,000 shares authorized; 2,560,416, and 2,560,416 shares issued and outstanding, respectively | 423 | 256 | |||||||
Additional paid-in capital | 9,377,727 | 8,778,391 | |||||||
Accumulated deficit | (11,791,275) | (10,882,176) | |||||||
Total stockholders' deficit | (2,413,125) | $ (1,985,414) | $ (1,719,122) | (2,103,529) | (2,096,565) | $ (1,906,963) | $ (1,962,221) | $ (1,754,860) | |
Total liabilities and stockholders' deficit | $ 721,136 | $ 1,658 | |||||||
Originally Reported [Member] | |||||||||
Cash | 18,717 | ||||||||
Prepaid expenses | 4,833 | ||||||||
Total current assets | 23,550 | ||||||||
Investment in HIE | 0 | ||||||||
Total assets | 23,550 | ||||||||
Accounts payable and accrued liabilities | 282,277 | ||||||||
Convertible note payable, net of discount - related party | 1,175,000 | ||||||||
Common stock payable - related party | 200,000 | ||||||||
Total current liabilities | 1,657,277 | ||||||||
Loan payable to Eagle - JV partner | 0 | ||||||||
PPP loan | 0 | ||||||||
Total liabilities | 1,657,277 | ||||||||
Preferred stock, $0.0001 par value, 50,000,000 shares authorized; no shares issued or outstanding | 0 | ||||||||
Common stock, $0.0001 par value, 400,000,000 shares authorized; 2,560,416, and 2,560,416 shares issued and outstanding, respectively | 256 | ||||||||
Additional paid-in capital | 8,460,070 | ||||||||
Accumulated deficit | (10,094,053) | ||||||||
Total stockholders' deficit | (1,633,727) | ||||||||
Total liabilities and stockholders' deficit | 23,550 | ||||||||
Restatement Adjustment [Member] | |||||||||
Cash | 0 | ||||||||
Prepaid expenses | 0 | ||||||||
Total current assets | 0 | ||||||||
Investment in HIE | 245,667 | ||||||||
Total assets | 245,667 | ||||||||
Accounts payable and accrued liabilities | 0 | ||||||||
Convertible note payable, net of discount - related party | 0 | ||||||||
Common stock payable - related party | 0 | ||||||||
Total current liabilities | 0 | ||||||||
Loan payable to Eagle - JV partner | 707,654 | ||||||||
PPP loan | 0 | ||||||||
Total liabilities | 707,654 | ||||||||
Preferred stock, $0.0001 par value, 50,000,000 shares authorized; no shares issued or outstanding | 0 | ||||||||
Common stock, $0.0001 par value, 400,000,000 shares authorized; 2,560,416, and 2,560,416 shares issued and outstanding, respectively | 0 | ||||||||
Additional paid-in capital | 0 | ||||||||
Accumulated deficit | (461,987) | ||||||||
Total stockholders' deficit | (461,987) | ||||||||
Total liabilities and stockholders' deficit | 461,987 | ||||||||
As Restated [Member] | |||||||||
Cash | 18,717 | ||||||||
Prepaid expenses | 4,833 | ||||||||
Total current assets | 23,550 | ||||||||
Investment in HIE | 245,667 | ||||||||
Total assets | 269,217 | ||||||||
Accounts payable and accrued liabilities | 282,277 | ||||||||
Convertible note payable, net of discount - related party | 1,175,000 | ||||||||
Common stock payable - related party | 200,000 | ||||||||
Total current liabilities | 1,657,277 | ||||||||
Loan payable to Eagle - JV partner | 707,654 | ||||||||
PPP loan | 0 | ||||||||
Total liabilities | 2,364,931 | ||||||||
Preferred stock, $0.0001 par value, 50,000,000 shares authorized; no shares issued or outstanding | 0 | ||||||||
Common stock, $0.0001 par value, 400,000,000 shares authorized; 2,560,416, and 2,560,416 shares issued and outstanding, respectively | 256 | ||||||||
Additional paid-in capital | 8,460,070 | ||||||||
Accumulated deficit | (10,556,040) | ||||||||
Total stockholders' deficit | (2,095,714) | ||||||||
Total liabilities and stockholders' deficit | $ 269,217 |
Restatement of Financial Stat_4
Restatement of Financial Statements for the Quarter End March 31, 2022 (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Description of restatement effect on financial statements | HIE until October, 2022. For the fiscal year ended June 30, 2021, HIE had a loan balance of $2,122,963 secured by Eagle, of which the Company has recognized 1/3 amounting to $707,654 as a guarantee of loan payable to Eagle - JV partner | |||
Other expenses | $ 461,987 | |||
Investment in HIE | $ 245,667 | $ 245,667 | ||
Loan due to Eagle | 707,654 | 707,654 | ||
Operating loss | $ 392,924 | $ 167,249 | 786,732 | $ 872,118 |
Lender [Member] | ||||
Operating loss | $ 1,385,962 |
Joint Venture Investment in H_2
Joint Venture Investment in HIE LLC (Details Narrative) - USD ($) | 9 Months Ended | ||
Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Investment | $ 245,667 | ||
Joint Venture Investment LLC [Member] | |||
Investment | $ 0 | $ 0 | |
Percentage of interest of any net profits in shares | 33.30% | ||
Percentage of additional contribution and if any losses | 33.30% |
Loan payable due to Eagle - J_2
Loan payable due to Eagle - JV partner (Details Narrative) - USD ($) | 1 Months Ended | ||
Jul. 17, 2020 | Mar. 31, 2023 | Jun. 30, 2022 | |
Loan payable due to Eagle - JV partner | |||
Description of membership agreement | the Company is obliged to repay 1/3 of the loan contributed by Eagle or 1/3 of the capital paid by Eagle | ||
Loan Payable | $ 442,251 | $ 707,654 | |
Rate of Liable to contribute against origination loan | 33.30% |
Convertible Notes Payable - rel
Convertible Notes Payable - related party (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | |||
Oct. 03, 2021 | Feb. 19, 2021 | Mar. 31, 2023 | Jun. 30, 2022 | Oct. 01, 2021 | |
Convertible Notes Payable - related party (Details Narrative) | |||||
Description of related party transaction | The purpose of the advance was to purchase inventory to satisfy customer orders. The advance would be repaid upon cash being received from the end customer. In addition to the principal amount of the advance, the related party will be entitled to 1/3 of the gross profit earned on the transaction. The terms of the agreement are non-interest bearing. The creditor is 100% at risk as this is a non-recourse funding vehicle | ||||
Repayment to related party | $ 500,000 | ||||
Convertible note | $ 500,000 | ||||
Annual simple interest for 90 days | 12% | ||||
Annual simple interest thereafter | 20% | ||||
Due date | Sep. 30, 2022 | ||||
Conversion price of common stock | $ 0.02 | ||||
Maturity date | Sep. 30, 2023 | ||||
Accrued interest | 140,000 | $ 64,932 | |||
Principle balance | $ 500,000 |
Line of Credit related party (D
Line of Credit related party (Details Narrative) - USD ($) | 9 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2022 | |
Accrued interest payable | $ 75,566 | $ 15,015 |
Outstanding principal | $ 525,000 | $ 265,000 |
On October 1, 2021 | Line of credit related party description | Steve Hall [Member] | ||
Line of credit related party description | agreed to provide a line of credit of up to $1,000,000 to the Company with simple interest at a rate of 12% for the first 90 days, and simple interest at a rate of 20% per annum | |
Expiry date of line of credit | October 1, 2023 |
Promissory notes payable - re_2
Promissory notes payable - related party (Details Narrative) - USD ($) | 1 Months Ended | |
Mar. 29, 2023 | Mar. 31, 2023 | |
Promissory notes payable - related party | ||
Loan principle amount | $ 1,000,000 | |
Annual interest rate of loan | 12% | |
Outstanding loan balance | $ 700,000 | |
Accrued interest related party | $ 2,268 |
Accrued expenses - related pa_2
Accrued expenses - related party (Details Narrative) | 12 Months Ended |
Sep. 30, 2022 USD ($) | |
Hawkeye Systems, Inc [Member] | |
Accepted deposits | $ 30,218 |
Note receivable (Details Narrat
Note receivable (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Feb. 28, 2023 | Feb. 27, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | |
Accrued expense | $ 5,925 | $ 1,333 | ||
CNTNR [Member] | ||||
Accrued expense | $ 10,521 | |||
Outstanding pricipal balance | $ 790,000 | 200,000 | ||
Principal amount | $ 1,000,000 | 6,170,879 | ||
Commitment fees rate | 5% | |||
Advanced payment | $ 200,000 | |||
Monthly consulting fee | $ 5,000 | |||
Maturity date | Sep. 30, 2023 | |||
Annual interest rate | 12% | |||
Interest amount | $ 1,000,000 | |||
Discripiton of warrants discount | The warrants will have a 30% discount to the current fair market price when exercised and will expire 36 months after April 6, 2023 |
Common stock payable related _2
Common stock payable related party (Details Narrative) - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 | May 23, 2022 |
Common stock payable - related party | $ 30,000 | $ 624,343 | |
Common stock to be issued | 75,000 | 1,741,667 | |
Chief Financial Officer[Member] | |||
Restricted Common stock | 25,000 | ||
Restricted Common stock value | $ 10,000 | ||
Conversion value | $ 0.04 | ||
Former Director [Member] | |||
Restricted Common stock | 50,000 | ||
Restricted Common stock value | $ 20,000 | ||
Conversion value | $ 0.4 |
Stockholders Equity (Details)
Stockholders Equity (Details) - Stock Purchase Warrants [Member] - USD ($) | 3 Months Ended | 15 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Warrant shares, Beginning | 239,401 | 249,401 | 249,401 |
Warrant shares, Expired | $ 10,000 | ||
Warrant shares, Ending | 239,401 | 239,401 | 249,401 |
Weighted average exercise price, Beginning | $ 1.04 | $ 1 | $ 1 |
Weighted average exercise price, Expired | 0 | 0.20 | 0 |
Weighted average exercise price, Ending | $ 1.04 | $ 1.04 | $ 1 |
Stockholders Equity (Details 1)
Stockholders Equity (Details 1) | 9 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Warrants outsanding 1 [Member] | |
Number of Warrants | 35,000 |
Weighted Average Remaining Life (in years) | 1 year 29 days |
Exercise Price | $ / shares | $ 0.30 |
Warrants outsanding 2 [Member] | |
Number of Warrants | 66,667 |
Weighted Average Remaining Life (in years) | 1 year 29 days |
Exercise Price | $ / shares | $ 0.50 |
Warrants outsanding 3 [Member] | |
Number of Warrants | 70,867 |
Weighted Average Remaining Life (in years) | 1 year 29 days |
Exercise Price | $ / shares | $ 1 |
Warrants outsanding 4 [Member] | |
Number of Warrants | 66,867 |
Weighted Average Remaining Life (in years) | 1 year 29 days |
Exercise Price | $ / shares | $ 2 |
Warrants outsanding [Member] | |
Number of Warrants | 239,401 |
Weighted Average Remaining Life (in years) | 1 year 29 days |
Stockholders Equity (Details 2)
Stockholders Equity (Details 2) - Stock Options [Member] | 9 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Number of options, beginning balance | shares | 425,600 |
Number of options, ending balance | shares | 425,600 |
Number of options, Exercisable | shares | 425,600 |
Weighted Average Exercise Price, beginning balance | $ / shares | $ 0.14 |
Weighted Average Exercise Price, ending balance | $ / shares | 0.14 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 0.14 |
Weighted average remaining life, beginning | 4 years 4 months 28 days |
Weighted average remaining life, ending | 3 years 7 months 28 days |
Weighted average remaining life, exercisable | 3 years 7 months 28 days |
Stockholders Equity (Details Na
Stockholders Equity (Details Narrative) - USD ($) | 9 Months Ended | ||||
Feb. 09, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2021 | |
Common stock shares issued upon settlement of debt | 139 | 1,666,667 | |||
Common stock value issued upon settlement of debt | $ 0 | $ 594,344 | |||
Aggregate amount of debt settled | 500,000 | ||||
Accrued interest- debt settled | 94,344 | ||||
Stock Purchase Warrants [Member] | |||||
Number of warrants/rights outstanding, intrisic value | $ 0 | ||||
Number of warrants/rights outstanding | 239,401 | 239,401 | 249,401 | 249,401 | |
Stock Options [Member] | |||||
Number of warrants/rights outstanding, intrisic value | $ 0 | ||||
Number of warrants/rights outstanding | 425,600 | ||||
Share based compensation expense | $ 5,159 | ||||
Share based compensation expense, unamortized | $ 0 |
Stock Reverse Split (Details Na
Stock Reverse Split (Details Narrative) - $ / shares | 9 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2022 | |
Common stock par value | $ 0.0001 | $ 0.0001 |
Common stock, shares outstanding | 4,227,222 | 2,560,416 |
Stock Reverse Split [Member] | ||
Common stock par value | $ 0.0001 | |
Common stock, shares outstanding | 4,227,222 | |
Description of stock reverse split | The Reverse Split was approved by FINRA on February 8, 2023, and became effective on February 9, 2023. All fractional shares resulting from the Reverse Split were rounded up to the nearest whole share, which results in an additional 139 shares issued for rounding |
Consulting Agreement - Relate_2
Consulting Agreement - Related Party (Details Narrative) | 1 Months Ended |
Jan. 31, 2023 USD ($) | |
Consulting Agreement [Member] | |
Service fee | $ 250,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Feb. 27, 2023 | Mar. 31, 2023 | Apr. 03, 2023 | Jun. 30, 2022 | |
Promissory notes payable | $ 700,000 | |||
Common shares issued | 4,227,222 | 2,560,416 | ||
Subsequent Event [Member] | ||||
Additional borrowing | $ 300,000 | |||
Outstanding Balance | $ 1,000,000 | |||
Subsequent Event [Member] | Corby Marshall [Member] | ||||
Common shares issued | 500,000 | |||
Shares Granted | 750,000 | |||
CNTNR [Member] | ||||
Unsecured promissory note | $ 1,000,000 | |||
Outstanding pricipal balance | $ 790,000 | $ 200,000 | ||
Discripiton of warrants | The warrants will have a 30% discount to the current trading price when exercised and will expire 36 months after April 6, 2023 | |||
Advanced payment | $ 200,000 | |||
Principal amount net | $ 50,000 | |||
Commitment fees rate | 5% | |||
Consulting fee | $ 5,000 | |||
Maturity date | Sep. 30, 2023 | |||
Annual interest rate | 12% |