Note 7 - Stockholders' Equity (Deficit) | Note 7 – Stockholders’ Equity (Deficit) As of June 30, 2022, and June 30, 2021, there were 148,543,635 and 135,524,617 shares of common stock issued and outstanding, respectively. During the years ended June 30, 2022 and 2021, the Company issued 5,200,000 and 1,200,000 shares of common stock pursuant to subscriptions agreements for $520,000 and $120,000, respectively, or $0.10 per share. Common stock issued for services During the years ended June 30, 2022 and 2021, the Company issued 3,819,018 and 3,265,327 shares of common stock to third parties for services valued at $144,141 and $568,636, respectively, with prices between $0.02 and $0.24 per share. Issuance of common stock payable During the year ended June 30, 2021, the Company issued 140,199 shares of common stock owed to third parties for services rendered during the year, valued at $25,236. The Company has a balance of $10,475 of common stock payable as of the year ended June 30, 2022. Restricted stock and Stock options During the year ended June 30, 2022, and 2021, the Company recognized stock compensation expense on outstanding restricted stock awards of $2,014,612 and $2,060,245, respectively. During the years ended June 30, 2022 and 2021, the Company granted 8,106,723 and 4,094,959 stock options, in the aggregate, to its board members and consultants. The options granted in fiscal year 2022 vest pro-rata over the member’s term, have exercise prices between $0.02 and $0.03 and expire in five years from the date of grant. The options 8,106,723 options were issued on June 8, 2022 and were issued in exchange for $1,309,838 in outstanding principal and interest respective (see note 5) from notes payable. On June 15, 2022, the Company granted 2,000,000 stock options to its attorney as compensation. The options vest pro-rata over five years, have exercise price of $0.03 and expire in five years from the date of grant. Options Weighted Average Exercise Price per Share Weighted Average Remaining Life (Years) Outstanding – July 1, 2020 - $ - - Granted 4,094,959 0.15 5 Exercised - - - Outstanding – June 30, 2021 4,094,959 $ 0.15 5 Granted 19,407,076 0.10 4.78 Exercised - - - Outstanding – June 30, 2022 23,502,035 $ 0.11 2.92 The Company recognized $233,471 and $488,296 of expense during the years ended June 30, 2022 and 2021, respectively, in connection with the options and valued with Black Scholes using the following inputs: Year Ended June 30, 2022 Stock price $ 0.02 - 0.03 Exercise price $ 0.02 – 0.34 Expected term (in years) 4.94 – 5.00 Volatility (annual) 141.5% - 271.1 % Risk-free rate 1.39% - 2.94 % Year Ended June 30, 2021 Stock price $ 0.11 - 0.20 Exercise price $ 0.22 - 0.37 Expected term (in years) 3 – 5 Volatility (annual) 187% – 271.1 % Risk-free rate 0.05% – 0.12 % Shares issued for prepayment penalty On September 29, 2020, the Company paid $81,675 towards one of its outstanding notes, which includes principal of $55,000, prepayment penalty of $21,175 and accrued interest of $5,500. As an inducement to pay off the note early, the Company issued 153,410 shares of common stock valued at $0.20 per share, or $30,682 to the Investor (see Note 2). On October 29, 2020, the Company paid $81,553 toward the final tranche of the notes issued on October 1, 2019, which consists of principal of $55,000, interest of $5,410 and a prepayment penalty of $21,143. The Company also issued 123,602 shares to the creditor valued at $14,832 in conjunction with the prior extension of this note. Equity component of issuance of convertible notes On July 14, 2020 and October 21, 2020, the Company sold convertible notes bearing 12% interest in the principal amounts of $340,000 and $348,000, respectively. Subject to certain ownership limitations, the notes will be convertible at the option of the holder at any time into shares of the Company’s common stock at an effective conversion price of $0.144. The embedded conversion features of these notes were valued at $85,000 and $135,333, respectively, and is amortized over the life of the notes. On January 12, 2021, the Company sold convertible notes bearing 12% interest on the principal amount of $360,000, respectively (see Note 2). The embedded conversion features of the notes were valued at $40,000 and is amortized over the life of the notes. |