APPlife Digital Solutions (ALDS) 10-Q 13 Nov 19 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2019	Nov. 11, 2019
Document And Entity Information
Entity Registrant Name	APPlife Digital Solutions Inc
Entity Central Index Key	0001755101
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Is Entity's Reporting Status Current?	Yes
Is Entity Emerging Growth Company?	true
Elected Not To Use the Extended Transition Period	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding		120,709,674
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020
Entity File Number	000-54524
Entity Tax Identification Number	30-0678378
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	555 California St, #4925
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94104
City Area Code	415
Local Phone Number	659 1564

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Current assets
Cash	$ 56,603	$ 65,654
Prepaid expenses and other current assets	140,462	0
Total Current Assets	197,065	65,654
Equity method investment	509,561	514,693
Total assets	706,626	580,347
Current Liabilities
Accounts payable and accrued expenses	116,309	85,276
Due to officer	9,580	9,580
Due to Smartrade Exchange Services, Inc.	31,085	61,034
Notes payable	180,529	70,624
Common stock payable	754,999	80,416
Derivative liability	109,247	19,824
Total current liabilities	1,201,749	326,754
Stockholders' (deficit) equity
Common stock, $0.001 par value, 500,000,000 shares authorized; 120,709,674 and 119,059,674 shares issued and outstanding as of September 30, 2019 and June 30, 2019, respectively	120,709	119,059
Additional paid-in capital	2,311,084	1,796,170
Accumulated deficit	(2,926,916)	(1,661,636)
Total stockholders' (deficit) equity	(495,123)	253,593
Total liabilities and stockholders' (deficit) equity	$ 706,626	$ 580,347

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2019	Jun. 30, 2019
Statement of Financial Position [Abstract]
Common Stock, par or stated value	$ 0.001	$ 0.001
Common Stock, shares authorized	500,000,000	500,000,000
Common Stock, shares issued	120,709,674	119,059,674
Common Stock, shares outstanding	120,709,674	119,059,674

UNAUDITED CONDESNED STATEMENTS

UNAUDITED CONDESNED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Revenues	$ 0	$ 0
Operating expenses	1,269,034	30,266
Total operating expenses	1,269,034	30,266
Loss from operations	(1,269,034)	(30,266)
Other income (expense)
Loss from equity method investment	(5,132)	0
Interest expense	(6,646)	(1,493)
Change in fair value of derivative liability	15,532	0
Net loss before provision for income taxes	(1,265,280)	(31,759)
Provision for income taxes	0	0
Net Loss	$ (1,265,280)	$ (31,759)
Basic and diluted loss per share	$ (0.04)	$ 0
Average number of common shares outstanding - basic and diluted	30,114,022	18,987,401

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Stockholders' Equity Attributable to Parent, Beginning Balance at Jun. 30, 2018	$ 17,239	$ 67,761	$ (172,587)	$ (87,587)
Shares, Outstanding, Beginning Balance at Jun. 30, 2018	17,239,093
Common stock issued for cash, value	$ 10,182	598,356		608,538
Common stock issued for cash, shares	10,386,102
Common stock issued to employees, value	$ 90,000	(70,469)		19,531
Common stock issued to employees, shares	90,000,000
Common stock issued for services, value	$ 95	5,755		5,850
Common stock issued for services, shares	95,249
Net Loss			(31,759)	(31,759)
Stockholders' Equity Attributable to Parent, Ending Balance at Sep. 30, 2018	$ 117,516	601,403	(204,346)	514,573
Shares, Outstanding, Ending Balance at Sep. 30, 2018	117,516,336
Stockholders' Equity Attributable to Parent, Beginning Balance at Jun. 30, 2019	$ 119,059	1,796,170	(1,661,636)	253,593
Shares, Outstanding, Beginning Balance at Jun. 30, 2019	119,059,674
Common stock issued for cash, value
Common stock issued for cash, shares
Common stock issued to employees, value		351,564		351,564
Common stock issued to employees, shares
Common stock issued for services, value	$ 1,650	163,350		165,000
Common stock issued for services, shares	1,650,000
Net Loss			(1,265,280)	(1,265,280)
Stockholders' Equity Attributable to Parent, Ending Balance at Sep. 30, 2019	$ 120,709	$ 2,311,084	$ (2,926,916)	$ (495,123)
Shares, Outstanding, Ending Balance at Sep. 30, 2019	120,709,674

UNAUDITED CONDENSED STATEMENTS

UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,265,280)	$ (31,759)
Adjustment to reconcile change in net loss to net cash used in operating activities:
Amortization of debt discount	14,860	0
Issuance of common stock for services	165,000	5,850
Issuance of common stock to employee	351,564	19,531
Loss from equity method investment	5,132	0
Common stock payable	674,583	0
Change in fair value of derivative liability	(15,532)	0
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(140,462)	10,000
Accounts payable and accrued expenses	31,033	(18,798)
Net cash (used )in operating activities	(179,102)	(15,176)
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for investment	0	(64,286)
Net cash (used) in investing activities	0	(64,286)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable	200,000	10,000
Payment on notes payable	(29,949)	0
Proceeds from issuance of common stock	0	608,538
Net cash provided from financing activities	170,051	618,538
Net increase (decrease) in cash and cash equivalents	(9,051)	539,076
Cash and cash equivalents, beginning of period	65,654	11,490
Cash and cash equivalents, end of period	56,603	550,566
Supplemental non-cash disclosure:
Cash paid for interest	0	0
Cash paid for taxes	$ 0	$ 0

Note 1 - Organization And Summa

Note 1 - Organization And Summary Of Significant Accounting Policies	3 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Note 1 - Organization And Summary Of Significant Accounting Policies	1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization APPlife Digital Solutions Inc. (the “Company”) is a business incubator and portfolio manager that uses digital technology to create and invest in e-commerce and cloud-based solutions. The Company was formed March 5, 2018 in Nevada and has offices in San Francisco, California and Shanghai, China. The Company’s mission is using digital technology to create APPs and websites that make life, business and living easier, more efficient and just smarter. Rooster Essentials APP SPV, LLC (the “Rooster”), incorporated on April 9, 2019, is a wholly owned subsidiary of the Company. Rooster is a fully customizable men’s subscription service that delivers daily use grooming needs and essential items. B2BCHX SPV LLC (the “B2BCHX”), incorporated on June 5, 2019, is a wholly owned subsidiary of the Company. B2BCHX does an independent background check on mainland Chinese companies for small businesses globally. Going Concern The Company has generated losses and negative cash flows from operations since inception. The Company has historically financed its operations from equity financing. The Company anticipates additional equity financings to fund operations in the future. Should management fail to adequately address the issue, the Company may have to reduce its business activities or curtail its operations. The accompanying consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and classification of liabilities and commitments in the normal course of business. The accompanying consolidated financial statements do not reflect any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classifications of liabilities that might result if the Company is unable to continue as a going concern. Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for the interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. The unaudited condensed consolidated financial statements include the accounts of all subsidiaries in which the Company holds a controlling financial interest as of the financial statement date. All intercompany transactions have been eliminated in consolidation. However, in the opinion of the management of the Company, all adjustments necessary for a fair presentation of the financial position and operating results have been included in these statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10–K for the fiscal year ended June 30, 2019, as filed with the SEC on September 30, 2019. Operating results for the three months ended September 30, 2019 are not necessarily indicative of the results that may be expected for any subsequent quarters or for the fiscal year ending June 30, 2020. Cash and Cash Equivalents For the purpose of the statement of cash flows, the Company considers cash equivalents to include cash and investments with an original maturity of three months or less. Income Taxes The Company has adopted guidance issued by the FASB that clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold of more likely than not and a measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In making this assessment, a company must determine whether it is more likely than not that a tax position will be sustained upon examination, based solely on the technical merits of the position and must assume that the tax position will be examined by taxing authorities. The Company’s policy is to include interest and penalties related to unrecognized tax benefits in income tax expense. The Company had no accrual for interest or penalties as of September 30, 2019. The Company files income tax returns with the Internal Revenue Service (“IRS”) and the state of California. Use of Estimates Generally accepted accounting principles require that the consolidated financial statements include estimates by management in the valuation of certain assets and liabilities. Significant matters requiring the use of estimates and assumptions include, but are not necessarily limited to, fair value of the Company’s stock, stock-based compensation, and valuation allowance relating to the Company’s deferred tax assets. Management uses its historical records and knowledge of its business in making these estimates. Management believes that its estimates and assumptions are reasonable, based on information that is available at the time they are made. Accordingly, actual results could differ from those estimates. Stock Based Compensation The Company accounts for share-based compensation in accordance with the fair value recognition provision of FASB ASC 718, Compensation – Stock Compensation (“ASC 718”), prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on the estimated grant date fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period). The Company accounts for share-based compensation issued to non-employees and consultants in accordance with the provisions of FASB ASC 505, Equity–based Payments to Non-Employees (“ASC 505”). Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction is determined at the earlier of performance commitment date or performance completion date. Net Loss per Share Basic net loss per share is calculated by dividing the net loss for the period by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is calculated by dividing the net loss for the period by the weighted-average number of common shares outstanding during the period, increased by potentially dilutive common shares ("dilutive securities") that were outstanding during the period. Dilutive securities include stock options and warrants granted, convertible debt, and convertible preferred stock. There were no potentially dilutive securities for the period ended September 30, 2019 and year ended June 30, 2019. Fair Value of Financial Instruments The Company follows FASB ASC 820, Fair Value Measurements and Disclosures Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally unobservable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts reported in the Company’s consolidated financial statements for cash, accounts payable and accrued expenses approximate their fair value because of the immediate or short-term nature of these consolidated financial instruments. Equity Method Investments We began accounting for our ownership in Smartrade Exchange Services, Inc (“Smartrade”) using the equity method of accounting during the quarter ended March 31, 2019. In prior periods, the investment was accounted for under the cost method. The equity method states that if the investment provides us the ability to exercise significant influence, but not control, over the investee, we account for the investment under the equity method. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee’s board of directors, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the investment is recorded at its initial carrying value in the balance sheet and is periodically adjusted for capital contributions, dividends received and our share of the investee’s earnings or losses together with other-than-temporary impairments which are recorded as a component of other income (expense), net in the statements of operations. The Company’s effective ownership in Smartrade was 25% at September 30, 2019 and June 30, 2019, see note 2. Derivative Liability FASB ASC 815, Derivatives and Hedging requires all derivatives to be recorded on the consolidated balance sheet at fair value. As of June 30, 2019, we used the Black-Scholes-Merton (BSM) model to estimate the fair value of the conversion feature of the convertible note. Key assumptions of the BSM model include the market price of our stock, the conversion price of the debt, applicable volatility rates, risk-free interest rates and the instrument’s remaining term. These assumptions require significant management judgment. In addition, changes in any of these variables during a period can result in material changes in the fair value (and resultant gains or losses) of this derivative instrument Leases In February 2016, the Financial Accounting Standards Board (the “FASB”) established ASC Topic 842, “Leases”, by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to now recognize operating leases on the balance sheet and disclose key information about leasing arrangements. ASC Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Lessor accounting under the new standard is substantially unchanged. Additional qualitative and quantitative disclosures are also required. Adoption of this standard did not result in any material changes to the financial statements. Inventory Inventory, consisting of raw materials, work in process and products available for sale, are primarily accounted for using the first-in, first-out method (“FIFO”), and are valued at the lower of cost or net realizable value. This valuation requires management to make judgements based on currently available information, about the likely method of disposition, such as through sales to individual customers and returns to product vendors. As of September 30, 2019, the Company had inventory of approximately $30,000. The Company has no allowance for inventory reserves.

Note 2 - Investment In Smartrad

Note 2 - Investment In Smartrade Exchange Services, Inc.	3 Months Ended
	Sep. 30, 2019
Schedule of Investments [Abstract]
Note 2 - Investment In Smartrade Exchange Services, Inc.	2. INVESTMENT IN SMARTRADE EXCHANGE SERVICES, INC. On May 3, 2018, the Company entered into an agreement (“Subscription Agreement”) to purchase 21% of “Smartrade” for $450,000 in various tranches based on defined milestones. Payment shall be made in five installments, each are 45 days apart, over six months beginning on October 15, 2018, as each milestone is completed. On the date the agreement, Smartrade issued 4.66% of its common stock, on a fully diluted basis, to the Company. In exchange, the Company paid the first installment to Smartrade of $100,000 on October 16, 2018. On September 4, 2018, the Company acquired an additional 3% of Smartrade’s common stock for $64,286. On October 18, 2018, the Company entered into an agreement to purchase an additional 1% of Smartrade’s common stock for $21,429 and receive a royalty of 2.5% of gross revenues of Smartrade to be distributed on a quarterly basis. On December 7, 2018, the Company paid the second installment of $100,000 for an additional 4.66% of Smartrade’s common stock. On January 18, 2019, the Company paid the third installment of 100,000 for an additional 4.66 % of Smartrade’s common stock. On March 5, 2019, the Company amended the Subscription Agreement that changed the final two payments. In accordance with the terms of the amendment, on March 6, 2019, the Company paid $32,000 for 7.02% and the remaining $118,000 will be paid in agreed upon monthly payments. This payment brought the total equity position in Smartrade to 25%. Accordingly, at March 5, 2019, the Company changed its method of accounting the investment in Smartrade to the equity method. At September 30, 2019 and June 30, 2019, the Company owned 25% of Smartrade’s common stock.

Note 3 - Notes Payable

Note 3 - Notes Payable	3 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Note 3 - Notes Payable	3. NOTES PAYABLE In March 2018, the Company issued notes that carry an 8% annual interest rate and mature through December 31, 2019. The balance of the March 2018 notes was $84,000 at September 31, 2019 and June 30, 2019. Interest expense accrued during the three-months ending September 30, 2019 and 2018 was $2,060 and $1,493, respectively. On July 3, 2019, the Company issued a $250,000 convertible promissory note (the “July 2019 Note”) to a lender (the “Lender”). According to the terms the Lender funded the July 2019 Note as follows: $100,000 upon the execution of the Note, $50,000 on August 1, 2019, $50,000 on September 1, 2019, and the remaining $50,000 on October 1, 2019. The outstanding principal balance of the Note shall bear interest at the rate of twelve percent (12%) per annum. The balance of the Note was $200,000 at September 30, 2019. Interest expense accrued during the three-months ending September 30, 2019 and 2018 was $4,586 and $0, respectively. The Note contains an embedded derivative, see Note 8.

Note 4 - Related Party Transact

Note 4 - Related Party Transactions	3 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
Note 4 - Related Party Transactions	4. RELATED PARTY TRANSACTIONS Due to Officer The balance due to the officer at September 30, 2019 and June 30, 2019 was $9,580. There are no definitive repayment terms and no interest is accruing on these advances. Due to Smartrade At September 30, 2019 and June 30, 2019, the Company had a balance payable totaling $31,085 and $61,034, respectively, for the purchase of interest in Smartrade (See note 2).

Note 5 - Concentrations

Note 5 - Concentrations	3 Months Ended
	Sep. 30, 2019
Risks and Uncertainties [Abstract]
Note 5 - Concentrations	5. CONCENTRATIONS Cash Concentration The Company maintains its cash and cash equivalents at a financial institution which may, at times, exceed federally insured limits. At September 30, 2019, the Company’s cash balance did not exceed the FDIC insurance limit. The Company has not experienced any losses in such accounts.

Note 6 - Commitments And Contin

Note 6 - Commitments And Contingencies	3 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Note 6 - Commitments And Contingencies	6. COMMITMENTS AND CONTINGENCIES Legal Matters From time to time the Company may be involved in certain legal actions and claims arising in the ordinary course of business. The Company was not a party to any specific legal actions or claims at September 30, 2019. Agreements On April 4, 2018, the Company entered into an agreement with GHS, where the Company is entitled, at its sole discretion, to request equity investments of up to $5 million over twenty-four months following an effective registration of the underlying shares. On September 30, 2019, the Company entered into an agreement to pay contractor, in exchange for services, $2,500 per month for one year and 1,000,000 shares of common stock at $0.1496 due upon execution. The common stock vests over 36 months. As of September 30, 2019, the shares have not yet been issued. Common Stock Payable As of September 30, 2019 and June 30, 2019, the Company owes a vendor $754,999 and $80,416 worth of common stock for services rendered, respectively.

Note 7 - Shareholders' Equity (

Note 7 - Shareholders' Equity (Deficit)	3 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Note 7 - Shareholders' Equity (Deficit)	7. SHAREHOLDERS’ EQUITY (DEFICIT) Common Stock As of September 30, 2019, and June 30, 2019, there were 120,709,674 and 119,059,674 shares of common stock issued and outstanding, respectively. During the three months ended September 30, 2019, the Company issued 1,650,000 shares of common stock to consultants for services valued at $0.10 per share, or $165,000. During the three months ended September 30, 2018, the Company issued 90,000,000 shares of restricted common stock to the officer as compensation for services as Chief Executive Officer. The shares vest over four years and were valued at $0.0625 per share. The shares are being expensed over four years, or $1.4 million per year. For the three months ended September 30, 2019 and 2018, $351,564 and $19,531 of stock compensation was recognized, respectively. The Company determined fair value of its shares of common stock based on the price at which the Company was selling its shares of common stock to third party investors.

Note 8 - Convertible Debt and D

Note 8 - Convertible Debt and Derivative Liability	3 Months Ended
	Sep. 30, 2019
Disclosure Text Block [Abstract]
Note 8 - Convertible Debt And Derivative Liability	8. CONVERTIBLE DEBT AND DERIVATIVE LIABILITY The Company issued debts that consist of the issuance of convertible notes with variable conversion provisions. The conversion terms of the convertible notes are variable based on certain factors, such as the future price of the Company’s common stock. The number of shares of common stock issuable upon conversion of the promissory note is indeterminate. Pursuant to ASC 815-15 Embedded Derivatives, the fair values of the variable conversion option and shares to be issued were recorded as derivative liabilities on the issuance date. The Company recognized a derivative liability which it valued using the Black-Scholes-Merton model. A summary of quantitative information with respect to valuation methodology and significant unobservable inputs used for the Company’s common stock purchase warrants that are categorized within Level 3 of the fair value hierarchy for the quarter ended September 30, 2019 is as follows: Quarter Ended Stock price $ 0.15 Exercise price $ 0.093 – $0.249 Contractual term (in years) 0.25 – 1.75 Volatility (annual) 142.7% - 210.5 % Risk-free rate 1.63% –1.88 % The foregoing assumptions are reviewed quarterly and are subject to change based primarily on management’s assessment of the probability of the events described occurring. Accordingly, changes to these assessments could materially affect the valuations. Financial Liabilities Measured at Fair Value on a Recurring Basis Financial liabilities measured at fair value on a recurring basis are summarized below and disclosed on the balance sheet under Derivative liability – warrants and derivative liabilities: Fair value measured at September 30, 2019 Quoted prices in active Significant other Significant markets observable inputs unobservable inputs Fair value at (Level 1) (Level 2) (Level 3) September 30, 2019 Derivative liability – convertible note $ — $ — $ 121,726 $ 121,726 Total $ — $ — $ 121,726 $ 121,726 The fair value accounting standards define fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is determined based upon assumptions that market participants would use in pricing an asset or liability. Fair value measurements are rated on a three-tier hierarchy as follows: ● Level 1 inputs: Quoted prices (unadjusted) for identical assets or liabilities in active markets; ● Level 2 inputs: Inputs, other than quoted prices included in Level 1, that are observable either directly or indirectly; and ● Level 3 inputs: Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. There were no transfers between Level 1, 2 or 3 during the period ended September 30, 2019. During the three months ended September 30, 2019, the Company recorded a gain from change in fair value of derivative liability of $15,532. The following table presents changes in Level 3 liabilities measured at fair value for the period ended September 30, 2019: Derivative Liability Balance – September 30, 2018 $ — Liabilities 21,021 Change in fair value of warrant liability (1,197) Balance – June 30, 2019 $ 19,824 Changes due to issuances 104,955 Change in fair value of warrant liability (15,532) Balance – September 30, 2019 $ 109,247 The balance of the derivative liability at September 30, 2019 and June 30, 2019 was $109,247 and $19,824, respectively.

Note 9 - Subsequent Events

Note 9 - Subsequent Events	3 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
Note 9 - Subsequent Events	9. SUBSEQUENT EVENTS On October 1, 2019, the Company entered into a Securities Purchase Agreement (the “SPA”) with a lender (the “Lender”). Under the terms of the SPA, the Lender shall purchase up to $220,000 of securities from the Company, in the form of convertible promissory notes (each a “Note or collectively the “Notes”) in accordance with the following schedule: $50,000 in net proceeds, by wire transfer on October 1, 2019 (“Initial Tranche”) and three (3) additional monthly tranches of up to $50,000 in net proceeds, each at the Lender’s discretion. On October 29, 2019, the Company amended its subscription agreement with “Smartrade” and added another 5% of equity, bringing the total up from 25% to 30% in exchange for marketing services.

Note 1 - Organization And Sum_2

Note 1 - Organization And Summary Of Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Organization	Organization APPlife Digital Solutions Inc. (the “Company”) is a business incubator and portfolio manager that uses digital technology to create and invest in e-commerce and cloud-based solutions. The Company was formed March 5, 2018 in Nevada and has offices in San Francisco, California and Shanghai, China. The Company’s mission is using digital technology to create APPs and websites that make life, business and living easier, more efficient and just smarter. Rooster Essentials APP SPV, LLC (the “Rooster”), incorporated on April 9, 2019, is a wholly owned subsidiary of the Company. Rooster is a fully customizable men’s subscription service that delivers daily use grooming needs and essential items. B2BCHX SPV LLC (the “B2BCHX”), incorporated on June 5, 2019, is a wholly owned subsidiary of the Company. B2BCHX does an independent background check on mainland Chinese companies for small businesses globally.
Going Concern	Going Concern The Company has generated losses and negative cash flows from operations since inception. The Company has historically financed its operations from equity financing. The Company anticipates additional equity financings to fund operations in the future. Should management fail to adequately address the issue, the Company may have to reduce its business activities or curtail its operations. The accompanying consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and classification of liabilities and commitments in the normal course of business. The accompanying consolidated financial statements do not reflect any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classifications of liabilities that might result if the Company is unable to continue as a going concern.
Basis of Presentation	Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for the interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. The unaudited condensed consolidated financial statements include the accounts of all subsidiaries in which the Company holds a controlling financial interest as of the financial statement date. All intercompany transactions have been eliminated in consolidation. However, in the opinion of the management of the Company, all adjustments necessary for a fair presentation of the financial position and operating results have been included in these statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10–K for the fiscal year ended June 30, 2019, as filed with the SEC on September 30, 2019. Operating results for the three months ended September 30, 2019 are not necessarily indicative of the results that may be expected for any subsequent quarters or for the fiscal year ending June 30, 2020.
Cash and Cash Equivalents	Cash and Cash Equivalents For the purpose of the statement of cash flows, the Company considers cash equivalents to include cash and investments with an original maturity of three months or less.
Income Taxes	Income Taxes The Company has adopted guidance issued by the FASB that clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold of more likely than not and a measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In making this assessment, a company must determine whether it is more likely than not that a tax position will be sustained upon examination, based solely on the technical merits of the position and must assume that the tax position will be examined by taxing authorities. The Company’s policy is to include interest and penalties related to unrecognized tax benefits in income tax expense. The Company had no accrual for interest or penalties as of September 30, 2019. The Company files income tax returns with the Internal Revenue Service (“IRS”) and the state of California.
Use of Estimates	Use of Estimates Generally accepted accounting principles require that the consolidated financial statements include estimates by management in the valuation of certain assets and liabilities. Significant matters requiring the use of estimates and assumptions include, but are not necessarily limited to, fair value of the Company’s stock, stock-based compensation, and valuation allowance relating to the Company’s deferred tax assets. Management uses its historical records and knowledge of its business in making these estimates. Management believes that its estimates and assumptions are reasonable, based on information that is available at the time they are made. Accordingly, actual results could differ from those estimates.
Stock Based Compensation	Stock Based Compensation The Company accounts for share-based compensation in accordance with the fair value recognition provision of FASB ASC 718, Compensation – Stock Compensation (“ASC 718”), prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on the estimated grant date fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period). The Company accounts for share-based compensation issued to non-employees and consultants in accordance with the provisions of FASB ASC 505, Equity–based Payments to Non-Employees (“ASC 505”). Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction is determined at the earlier of performance commitment date or performance completion date.
Net Loss per Share	Net Loss per Share Basic net loss per share is calculated by dividing the net loss for the period by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is calculated by dividing the net loss for the period by the weighted-average number of common shares outstanding during the period, increased by potentially dilutive common shares ("dilutive securities") that were outstanding during the period. Dilutive securities include stock options and warrants granted, convertible debt, and convertible preferred stock. There were no potentially dilutive securities for the period ended September 30, 2019 and year ended June 30, 2019.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company follows FASB ASC 820, Fair Value Measurements and Disclosures Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally unobservable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts reported in the Company’s consolidated financial statements for cash, accounts payable and accrued expenses approximate their fair value because of the immediate or short-term nature of these consolidated financial instruments.
Equity Method Investments	Equity Method Investments We began accounting for our ownership in Smartrade Exchange Services, Inc (“Smartrade”) using the equity method of accounting during the quarter ended March 31, 2019. In prior periods, the investment was accounted for under the cost method. The equity method states that if the investment provides us the ability to exercise significant influence, but not control, over the investee, we account for the investment under the equity method. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee’s board of directors, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the investment is recorded at its initial carrying value in the balance sheet and is periodically adjusted for capital contributions, dividends received and our share of the investee’s earnings or losses together with other-than-temporary impairments which are recorded as a component of other income (expense), net in the statements of operations. The Company’s effective ownership in Smartrade was 25% at September 30, 2019 and June 30, 2019, see note 2.
Derivative Liability	Derivative Liability FASB ASC 815, Derivatives and Hedging requires all derivatives to be recorded on the consolidated balance sheet at fair value. As of June 30, 2019, we used the Black-Scholes-Merton (BSM) model to estimate the fair value of the conversion feature of the convertible note. Key assumptions of the BSM model include the market price of our stock, the conversion price of the debt, applicable volatility rates, risk-free interest rates and the instrument’s remaining term. These assumptions require significant management judgment. In addition, changes in any of these variables during a period can result in material changes in the fair value (and resultant gains or losses) of this derivative instrument
Leases	Leases In February 2016, the Financial Accounting Standards Board (the “FASB”) established ASC Topic 842, “Leases”, by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to now recognize operating leases on the balance sheet and disclose key information about leasing arrangements. ASC Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Lessor accounting under the new standard is substantially unchanged. Additional qualitative and quantitative disclosures are also required. Adoption of this standard did not result in any material changes to the financial statements.
Inventory	Inventory Inventory, consisting of raw materials, work in process and products available for sale, are primarily accounted for using the first-in, first-out method (“FIFO”), and are valued at the lower of cost or net realizable value. This valuation requires management to make judgements based on currently available information, about the likely method of disposition, such as through sales to individual customers and returns to product vendors. As of September 30, 2019, the Company had inventory of approximately $30,000. The Company has no allowance for inventory reserves.

Note 8 - Convertible Debt and_2

Note 8 - Convertible Debt and Derivative Liability (Tables)	3 Months Ended
	Sep. 30, 2019
Disclosure Text Block [Abstract]
Schedule of valuation methodology	A summary of quantitative information with respect to valuation methodology and significant unobservable inputs used for the Company’s common stock purchase warrants that are categorized within Level 3 of the fair value hierarchy for the quarter ended September 30, 2019 is as follows: Quarter Ended Stock price $ 0.15 Exercise price $ 0.093 – $0.249 Contractual term (in years) 0.25 – 1.75 Volatility (annual) 142.7% - 210.5 % Risk-free rate 1.63% –1.88 %
Fair Value, Liabilities Measured on Recurring Basis	Financial liabilities measured at fair value on a recurring basis are summarized below and disclosed on the balance sheet under Derivative liability – warrants and derivative liabilities: Fair value measured at September 30, 2019 Quoted prices in active Significant other Significant markets observable inputs unobservable inputs Fair value at (Level 1) (Level 2) (Level 3) September 30, 2019 Derivative liability – convertible note $ — $ — $ 121,726 $ 121,726 Total $ — $ — $ 121,726 $ 121,726
Schedule of changes in Level 3 liabilities	The following table presents changes in Level 3 liabilities measured at fair value for the period ended September 30, 2019: Derivative Liability Balance – September 30, 2018 $ — Liabilities 21,021 Change in fair value of warrant liability (1,197) Balance – June 30, 2019 $ 19,824 Changes due to issuances 104,955 Change in fair value of warrant liability (15,532) Balance – September 30, 2019 $ 109,247

Note 1 - Organization And Sum_3

Note 1 - Organization And Summary Of Significant Accounting Policies (Details) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 06, 2019	Jan. 18, 2019	Dec. 07, 2018	Oct. 18, 2018	Oct. 15, 2018	Sep. 04, 2018
Interest and penalties	$ 0
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	0
Inventory	$ 30,094
Smartrade
Percentage owed	25.00%	25.00%	7.02%	4.66%	4.66%	1.00%	4.66%	3.00%

Note 2 - Investment In Smartr_2

Note 2 - Investment In Smartrade Exchange Services, Inc. (Details) - Smartrade - USD ($)	Mar. 06, 2019	Dec. 07, 2018	Sep. 04, 2018	Jan. 18, 2019	Oct. 18, 2018	Sep. 30, 2019	Oct. 16, 2018	Jun. 30, 2019	Oct. 15, 2018
Investment Description						On May 3, 2018, the Company entered into an agreement (“Subscription Agreement”) to purchase 21% of Smartrade for $450,000 in various tranches based on defined milestones. Payment shall be made in five installments, each are 45 days apart, over six months beginning on October 15, 2018, as each milestone is completed. On the date the agreement, Smartrade issued 4.66% of its common stock, on a fully diluted basis, to the Company.
Periodic payment of installment	$ 32,000	$ 100,000	$ 64,286	$ 100,000	$ 21,429	$ 118,000	$ 100,000
Percentage owed	7.02%	4.66%	3.00%	4.66%	1.00%	25.00%		25.00%	4.66%

Note 3 - Notes Payable (Details

Note 3 - Notes Payable (Details) - USD ($)	Jul. 03, 2019	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Notes payable, net		$ 180,529		$ 70,624
July 2019 Note | Lender
Debt Instrument, Interest Rate During Period	12.00%
Notes payable, net	$ 250,000	200,000
Interest expense		$ 4,586	$ 0
March 2018 notes
Debt Instrument, Interest Rate During Period		8.00%
Debt Instrument, Maturity Date		Dec. 31, 2019
Notes payable, net		$ 84,000		$ 84,000
Interest expense		$ 2,060	$ 1,493

Note 4 - Related Party Transa_2

Note 4 - Related Party Transactions (Details) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Related Party Transactions [Abstract]
Due to officer	$ 9,580	$ 9,580
Due to Smartrade Exchange Services, Inc.	$ 31,085	$ 61,034

Note 6 - Commitments And Cont_2

Note 6 - Commitments And Contingencies (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Debt Instrument, Convertible, Type of Equity Security	Equity investments of up to $5 million over twenty-four months following an effective registration of the underlying shares.
Stock issued for services description	Company entered into an agreement to pay contractor, in exchange for services, $2,500 per month for one year and 1,000,000 shares of common stock at $0.1496 due upon execution. The common stock vests over 36 months. As of September 30, 2019, the shares have not yet been issued.
Common stock payable	$ 754,999	$ 80,416

Note 7 - Shareholders' Equity_2

Note 7 - Shareholders' Equity (Deficit) (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Common Stock, shares issued	120,709,674		119,059,674
Common Stock, shares outstanding	120,709,674		119,059,674
Common stock issued to employees, value	$ 351,564	$ 19,531
Common stock issued for services, value	$ 165,000	5,850
Share price	$ 0.15
Consultants
Common stock issued for services, value	$ 165,000
Common stock issued for services, shares	1,650,000
Share price	$ 0.10
Chief Executive Officer [Member]
Common stock issued to employees, value	$ 35,154	$ 19,531
Common stock issued to employees, shares		90,000,000
Share price	$ 0.0612
Share based expense		$ 1,400,000

Note 8 - Convertible Debt and_3

Note 8 - Convertible Debt and Derivative Liability (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Jun. 30, 2018
Disclosure Text Block [Abstract]
Change in fair value of derivative liability	$ 15,532
Derivative liability	$ 109,247	$ 19,824	$ 0

Note 8 - Convertible Debt and_4

Note 8 - Convertible Debt and Derivative Liability : Schedule of valuation methodology (Details)	3 Months Ended
	Sep. 30, 2019$ / shares
Stock price	$ 0.15
Minimum [Member]
Exercise price	$ 0.093
Contractual term (in years)	2 months 30 days
Volatility (annual)	142.70%
Risk-free rate	1.63%
Maximum [Member]
Exercise price	$ 0.249
Contractual term (in years)	1 year 9 months
Volatility (annual)	210.50%
Risk-free rate	1.88%

Note 8 - Convertible Debt and_5

Note 8 - Convertible Debt and Derivative Liability : Fair Value, Liabilities Measured on Recurring Basis (Details) - USD ($)	Sep. 30, 2019	Jun. 30, 2019	Jun. 30, 2018
Derivative liability	$ 109,247	$ 19,824	$ 0
Fair Value, Inputs, Level 1 [Member]
Derivative liability	0
Fair Value, Inputs, Level 2 [Member]
Derivative liability	0
Fair Value, Inputs, Level 3 [Member]
Derivative liability	121,726
Convertible Note
Derivative liability	121,726
Convertible Note | Fair Value, Inputs, Level 1 [Member]
Derivative liability	0
Convertible Note | Fair Value, Inputs, Level 2 [Member]
Derivative liability	0
Convertible Note | Fair Value, Inputs, Level 3 [Member]
Derivative liability	$ 121,726

Note 8 - Convertible Debt and_6

Note 8 - Convertible Debt and Derivative Liability : Schedule of changes in Level 3 liabilities (Details) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
Disclosure Text Block [Abstract]
Balance at beginning	$ 19,824	$ 0
Liabilities		21,021
Changes due to issuances	104,955
Change in fair value of warrant liability	(15,532)	(1,197)
Balance at end	$ 109,247	$ 19,824

Note 9 - Subsequent Events (Det

Note 9 - Subsequent Events (Details) - USD ($)	Oct. 01, 2019	Oct. 29, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 06, 2019	Jan. 18, 2019	Dec. 07, 2018	Oct. 18, 2018	Oct. 15, 2018	Sep. 04, 2018
Smartrade
Percentage owed			25.00%	25.00%	7.02%	4.66%	4.66%	1.00%	4.66%	3.00%
Subsequent Event [Member] | Securities Purchase Agreement | Lender
Proceeds from convertible promissory notes	$ 220,000
Convertible promissory notes description	Convertible promissory notes (each a “Note or collectively the “Notes”) in accordance with the following schedule: $50,000 in net proceeds, by wire transfer on October 1, 2019 (“Initial Tranche”) and three (3) additional monthly tranches of up to $50,000 in net proceeds, each at the Lender’s discretion.
Subsequent Event [Member] | Smartrade
Investment Owned another		5.00%
Percentage owed		30.00%