AfterMaster (AFTM) 10-Q 14 Nov 19 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2019	Nov. 15, 2019
Document And Entity Information
Entity Registrant Name	AFTERMASTER, INC.
Entity Central Index Key	0000836809
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
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		318,486,038
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Current Assets
Cash and cash equivalents	$ 64,093	$ 366,129
Accounts receivable, net	27,304	24,226
Inventory, net	302,802	306,762
Prepaid expenses	285,909	311,296
Total current assets	680,108	1,008,413
Property and equipment, net	52,402	60,817
Right-to-use asset, net	133,520	0
Deposits	24,217	24,217
Total assets	890,247	1,093,447
Current Liabilities
Accounts payable and other accrued expenses	2,049,081	1,957,550
Accrued interest	935,034	921,033
Deferred revenue	3,921	3,921
Accrued consulting services - related party	194,890	161,124
Lease payable	93,121	0
Derivative liability	6,267,392	5,009,094
Notes payable - related party	270,000	230,000
Notes payable, net of discount of $1,000 and $992, respectively	1,291,704	1,053,758
Convertible notes payable - related party	119,500	119,500
Convertible notes payable, net of discount of $694,977 and $1,024,700, respectively	4,765,356	4,443,837
Total current liabilities	15,989,999	13,899,817
Long-Term Liabilities
Lease payable, net of current portion	46,069	0
Total liabilities	16,036,068	13,899,817
Commitments and contingencies
Stockholders' Deficit
Common stock, authorized 513,407,666 shares, par value $0.001, 302,851,038 and 275,507,995 shares issued and outstanding, respectively	302,857	275,629
Common stock to be issued, 3,885,000	3,885	3,885
Additional paid in capital	72,268,879	72,770,496
Accumulated deficit	(87,724,551)	(85,859,489)
Total stockholders' deficit	(15,145,821)	(12,806,370)
Total liabilities and stockholders' deficit	890,247	1,093,447
Series A Convertible Preferred stock
Stockholders' Deficit
Preferred stock	16	16
Series A-1 Convertible Preferred stock
Stockholders' Deficit
Preferred stock	2,585	2,585
Series B Convertible Preferred stock
Stockholders' Deficit
Preferred stock	3	3
Series C Convertible Preferred stock
Stockholders' Deficit
Preferred stock	13	13
Series D Convertible Preferred stock
Stockholders' Deficit
Preferred stock	130	130
Series E Convertible Preferred stock
Stockholders' Deficit
Preferred stock	275	275
Series H Convertible Preferred stock
Stockholders' Deficit
Preferred stock	0	0
Series P Convertible Preferred stock
Stockholders' Deficit
Preferred stock	87	87
Series S Convertible Preferred stock
Stockholders' Deficit
Preferred stock	$ 0	$ 0

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
LIABILITIES AND STOCKHOLDERS' EQUITY
Discount on notes payable	$ 1,000	$ 992
Discount on convertible notes payable	$ 694,977	$ 1,024,700
Convertible preferred stock, authorized shares	6,325,005
Convertible preferred stock, outstanding shares	3,109,046
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized shares	513,407,666	513,407,666
Common stock, issued shares	302,851,038	275,507,995
Common stock, outstanding shares	302,851,038	275,507,995
Common stock to be issued	3,885,000	3,885,000
Series A Convertible Preferred stock
LIABILITIES AND STOCKHOLDERS' EQUITY
Convertible preferred stock, par value	$ 0.001	$ 0.001
Convertible preferred stock, authorized shares	100,000	100,000
Convertible preferred stock, issued shares	15,500	15,500
Convertible preferred stock, outstanding shares	15,500	15,500
Series A-1 Convertible Preferred stock
LIABILITIES AND STOCKHOLDERS' EQUITY
Convertible preferred stock, par value	$ 0.001	$ 0.001
Convertible preferred stock, authorized shares	3,000,000	3,000,000
Convertible preferred stock, issued shares	2,585,000	2,585,000
Convertible preferred stock, outstanding shares	2,585,000	2,585,000
Series B Convertible Preferred stock
LIABILITIES AND STOCKHOLDERS' EQUITY
Convertible preferred stock, par value	$ 0.001	$ 0.001
Convertible preferred stock, authorized shares	200,000	200,000
Convertible preferred stock, issued shares	3,500	3,500
Convertible preferred stock, outstanding shares	3,500	3,500
Series C Convertible Preferred stock
LIABILITIES AND STOCKHOLDERS' EQUITY
Convertible preferred stock, par value	$ 0.001	$ 0.001
Convertible preferred stock, authorized shares	1,000,000	1,000,000
Convertible preferred stock, issued shares	13,404	13,404
Convertible preferred stock, outstanding shares	13,404	13,404
Series D Convertible Preferred stock
LIABILITIES AND STOCKHOLDERS' EQUITY
Convertible preferred stock, par value	$ 0.001	$ 0.001
Convertible preferred stock, authorized shares	375,000	375,000
Convertible preferred stock, issued shares	130,000	130,000
Convertible preferred stock, outstanding shares	130,000	130,000
Series E Convertible Preferred stock
LIABILITIES AND STOCKHOLDERS' EQUITY
Convertible preferred stock, par value	$ 0.001	$ 0.001
Convertible preferred stock, authorized shares	1,000,000	1,000,000
Convertible preferred stock, issued shares	275,000	275,000
Convertible preferred stock, outstanding shares	275,000	275,000
Series H Convertible Preferred stock
LIABILITIES AND STOCKHOLDERS' EQUITY
Convertible preferred stock, par value	$ 0.001	$ 0.001
Convertible preferred stock, authorized shares	5	5
Convertible preferred stock, issued shares	2	2
Convertible preferred stock, outstanding shares	2	2
Series P Convertible Preferred stock
LIABILITIES AND STOCKHOLDERS' EQUITY
Convertible preferred stock, par value	$ 0.001	$ 0.001
Convertible preferred stock, authorized shares	600,000	600,000
Convertible preferred stock, issued shares	86,640	86,640
Convertible preferred stock, outstanding shares	86,640	86,640
Series S Convertible Preferred stock
LIABILITIES AND STOCKHOLDERS' EQUITY
Convertible preferred stock, par value	$ 0.001	$ 0.001
Convertible preferred stock, authorized shares	50,000	50,000
Convertible preferred stock, issued shares	0	0
Convertible preferred stock, outstanding shares	0	0

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
REVENUES
AfterMaster revenues	$ 131,880	$ 145,413
Product revenues	8,389	389,109
Total revenues	140,269	534,522
COSTS AND EXPENSES
Cost of revenues (exclusive of depreciation and amortization)	114,066	417,757
Depreciation and amortization expense	8,416	23,467
Research and development	0	2,600
Advertising and promotion expense	1,997	54,369
Legal and professional expense	43,154	11,030
Non-cash consulting expense	25,387	65,116
General and administrative expenses	725,886	849,187
Total costs and expenses	918,906	1,423,526
Loss from operations	(778,637)	(889,004)
Other Income (Expense)
Interest expense	(690,374)	(806,650)
Derivative expense	(71,359)	(1,043,090)
Change in fair value of derivative	(324,692)	612,212
Total other income (expense)	(1,086,425)	(1,237,528)
Loss before income taxes	(1,865,062)	(2,126,532)
Income tax expense	0	0
Net loss	(1,865,062)	(2,126,532)
Preferred stock accretion and dividends	(56,367)	(56,367)
Net income (loss) available to common shareholders	$ (1,921,429)	$ (2,182,899)
Basic and diluted loss per share of common stock	$ (0.01)	$ (0.01)
Weighted average number of shares outstanding	281,605,962	171,607,750

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Deficit - USD ($)	Preferred Stock	Common Stock	Additional Paid In Capital	Common Stock to be Issued	Accumulated Deficit	Total
Beginning balance, shares at Jun. 30, 2018	3,109,044	133,446,521
Beginning balance, amount at Jun. 30, 2018	$ 3,109	$ 133,742	$ 68,916,676	$ 28,553	$ (76,556,750)	$ (7,474,670)
Share-based compensation to directors and employees-common shares, amount			62,879	2,168		65,047
Total stock issued for consulting services and rent, shares		8,000,000
Total stock issued for consulting services and rent, amount		$ 8,000	356,630	1,385		366,015
Common stock issued for conversion of debt, shares		17,326,372
Common stock issued for conversion of debt, amount		$ 17,326	256,984			274,310
Common stock issued for interest expense, shares		3,000,000
Common stock issued for interest expense, amount		$ 3,000	87,000			90,000
Derivative liability			959,587			959,587
Net loss					(2,126,532)	(2,126,532)
Ending balance, shares at Sep. 30, 2018	3,109,044	161,772,893
Ending balance, amount at Sep. 30, 2018	$ 3,109	$ 162,068	70,639,756	32,106	(78,683,282)	(7,846,243)
Beginning balance, shares at Jun. 30, 2019	3,109,046	279,507,995
Beginning balance, amount at Jun. 30, 2019	$ 3,109	$ 275,629	72,770,496	3,885	(85,859,489)	(12,806,370)
Common stock sold for cash, net of offering costs, shares		18,900,000
Common stock sold for cash, net of offering costs, amount		$ 18,900	170,100			189,000
Share-based compensation to directors and employees-common shares, shares		8,328,043
Share-based compensation to directors and employees-common shares, amount		$ 8,328	83,280			91,608
Total stock issued for consulting services and rent, amount						0
Derivative liability			(754,997)			(754,997)
Net loss					(1,865,062)	(1,865,062)
Ending balance, shares at Sep. 30, 2019	3,109,046	306,736,038
Ending balance, amount at Sep. 30, 2019	$ 3,109	$ 302,857	$ 72,268,879	$ 3,885	$ (87,724,551)	$ (15,145,821)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
OPERATING ACTIVITIES
Net loss	$ (1,865,062)	$ (2,126,532)
Adjustments to reconcile net loss to cash from operating activities:
Depreciation and amortization	29,437	23,467
Share-based compensation - common stock	91,608	65,047
Common stock issued for services	0	366,015
Amortization of debt discount and issuance costs	452,715	500,457
Derivative expense	71,359	1,043,090
(Gain)/loss remeasurement of derivative	324,692	(612,212)
Changes in Operating Assets and Liabilities:
Accounts receivables	(3,079)	(58,838)
Inventory	3,960	(2,568)
Other assets	25,387	(300,899)
Deposits	0	900
Accounts payable and accrued expenses	91,531	(88,615)
Lease payments	(15,351)	0
Accrued interest	180,955	293,975
Accrued consulting services - related party	33,766	37,304
Net cash used in operating activities	(578,082)	(859,409)
INVESTING ACTIVITIES
Net cash used in investing activities	0	0
FINANCING ACTIVITIES
Common stock issued for cash	189,000	0
Proceeds from notes payable	50,000	125,000
Repayments of notes payable	0	(10,000)
Proceeds from notes payable - related party	40,000	39,000
Proceeds from convertible notes payable	107,250	577,850
Repayments of convertible notes payable	(110,204)	(126,759)
Net cash provided by financing activities	276,046	605,091
Net change in cash	(302,036)	(254,318)
Cash at beginning of period	366,129	390,191
Cash at end of period	64,093	135,873
CASH PAID FOR:
Interest	56,703	102,217
Taxes	0	0
NON CASH FINANCING ACTIVITIES:
Beneficial conversion feature	0	274,310
Conversion of notes and interest into common stock	0	90,000
Derivative liability	107,250	577,850
Conversion of derivative liability	120	959,587
Market to market on available for sale securities	0	366,015
Right-to-use asset	154,541	0
Warrants issued in private placement	755,117	0
Convertible notes payable issued for prepaid expenses	0	120,000
Original issue discount	14,750	102,000
Assignment of debt	$ 164,204	$ 11,238

1. CONDENSED FINANCIAL STATEMEN

1. CONDENSED FINANCIAL STATEMENTS	3 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
1. CONDENSED FINANCIAL STATEMENTS	The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at September 30, 2019, and for all periods presented herein, have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s June 30, 2019 audited financial statements. The results of operations for the period ended September 30, 2019 is not necessarily indicative of the operating results for the full year.

2. GOING CONCERN

2. GOING CONCERN	3 Months Ended
	Sep. 30, 2019
Going Concern
2. GOING CONCERN	The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has an accumulated deficit of $87,724,551, negative working capital of $15,309,891 and currently has revenues which are insufficient to cover its operating costs, which raises substantial doubt about its ability to continue as a going concern. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The future of the Company as an operating business will depend on its ability to (1) obtain sufficient capital contributions and/or financing as may be required to sustain its operations and (2) to achieve adequate revenues from its Promaster and Aftermaster businesses. Management’s plan to address these issues includes, (a) continued exercise of tight cost controls to conserve cash, (b) obtaining additional financing, (c) more widely commercializing the Aftermaster and Promaster products, and (d) identifying and executing on additional revenue generating opportunities. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

3. SUMMARY OF SIGNIFICANT ACCOU

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles 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 dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates are made in relation to the allowance for doubtful accounts and the fair value of certain financial instruments. Derivative Liabilities The Company has financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in the Company’s balance sheet. The Company measures these instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change. The Company has a sequencing policy regarding share settlement wherein instruments with the earliest issuance date would be settled first. The sequencing policy also considers contingently issuable additional shares, such as those issuable upon a stock split, to have an issuance date to coincide with the event giving rise to the additional shares. On February 3, 2017, the company entered into a note payable with an unrelated party at a percentage discount (variable) exercise price which causes the number to be converted into a number of common shares that “approach infinity”, as the underlying stock price could approach zero. Accordingly, all convertible instruments, including standalone warrants, issued after February 3, 2017 are considered derivatives according to the Company’s sequencing policy. The Company values these convertible notes payable using the multinomial lattice method that values the derivative liability within the notes based on a probability weighted discounted cash flow model. The resulting liability is valued at each reporting date and the change in the liability is reflected as change in derivative liability in the statement of operations. Leases The Company adopted ASC 842 as of October 1, 2019 using a modified retrospective transition approach for all leases existing at October 1, 2019, the date of the initial application. Consequently, financial information will not be updated, and disclosures required under ASC 842 will not be provided for dates and periods before October 1, 2019. As of October 1, 2019, the Company recognized operating lease liabilities of $154,541 based on the present value of the remaining minimum rental payments determined under prior lease accounting standards and corresponding ROU assets of $154,541. The Company determines if a contract is a lease or contains a lease at inception. Right of use assets related to operating type leases are reported in other noncurrent assets and the present value of remaining lease obligations is reported in accrued and other liabilities and other noncurrent liabilities on the Condensed Consolidated Balance Sheets. The Company does not currently have any financing type leases. Operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The Company’s leases do not provide an implicit rate and the Company could not determine the incremental borrowing rates applicable to the economic environment; therefore, the Company uses the risk free interest rates applicable to the duration of the lease, based on the information available at commencement date, in determining the present value of future payments. The right of use asset for operating leases is measured using the lease liability adjusted for the impact of lease payments made prior to commencement, lease incentives received, initial direct costs incurred and any asset impairments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company remeasures and reallocates the consideration in a lease when there is a modification of the lease that is not accounted for as a separate contract. The lease liability is remeasured when there is a change in the lease term or a change in the assessment of whether the Company will exercise a lease option. The Company assesses right of use assets for impairment in accordance with its long-lived asset impairment policy. The Company accounts for lease agreements with contractually required lease and non-lease components on a combined basis. Lease payments made for cancellable leases, variable amounts that are not based on an observable index and lease agreements with an original duration of less than twelve months are recorded directly to lease expense. Revenue Recognition The Company applies the provisions of FASB ASC 606, Revenue Recognition in Financial Statements The Company’s revenues are generated from Aftermaster products and services, Aftermaster Pro, sessions revenue, and remastering. Revenues related to Aftermaster Pro sells through consumer retail distribution channels and through our website. For sales through consumer retail distribution channels, revenue recognition occurs when title and risk of loss have transferred to the customer which usually occurs upon shipment to the customers. We established allowances for expected product returns and these allowances are recorded as a direct reduction to revenue. Return allowances are based on our historical experience. Revenues related to sessions and remastering are recognized when the event occurred. Loss Per Share Basic loss per Common Share is computed by dividing losses attributable to Common shareholders by the weighted-average number of shares of Common Stock outstanding during the period. The losses attributable to Common shareholders was increased for accrued and deemed dividends on Preferred Stock during the three months ended September 30, 2019 and 2018 of $56,367 and $56,367, respectively. Diluted earnings per Common Share is computed by dividing net loss attributable to Common shareholders by the weighted-average number of Shares of Common Stock outstanding during the period increased to include the number of additional Shares of Common Stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding convertible Preferred Stock, stock options, warrants, and convertible debt. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s Common Stock can result in a greater dilutive effect from potentially dilutive securities. For the three months ended September 30, 2019 and 2018, all of the Company’s potentially dilutive securities (warrants, options, convertible preferred stock, and convertible debt) were excluded from the computation of diluted earnings per share as they were anti-dilutive. The total number of potentially dilutive Common Shares that were excluded were 656,776,405 and 129,530,326 at September 30, 2019 and 2018, respectively. Recent Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350). The amendments in this update simplify the test for goodwill impairment by eliminating Step 2 from the impairment test, which required the entity to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining fair value of assets acquired and liabilities assumed in a business combination. The amendments in this update are effective for public companies for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is evaluating the effect that the updated standard will have on its financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The new ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The new ASU will be effective for the Company beginning in the fiscal quarter of 2020, and early adoption is permitted. The Company is evaluating the effect that the updated standard will have on its financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendment modifies, removes, and adds certain disclosure requirements on fair value measurements. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. We are currently evaluating the impact of ASU No. 2018-13 on our consolidated financial statements. Management has considered all recent accounting pronouncements issued since the last audit of our consolidated financial statements. The Company’s management has evaluated recent pronouncements and have not included those that were note applicable.

4. NOTES PAYABLE

4. NOTES PAYABLE	3 Months Ended
	Sep. 30, 2019
Notes Payable [Abstract]
4. NOTES PAYABLE	Convertible Notes Payable In accounting for its convertible notes payable, proceeds from the sale of a convertible debt instrument with Common Stock purchase warrants are allocated to the two elements based on the relative fair values of the debt instrument without the warrants and of the warrants themselves at time of issuance. The portions of the proceeds allocated to the warrants are accounted for as paid-in capital with an offset to debt discount. The remainder of the proceeds are allocated to the debt instrument portion of the transaction as prescribed by ASC 470-25-20. The Company then calculates the effective conversion price of the note based on the relative fair value allocated to the debt instrument to determine the fair value of any beneficial conversion feature (“BCF”) associated with the convertible note in accordance with ASC 470-20-30. The BCF is recorded to additional paid-in capital with an offset to debt discount. Both the debt discount related to the issuance of warrants and related to a BCF is amortized over the life of the note. Convertible Notes Payable – Related Parties Convertible notes payable due to related parties consisted of the following as of September 30, 2019 and June 30, 2019, respectively: September 30, June 30, 2019 2019 $30,000 face value, issued in August 2016, interest rate of 0% and is convertible into shares of the Company’s Common stock at $0.40 per share, matured June 30, 2019. The note is currently in default. $ 30,000 $ 30,000 Various term notes with total face value of $89,500 issued from September 2017 to February 2018, interest rates of 0% and are convertible into shares of the Company’s common stock at $0.10 per share, matured from January 2019 to June 30, 2019. The notes are currently in default. 89,500 89,500 Total convertible notes payable – related parties 119,500 119,500 Less current portion 119,500 119,500 Convertible notes payable – related parties, long-term $ - $ - Convertible Notes Payable - Non-Related Parties Convertible notes payable due to non-related parties consisted of the following as of September 30, 2019 and June 30, 2019, respectively: September 30, June 30, 2019 2019 Various term notes with total face value of $2,049,000, issued from July 2014 to March 2018, interest rates from 0% to 10% and are convertible into shares of the Company’s common stock from $0.10 to $0.40 per share, matured from October 2018 to June 2019. One of the notes and accrued interest was assigned to non-related party notes payable in September 2019. The notes are currently in default. $ 2,029,000 $ 2,049,000 Two Term notes with total face value of $373,000, issued in February 2017, interest rates of 10% and are convertible into shares of the Company’s common stock at lesser of 40% of the average three lowest closing bids twenty (20) days prior to the conversion date or $0.40 per share, matured June 2018, with additional extension fees of $81,000 added to principal. A total of $187,403 has been converted and $85,654 has been paid. The note is currently in default. 180,943 186,597 $265,000 face value, issued in May 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $0.31 or 60% of the lowest closing bids twenty-five (25) days prior to the conversion date, matured February 2018, of which $116,328 was converted. The note is currently in default. 104,845 104,845 Two term notes with total face value of $131,000 face value, issued on July 2017 and August 2017, interest rates of 12% and are convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period ending to the date of conversion, matured May 2018 and June 2018, of which $72,000 was converted. The note is currently in default. 59,000 59,000 $115,000 face value, issued in November 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at 57.5% of the lowest closing bids thirty (30) days prior to the conversion per share, matured August 2018. The note is currently in default. 115,000 115,000 $115,000 face value, issued in January 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $0.12 and 57.5% of the lowest trading price during the prior thirty (30) days, matured October 2018. The note is currently in default. 115,000 115,000 $150,000 face value, issued in April 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $0.05 or 57.5% of the lowest closing bids twenty (20) days prior to the conversion date, matured January 2019. The note is currently in default. 160,000 160,000 Two term notes with total face value of $415,000 face value, issued from an assignment in April 2018 of $370,000 in principal and an OID of $45,000, interest rates of 10% and are convertible into shares of the Company’s common stock at rate of 55% of the average trading price for the prior three (3) trading days, matured April 2019, of which $223,198 has been converted. The notes are currently in default. 191,802 191,802 Various term notes with total face value of $502,504, issued from May 2018 to June 2018, interest rates of 12% and are convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period ending to the date of conversion, matured from October 2018 to June 2019, of which $69,898 has been converted and $164,499 has been paid. The note is currently in default. 268,137 268,137 $15,651 face value, issued in June 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 60% of the lowest trading price during the previous twenty (20) days to the date of conversion, matured June 30, 2019. The note is currently in default. 15,651 15,651 $120,000 face value, issued in July 2018 for prepaid services, interest rate of 15% and is convertible into shares of the Company’s common stock at 70% of the lowest closing price during the twenty (20) days prior to the conversion per share, matures July 2019. The note is currently in default. 120,000 120,000 $39,759 face value, issued from an assignment in August 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 55% of the lowest sales price for common stock on principal market during the twenty-five (25) consecutive trading days immediately preceding the conversion date, matured November 2018. The note is currently in default. 39,759 39,759 $23,000 face value, issued in August 2018 of $20,000 in principal and an OID of $3,000, interest rate of 12% and is convertible into shares of the Company’s common stock at 55% of the average of the three (3) lowest closing price during the 25 days prior to the conversion per share, matures August 2019, net unamortized discount of $0 and $3,214 as of September 30, 2019 and June 30, 2019, respectively. 23,000 19,786 Various term notes total value of $1,115,646 face value, issued from August 2018 to December 2018, of which $995,500 in principal and an OID of $160,146, interest rates of 10% and are convertible into shares of the Company’s common stock at equal the lesser of $0.12 and 70% of the lowest trading price for the common stock during the thirty (30) trading day period ending on the latest complete trading day prior to the conversion date, matures from August 2019 to December 2019, net unamortized discount of $69,201 and $273,843 as of September 30, 2019 and June 30, 2019, respectively. One note totaling $575,000 in principal is currently in default. 1,042,695 838,053 Two term notes total value of $64,850, issued in August 2018, of which $61,850 in principal and an OID of $3,000, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest trading price for the prior fifteen (15) trading days immediately preceding the conversion date, matures August 2019, net unamortized discount of $0 and $6,998 as of September 30, 2019 and June 30, 2019, respectively, of which $26,000 has been paid. 60,300 57,852 Two term notes total value of $178,000, issued from March 2019 to August 2019, of $160,000 in principal and an OID of $18,000, interest rate of 10% and is convertible into shares of the Company’s common stock at 58% of the lowest trading price for the common stock during the twenty-five (25) trading day period ending on the latest complete trading day prior to the conversion date, matures from March 2020 and August 2020, net unamortized discount of $118,180 and $65,899 as of September 30, 2019 and June 30, 2019, respectively. 59,820 23,101 Various term notes with total value of $562,500, issued from March 2019 to June 2019, of which $535,500 in principal and an OID of $27,000, interest rates of 12% and are convertible into shares of the Company’s common stock at 58% of the lowest trading price for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the conversion date, matures from March 2020 and June 2020, net unamortized discount of $367,950 and $509,344 as of September 30, 2019 and June 30, 2019, respectively, of which $100,000 has been paid. 94,550 53,156 Two term notes with total value of $154,000, issued in April 2019 and June 2019,of which $143,000 in principal and an OID of $11,000, interest rates of 12% and is convertible into shares of the Company’s common stock at 60% of the lowest trading price for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the conversion date, matures April 2020, net unamortized discount of $95,725 and $134,435 as of September 30, 2019 and June 30, 2019, respectively. 58,275 19,565 Two term notes total value $71,500, issued from April 2019 to July 2019 of $58,750 in principal and an OID of $12,750, interest rate of 12% and is convertible into shares of the Company’s common stock at the lesser of 55% of the lowest trading price for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the issuance date or 55% of the lowest trading price for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the conversion date, matures from February 2020 to July 2020, net unamortized discount of $43,921 and $30,967 as of September 30, 2019 and June 30, 2019, respectively. 27,579 7,533 Total convertible notes payable – non-related parties 4,765,356 4,443,837 Less current portion 4,765,356 4,443,837 Convertible notes payable – non-related parties, long-term $ - $ - During the three months ended September 30, 2019, The Company evaluated the amendments under ASC 470-50, “ Debt - Modification and Extinguishment” From July 12, 2019 through August 2, 2019, the Company issued two convertible notes to non-related parties for a total of $122,000, of which $107,250 in principal and $14,750 in OID, that mature from July 12, 2020 to August 2, 2020. The notes bear between 10% to 12% interest per annum. During the three months ended September 30, 2019, the Company made cash payment of $110,204 toward principal various notes discussed above and assigned one note for 20,000 in principal and $3,468 in accrued interest into a non-related party note payable. Notes Payable – Related Parties Notes payable due to related parties consisted of the following as of September 30, 2019 and June 30, 2019, respectively: September 30, June 30, 2019 2019 $5,000 face value, issued in November 2016, interest rate of 0%, which is due on demand. $ 5,000 $ 5,000 Various term notes with total face value of $213,000, issued from February 2017 to April 2019, interest rates of 0%, matured June 30, 2019. The notes are currently in default. 213,000 213,000 $52,000 face value, issued from June 2019 to August 2019, interest rate of 0%, matures June 2020. 52,000 12,000 Total notes payable – related parties 270,000 230,000 Less current portion 270,000 230,000 Notes payable – related parties, long term $ - $ - From July 15, 2019 through August 30, 2019, the Company issued notes to a related party for a total of $40,000 that all mature on June 30, 2020. The notes bear 0% interest per annum. The Company evaluated the notes for imputed interest and found it to be immaterial. Notes Payable – Non-Related Parties Notes payable due to non-related parties consisted of the following as of September 30, 2019 and June 30, 2019, respectively: September 30, June 30, 2019 2019 Various term notes with a total face value of $252,250 issued from August 2017 to September 2019, of which $300,000 in principal, $2,750 of extension fees, and an OID of $3,250, interest rate of 0%, matured from December 2018 to October 2019 net of unamortized discount of $1,000 and $992 as of September 30, 2019 and June 30, 2019, respectfully. A total of $41,500 has been paid on principal. All but two notes are currently in default. $ 263,500 $ 209,758 Two term notes with a total face value of $102,000 issued from August 2017 to March 2018, interest rate of 10%, matured from December 2018 through February 2019 net of unamortized discount of $0 as of September 30, 2019 and June 30, 2019. The notes are currently in default. 102,000 102,000 Two term notes with total face value of $107,000, issued from September 2017 through March 2019, interest rate of 8% per month, matured from September 2018 and April 2019 net of unamortized discount of $0 as of September 30, 2019 and June 30, 2019. One of the notes and accrued interest were assigned in September 2019. The note is currently in default. 26,000 107,000 $225,000 face value, issued in March 2018, interest rate of 30%, matured March 2019 net of unamortized discount of $0 as of September 30, 2019 and June 30, 2019. The note and accrued interest were assigned in September 2019. - 225,000 $260,000 face value, issued in June 2018, an additional $21,000 was added to principal by the noteholder, interest rate of 0%, matured December 2018 net of unamortized discount of $0 as of September 30, 2019 and June 30, 2019, of which $31,000 has been paid. The note and accrued interest were assigned in September 2019. - 250,000 $160,000 face value, issued in November 2018, interest rate of 5% per month, matured February 2019 net of unamortized discount of $0 as of September 30, 2019 and June 30, 2019. The note and accrued interest were assigned in September 2019. - 160,000 Four notes and one convertible note were assigned totaling $900,204 were issued in September 2019, interest rate of 15%, matures April 2020 net of unamortized discount of $0 as of September 30, 2019. 900,204 - Total note payable – non-related parties 1,291,704 1,053,758 Less current portion 1,291,704 1,053,758 Notes payable – non-related parties, long-term $ - $ - During the three months ended September 30, 2019, The Company evaluated the amendments under ASC 470-50, “ Debt - Modification and Extinguishment” On September 30, 2019, the Company issued a note to non-related parties for a total of $51,000, of which $50,000 in principal and $1,000 in OID, that matures October 14, 2019. The notes bear a 0% interest per annum. The Company evaluated the notes for imputed interest and found it to be immaterial. During the three months ended September 30, 2019, the Company assigned five non-related party notes totaling $716,000 in principal and $160,736 in accrued interest as well as a non-related party convertible note for 20,000 in principal and $3,468 in accrued interest into a non-related party note payable totaling $900,204.

5. CONVERTIBLE PREFERRED STOCK

5. CONVERTIBLE PREFERRED STOCK	3 Months Ended
	Sep. 30, 2019
Equity [Abstract]
5. CONVERTIBLE PREFERRED STOCK	The Company has authorized 10,000,000 shares of $0.001 par value per share Preferred Stock, of which the following were issued outstanding: Shares Shares Liquidation Allocated Outstanding Preference Series A Convertible Preferred 100,000 15,500 $ - Series A-1 Convertible Preferred 3,000,000 2,585,000 3,663,824 Series B Convertible Preferred 200,000 3,500 35,000 Series C Convertible Preferred 1,000,000 13,404 - Series D Convertible Preferred 375,000 130,000 - Series E Convertible Preferred 1,000,000 275,000 - Series H Preferred 5 2 - Series P Convertible Preferred 600,000 86,640 - Series S Convertible Preferred 50,000 - - Total Preferred Stock 6,325,005 3,109,046 $ 3,698,824 The Company’s Series A Convertible Preferred Stock (“Series A Preferred”) is convertible into Common Stock at the rate of 0.025 per share of Common stock for each share of the Series A Preferred. Dividends of $0.50 per share annually from date of issue, are payable from retained earnings, but have not been declared or paid. The Company’s Series A-1 Senior Convertible Redeemable Preferred Stock (“Series A-1 Preferred”) is convertible at the rate of 2 shares of Common Stock per share of Series A-1 Preferred. The dividend rate of the Series A-1 Senior Convertible Redeemable Preferred Stock is 6% per share per annum in cash, or commencing on June 30, 2019 in shares of the Company’s Common Stock (at the option of the Company). Due to the fact that the Series A-1 Preferred has certain features of debt and is redeemable, the Company analyzed the Series A-1 Preferred in accordance with ASC 480 and ASC 815 to determine if classification within permanent equity was appropriate. Based on the fact that the redeemable nature of the stock and all cash payments are at the option of the Company, it is assumed that payments will be made in shares of the Company’s Common Stock and therefore, the instruments are afforded permanent equity treatment. The Company’s Series B Convertible 8% Preferred Stock (“Series B Preferred”) is convertible at the rate of 0.067 per share of Common Stock for each share of Series B Preferred. Dividends from date of issue are payable on June 30 from retained earnings at the rate of 8% per annum but have not been declared or paid. The Company’s Series C Convertible Preferred Stock (“Series C Preferred”) is convertible at a rate of 0.007 share of Common Stock per share of Series C Preferred. Holders are entitled to dividends only to the extent of the holders of the Company’s Common Stock receive dividends. The Company’s Series D Convertible Preferred Stock (“Series D Preferred”) is convertible at a rate of 0.034 share of Common Stock per share of Series D Preferred. Holders are entitled to a proportionate share of any dividends paid as though they were holders of the number of shares of Common Stock of the Company into which their shares of are convertible as of the record date fixed for the determination of the holders of Common Stock of the Company entitled to receive such distribution. The Company’s Series E Convertible Preferred Stock (“Series E Preferred”) is convertible at a rate of 0.034 share of Common Stock per share of Series E Preferred. Holders are entitled to a proportionate share of any dividends paid as though they were holders of the number of shares of Common Stock of the Company into which their shares of are convertible as of the record date fixed for the determination of the holders of Common Stock of the Company entitled to receive such distribution. The Company’s Series H Preferred Stock shall not be convertible into the Corporation’s Common Stock, nor shall such shares have any liquidation or dividend preference over the Corporation’s Common Stock. Series H Preferred Stock shall have the right to take action by written consent or vote based on the number of votes equal to four times the number of votes of all outstanding shares of capital stock of the Corporation such that the holders of outstanding shares of Series H Preferred Stock shall always constitute eighty percent (80%) of the voting rights of the Corporation. The Company’s Series P Convertible Preferred Stock (“Series P Preferred”) is convertible at a rate of 0.007 share of Common Stock for each share of Series P Preferred. Holders are entitled to dividends only to the extent of the holders of the Company’s Common Stock receive dividends. In the event of a liquidation, dissolution or winding up of the affairs of the Company, holders of Series A Preferred Stock, Series P Convertible Preferred Stock, Series C Convertible Preferred Stock have no liquidation preference over holders of the Company’s Common Stock. Holders of Series B Preferred Stock have a liquidation preference over holders of the Company’s Common Stock and the Company’s Series A Preferred Stock. Holders of Series D Preferred Stock are entitled to receive, before any distribution is made with respect to the Company’s Common Stock, a preferential payment at a rate per each whole share of Series D Preferred Stock equal to $1.00. Holders of Series E Preferred Stock are entitled to receive, after the preferential payment in full to holders of outstanding shares of Series D Preferred Stock but before any distribution is made with respect to the Company’s Common Stock, a preferential payment at a rate per each whole share of Series E Preferred Stock equal to $1.00. Holders of Series A-1 Preferred Stock are superior in rank to the Company’s Common Stock and to all other series of Preferred Stock heretofore designated with respect to dividends and liquidation. The activity surrounding the issuances of the Preferred Stock is as follows: During the three months ended September 30, 2019, the Company has not issued any shares of Series A-1 Preferred. During the year ended June 30, 2019, the Company has not issued any shares of Series A-1 Preferred. On February 5, 2019, the Company issued 1 share of its Series H Preferred Stock to both the Company’s CEO and director and the Company’s Senior Vice President and director in consideration of $50,000 of accrued and unpaid wages, the Company’s failure to timely pay current and past salaries. The issuance was made in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act as there was no general solicitation, and the transaction did not involve a public offering. The shares were valued at $198,116 and the remaining $148,116 was recorded as additional compensation. The Company used an outside valuation firm who applied traditional valuation techniques and methodologies in determining the fair value of the Company’s Series H Preferred Stock, including market, income, and cost valuation approaches. The valuation firm also utilized commonly accepted allocation methods in determining the final value of the Company’s Series H Preferred Stock. During the three months ended September 30, 2019 and 2018, the outstanding Preferred Stock accumulated $56,367 and $56,367 in dividends on outstanding Preferred Stock. The cumulative dividends in arrears as of September 30, 2019 were approximately $1,417,468.

6. COMMON STOCK

6. COMMON STOCK	3 Months Ended
	Sep. 30, 2019
Equity [Abstract]
6. COMMON STOCK	On February 8, 2019, the Company increased the number of authorized shares of Common Stock from 250,000,000 up to 1,000,000,000 shares in the sole discretion of the board. The Company has authorized 503,407,666 shares of $0.001 par value per share Common Stock, of which 306,736,038 issued (of which 3,885,000 are to be issued) as of September 30, 2019. The activity surrounding the issuances of the Common Stock is as follows: For the Three Months Ended September 30, 2019 The Company issued in conjunction with the private placements, the Company issued 75,600,000 valued at $755,117. As share-based compensation to employees and non-employees, the Company issued 8,328,043 shares of common stock valued at $91,608, based on the market price of the stock on the date of issuance. For the Three Months Ended September 30, 2018 The Company issued 17,326,372 shares of Common Stock for the conversion of notes and accrued interest valued at $274,310. The Company issued 9,385,000 shares of Common Stock as payment for services valued at $366,015. As share-based compensation to employees and non-employees, the Company issued 2,168,226 shares of common stock valued at $65,047, based on the market price of the stock on the date of issuance. As part of a provision in a note payable, the Company issued 3,000,000 shares of common stock valued at $90,000 based on the market price on the date of issuance.

7. STOCK PURCHASE OPTIONS AND W

7. STOCK PURCHASE OPTIONS AND WARRANTS	3 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]
7. STOCK PURCHASE OPTIONS AND WARRANTS	The Board of Directors on June 10, 2009 approved the 2009 Long-Term Stock Incentive Plan. The purpose of the 2009 Long-term Stock Incentive Plan is to advance the interests of the Company by encouraging and enabling acquisition of a financial interest in the Company by employees and other key individuals. The 2009 Long-Term Stock Incentive Plan is intended to aid the Company in attracting and retaining key employees, to stimulate the efforts of such individuals and to strengthen their desire to remain with the Company. A maximum of 1,500,000 shares of the Company’s Common Stock is reserved for issuance under stock options to be issued under the 2009 Long-Term Stock Incentive Plan. The Plan permits the grant of incentive stock options, nonstatutory stock options and restricted stock awards. The 2009 Long-Term Stock Incentive Plan is administered by the Board of Directors or, at its direction, a Compensation Committee comprised of officers of the Company. Stock Purchase Options During the three months ended September 30, 2019, the Company did not issue any stock purchase options. During the three months ended September 30, 2018, the Company did not issue any stock purchase options, and 25,000 expired. The following table summarizes the changes in options outstanding of the Company during the three months ended September 30, 2019. Date Issued Number of Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Expiration Date (yrs) Value if Exercised Balance June 30, 2019 500,000 $ 0.05 $ 0.17 3.00 $ 25,000 Granted - - - - - Exercised - - - - - Cancelled/Expired - - - - - Outstanding as of September 30, 2019 500,000 $ 0.05 $ 0.16 2.75 $ 25,000 During the three months ended September 30, 2019, the Company issued three-year warrants to purchase a total of in conjunction with issuance of a promissory notes, valued at $648. The Company also issue 75,600,000 five-year warrants in conjunction with issuance of 17 private placements, valued at $755,117. The warrants are considered derivative liabilities under ASC 815-40 under the Company’s sequencing policy and were valued using the The following table presents the assumptions used to estimate the fair values of the stock warrants and options granted: September 30, 2019 Expected volatility 149-222% Expected dividends 0% Expected term 0-5 Years Risk-free interest rate 1.32-1.97% The following table summarizes the changes in warrants outstanding issued to employees and non-employees of the Company during the three months ended September 30, 2019. Number of Weighted Average Weighted Average Expiration Date Warrants Exercise Price Grant Date Fair Value (yrs) Value if Exercised Balance as of June 30, 2019 41,900,718 $ 0.15 $ 0.36 3.43 $ 6,308,991 Granted 75,700,000 0.04 0.01 5.00 2,656,000 Exercised - - - - - Cancelled/Expired (1,115,000 ) 0.36 - - (403,250 ) Outstanding as of September 30, 2019 116,485,718 $ 0.07 $ 0.13 4.34 $ 8,561,741

8. FINANCIAL INSTRUMENTS

8. FINANCIAL INSTRUMENTS	3 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
8. FINANCIAL INSTRUMENTS	The Company has financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in the Company’s balance sheet. The Company measures these instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change. The Company has estimated the fair value of these embedded derivatives for convertible debentures and associated warrants using a multinomial lattice model as of September 30, 2019 and June 30, 2019. For amounts over proceeds in the initial derivative measurement, the Company recorded a derivative expense of $71,359 and $1,043,090 during the three months ended September 30, 2019 and 2018, respectively. The fair values of the derivative instruments are measured each quarter, which resulted in a (loss)gain of ($324,692) and $612,212 during the three months ended September 30, 2019 and 2018, respectively. As of September 30, 2019, and June 30, 2019, the fair market value of the derivatives aggregated $6,267,392 and $5,009,094, respectively, using the following assumptions: estimated 5-0 year term, estimated volatility of 221.69 – 149.39 %, and a discount rate of 1.97 – 1.32%. Financial instruments measured at fair value on a recurring basis at September 30, 2019, are summarized as follows: Level 1 Level 2 Level 3 Total Fair value of derivatives $ - $ - $ 6,267,392 $ 6,267,392 Liabilities measured at fair value on a recurring basis at June 30, 2019, are summarized as follows: Level 1 Level 2 Level 3 Total Fair value of derivatives $ - $ - $ 5,009,094 $ 5,009,094 Series H Preferred Stock $ - $ 198,116 $ - $ 198,116

9. COMMITMENTS AND CONTINGENCIE

9. COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
9. COMMITMENTS AND CONTINGENCIES	Legal Proceedings The Company may become involved in certain legal proceedings and claims which arise in the normal course of business. 1. The Company became a defendant in an employment related lawsuit filed by a former employee, who was terminated for cause in October 2018. The Company believes it is without merit and has filed a defense and a Motion to move the matter to Arbitration. The Motion to move the matter to arbitration was subsequently granted. The complaint revolves around alleged unpaid commissions and the Company does not consider it to be material. 2. On May 2019, a Company subsidiary was named in a lawsuit filed in the Superior Court of Arizona County of Maricopa by the Company’s prior manufacturer, Infinity Power and Controls, LLC. (Infinity), alleging non-payment of invoices totaling $414,000 and an undetermined amount of parts inventory. On July 5, 2019, the Company was added as a defendant in the action. Infinity was the Company’s manufacturer until they were dismissed in December 2018, due to quality and reliability issues, which resulted in unacceptable product returns. On July 2, 2019, the Company commenced an action against Infinity Power and Controls LLC in the United States District Court Central District of California for Breach of Contract, Negligence and Fraud. The lawsuit asks for direct and punitive damages of $30 million from Infinity. As a both plaintiff and defendant in matters relating to its prior manufacturer, the Company believes it sustained substantial damage from the poor-quality product manufactured by Infinity. 3. A lender for two term notes with total value of $154,000, issued in April 2019 and June 2019, has issued an notice of default on the conversion of the notes into stock. Lease Agreements The Company has operating type leases for real estate. As of September 30, 2019, the Company had no finance type leases. The Company’s leases have remaining lease terms of up to 1.58 years, some of which may include options to extend the leases for up to 5 years. Operating lease expense was $21,021 for the three months ended September 30, 2019, inclusive of period cost for short-term, cancellable and variable leases, not included in lease liabilities, of $63,054 for the three months ended September 30, 2019. Supplemental cash flow information related to operating leases: Three Months Ended September 30, 2019 Operating cash paid to settle lease liabilities $ 15,351 Right of use asset additions in exchange for lease liabilities 154,541 Supplemental balance sheet information related to operating leases: Balance Sheet September 30, Location 2019 Right of use assets Other noncurrent assets $ 133,520 Lease payable Current liabilities $ 93,121 Lease payable Long-term liabilities 46,069 Total lease payable $ 139,190 September 30, 2019 Weighted average remaining lease term (in years) 1.58 Weighted average discount rate 12.15 % We lease offices in Hollywood, California (located at 6671 Sunset Blvd., Suite 1520, 1518 and 1550, Hollywood, California, 90028) for corporate, research, engineering and mastering services. The lease expired on December 31, 2017 and now is on a month to month basis. The total lease expense for the facility is approximately $20,574 per month, and the total remaining obligations under these leases at September 30, 2019, were approximately $0. We lease warehouse space located at 8260 E Gelding Drive, Suite 102, Scottsdale, Arizona, 85260. The lease expired on January 31, 2019 and now is on a month to month basis. The total lease expense for the facility is approximately $1,993 per month, and the total remaining obligations under this lease at September 30, 2019, were approximately $0. We lease corporate offices located at 7825 E Gelding Drive, Suite 101, Scottsdale, Arizona, 85260. The lease expires on April 30, 2021. The total lease expense for the facility is approximately $7,799 per month, and the total remaining obligations under this lease at September 30, 2019, were approximately $171,570. Below is a table summarizing the annual operating lease obligations over the next 5 years: Year Lease Payments 2020 $ 92,558 2021 79,012 2022 - 2023 - 2024 - Total $ 171,570 Other The Company has not declared dividends on Series A or B Convertible Preferred Stock or its Series A-1 Convertible Preferred Stock. The cumulative dividends in arrears through September 30, 2019 were approximately $1,417,468.

10. RELATED PARTY TRANSACTIONS

10. RELATED PARTY TRANSACTIONS	3 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
10. RELATED PARTY TRANSACTIONS	On August 8, 2016, the Company issued a convertible note to a daughter of a director of the Company, for $30,000 as of September 30, 2019 and June 30, 2019. The note bears an interest rate of 0% per annum and is convertible into shares of the Company’s Common Stock at $0.40 per share. From September 2017 to June 2019, the Company issued convertible notes to a director and officer of the Company for $89,500 as of September 30, 2019 and June 30, 2019. The notes bear an average interest rate of 0% per annum and is convertible into shares of the Company’s Common Stock at $0.10 per share. On November 15, 2016, the Company issued notes to a director and officer of the Company, for $5,000. The note bears an average interest rate of 0% per annum. From February 2017 to August 2019, the Company issued notes to a director and officer of the Company for $270,000 and $255,000 as of September 30, 2019 and June 30, 2019, respectively. The notes bear an average interest rate of 0% per annum. As share-based compensation to employees and non-employees, the Company issued 9,328,043 and 2,168,226 shares of common stock valued at $91,068 and $65,407 for three months ended September 30, 2019 and 2018, respectively, based on the market price of the stock on the date of issuance. The company has accrued consulting services in the amount of $194,890 and $161,124 payable to directors for services rendered as of September 30, 2019 and June 30, 2019, respectively.

11. SUBSEQUENT EVENTS

11. SUBSEQUENT EVENTS	3 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
11. SUBSEQUENT EVENTS	In accordance with ASC 855, Company’s management reviewed all material events through the date of this filing and determined that there were the following material subsequent events to report: From October through November 2019, the Company issued From October through November 2019, various holders of the unrelated convertible notes converted $54,000 of principal and $3,537 of accrued interest into 11,083,692 shares of common stock. On October 16, 2019, the Company issued a convertible note to an unrelated company for $419,355, which includes proceeds of $356,500 and $62,855 in OID, that matures in October 2020. The note bears 10% interest per annum and is convertible into shares of the Company’s common stock at equal the lesser of $0.12 and 70% of the lowest Trading Price for the Common Stock during the thirty (30) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. As additional consideration the Company also issued 2,818,244 warrants. On October 15, 2019, the Company issued a note to an unrelated party for $15,125 , which includes proceeds of $14,000 and $1,125 in OID that From August 2017 to October 2017, the Company issued three convertible notes to unrelated parties totaling $185,000 that matured in February 2019. The notes bear interest rates from 0% to 10% per annum and are convertible into shares of the Company’s common stock for $0.10 per share. From August 2018 to March 2019, the Company issued two notes to an unrelated party totaling $78,000 that matured from February 2019 to April 2019. The notes bear interest rates from 0% to 8% per annum. On October 18, 2019, the Company assigned a convertible note to an unrelated party for $263,000 face value that that is due March 18, 2020. The note bears interest rate of 10% per month and is convertible into shares of the Company’s common stock for $0.02 per share.

3. SUMMARY OF SIGNIFICANT ACC_2

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Use of Estimates	The preparation of financial statements in conformity with generally accepted accounting principles 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 dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates are made in relation to the allowance for doubtful accounts and the fair value of certain financial instruments.
Derivative Liabilities	The Company has financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in the Company’s balance sheet. The Company measures these instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change. The Company has a sequencing policy regarding share settlement wherein instruments with the earliest issuance date would be settled first. The sequencing policy also considers contingently issuable additional shares, such as those issuable upon a stock split, to have an issuance date to coincide with the event giving rise to the additional shares. On February 3, 2017, the company entered into a note payable with an unrelated party at a percentage discount (variable) exercise price which causes the number to be converted into a number of common shares that “approach infinity”, as the underlying stock price could approach zero. Accordingly, all convertible instruments, including standalone warrants, issued after February 3, 2017 are considered derivatives according to the Company’s sequencing policy. The Company values these convertible notes payable using the multinomial lattice method that values the derivative liability within the notes based on a probability weighted discounted cash flow model. The resulting liability is valued at each reporting date and the change in the liability is reflected as change in derivative liability in the statement of operations.
Leases	The Company adopted ASC 842 as of October 1, 2019 using a modified retrospective transition approach for all leases existing at October 1, 2019, the date of the initial application. Consequently, financial information will not be updated, and disclosures required under ASC 842 will not be provided for dates and periods before October 1, 2019. As of October 1, 2019, the Company recognized operating lease liabilities of $154,541 based on the present value of the remaining minimum rental payments determined under prior lease accounting standards and corresponding ROU assets of $154,541. The Company determines if a contract is a lease or contains a lease at inception. Right of use assets related to operating type leases are reported in other noncurrent assets and the present value of remaining lease obligations is reported in accrued and other liabilities and other noncurrent liabilities on the Condensed Consolidated Balance Sheets. The Company does not currently have any financing type leases. Operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The Company’s leases do not provide an implicit rate and the Company could not determine the incremental borrowing rates applicable to the economic environment; therefore, the Company uses the risk free interest rates applicable to the duration of the lease, based on the information available at commencement date, in determining the present value of future payments. The right of use asset for operating leases is measured using the lease liability adjusted for the impact of lease payments made prior to commencement, lease incentives received, initial direct costs incurred and any asset impairments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company remeasures and reallocates the consideration in a lease when there is a modification of the lease that is not accounted for as a separate contract. The lease liability is remeasured when there is a change in the lease term or a change in the assessment of whether the Company will exercise a lease option. The Company assesses right of use assets for impairment in accordance with its long-lived asset impairment policy. The Company accounts for lease agreements with contractually required lease and non-lease components on a combined basis. Lease payments made for cancellable leases, variable amounts that are not based on an observable index and lease agreements with an original duration of less than twelve months are recorded directly to lease expense.
Revenue Recognition	The Company applies the provisions of FASB ASC 606, Revenue Recognition in Financial Statements The Company’s revenues are generated from Aftermaster products and services, Aftermaster Pro, sessions revenue, and remastering. Revenues related to Aftermaster Pro sells through consumer retail distribution channels and through our website. For sales through consumer retail distribution channels, revenue recognition occurs when title and risk of loss have transferred to the customer which usually occurs upon shipment to the customers. We established allowances for expected product returns and these allowances are recorded as a direct reduction to revenue. Return allowances are based on our historical experience. Revenues related to sessions and remastering are recognized when the event occurred.
Loss Per Share	Basic loss per Common Share is computed by dividing losses attributable to Common shareholders by the weighted-average number of shares of Common Stock outstanding during the period. The losses attributable to Common shareholders was increased for accrued and deemed dividends on Preferred Stock during the three months ended September 30, 2019 and 2018 of $56,367 and $56,367, respectively. Diluted earnings per Common Share is computed by dividing net loss attributable to Common shareholders by the weighted-average number of Shares of Common Stock outstanding during the period increased to include the number of additional Shares of Common Stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding convertible Preferred Stock, stock options, warrants, and convertible debt. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s Common Stock can result in a greater dilutive effect from potentially dilutive securities. For the three months ended September 30, 2019 and 2018, all of the Company’s potentially dilutive securities (warrants, options, convertible preferred stock, and convertible debt) were excluded from the computation of diluted earnings per share as they were anti-dilutive. The total number of potentially dilutive Common Shares that were excluded were 656,776,405 and 129,530,326 at September 30, 2019 and 2018, respectively.
Recent Accounting Pronouncements	In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350). The amendments in this update simplify the test for goodwill impairment by eliminating Step 2 from the impairment test, which required the entity to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining fair value of assets acquired and liabilities assumed in a business combination. The amendments in this update are effective for public companies for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is evaluating the effect that the updated standard will have on its financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The new ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The new ASU will be effective for the Company beginning in the fiscal quarter of 2020, and early adoption is permitted. The Company is evaluating the effect that the updated standard will have on its financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendment modifies, removes, and adds certain disclosure requirements on fair value measurements. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. We are currently evaluating the impact of ASU No. 2018-13 on our consolidated financial statements. Management has considered all recent accounting pronouncements issued since the last audit of our consolidated financial statements. The Company’s management has evaluated recent pronouncements and have not included those that were note applicable.

4. NOTES PAYABLE (Tables)

4. NOTES PAYABLE (Tables)	3 Months Ended
	Sep. 30, 2019
Notes Payable [Abstract]
Schedule of convertible notes payable-related parties	September 30, June 30, 2019 2019 $30,000 face value, issued in August 2016, interest rate of 0% and is convertible into shares of the Company’s Common stock at $0.40 per share, matured June 30, 2019. The note is currently in default. $ 30,000 $ 30,000 Various term notes with total face value of $89,500 issued from September 2017 to February 2018, interest rates of 0% and are convertible into shares of the Company’s common stock at $0.10 per share, matured from January 2019 to June 30, 2019. The notes are currently in default. 89,500 89,500 Total convertible notes payable – related parties 119,500 119,500 Less current portion 119,500 119,500 Convertible notes payable – related parties, long-term $ - $ -
Schedule of convertible notes payable-non-related parties	September 30, June 30, 2019 2019 Various term notes with total face value of $2,049,000, issued from July 2014 to March 2018, interest rates from 0% to 10% and are convertible into shares of the Company’s common stock from $0.10 to $0.40 per share, matured from October 2018 to June 2019. One of the notes and accrued interest was assigned to non-related party notes payable in September 2019. The notes are currently in default. $ 2,029,000 $ 2,049,000 Two Term notes with total face value of $373,000, issued in February 2017, interest rates of 10% and are convertible into shares of the Company’s common stock at lesser of 40% of the average three lowest closing bids twenty (20) days prior to the conversion date or $0.40 per share, matured June 2018, with additional extension fees of $81,000 added to principal. A total of $187,403 has been converted and $85,654 has been paid. The note is currently in default. 180,943 186,597 $265,000 face value, issued in May 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $0.31 or 60% of the lowest closing bids twenty-five (25) days prior to the conversion date, matured February 2018, of which $116,328 was converted. The note is currently in default. 104,845 104,845 Two term notes with total face value of $131,000 face value, issued on July 2017 and August 2017, interest rates of 12% and are convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period ending to the date of conversion, matured May 2018 and June 2018, of which $72,000 was converted. The note is currently in default. 59,000 59,000 $115,000 face value, issued in November 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at 57.5% of the lowest closing bids thirty (30) days prior to the conversion per share, matured August 2018. The note is currently in default. 115,000 115,000 $115,000 face value, issued in January 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $0.12 and 57.5% of the lowest trading price during the prior thirty (30) days, matured October 2018. The note is currently in default. 115,000 115,000 $150,000 face value, issued in April 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $0.05 or 57.5% of the lowest closing bids twenty (20) days prior to the conversion date, matured January 2019. The note is currently in default. 160,000 160,000 Two term notes with total face value of $415,000 face value, issued from an assignment in April 2018 of $370,000 in principal and an OID of $45,000, interest rates of 10% and are convertible into shares of the Company’s common stock at rate of 55% of the average trading price for the prior three (3) trading days, matured April 2019, of which $223,198 has been converted. The notes are currently in default. 191,802 191,802 Various term notes with total face value of $502,504, issued from May 2018 to June 2018, interest rates of 12% and are convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period ending to the date of conversion, matured from October 2018 to June 2019, of which $69,898 has been converted and $164,499 has been paid. The note is currently in default. 268,137 268,137 $15,651 face value, issued in June 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 60% of the lowest trading price during the previous twenty (20) days to the date of conversion, matured June 30, 2019. The note is currently in default. 15,651 15,651 $120,000 face value, issued in July 2018 for prepaid services, interest rate of 15% and is convertible into shares of the Company’s common stock at 70% of the lowest closing price during the twenty (20) days prior to the conversion per share, matures July 2019. The note is currently in default. 120,000 120,000 $39,759 face value, issued from an assignment in August 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 55% of the lowest sales price for common stock on principal market during the twenty-five (25) consecutive trading days immediately preceding the conversion date, matured November 2018. The note is currently in default. 39,759 39,759 $23,000 face value, issued in August 2018 of $20,000 in principal and an OID of $3,000, interest rate of 12% and is convertible into shares of the Company’s common stock at 55% of the average of the three (3) lowest closing price during the 25 days prior to the conversion per share, matures August 2019, net unamortized discount of $0 and $3,214 as of September 30, 2019 and June 30, 2019, respectively. 23,000 19,786 Various term notes total value of $1,115,646 face value, issued from August 2018 to December 2018, of which $995,500 in principal and an OID of $160,146, interest rates of 10% and are convertible into shares of the Company’s common stock at equal the lesser of $0.12 and 70% of the lowest trading price for the common stock during the thirty (30) trading day period ending on the latest complete trading day prior to the conversion date, matures from August 2019 to December 2019, net unamortized discount of $69,201 and $273,843 as of September 30, 2019 and June 30, 2019, respectively. One note totaling $575,000 in principal is currently in default. 1,042,695 838,053 Two term notes total value of $64,850, issued in August 2018, of which $61,850 in principal and an OID of $3,000, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest trading price for the prior fifteen (15) trading days immediately preceding the conversion date, matures August 2019, net unamortized discount of $0 and $6,998 as of September 30, 2019 and June 30, 2019, respectively, of which $26,000 has been paid. 60,300 57,852 Two term notes total value of $178,000, issued from March 2019 to August 2019, of $160,000 in principal and an OID of $18,000, interest rate of 10% and is convertible into shares of the Company’s common stock at 58% of the lowest trading price for the common stock during the twenty-five (25) trading day period ending on the latest complete trading day prior to the conversion date, matures from March 2020 and August 2020, net unamortized discount of $118,180 and $65,899 as of September 30, 2019 and June 30, 2019, respectively. 59,820 23,101 Various term notes with total value of $562,500, issued from March 2019 to June 2019, of which $535,500 in principal and an OID of $27,000, interest rates of 12% and are convertible into shares of the Company’s common stock at 58% of the lowest trading price for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the conversion date, matures from March 2020 and June 2020, net unamortized discount of $367,950 and $509,344 as of September 30, 2019 and June 30, 2019, respectively, of which $100,000 has been paid. 94,550 53,156 Two term notes with total value of $154,000, issued in April 2019 and June 2019,of which $143,000 in principal and an OID of $11,000, interest rates of 12% and is convertible into shares of the Company’s common stock at 60% of the lowest trading price for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the conversion date, matures April 2020, net unamortized discount of $95,725 and $134,435 as of September 30, 2019 and June 30, 2019, respectively. 58,275 19,565 Two term notes total value $71,500, issued from April 2019 to July 2019 of $58,750 in principal and an OID of $12,750, interest rate of 12% and is convertible into shares of the Company’s common stock at the lesser of 55% of the lowest trading price for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the issuance date or 55% of the lowest trading price for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the conversion date, matures from February 2020 to July 2020, net unamortized discount of $43,921 and $30,967 as of September 30, 2019 and June 30, 2019, respectively. 27,579 7,533 Total convertible notes payable – non-related parties 4,765,356 4,443,837 Less current portion 4,765,356 4,443,837 Convertible notes payable – non-related parties, long-term $ - $ -
Schedule of non-convertible notes payable-related parties	September 30, June 30, 2019 2019 $5,000 face value, issued in November 2016, interest rate of 0%, which is due on demand. $ 5,000 $ 5,000 Various term notes with total face value of $213,000, issued from February 2017 to April 2019, interest rates of 0%, matured June 30, 2019. The notes are currently in default. 213,000 213,000 $52,000 face value, issued from June 2019 to August 2019, interest rate of 0%, matures June 2020. 52,000 12,000 Total notes payable – related parties 270,000 230,000 Less current portion 270,000 230,000 Notes payable – related parties, long term $ - $ -
Schedule of non-convertible notes payable-non-related parties	September 30, June 30, 2019 2019 Various term notes with a total face value of $252,250 issued from August 2017 to September 2019, of which $300,000 in principal, $2,750 of extension fees, and an OID of $3,250, interest rate of 0%, matured from December 2018 to October 2019 net of unamortized discount of $1,000 and $992 as of September 30, 2019 and June 30, 2019, respectfully. A total of $41,500 has been paid on principal. All but two notes are currently in default. $ 263,500 $ 209,758 Two term notes with a total face value of $102,000 issued from August 2017 to March 2018, interest rate of 10%, matured from December 2018 through February 2019 net of unamortized discount of $0 as of September 30, 2019 and June 30, 2019. The notes are currently in default. 102,000 102,000 Two term notes with total face value of $107,000, issued from September 2017 through March 2019, interest rate of 8% per month, matured from September 2018 and April 2019 net of unamortized discount of $0 as of September 30, 2019 and June 30, 2019. One of the notes and accrued interest were assigned in September 2019. The note is currently in default. 26,000 107,000 $225,000 face value, issued in March 2018, interest rate of 30%, matured March 2019 net of unamortized discount of $0 as of September 30, 2019 and June 30, 2019. The note and accrued interest were assigned in September 2019. - 225,000 $260,000 face value, issued in June 2018, an additional $21,000 was added to principal by the noteholder, interest rate of 0%, matured December 2018 net of unamortized discount of $0 as of September 30, 2019 and June 30, 2019, of which $31,000 has been paid. The note and accrued interest were assigned in September 2019. - 250,000 $160,000 face value, issued in November 2018, interest rate of 5% per month, matured February 2019 net of unamortized discount of $0 as of September 30, 2019 and June 30, 2019. The note and accrued interest were assigned in September 2019. - 160,000 Four notes and one convertible note were assigned totaling $900,204 were issued in September 2019, interest rate of 15%, matures April 2020 net of unamortized discount of $0 as of September 30, 2019. 900,204 - Total note payable – non-related parties 1,291,704 1,053,758 Less current portion 1,291,704 1,053,758 Notes payable – non-related parties, long-term $ - $ -

5. CONVERTIBLE PREFERRED STOCK

5. CONVERTIBLE PREFERRED STOCK (Tables)	3 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Schedule of preferred stock	Shares Shares Liquidation Allocated Outstanding Preference Series A Convertible Preferred 100,000 15,500 $ - Series A-1 Convertible Preferred 3,000,000 2,585,000 3,663,824 Series B Convertible Preferred 200,000 3,500 35,000 Series C Convertible Preferred 1,000,000 13,404 - Series D Convertible Preferred 375,000 130,000 - Series E Convertible Preferred 1,000,000 275,000 - Series H Preferred 5 2 - Series P Convertible Preferred 600,000 86,640 - Series S Convertible Preferred 50,000 - - Total Preferred Stock 6,325,005 3,109,046 $ 3,698,824

7. STOCK PURCHASE OPTIONS AND_2

7. STOCK PURCHASE OPTIONS AND WARRANTS (Tables)	3 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]
Schedule of options activity	Date Issued Number of Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Expiration Date (yrs) Value if Exercised Balance June 30, 2019 500,000 $ 0.05 $ 0.17 3.00 $ 25,000 Granted - - - - - Exercised - - - - - Cancelled/Expired - - - - - Outstanding as of September 30, 2019 500,000 $ 0.05 $ 0.16 2.75 $ 25,000
Schedule of assumptions used to estimate fair value	September 30, 2019 Expected volatility 149-222% Expected dividends 0% Expected term 0-5 Years Risk-free interest rate 1.32-1.97%
Schedule of warrants	Number of Weighted Average Weighted Average Expiration Date Warrants Exercise Price Grant Date Fair Value (yrs) Value if Exercised Balance as of June 30, 2019 41,900,718 $ 0.15 $ 0.36 3.43 $ 6,308,991 Granted 75,700,000 0.04 0.01 5.00 2,656,000 Exercised - - - - - Cancelled/Expired (1,115,000 ) 0.36 - - (403,250 ) Outstanding as of September 30, 2019 116,485,718 $ 0.07 $ 0.13 4.34 $ 8,561,741

8. FINANCIAL INSTRUMENTS (Table

8. FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Schedule or fair value measurements	Financial instruments measured at fair value on a recurring basis at September 30, 2019, are summarized as follows: Level 1 Level 2 Level 3 Total Fair value of derivatives $ - $ - $ 6,267,392 $ 6,267,392 Liabilities measured at fair value on a recurring basis at June 30, 2019, are summarized as follows: Level 1 Level 2 Level 3 Total Fair value of derivatives $ - $ - $ 5,009,094 $ 5,009,094 Series H Preferred Stock $ - $ 198,116 $ - $ 198,116

9. COMMITMENTS AND CONTINGENC_2

9. COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Supplemental lease information	Supplemental cash flow information related to operating leases: Three Months Ended September 30, 2019 Operating cash paid to settle lease liabilities $ 15,351 Right of use asset additions in exchange for lease liabilities 154,541 Supplemental balance sheet information related to operating leases: Balance Sheet September 30, Location 2019 Right of use assets Other noncurrent assets $ 133,520 Lease payable Current liabilities $ 93,121 Lease payable Long-term liabilities 46,069 Total lease payable $ 139,190 September 30, 2019 Weighted average remaining lease term (in years) 1.58 Weighted average discount rate 12.15 %
Annual operating lease obligations	Year Lease Payments 2020 $ 92,558 2021 79,012 2022 - 2023 - 2024 - Total $ 171,570

2. GOING CONCERN (Details Narra

2. GOING CONCERN (Details Narrative) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Going Concern
Accumulated deficit	$ (87,724,551)	$ (85,859,489)
Working capital	$ (15,309,891)

3. SUMMARY OF SIGNIFICANT ACC_3

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Accounting Policies [Abstract]
Preferred stock accretion and dividends	$ (56,367)	$ (56,367)
Potentially dilutive common shares excluded	656,776,405	129,530,326

4. NOTES PAYABLE (Details)

4. NOTES PAYABLE (Details) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Total convertible notes payable - related parties	$ 119,500	$ 119,500
Less current portion	119,500	119,500
Convertible related party notes payable, net of current portion	0	0
Convertible Notes Payable One
Total convertible notes payable - related parties	30,000	30,000
Convertible Notes Payable Two
Total convertible notes payable - related parties	$ 89,500	$ 89,500

4. NOTES PAYABLE (Details 1)

4. NOTES PAYABLE (Details 1) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Total convertible notes payable - non-related parties	$ 4,765,356	$ 4,443,837
Less current portion	4,765,356	4,443,837
Convertible notes payable - non-related parties, long-term	0	0
Convertible Notes Payable One
Total convertible notes payable - non-related parties	2,029,000	2,049,000
Convertible Notes Payable Two
Total convertible notes payable - non-related parties	180,943	186,597
Convertible Notes Payable Three
Total convertible notes payable - non-related parties	104,845	104,845
Convertible Notes Payable Four
Total convertible notes payable - non-related parties	59,000	59,000
Convertible Notes Payable Five
Total convertible notes payable - non-related parties	115,000	115,000
Convertible Notes Payable Six
Total convertible notes payable - non-related parties	115,000	115,000
Convertible Notes Payable Seven
Total convertible notes payable - non-related parties	160,000	160,000
Convertible Notes Payable Eight
Total convertible notes payable - non-related parties	191,802	191,802
Convertible Notes Payable Nine
Total convertible notes payable - non-related parties	268,137	268,137
Convertible Notes Payable Ten
Total convertible notes payable - non-related parties	15,651	15,651
Convertible Notes Payable Eleven
Total convertible notes payable - non-related parties	120,000	120,000
Convertible Notes Payable Twelve
Total convertible notes payable - non-related parties	39,759	39,759
Convertible Notes Payable Thirteen
Total convertible notes payable - non-related parties	23,000	19,786
Convertible Notes Payable Fourteen
Total convertible notes payable - non-related parties	1,042,695	838,053
Convertible Notes Payable Fifteen
Total convertible notes payable - non-related parties	60,300	57,852
Convertible Notes Payable Sixteen
Total convertible notes payable - non-related parties	59,820	23,101
Convertible Notes Payable Seventeen
Total convertible notes payable - non-related parties	94,550	53,156
Convertible Notes Payable Eighteen
Total convertible notes payable - non-related parties	58,275	19,565
Convertible Notes Payable Nineteen
Total convertible notes payable - non-related parties	$ 27,579	$ 7,533

4. NOTES PAYABLE (Details 2)

4. NOTES PAYABLE (Details 2) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Notes payable - related parties	$ 270,000	$ 230,000
Less current portion	270,000	230,000
Notes payable - related parties, long term	0	0
Convertible Notes Payable One
Notes payable - related parties	5,000	5,000
Convertible Notes Payable Two
Notes payable - related parties	213,000	213,000
Convertible Notes Payable Three
Notes payable - related parties	$ 52,000	$ 12,000

4. NOTES PAYABLE (Details 3)

4. NOTES PAYABLE (Details 3) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Note payable - non-related parties	$ 1,291,704	$ 1,053,758
Less current portion	1,291,704	1,053,758
Notes payable - non-related parties, long-term	0	0
Convertible Notes Payable One
Note payable - non-related parties	263,500	209,758
Convertible Notes Payable Two
Note payable - non-related parties	102,000	102,000
Convertible Notes Payable Three
Note payable - non-related parties	26,000	107,000
Convertible Notes Payable Four
Note payable - non-related parties	0	225,000
Convertible Notes Payable Five
Note payable - non-related parties	0	250,000
Convertible Notes Payable Six
Note payable - non-related parties	0	160,000
Convertible Notes Payable Seven
Note payable - non-related parties	$ 900,204	$ 0

5. CONVERTIBLE PREFERRED STOC_2

5. CONVERTIBLE PREFERRED STOCK (Details)	Sep. 30, 2019USD ($)shares
Convertible preferred stock, authorized shares	6,325,005
Convertible preferred stock, outstanding shares	3,109,046
Convertible preferred stock, liquidation preference | $	$ 3,698,824
Series A Convertible Preferred stock
Convertible preferred stock, authorized shares	100,000
Convertible preferred stock, outstanding shares	15,500
Convertible preferred stock, liquidation preference | $	$ 0
Series A-1 Convertible Preferred stock
Convertible preferred stock, authorized shares	3,000,000
Convertible preferred stock, outstanding shares	2,585,000
Convertible preferred stock, liquidation preference | $	$ 3,663,824
Series B Convertible Preferred stock
Convertible preferred stock, authorized shares	200,000
Convertible preferred stock, outstanding shares	3,500
Convertible preferred stock, liquidation preference | $	$ 35,000
Series C Convertible Preferred stock
Convertible preferred stock, authorized shares	1,000,000
Convertible preferred stock, outstanding shares	13,404
Convertible preferred stock, liquidation preference | $	$ 0
Series D Convertible Preferred stock
Convertible preferred stock, authorized shares	375,000
Convertible preferred stock, outstanding shares	130,000
Convertible preferred stock, liquidation preference | $	$ 0
Series E Convertible Preferred stock
Convertible preferred stock, authorized shares	1,000,000
Convertible preferred stock, outstanding shares	275,000
Convertible preferred stock, liquidation preference | $	$ 0
Series H Convertible Preferred stock
Convertible preferred stock, authorized shares	5
Convertible preferred stock, outstanding shares	2
Convertible preferred stock, liquidation preference | $	$ 0
Series P Convertible Preferred stock
Convertible preferred stock, authorized shares	600,000
Convertible preferred stock, outstanding shares	86,640
Convertible preferred stock, liquidation preference | $	$ 0
Series S Convertible Preferred stock
Convertible preferred stock, authorized shares	50,000
Convertible preferred stock, outstanding shares	0
Convertible preferred stock, liquidation preference | $	$ 0

5. CONVERTIBLE PREFERRED STOC_3

5. CONVERTIBLE PREFERRED STOCK (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Equity [Abstract]
Dividends on preferred stock	$ 56,367	$ 56,367
Dividends in arrears	$ 1,417,468

6. COMMON STOCK (Details Narrat

6. COMMON STOCK (Details Narrative) - $ / shares	Sep. 30, 2019	Jun. 30, 2019
Equity [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized shares	513,407,666	513,407,666
Common stock, issued shares	302,851,038	275,507,995
Common stock, outstanding shares	302,851,038	275,507,995

7. STOCK PURCHASE OPTIONS AND_3

7. STOCK PURCHASE OPTIONS AND WARRANTS (Details)	3 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Share-based Payment Arrangement, Noncash Expense [Abstract]
Number of options/warrants outstanding, beginning | shares	500,000
Number of warrants granted | shares	0
Number of warrants exercised | shares	0
Number of warrants canceled/expired | shares	0
Number of options/warrants outstanding, ending | shares	500,000
Weighted average exercise price outstanding, beginning	$ .05
Weighted average exercise price granted	.00
Weighted average exercise price exercised	.00
Weighted average exercise price canceled/expired	.00
Weighted average exercise price outstanding, ending	.05
Weighted average grant date fair value outstanding, beginning	.17
Weighted average grant date fair value granted	.00
Weighted average grant date fair value exercised	.00
Weighted average grant date fair value canceled/expired	.00
Weighted average grant date fair value outstanding, ending	$ .17
Expiration date outstanding, beginning	3 years
Expiration date outstanding, ending	2 years 9 months
Value if exercised, beginning | $	$ 25,000
Value if exercised granted | $	0
Value if exercised exercised | $	0
Value if exercised canceled/expired | $	0
Value if exercised, ending | $	$ 25,000

7. STOCK PURCHASE OPTIONS AND_4

7. STOCK PURCHASE OPTIONS AND WARRANTS (Details 1)	3 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]
Expected volatility, minimum	149.00%
Expected volatility, maximum	222.00%
Expected dividends	0.00%
Expected term, minimum	0 years
Expected term, maximum	5 years
Risk-free interest rate, minimum	1.32%
Risk-free interest rate, maximum	1.97%

7. STOCK PURCHASE OPTIONS AND_5

7. STOCK PURCHASE OPTIONS AND WARRANTS (Details 2)	3 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Number of options/warrants outstanding, beginning | shares	500,000
Number of warrants granted | shares	0
Number of warrants exercised | shares	0
Number of warrants canceled/expired | shares	0
Number of options/warrants outstanding, ending | shares	500,000
Weighted average exercise price outstanding, beginning	$ .05
Weighted average exercise price granted	.00
Weighted average exercise price exercised	.00
Weighted average exercise price canceled/expired	.00
Weighted average exercise price outstanding, ending	.05
Weighted average grant date fair value outstanding, beginning	.17
Weighted average grant date fair value granted	.00
Weighted average grant date fair value exercised	.00
Weighted average grant date fair value canceled/expired	.00
Weighted average grant date fair value outstanding, ending	$ .17
Expiration date outstanding, beginning	3 years
Expiration date outstanding, ending	2 years 9 months
Value if exercised, beginning | $	$ 25,000
Value if exercised granted | $	0
Value if exercised exercised | $	0
Value if exercised canceled/expired | $	0
Value if exercised, ending | $	$ 25,000
Stock Options
Number of options/warrants outstanding, beginning | shares	41,900,718
Number of warrants granted | shares	75,700
Number of warrants exercised | shares	0
Number of warrants canceled/expired | shares	(1,115,000)
Number of options/warrants outstanding, ending | shares	116,485,718
Weighted average exercise price outstanding, beginning	$ .15
Weighted average exercise price granted	.04
Weighted average exercise price exercised	.00
Weighted average exercise price canceled/expired	.36
Weighted average exercise price outstanding, ending	.07
Weighted average grant date fair value outstanding, beginning	.36
Weighted average grant date fair value granted	.01
Weighted average grant date fair value exercised	.00
Weighted average grant date fair value canceled/expired	.00
Weighted average grant date fair value outstanding, ending	$ .13
Expiration date outstanding, beginning	3 years 5 months 5 days
Expiration date granted	5 years
Expiration date outstanding, ending	4 years 4 months 2 days
Value if exercised, beginning | $	$ 6,308,991
Value if exercised granted | $	2,656,000
Value if exercised exercised | $	0
Value if exercised canceled/expired | $	(403,250)
Value if exercised, ending | $	$ 8,561,741

7. STOCK PURCHASE OPTIONS AND_6

7. STOCK PURCHASE OPTIONS AND WARRANTS (Details Narrative) - shares	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Share-based Payment Arrangement, Noncash Expense [Abstract]
Stock purchase options issued	0	0

8. FINANCIAL INSTRUMENTS (Detai

8. FINANCIAL INSTRUMENTS (Details) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Fair value of derivatives	$ 6,267,392	$ 5,009,094
Series H preferred stock		198,116
Level 1
Fair value of derivatives	0	0
Series H preferred stock		0
Level 2
Fair value of derivatives	0	0
Series H preferred stock		198,116
Level 3
Fair value of derivatives	$ 6,267,392	5,009,094
Series H preferred stock		$ 0

8. FINANCIAL INSTRUMENTS (Det_2

8. FINANCIAL INSTRUMENTS (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Derivative expense	$ 71,359	$ 1,043,090
Gain (loss) from derivative instruments	(324,692)	$ 612,212
Fair market value of the derivatives	$ 6,267,392		$ 5,009,094

9. COMMITMENTS AND CONTINGENC_3

9. COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Operating cash paid to settle lease liabilities	$ 15,351
Right of use asset additions in exchange for lease liabilities	154,541	$ 0
Right of use assets	133,520		$ 0
Lease payable, current	93,121		0
Lease payable, noncurrent	46,069		$ 0
Total lease payable	$ 139,190
Weighted average remaining lease term (in years)	1 year 6 months 29 days
Weighted average discount rate	12.15%

9. COMMITMENTS AND CONTINGENC_4

9. COMMITMENTS AND CONTINGENCIES (Details 1)	Sep. 30, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
2020	$ 92,558
2021	79,012
2022	0
2023	0
2024	0
Total	$ 171,570